System Catering: Curse or Blessing?

Swiss Distribution: Michael Siebermann, what has kept your members busy over the last two years?

Michael Siebermann: The coronavirus crisis was an extreme encroachment on entrepreneurial freedom. The hospitality industry was one of the biggest victims. A high degree of flexibility was required. The crisis probably did not change the industry from the ground up, but it did accelerate developments. One of these was certainly the growing importance of take-aways and delivery services.

Has Corona encouraged cooperation with independent partners - for example as part of franchising?

Even before the crisis, we noticed a trend towards group formation among our association members. This included many who opted for franchise systems. However, we did not see any marked change towards franchise systems in our member structures.

What advantages do you see for catering companies that want to grow with franchise systems, for example in system catering?

System catering has many advantages. The barriers to entry are relatively low. You don't have to worry too much about product design, supply chains or marketing, but can take over tried and tested concepts and concentrate on the day-to-day business. The concepts are also often easy to multiply. On the other hand, opportunities for personal development are rather limited and take place elsewhere within the company. For many restaurateurs, their own restaurant is a matter close to their heart. They do not want to fit into a standard scheme.

You presented a five-point plan to combat the shortage of skilled workers. The second point caught my eye: "Targeted company training on the topics of leadership and appreciation". Do hospitality businesses need to catch up in terms of management? Are businesses perhaps managed too "classically" as patron-run businesses?

As in all industries, there are good and bad examples. The classic "patron" is certainly still present. But it bothers me that the word has acquired such a negative connotation. If a company is run by a patron, this is not automatically a bad thing. She can also present herself as a positive identification figure. Rather, it depends on how the person performs their role and how they can respond to the expectations and demands of a new generation of employees. The aim of this aspect of Gastro Suisse's five-point plan must be to show entrepreneurs ways in which they can present themselves as modern bosses.

What risks do you see for gastronomy concepts that come from abroad?

Good space is limited and rents are high. Many system catering companies concentrate on high-frequency locations. It's impressive to see how much difference it makes when a concept is just a little off the beaten track. I have experienced this myself: two locations of the same brand, 25 meters apart as the crow flies at Zurich train station, same offer, same price. There were queues of customers at one, the other was yawningly empty. On the other hand, the competitive pressure is also high at these premium locations due to an oversupply. It is more difficult for less well-known, young brands to assert themselves. My experience has shown that international franchise entrepreneurs do not always analyze the local markets in detail and rely on their experience from other countries. This can quickly go wrong. You might think that this only happens to younger, small companies that take the plunge into internationalization. But it's actually the other way around: large corporations are often more sluggish and find it more difficult to adapt to different market characteristics.

How do you see the restaurant scene in Switzerland in five years' time?

The hospitality industry is robust, adaptable and has already survived many a megatrend. I therefore do not believe that the industry will really look significantly different structurally in five years' time, provided that sustainable solutions to the acute shortage of skilled workers are found quickly and work in the hospitality industry can be given the status it deserves again.

So it remains as it is?

Personally, I can see two directions: on the one hand, traditional, staffed gastronomy, which will probably undergo a certain premiumization, i.e. it will have to find the middle ground between rising guest expectations and the economic demands of a mass market: smaller menus, high-quality, local products, a high quality of stay in the restaurant, but probably also higher prices. On the other hand, all-day out-of-home and fast-casual concepts will continue to grow in importance. I believe that these trends complement each other well. While in the first case, eating in a restaurant becomes a socio-cultural event, in the second case it is more of a necessity that arises from the daily routine, but which people still want to pursue as comfortably and individually as possible.

* The interview was conducted by Melanie KäserManaging Director of Swiss Distribution. She deals in depth with distribution issues, including as a lawyer.

The interviewee Michael Siebenmann is Head of Marketing and a member of the Executive Board at GastroSuisse. A graduate of the Lucerne Hotel Management School, he has previously worked in several national and international system catering companies.