Farewell with a Cheerful Countenance (in Victory)

The holiday season is in full swing, with a mix of work, festivities, and reflection for most people. As we transition towards the New Year, the weeks between Thanksgiving and New Year's Eve are typically characterized by a blend of professional commitments, holiday cheer, and introspection.

Reflecting on December 2023, one notable event occurred when Branded successfully closed the sale of Targetable to Chowly on the last business day of the year. The closing process was a collaborative effort by Targetable's former CEO, Andrew Nash, Chowly's CEO, Sterling Douglas, as well as Branded's CIO, Mark Senkpiel, among others. The deal was finalized on the evening of Friday, Dec 29, and celebrated at Doug Quinn's Hudson Malone bar.

Looking ahead to December 2024, it remains to be seen whether Branded will secure another significant deal before the year's end. If the past is any indication, however, the team is well-prepared to meet any challenges that may arise.

A macro theme for 2024 has been the presence of special situations, with Branded working closely with numerous companies that have advanced in their respective industries. Over the course of the year, several trends have emerged, particularly within the restaurant sector.

One noticeable trend for 2025 is the growing embrace of AI, which is poised to play a crucial role in shaping the restaurant industry. Though the restaurant industry has historically been slow to adopt technology and innovation, the global pandemic has accelerated the adoption of tech solutions, especially in response to increased demand for efficiency and personalization.

As a result, two primary focuses can be expected among operators in the coming year - a 'back-to-basics' approach emphasizing guest experiences, value, and personalization, and the strategic use of AI to leverage and maximize the wealth of data generated by the industry.

One area where AI can bring significant improvements is in addressing guest data, or consumer preferences. Tech platforms that effectively convert the raw data provided by operators into actionable, tactical recommendations and solutions for operators will be particularly successful in 2025.

Leveraging guest data will enable operators to provide personalized experiences, make data-driven decisions, and improve operational efficiency. For independent operators, the democratization of this valuable information represents an opportunity to streamline their businesses and enhance guest relationships.

One area where AI could make a meaningful difference is in ensuring seamless and frictionless payment solutions, potentially mitigating risks associated with traditional payment methods. Digital food allergy solutions are also gaining traction, particularly as the prevalence of food allergies has increased by over 50% since the 1990s.

Digital guest feedback platforms have become increasingly popular, as operators strive to create exceptional experiences for their customers and address any issues that arise. By gathering and acting upon customer feedback, operators can build loyalty, increase revenue, and maintain a competitive edge.

As we move into 2025, the hospitality industry is set for further transformation, with AI playing a key role in improving customer experiences, driving operational efficiencies, and optimizing resource utilization. The tech landscape will continue to evolve, with operators constantly exploring and adopting innovative solutions to meet ever-changing industry demands.

Sig Suggestions

Guest data provides value for a variety of stakeholders, from operators to suppliers, and can be especially effective when converted into actionable recommendations and solutions.
Independent operators can now access valuable information and tools to help streamline their businesses, effectively compete with larger players, and improve guest relationships.
It's essential for guest data platforms to address customer feedback to create a better dining experience and encourage repeat business.
The convergence of AI and hospitality will result in more personalized, efficient, and engaging dining experiences for customers.

Shoutouts

Fishbowl: The Ultimate Guide to Loyalty & Rewards serves as a comprehensive resource for restaurateurs looking to build effective loyalty programs and enhance customer engagement.
Mr. Bing Foods: With its innovative line of products, Mr. Bing can elevate pizzas and help the pizza industry embrace fresh, bold flavors.
Spirit Network: Tom Colicchio's The Pantry returns for its second season, offering insights into the world of spirits, wine, and culinary delights.

Takeaways

The restaurant industry is expected to undergo significant transformation, with AI playing a crucial role in enhancing customer experiences, operational efficiency, and inventory management.
Several trends have emerged, including a balance between technology and human touch, AI-powered operations, personalized menus, smart inventory management, and the rise of food delivery apps.
Food delivery apps and personalized customer experiences are increasingly important, given the surge in online ordering and the demand for convenience and customization.
AI's role in dynamic pricing, menu optimization, and staff scheduling can help restaurants adapt to changing market conditions, meet customer needs, and maximize revenue.

Reflecting on December 2023, Branded's sale of Targetable to Chowly underscored the company's active engagement in the ever-evolving hospitality industry, particularly within the restaurant sector.
Looking forward to December 2024, the potential for more significant deals in the pipeline reflects Branded's commitment to the industry's growth and the strategic use of finance to support its portfolio companies.
In the coming year, AI is expected to influence the guest experience, food-and-drink offerings, and the business operations of the hospitality industry, setting the stage for more seamless, personalized, and efficient experiences.
The adoption of technology like digital guest feedback platforms and food delivery apps will shape the future of the industry, with a focus on meeting customer needs for convenience, customization, and enhanced loyalty programs.

Farewell with a Cheerful Countenance (in Victory)