Turbulence on the Horizon for the Foodservice Industry?
With the potential downfall of one of the largest restaurant holding groups coming to a head, does this mark a trend in the foodservice industry that could change the way that everything from fast-food to traditional restaurants? Learn more about the potential changes ahead and Francorp CEO Don Boroian’s statements on the changes coming in foodservice.
It was recently announced that Darden Restaurants is cutting somewhere in the neighborhood of 60 corporate jobs including a handful of executives as well as another 25 open positions.
The move will save the Orlando-based organization, which includes Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V’s, and Yard House, an estimated $20 million per year, with $10 million directly in 2014.
Don Boroian, CEO and Founder of Francorp, a franchise consulting and development company; feels this might be a precursor of things to come in the food sector.
“This is the first shoe to drop in what I believe will be a major restructuring in the foodservice business,” Boroian said. “This will be the direct result of the combination of the soft economy, increasing minimum wage, Obamacare (Affordable Care Act), anticipation of a major inflation ahead, and the highly competitive nature of this industry.”
As the industry continues to change, it is important that you get the right advice. Developing your strategy will help your business to proactively see the changes in the marketplace, grow more at the right times, and recognize complexities before they harm your business. Learn more about the strategic assistance that Francorp provides each of its clients, and how you can make the most of your business growth now and in the future.
- The Demise of Darden at the Hands of its Own Board Members [New York Times Dealbook]
- New Darden Board Promotes new Corporate Oversight Rules [Orlando Sentinel]
- The Business Concept and Its Marketability [Francorp Blog]