The rise of the experiential consumer

FOR MORE INFORMATION CONTACT:

Adam Werner

Global lead, Restaurants, Hospitality, & Leisure

Partner & Managing Director

awerner@alixpartners.com

Andrew Sharpee

Partner & Managing Director

asharpee@alixpartners.com

Molly Harnischfeger

Director

mharnischfeger@alixpartners.com

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article The rise of the experiential consumer, and why DE&I is the future of the U.S. restaurant industry ("Article") was prepared by AlixPartners, LLP ("AlixPartners") for general information

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We are at a pivotal, disruptive point. Following decades of

offshoring and automation and what is likely to come down

the pipeline with digitization and artificial intelligence, there

is strong potential with experiential consumer dynamic

shifts for hospitality to continue to move center-stage in

importance to the U.S. labor force. But 40% of hospitality

jobs remain unfilled.

The restaurant industry will have to transform to meet

this nascent goal; a sector that has historically positioned

itself to target a transient or entry-level labor force will

need to shift to a center of robust career development

willing to embrace labor disruption, from minimum wage

pressures to unionization. The evolution of the industry will

require further investment in diversity, equity, and inclusion

(DE&I) by leading concepts. Currently, there is a large gap

between what restaurant companies are investing in DE&I

and awareness among store-level employees about such

policies, suggesting many brands may not be effectively

signifying their ostensible commitment to DE&I.

Workforce management will be critical regardless of

where companies fall on the speed versus experience

spectrum. The next generation of employees will need

a heightened skill set to work more broadly across

operations and to leverage AI, technology, robot kitchens,

and other innovations on the horizon while also delivering

against customer experience. While the shift to the more

experiential consumer may be the beacon the industry

needs to further commit to ESG goals, it's ultimately less

about wooing the consumer, and more about attracting top

talent that can then feed the consumer experience.