Chairman’s Column

Stay Strong By Standing Together

It’s an honor to write to you as the new chairman of Franchise Business Services (FBS). For many years, this space was filled with information and inspirational messages from our past chairman, Wray Hutchinson.

Wray remains on the FBS Board of Directors, and we are thankful both for his time leading the organization and to continue to have his participation in association affairs.

Thanks to Wray and many other leaders, as well as our strong membership base, FBS is a valued partner in the Buffalo Wild Wings® franchise system. We have a strong relationship with Inspire Brands, working collaboratively with the company to ensure that its decisions and actions are made with the best interests of our businesses in mind. This great association will stay focused on representing you and your interests as we hope for a bright future for all.

We are cautiously optimistic about what is ahead, even as we recognize the difficulties our businesses have faced since 2020. After emerging from the coronavirus pandemic, which hit our industry with unprecedented challenges, we are now encountering difficulties with ongoing labor shortages, supply chain problems, record-breaking inflation and what looks increasingly like an economic recession.

Our sports bars survived the shutdowns and layoffs of the pandemic through the ingenuity and hard work of our teams and leaders like you. This next challenge looks no less daunting and will require even more of that effort.

Average wholesale food prices jumped 15.6% between May 2021 and May 2022, according to the National Restaurant Association, representing the 10th consecutive month with double-digit gains on a 12-month basis. Several of the major commodities in the wholesale food price index stood well above their year-ago levels in May, including eggs (259.9%), butter (50%), flour (36.7%), fats and oils (32.5%), processed poultry (25.2%) and cheese (17.4%).

Inflation has hit levels not seen since the early 1980s. The Consumer Price Index rose 8.6% from May 2021 to 2022, the fastest pace of inflation since December 1981. Consumers are reacting to the negative news as you would expect. A survey by Morning Consult in May found that 80% of U.S. consumers said they are eating out less often because of inflation. More than 40% of restaurant operators expect economic conditions to worsen in the next six months, the highest reading since 2008 and the Great Recession.

There’s no doubt the current business environment is stormy and may remain that way for some time. We must be creative to encourage our guests to keep visiting us as frequently as they have before and to attract new guests with strategic marketing and the right value options. Deliver hot food hot and cold beer cold. Train your staff to be welcoming and friendly. Raising prices cannot become the only option. It will require the dedication and best efforts of the entire BWW® system to continue our collective success.

As we face today’s new challenges and the ones we know that will follow these, we stand stronger through FBS than we ever could alone. By sharing ideas and information, working together and uniting with one voice, our businesses will survive and thrive. Be sure you are taking full advantage of membership in FBS by participating in our events and staying engaged in our communications and programs.

Thank you for allowing me to serve as FBS chairman and for being a part of this vital community.

Jim Bitzonis FBS Chairman