In an exclusive interview with Darren Smith, Head of Operations at Flat Iron and a specialist in the food service industry, we gain insights into the lasting impact of the COVID-19 pandemic on the sector.
Darren shares his perspectives on various aspects, including the challenges faced, changes in consumer behaviours, technological advancements, supplier relationships, and the future outlook.
When reflecting on the return to pre-pandemic volume and sales and whether it is back to business as usual, Darren notes, “Yes, our 12 trading sites are all located in key London transport hubs so we have luckily been quite well protected. Mondays and Fridays have changed somewhat with people working from home, but we feel the trade has just shifted around slightly rather than ‘lost’.”
Regarding the biggest challenge posed by the pandemic, Darren emphasizes the impact on staffing, saying, “Struggling for people, for sure, finding the right ones and training them. Our workforce was decimated post-pandemic, which also limited our ability to induct and train well. Ingraining the culture of the business was difficult when 75% of the workforce has less than 3 months of tenure. I feel we are getting back to where we need to be, but it’s taken a while to get there.”
Discussing changes in consumer behaviours, Darren highlights the influence of Gen Z and their dining preferences, stating, “Gen Z is dining (and paying) differently. They are happy to pay for a meal with PayPal/Klarna, and pay at the table has taken off industry-wide. Also, TikTok is a platform to promote our brand, when we launch new restaurants or dishes, lots of our new guests are finding out about us through TikTok rather than Facebook/Instagram.”
Considering steps taken to prepare for future crises, Darren explains, “We were already in the process of moving our beef supply and any quirks with our supply chain to the UK, with Brexit on the horizon, it made sense. Covid just accelerated that process. I think the one great learning would be to not rush decisions.”
While exploring opportunities for innovation and growth, Darren mentions the implementation of technology-driven solutions, saying, “QR codes and order at the table, however, most of these have now been removed and felt specific to Covid rather than permanent innovations. Specifically to us, we also brought in free ice cream for all diners, as a value proposition we saw an opportunity to add value to an experience when everyone else has been cutting back or increasing prices.”
Considering the role of technology in the sector’s response to the pandemic, Darren points out, “A lot of the tech innovations were driven by people shortages and cost savings. Some of the innovations like order screens were probably on the way in any way for QSR-style businesses. QR codes came and went just as fast, but I think businesses are coming to terms with data capture and guest feedback more than ever before.”
Reflecting on the positive aspects learned from the pandemic and the changes it brought into the business, Darren states, “Due to the talent shortage, I think lots of progression opportunities were presented to people across the sector. I think we are all more willing to take a chance on people who display the right attitude and support them on the journey.”
Looking ahead to the next 12 to 18 months, Darren shares Flat Iron’s business outlook, saying, “We are looking to ramp up expansion with our first sites outside London. Cambridge opens in late July, and Manchester hopefully later this year, which is exciting. We anticipate a few challenges: supply chain and translating our culture and values to a new team. I’m sure there will be a few we haven’t thought of, but we all look forward to the challenges ahead.”
If you haven’t yet tried Flat Iron Steak in London you must!