At RFDC 2024, the session “Emerging Brand CFOs: What They Have to Say About Tech, Labor, Cost Controls, and More!” brought together financial leaders from some of the most exciting growing restaurant brands. Moderated by Chris Banse of RSM, the panel featured:
- Bill Long, Snooze, An A.M. Eatery
- Bradford Reynolds, Shipley Do-Nuts
- Chris Crawley, Hofman Hospitality Group
These CFOs offered a behind-the-scenes look at the unique challenges and opportunities they face in leading the financial strategy for fast-paced, emerging restaurant brands.
The Many Hats of a CFO in a Growing Brand
Unlike their counterparts in more established companies, CFOs in emerging brands juggle a wide range of responsibilities. From financial reporting to IT oversight to operations support, these leaders are at the heart of decision-making in their organizations.
The session highlighted four key areas where CFOs are driving growth and innovation:
1. Technology: A Critical Lever for Growth
All panelists emphasized the importance of leveraging technology to streamline operations and provide actionable insights. As Bill Long from Snooze shared, “Technology isn’t just a back-office tool; it’s a growth driver.”
Key takeaways included:
- Integrated Systems: Emerging brands often adopt scalable, integrated platforms that connect financial reporting, labor management, and operational data.
- Real-Time Data: Access to real-time analytics allows CFOs to make proactive decisions in a competitive market.
- Tech ROI: Evaluating the return on investment (ROI) for new tools is crucial to ensure long-term sustainability.
2. Labor: Navigating a Complex Landscape
Labor remains one of the biggest challenges for CFOs, especially with rising wages and workforce shortages. Bradford Reynolds of Shipley Do-Nuts discussed the importance of balancing labor costs with employee satisfaction.
The panel shared strategies like:
- Labor Forecasting: Using data to anticipate staffing needs and control costs.
- Employee Engagement: Investing in training and workplace culture to improve retention.
- Compliance Readiness: Staying ahead of evolving labor regulations to avoid costly penalties.
3. Cost Controls: Protecting Margins
Chris Crawley from Hofman Hospitality Group highlighted the need for rigorous cost controls in a high-growth environment. CFOs in emerging brands play a hands-on role in managing expenses without stifling innovation.
Key strategies include:
- Menu Engineering: Focusing on high-margin items while minimizing waste.
- Supplier Partnerships: Negotiating contracts that support growth goals.
- Efficient Scaling: Building systems that keep costs predictable as the brand expands.
4. Leadership: Balancing Strategy and Execution
The panelists agreed that leadership is as much about influence as it is about numbers. Emerging brand CFOs are often the bridge between finance, operations, and IT, ensuring that all departments work toward common goals, whether it’s raising capital, using handheld Point of Sale systems (like CBS NorthStar), or implementing new loyalty systems.
A Vision for the Future
As these CFOs demonstrated, financial leadership in an emerging brand requires agility, foresight, and a willingness to innovate. From adopting new technologies to navigating labor challenges, their insights offer valuable lessons for anyone operating in the dynamic world of restaurants.
Whether you’re leading an emerging brand or supporting one, the strategies shared in this session underscore the importance of a holistic approach to financial leadership.
What challenges or strategies resonate with your experience? Let’s continue the conversation about navigating growth in the restaurant industry.
