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Leading through ComplexityA View from Hospitality CEOs

Consumer markets PraCtiCe | HosPitalit y & leisure seCtor

16050840-hs-00173-Hospitality Report.indd 1 27/05/2016 15:07

This report details views of leaders who between them are responsible for organisations with over £30 billion in sales and over 850,000 employees.

The spectrum of organisations encompasses:

• Hotels and related services

• restaurants and related services

• Pubs

• late-night entertainment

• sporting and recreational activities

• Catering

Businesses range from large publicly listed

entities, private equity portfolio companies

and privately held businesses, as well as

trade and representative organisations.

Heidrick & struggles is delighted to be working with the

British Hospitality association once again, and we hope

the results of this report will prompt further discussion,

debate and, hopefully, collaboration on key issues.

Participants who were comfortable to be quoted

or named directly are detailed at the end of

this report. We would like to thank all of these

individuals as well as those who participated in

Leading through Uncertainty, our 2015 report on the sector.

Key findings, at a glance:• Consumer confidence is more

challenged than last year.

• economic confidence and optimism has decreased year-

on-year, moving from a majority “optimistic” to “neutral” view.

• the economic outlook is still fragile.

• Heightened security threats and concerns about terrorism remain.

• Culture and leadership: the role of a leader in the sector continues to evolve.

• the majority of leaders fear that uncertainty about the outcome of the

2016 european referendum will impact their businesses this year.

• the majority of leaders would advocate Britain staying in europe, although the proportion

of “remain” responses decreases when leaders give their personal view.

• the majority of participants view politicians as disconnected and out of

touch in their understanding of the sector and its importance

to the uk economy. this “disconnect” has

increased year-on-year.

2 Leading through Complexity


Economythe hospitality sector is the fourth-largest industry in the

uk, directly employing over 2.9 million people, larger than

other industries such as financial services, manufacturing,

construction, defence and public administration. the

sector has created one-third of all new jobs for 16- to

24-year-olds, but the frustrations of being perceived

as the employment sector of “last resort” remain. as

with our 2015 report, all participants would recommend

the sector to the “next generation” but the majority

recognise that more needs to be done to fully “articulate

the breadth” of potential opportunities available.

The big challenge: Consumer confidencethe main economic challenge facing the uk remains

consumer confidence. For an industry that is regarded

as an indicator of consumer confidence for the rest of

the economy, it is always likely to remain front of mind.

overall, most Ceos are neutral about whether

consumers will be more optimistic or more cautious

over the coming year – perhaps an indication of the

unpredictability of the market. When comparing this

to our 2015 report, Leading through Uncertainty, there

is a marked difference. in 2015 the majority of leaders

(54%) were “optimistic” about consumer confidence.

one Ceo feels that “most of the recent indicators around

consumer confidence are improving” while another said

that “consumers are in a really good place” with people

capitalising on low interest rates, lower household

bills and cheaper transport. toby smith, Ceo of novus

leisure, mentioned that “in their own bubble, people

are feeling quite confident”, while rooney anand, Ceo

of Greene king, noted that consumers are feeling that

they have “more control over their destiny than they have

had since 2010”. But they are also cautious of “external

factors” and there are indications of uncertainty.

and it is these external factors that are making

Ceos feel that consumer confidence is, as with the

economy, “terribly fragile”. in contrast to last year, when

fragility was being created by the general election

as well as volatility in financial markets, it is now

the eu referendum and the recent terrorist attacks

and threats that are causing the most concern: “the

biggest confidence-knocker is terrorism right now.”

one leader also mentioned a rise in oil prices which

would have a knock-on effect for consumers: “if petrol

prices suddenly rocket again, food prices, etc., will go

up” and consumers are going to quickly find life tough.

as uncertainty in the market becomes more constant –

the “new norm” – it is interesting to note the changing

perspective of our Ceos. in last year’s report, Paul Flaum,

managing director of Hotels & restaurants at Whitbread,

said, “We’re not in a boom time!” this year, the Ceo of a

large chain of restaurants stated, “it doesn’t feel like we’re

in the boom time but we are”, confirming the feeling

that growth will be more gradual and harder to achieve.

another leader was more balanced: “things will trundle

on as they are. employment is fairly full; interest rates

are low. But the majority of the growth has been

driven from house prices. Consumers are allowing

themselves to cash in on house price inflation”.

Heidrick & Struggles 3


the key driver remains uncertainty. uncertainty dents

confidence – whether that is with consumers and their

perceived ability to spend on luxury items and treats, or

companies’ willingness to invest. the current environment

is regarded by many as “fragile”. Chris edger, professor of

multi-unit leadership at Birmingham City Business school,

advised, “enjoy the good times but prepare for the worst”.

a note of optimism came from several Ceos who

believe the industry is able to adapt quickly to changing

circumstances – more so than ever, having come through

the previous downturn. What is increasingly difficult

is the ability to foresee where these game changers

are going to come from. Being “leaner and more

innovative”, however, provides a layer of protection.

London vs the regionsthere remains a concern that london is performing

very differently from the rest of the uk. one Ceo said

that “the provinces should be fine, but london will

have its challenges” with quieter months in london

having a “disproportionate effect” on the whole

market. Confidence is building in the “northern

Powerhouses”, in some part due to the continuing

focus from government on improving transport

links and devolving power from london.

interestingly, certain businesses are experiencing

issues within london, with a marked difference in

performance between the West end and the City or

“outer” areas. one Ceo commented on how the “fear

factor” was impacting customer numbers in the West

end, also adding that the “crazy rent increases” were

“dramatically altering” the profile of the sector in high-

profile parts of the capital: “rents are now driving

the medium-sized players out of the West end so you

are seeing real growth in the challengers as well as

the mainstream brands in zones two and three”.

Economic growththere has been a slight shift in sentiment since last

year from an optimistic to a more neutral stance with

regard to the uk’s economic outlook. the majority

of Ceos present a more cautious view and are very

conscious this has shifted from their view 12 months

ago. While some feel “moderately optimistic” or “as

optimistic as last year”, what was seen as a good start

to the year has tailed off for some. Duncan Garrood,

Ceo of Punch taverns, summed up the current

position as “a bit of the shine is off from last year”.

While some leaders are seeing “encouraging

consumer trends”, with some indication of growing

consumer confidence, many feel there are reasons to

be more cautious in believing the uk is experiencing

sustainable economic growth. they cited factors

such as recent terrorist attacks and threats, london

versus regional anomalies and the impending eu

referendum. as Ceo of Carnival uk , David noyes,

mentioned, “many of the fundamentals on the British

economy are pretty good, i can’t remember when

unemployment was as low. there have been 12 months

of real salary growth and zero inflation. the issues are

more about the British economy in the wider context, in

particular the uncertainty around Brexit”.

simon Vincent, executive vice president at Hilton,

believes the “market remains relatively robust with

the uncertainty being created by a disconnect

between the economic fundamentals” of his

business “which remain broadly positive” and the

way “the markets are interpreting some short-term

economic data and the geopolitical landscape”.

there is also a difference between whether some of these

factors are affecting consumer confidence or business

confidence. the eu referendum, for example, is viewed

by one Ceo as having greater influence on business

decisions. mike tye, former Ceo of spirit Pub Company,

said, “it will be very wobbly until the referendum because

most companies will not invest until after the decision”.



Key economic challenges aheadas mentioned, terrorism (and the threat of future

attacks) and the eu referendum are seen as the key

challenges facing the uk in the coming year. a potential

“Brexit” is causing uncertainty for both consumers

and businesses. a rise in interest rates would create

a shock wave for consumers, while a rise in oil prices

would, undoubtedly, raise costs for everyone.

For the hospitality industry in

particular, several CEOs mentioned

the ability to attract and retain talent

as a key worry, along with the raising

of the minimum living wage. One

CEO said, “The increase … is the

right thing to do but catch-up is

needed to balance the P&L”. Adam

Fowle, CEO of Tesco Family Dining,

added, “The cost of housing is a

real challenge, nobody seems to

have the answer and you have to

question how the next generation

are going to get on the property

ladder. This will also have an

impact on our industry, especially

around staffing in London”.

Businessoverall, sentiment on current business performance

is positive, but with a slight note of caution. there is

a “sense of positivity”, acknowledging that consumers

are spending more, rather than more often. this may

indicate a move towards quality and loyalty as consumers

demand a better experience. this performance is

viewed as being generally better than the previous

year, particularly the start of 2016, with consistency

being key. simon townsend, Ceo of enterprise inns,

talked about “greater levels of investment in the

sector” than he had seen in “the previous 5–10 years”.

this is balanced, however, by comments describing 2016

as “challenging” and “interesting” with more competition

for share of wallet than ever before. looking ahead,

predictions around business performance are equally

mixed. one Ceo of a hotel chain expects “double-digit”

growth across its uk business whilst a Ceo of a mid-sized

private equity–backed restaurant group said, “i certainly

do not feel optimistic…people’s spending is not where

it should be”. For some, the protection of being a known

and trusted brand is helping to maintain business growth

even during times of uncertainty. However, this view

was challenged by other participants who commented

that whilst “consolidation will continue”, the threat from

“smaller, more entrepreneurial brands who know their

customers” is “very real” outside of central london.

another Ceo said that “headlines would suggest that

we were heading into the next recession” but that

“whilst things were slightly slowing down, they are still

relatively robust”. the Ceo of a global restaurant brand

added, “the press are doing their usual thing…there

is a massive disconnect between what we’re seeing

and what the press are actually reporting”. uncertainty

around what may happen in the european election

remains a key concern, with the leader of a uk listed pub

group commenting, “Had it not been for Brexit, i would

have been very optimistic. it does feel like the scottish

referendum. it feels scarily close. so much uncertainty…

we need barriers to come down, not be built up”.



Predictions for commercial performance going forward:

Last year This year

20% 8%

53%

13%

7%

7%

48%

25%

10%

9%

Much WorseSomewhat WorseSameSomewhat BetterMuch Better

Top concernsthe key concerns for business are varied, from the

previously mentioned security threats (one leader

commented that “my real concern is around central

london: to me there is a sense of waiting for something

dreadful to happen”) to technology alongside the

arrival of market disruptors, to the cost of doing

business. But one common theme is how to keep your

customers coming back. as Paul Flaum of Whitbread

commented, “the consumer is becoming much more

demanding – they have much more choice and more

knowledge than ever before, therefore they are more

unforgiving”. Consumers are demanding a bespoke,

personalised experience now, and for the bigger brands

this is challenging. trying to react to the demand

whilst staying true to the brand is extremely difficult.

technology is creating a very interesting landscape for the

hospitality industry, given the ease with which consumers

can talk about each business. the scrutiny each business

is now subject to, and the transparency they have to

deliver, is redefining the customer experience. one

Ceo stated that the “customer is more influenced by

technology. they check you out before they visit you –

you have to create the great experience much earlier on”.



What keeps you awake at night?Given the optimism, albeit cautious, for business in

the year ahead, there are still many things keeping

our Ceos awake at night. Given recent events, it is no

surprise that safety and security are at the forefront.

the impact of recent terrorist attacks, and the threat

of future attacks, is of particular concern especially

given the locations of recent targets – restaurants,

airports, holiday resorts and venues. attracting and

retaining talent is also a major concern, as it was in

our previous report, as well as the need to ensure the

right strategic talent is in place as markets evolve.

there is also a concern over attracting new, young

talent into an industry that has been traditionally seen

as offering a job rather than a career. leaders also

spoke about regulatory and legislative costs – not

least the rise in the minimum wage. this has added

a great deal of additional costs to many hospitality

businesses and at relatively short notice.

underpinning all this is the sense of uncertainty and

instability which tests not only consumer confidence

but also the validity of strategic plans and decisions. the

uncertainty around the eu is creating “a complexity of

influence” which only further confuses the picture.

and finally, competitors are always a worry, especially

with “a trend for the new” and diminishing brand loyalty.

Brand power is no longer enough in itself, with consumers

expecting an increasingly personalised experience. as

michel taride, group president of rent a Car international

at Hertz, commented, “leaders need to be aware of what

is going on around them – you never want to fall behind.”



Leading the UK’s fourth-largest industryWhat makes a good leader in the hospitality sector?

We asked all participants to think about what makes

a good leader. Particularly in the hospitality industry,

there is a fine line between people-oriented service

at one end and the commercial realities of running a

business at the other. and sitting in the middle is the

Ceo who is trying to create an amazing experience for

the customer, one that will hopefully inspire loyalty,

while ensuring the long-term survival of the business.

leaders need to be authentic and empathetic

and to display their personalities. at the same

time, they need to play the role of the bold

figurehead that people will follow and admire.

employees, customers and other stakeholders (a broad

group including a vast spectrum across social media)

want to understand what companies stand for.

as we noted last year, being passionate about the

hospitality business and your customers is key. While

this may seem obvious, it needs to be matched

with the ability to communicate this passion to all

employees, not just the leadership team, in order to

take everyone on the same journey. When this works, it

is clear the result is greater than the sum of the parts.

When asked what three words would best describe

them as a leader, our participants responded with a

variety of answers – perhaps indicative of the nature

of the sector and the great diversity that exists

overall as well as within each individual workforce.

We asked all participants for the word that described themselves as a leader:

the most common word given was “passionate”, followed

by “focused”. in a complicated and often challenging

environment, a leader needs to be single minded in

following strategy, setting goals and achieving results

but they also have to “relentlessly communicate their

vision”. Duncan Garrood of Punch taverns remarked

that leaders “need to have a passionate approach,

and not just an academic approach”. michel taride of

Hertz said that a leader needs to be “someone who

understands the world and where the world is going,

whilst managing through clear objectives, strong

execution and accountability”. Darren Gearing of

shangri-la Hotels explained that a leader needed to

be an “outstanding communicator at all levels” whilst

robin rowland, Ceo of yo! sushi, added that you “have

to share each other’s role and objectives…ensuring an

openness and honesty amongst the leadership team”.



Culturethe word “culture” is easy to say but difficult for an

organisation to describe – and for a Ceo coming into

an established organisation, it can be difficult to shape.

But it is a vital challenge each Ceo faces with one saying,

“Culture is the most important thing the leader will create”.

But what is it? one Ceo remarked, “Culture is founded

on sincerity, respect, humility, courteousness – this

has not changed”. many leaders feel their “leadership

shadow” is about “visibility and accessibility”,

“confidence” and “clarity”. another leader said it is

“pretty easy to cast a shadow if what you are saying

to people is reasonable, relevant and reachable”.

Paul Flaum of Whitbread said, “Culture is created by

living and breathing it – not by writing it down”.

Darren Gearing of shangri-la feels that the

key is “to be approachable and have an eye for

detail – which tends to be a winner in this industry.

Bit old school, but concentrating on what’s

important and consistency of application.”

But, for many, it is not just about the shadow cast by the

Ceo but also by the wider leadership team. there needs

to be a “strong head office … cascading the themes and

objectives”, with employees looking to that leadership

team to “piece it all together” and provide “reassurance”.

and the importance of the team to the Ceo cannot be

underestimated. robin rowland of yo! sushi said, “i

won’t feel comfortable until i can get the team right”.

the very nature of the hospitality business is changing:

how are Ceos navigating the impact of technology on the

business? a consistent response was about “embracing”

change and “taking away some of the fear”. one Ceo

said that “an emoji can destroy your brand”. it is clear

that new technology is taken very seriously, with the

majority of leaders recognising that this is a “gap” in

their experience, along with a need to ensure that they

have the right capability around their top team: one

leader commented that his challenge was to “stay young

in mind and attitude” with “diversity of thought”.

this leads into the debate about attracting new,

young talent into the industry and how to harness

the connection between your employees and your

customers. one leader commented that “diversity

in our industry is not spoken about sufficiently and

not at a sufficient level. We need to talk about it. a

diverse team is a stronger team”. the Ceo of a publicly

quoted pub group added, “it is not about taking

cost out; it is about changing the model. a big thing

is about navigating change in today’s world”.

Worryingly, this year we also saw leaders comment about

the concerns around who may take over from them, with

remarks about “the quality of leaders in succession roles”

and how “retention and development of next-generation

leaders is still not happening in all parts of the sector”.

Leading todaymany Ceos agree that managing people in the current

environment is very different from before. With a

more collegiate approach, the role of the Ceo can

sometimes be, according to adam Fowle of tesco,

more like “parenting a business than leading one”.

it is accepted that Ceos are not expected to know

everything, but to surround themselves with a team

of people who do. Paul Flaum of Whitbread said, “the

leader is there to ask the questions and understand the

answer”. rooney anand of Greene king added, “you

have to navigate through immense complexity” but

sometimes you need “drama to get the engine going,

but not to the point where it freezes the organisation”.



“My role is to mitigate risk. Often our outlook on

the world is not expansive enough – we are not as

prepared for the unknown as we should be…”

other comments included:

and as if to sum up the very nature of the challenges

of leading in the sector, Chris Browne, non-executive

director of easyJet, noted, “one thing you can be

sure about is that sometimes you have absolutely

no idea what is coming around the corner”.

Politicsa key concern in last year’s report was the lack of

engagement with government, with a Ceo commenting

that “hospitality is the Cinderella sector, we never get to

the ball”. the majority of leaders interviewed felt that

relations with government had not improved in the

last 12 months, citing the recent announced changes

in the rates of the national minimum Wage as a prime

example. this was done with little, or no, consultation

with the hospitality industry. as one Ceo put it, “the

industry can’t help but feel undermined by the ill-

thought-out decisions”, while another said, “We employ

over a million people and they didn’t ever ask us what

the impact is”. another noted that there will be “lots of

unintended consequences in the short and medium term”.

there were, however, some leaders who were more

uncomfortable with the rationale for the increases. they

commented that the very nature of “increased people

costs” could undermine further investments from

businesses to their workforce. ivan schofield, ex-Ceo of

ed’s easy Diner and ex-mD of kFC Western europe, saw the

impact of minimum-wage policies at first hand in France.

“Between 2003 and 2013 the cost of employing someone

on the minimum wage in France grew from about €9

to €15 per hour. this was deleterious to job creation in

two respects. Firstly, companies passed the costs on to

the customers through pricing, resulting in a stagnant

or declining eating-out-of-home market over the cycle.

secondly, margins and new unit returns suffered with

a consequential reduction in new unit development.

We all know that the hospitality sector is an engine for

youth job creation; and yet youth unemployment in

France grew from 18% to 24% between 2008 and 2016.

so, the leaders in the sector tried to impress upon the

government that minimum wage–inflation policies were

killing the goose that lays the golden eggs”. over time

politicians understood the message but these policies

are practically impossible to reverse. a more extreme

view, from one restaurant Ceo, was that legislation

will just “strip out” more “human interactions” from his

business as they further invest in automation. a number

of leaders commented on how tips were often ignored by

government and the media, with one Ceo commenting

that he had surveyed his 9,500 employees and that the

“vast majority” were “happier keeping things as they are”.

the living Wage itself was not, however, viewed

negatively by the majority of participants, but all 10 Leading through Complexity


“My role is to mitigate risk. Often our outlook on

the world is not expansive enough – we are not as

prepared for the unknown as we should be…”

commented that their businesses needed “time to

plan”, with the announced changes happening “too

quickly”. another topic was business rates, with several

Ceos commenting on how the “promised review” was

made “over two years ago and we’re still waiting”.

the perception that the government does not understand

the sector or how to communicate and engage with

it remains. Hospitality is still viewed as an “upstairs/

downstairs” culture and at times considered not a “serious

industry to go into”, despite its economic impact. the

industry feels it has a highly credible solution to the

unemployment problem for 18- to 24-year-olds, as it

continues to attract a high proportion of younger workers,

with one restaurant Ceo commenting that “we have

more allies in the government now because we have

a real solution to next-generation unemployment”.

more needs to be done on other policies, with

participants commenting on a variety of issues

including the need to cut the rate of Vat on

tourism, reduce red tape and more actively

encourage enterprise, as well as the need to “finally

sort out” and “get on with” implementing the

recommendations of the airports Commission.

some are more encouraged and can “recognise

some signals” that things are getting better but there

needs to be more engagement and collaboration

from senior industry leaders to make it work. one

hotelier commented that he feels “incredibly

frustrated by everyone who complains about the

lack of government engagement and then doesn’t

turn up to the events held with government”.

Undecided

Vote out

Vote in

8%18% 74%

‘Brexit’

last year’s report was written ahead of the uk general

election – this year, the uk faces the eu referendum.

the vast majority of participants would prefer to stay

within the eu to minimise disruption and uncertainty.

nick longman, managing director of tui uk &

ireland, said, “it makes operations easier [and] more

straightforward”. and with consumer confidence

already fragile, some businesses are concerned about

the unknown if we were to leave the eu. the Ceo

of a large pub chain said, “the idea that we can get

divorced and will remain the same is unthinkable – we

cannot contemplate a world where Britain is isolated.”

another key consideration is that european membership

suits the nature of many businesses in the sector.

the hospitality industry supports a large number of

workers from other countries, with approximately

30% of the hospitality workforce being migrants, and

one Ceo said that “being part of the eu has kept the

sector going…migrant labour has been critical to

us”. also of concern is the impact that leaving the

eu would have on uk visitors, especially tourists.

our results were also interesting when comparing

the answers of Ceos of uk market businesses to

those of their multinational peers. For respondents

who are part of a global or, at least, pan-european

business, building barriers rather than bringing

them down feels counterintuitive to growing the

business. the european president of a global brand

commented that “anything other than staying in

works against our business…but we have to [be]

more ambitious for the uk’s place in the world”.

there is, however, an understanding of the pressure

for change and the public support for Brexit. as such,

one Ceo said, “the lack of predictability of outcome is

unnerving”. the very personal nature of the question

was commented on by all, with the Ceo of a global

travel brand remarking, “it is such a dilemma. i can see

the economic benefits of staying in but on a personal

level i can’t say i’m convinced by the political benefits”.

this challenging nature of the question was,

however, summarised by one Ceo: “i don’t think that

anyone is yet qualified to answer the question”.



“We want stability

and certainty”

“From a business

perspective we have

to stay in”

“I hope that the

country will vote in.

I’m not con�dent

thinking about

isolation”

“I am very proud of

being British…but I like

to think I’m a �ercely

independent European”

“It will be an

emotional decision”

“ Six months ago I was

proclaiming that there

was absolutely no way we

would exit but now I am

really shaken!”

“The certainty of

uncertainty: Europe has to

respond at some point

because they have to worry

about the domino e�ect"

“We cannot

contemplate a world

where Britain is

isolated"

“How do you make a decision from an

economic, political or personal level?

Do we want control of our own

destiny? There are 53 million of us in

England and frankly the others will

follow anyway"

“ The lack of predictability

of outcome is unnerving"

“In the end there is no perfect

world but it is in the best interest

on balance to stay in. I would

prefer a world with UK in Europe

but we are already looking at

contingency plans"

“I can see the challenges of

being part of the EU but it

cannot be signi�cantly better

outside. The cost of change

cannot be justi�ed"

“I think we could leave if we

wanted to leave – it wouldn’t

be as much as a problem as

everyone is making out. The

migrant crisis is about national

identity not about �lling jobs"

“An awful lot of decisions will be

based on emotion. I am Irish – I

grew up in Northern Ireland,

married a Scot but have always

worked in London. To be together

is so much more powerful and they

have not thought through the

unintended consequences.

Scotland will get a referendum this

time…”

“I think our customers

are ambivalent, as

long as a business we

can deliver the best

price and best option”

“I hope the country will

vote in. I am not good

thinking about isolation

– we are a classic case

of better together"

“I am nervous – unfortunately,

Cameron has not pulled o� a

headline deal and most people

are underwhelmed"

“Most are very proud of being

British. We think like a European

but we are �ercely independent"

“We are decent

people, aren’t we? We

are an inclusive nation

– if we lost that there

will be people to

blame"

“It will be an emotional decision.

The big challenge is that something

so strategically important will be

based on a lack of knowledge. My

hunch is that people will stay in"“I think in

the end it will be a bit like the

Scottish referendum. The ‘F***

Brussels’ mentality is much stronger

out there on the streets…but we’ll

scrape staying in”

“Uncharacteristic

prudence is adding to

the cocktail of

uncertainty"

“The population will be

more fearful of the

unknown"“I am a born optimist; there is

not a compelling enough

argument for change and so I

think we will stay in"

We asked participants for their view on the Brexit question:



“We want stability

and certainty”

“From a business

perspective we have

to stay in”

“I hope that the

country will vote in.

I’m not con�dent

thinking about

isolation”

“I am very proud of

being British…but I like

to think I’m a �ercely

independent European”

“It will be an

emotional decision”

“ Six months ago I was

proclaiming that there

was absolutely no way we

would exit but now I am

really shaken!”

“The certainty of

uncertainty: Europe has to

respond at some point

because they have to worry

about the domino e�ect"

“We cannot

contemplate a world

where Britain is

isolated"

“How do you make a decision from an

economic, political or personal level?

Do we want control of our own

destiny? There are 53 million of us in

England and frankly the others will

follow anyway"

“ The lack of predictability

of outcome is unnerving"

“In the end there is no perfect

world but it is in the best interest

on balance to stay in. I would

prefer a world with UK in Europe

but we are already looking at

contingency plans"

“I can see the challenges of

being part of the EU but it

cannot be signi�cantly better

outside. The cost of change

cannot be justi�ed"

“I think we could leave if we

wanted to leave – it wouldn’t

be as much as a problem as

everyone is making out. The

migrant crisis is about national

identity not about �lling jobs"

“An awful lot of decisions will be

based on emotion. I am Irish – I

grew up in Northern Ireland,

married a Scot but have always

worked in London. To be together

is so much more powerful and they

have not thought through the

unintended consequences.

Scotland will get a referendum this

time…”

“I think our customers

are ambivalent, as

long as a business we

can deliver the best

price and best option”

“I hope the country will

vote in. I am not good

thinking about isolation

– we are a classic case

of better together"

“I am nervous – unfortunately,

Cameron has not pulled o� a

headline deal and most people

are underwhelmed"

“Most are very proud of being

British. We think like a European

but we are �ercely independent"

“We are decent

people, aren’t we? We

are an inclusive nation

– if we lost that there

will be people to

blame"

“It will be an emotional decision.

The big challenge is that something

so strategically important will be

based on a lack of knowledge. My

hunch is that people will stay in"“I think in

the end it will be a bit like the

Scottish referendum. The ‘F***

Brussels’ mentality is much stronger

out there on the streets…but we’ll

scrape staying in”

“Uncharacteristic

prudence is adding to

the cocktail of

uncertainty"

“The population will be

more fearful of the

unknown"“I am a born optimist; there is

not a compelling enough

argument for change and so I

think we will stay in"

For interest, we also asked participants for their prediction on how the country will vote on the 23rd June:

leading through complexity

the uk hospitality sector has had another challenging

year, but despite this, it has continued to grow

successfully. uncertainty felt throughout the sector

in 2015 has continued and the “Brexit” answer

could be a challenge for the sector to navigate.

the sector is a critical part of the uk economy, creating

over 4.49 million jobs in more than 180,000 businesses

of varying size and scale. more work needs to be

done by the sector to ensure a better articulation

of its economic value and social importance.



Participants

We are grateful to the following participants for their time and input into the 2015

and 2016 reports. our thanks also goes to our anonymous contributors.

thomas Dubaere managing Director, uk & ireland accor

mark Fox Chief executive officer Bill’s restaurants

Christian edger Professor, multi-unit leadership Birmingham City university

nick rust Chief executive officer British Horseracing authority

Gerry Ford Chairman & Chief executive officer Caffè nero

David noyes Chief executive officer, uk Carnival

steve richards Chief executive Director Casual Dining Group

David Wild Chief executive officer, uk Domino’s Pizza Group

Catherine roe Chief executive officer, uk elior

ivan schofieldex-Chief executive officer ed’s easy Diner

ex-managing Director, Western europe kFC

simon townsend Chief executive officer enterprise inns

simon emeny Chief executive officer Fuller, smith & turner

nick Blofeld ex-Group Chief operating officer GFo

tom Crowley managing Director Giraffe restaurants

alasdair murdoch Chief executive officer Gourmet Burger kitchen

rooney anand Chief executive officer Greene king

michel taride Group President, rent a Car international Hertz

simon Vincent executive Vice President & President, emea Hilton Group

Harry murray Chairman lucknam Park Hotel & spa

amy mcPherson President & managing Director, europe marriott international

nick Varney Chief executive officer merlin entertainments

Chairman British Hospitality association

alistair Darby ex-Chief executive officer mitchells & Butlers

toby smith Chief executive officer novus leisure

Jens Hofma Chief executive officer, uk Pizza Hut restaurants

Duncan Garrood Chief executive officer Punch taverns

maurice kelly ex-Chief executive officer rileys sports Bars

Dominic Paul managing Director Costa Coffee

Darren Gearing executive Vice President shangri-la Hotels

mike tye ex-Chief executive officer spirit Pub Company

Greg madigan area Development manager, uk & ireland subway

adam FowleChief executive officer, Family Dining tesco

Chairman Bramwell Pubs & Bars

Grant HearnChairman the Hotel Collection

independent non-executive Director scandic Hotels

Peter avis manager, Babylon the roof Gardens

Peter Gowers Chief executive officer, uk travelodge Hotels

nick longman managing Director, uk & ireland tui Group

Christine Browne ex-Chief operating officer, aviation tui travel

Patrick Dempsey ex-managing Director, Hotels & restaurants Whitbread

Paul Flaum managing Director, Hotels & restaurants Whitbread

robin rowland Chief executive officer yo! sushi



Consumer Markets PracticeHeidrick & Struggles’ Consumer Markets Practice is the recognised leader in

recruiting senior executives and non-executive directors for companies large and

small across the spectrum of consumer-focused companies.

our team comprises consultants with detailed knowledge of all sectors of the consumer markets industry,

including consumer goods, retail, apparel, hospitality, and media. We bring this focus to our clients and have

the added advantage of being able to partner across sectors and with functional experts to bring innovative

solutions to the human capital needs of our clients. our recent experience with significant emerging

talent needs such as digital marketing, customer experience, e-commerce, product innovation, and online

communities and our ability to leverage a full suite of solutions in leadership consulting and culture shaping

provide our clients with the expertise to stay at the forefront when addressing talent trends.

Leaders of Heidrick & Struggles’ Consumer Markets PracticeTom Snyder

Global Practice Managing Partner

Regional Managing Partner, Americas

[email protected]

Claire Babel

Regional Managing Partner, Europe and Africa

[email protected]

Guy Cote

Global Sector Leader, Hospitality & Leisure

[email protected]

Karen Fifer

Regional Managing Partner, Asia Pacific and Middle East

[email protected]

Catherine Lepard

Global Sector Leader, Retail & Apparel

[email protected]

Anne Lim O’Brien

Global Sector Leader, Consumer Products

[email protected]

Mike Speck

Global Sector Leader, Media & Entertainment

[email protected]


Heidrick & struggles is a premier provider of senior-level executive search,

culture shaping, and leadership consulting services. For more than 60

years we have focused on quality service and built strong relationships

with clients and individuals worldwide. today, Heidrick & struggles’

leadership experts operate from principal business centres globally.

www.heidrick.com

About the British Hospitality Association

the BHa, incorporating the restaurant association represents over

40,000 hotels, serviced apartments, clubs, restaurants, food service,

attractions and leisure companies. as the ‘hub’ for Hospitality and

tourism, the BHa’s thought leadership, market know-how, intelligence

and expertise, delivers a powerful voice to Government, as well

as reliable advice, valuable connections and strategic support to

business. our purpose is to work with Government to ensure the right

business environment in which Hospitality and tourism can thrive.

Find out more follow us on twitter @BHatweets and www.bha.org.uk

About the authors

Ben Twynam ([email protected]) is a principal in

Heidrick & struggles’ London office and leads the Hospitality & Leisure

Sector in the uk. He is a member of the British Hospitality association.

Sophy Gurney ([email protected]) is an associate in the

london office and a member of the Hospitality & leisure sector.

Copyright © 2016 Heidrick & Struggles International, Inc. All rights reserved. Reproduction without

permission is prohibited. Trademarks and logos are copyrights of their respective owners.

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