1 00:00:02,480 --> 00:00:13,880 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Well, Tony Romas is 2 00:00:13,920 --> 00:00:14,840 Speaker 1: getting a refresh. 3 00:00:14,960 --> 00:00:17,400 Speaker 2: The fifty two year old restaurant change is undergoing a 4 00:00:17,400 --> 00:00:20,759 Speaker 2: transformation under its first female CEO. I am thrilled to 5 00:00:20,800 --> 00:00:23,680 Speaker 2: say she joins us on set now, Mina Hawk, Tony 6 00:00:23,760 --> 00:00:24,480 Speaker 2: Roma's CEO. 7 00:00:24,920 --> 00:00:26,040 Speaker 1: Great to see you in person. 8 00:00:26,440 --> 00:00:28,240 Speaker 3: Thank you, thank you for having me here today. 9 00:00:28,400 --> 00:00:29,400 Speaker 1: Yeah, absolutely so. 10 00:00:29,480 --> 00:00:31,320 Speaker 2: The teas for this block was that you want to 11 00:00:31,360 --> 00:00:34,280 Speaker 2: be a fifty two year old startup, walk us through 12 00:00:34,280 --> 00:00:35,240 Speaker 2: what that means. 13 00:00:35,880 --> 00:00:38,160 Speaker 3: So Tony Romas has been around for a long time, 14 00:00:38,240 --> 00:00:42,239 Speaker 3: since nineteen seventy two it opened its door in Miami, Florida. 15 00:00:42,720 --> 00:00:45,680 Speaker 3: The company went through what I like to say is 16 00:00:45,760 --> 00:00:48,879 Speaker 3: all types of challenges, but nevertheless it has been a 17 00:00:48,920 --> 00:00:52,800 Speaker 3: resilient brand. And now what I'm doing is reimagining the 18 00:00:52,920 --> 00:00:56,080 Speaker 3: brand to see how we can make it resilient and adaptable. 19 00:00:56,440 --> 00:00:59,160 Speaker 3: And the core focus is on our product on our menu. 20 00:01:00,080 --> 00:01:03,760 Speaker 3: Food industry is the fastest evolving industry with consumer demands 21 00:01:03,800 --> 00:01:08,120 Speaker 3: always changing. Therefore, you need to keep up with the technology. 22 00:01:08,520 --> 00:01:10,000 Speaker 3: You need to see how you can do like you know, 23 00:01:10,040 --> 00:01:13,480 Speaker 3: co creation of partnership, and that's what I'm doing and 24 00:01:13,600 --> 00:01:18,479 Speaker 3: most importantly internally focusing on my talent development. 25 00:01:18,600 --> 00:01:20,640 Speaker 4: We're going to want to talk more about that menu 26 00:01:20,720 --> 00:01:22,880 Speaker 4: and of course the technology, but also want to know 27 00:01:22,920 --> 00:01:26,360 Speaker 4: about locations because you sat down and you said you're 28 00:01:26,400 --> 00:01:29,080 Speaker 4: going to change that. When we asked you about the locations, 29 00:01:29,080 --> 00:01:31,000 Speaker 4: the closest one to New York City, you said is Durham, 30 00:01:31,120 --> 00:01:33,839 Speaker 4: North Carolina. How are you going to expand in different 31 00:01:33,840 --> 00:01:35,120 Speaker 4: areas in the United States. 32 00:01:35,400 --> 00:01:38,720 Speaker 3: Absolutely, it's about, you know, creating the value for consumers. 33 00:01:38,800 --> 00:01:41,040 Speaker 3: At this point, we have about ten locations in the 34 00:01:41,200 --> 00:01:44,520 Speaker 3: United States, all dispersed. We have the nearest location is 35 00:01:44,600 --> 00:01:47,800 Speaker 3: North Carolina from here, but we have two locations in 36 00:01:47,840 --> 00:01:53,720 Speaker 3: California in Vegas and Iowa and Florida. I see that 37 00:01:53,800 --> 00:01:56,200 Speaker 3: we will be able to change once the consumers will 38 00:01:56,240 --> 00:01:58,200 Speaker 3: be able to see the value that we offer. And 39 00:01:58,240 --> 00:02:02,480 Speaker 3: most importantly, our primary business model is franchising. What I'm 40 00:02:02,520 --> 00:02:05,760 Speaker 3: trying to do is reducing the franchising cost, making it 41 00:02:05,840 --> 00:02:10,600 Speaker 3: easier for potential franchises to enter into the market. Otherwise, 42 00:02:11,160 --> 00:02:14,520 Speaker 3: in any type of franchising industry, it's very difficult because 43 00:02:14,560 --> 00:02:19,080 Speaker 3: it's so cost heavy. Therefore, if you can reduce the 44 00:02:19,200 --> 00:02:22,800 Speaker 3: operating cost. In addition, to that. The menu use items 45 00:02:22,840 --> 00:02:24,840 Speaker 3: were very saturated. Back in the days we used to 46 00:02:24,919 --> 00:02:28,840 Speaker 3: offer a lot of items. I'm streamlining that as well, 47 00:02:29,160 --> 00:02:30,680 Speaker 3: making sure it's cost effective. 48 00:02:31,600 --> 00:02:34,040 Speaker 5: I mean, the food obviously is first and foremost in 49 00:02:34,040 --> 00:02:36,120 Speaker 5: a restaurant, but I feel like talent comes in a 50 00:02:36,160 --> 00:02:39,880 Speaker 5: close second. And you said, you know, talent development is 51 00:02:40,200 --> 00:02:41,640 Speaker 5: one of your biggest focuses. 52 00:02:42,040 --> 00:02:43,040 Speaker 1: How difficult is. 53 00:02:43,000 --> 00:02:45,280 Speaker 5: It in today's labor market because you've got to pay 54 00:02:45,320 --> 00:02:46,919 Speaker 5: people a lot. 55 00:02:47,919 --> 00:02:52,359 Speaker 3: That is a great question. We are working remotely at 56 00:02:52,360 --> 00:02:56,040 Speaker 3: this point, which is attractive for the talent poop because 57 00:02:56,080 --> 00:03:00,480 Speaker 3: everyone wants flexibility, and that is one of my core focus. 58 00:03:00,680 --> 00:03:04,480 Speaker 3: How can we strike a balance by being flexible yet 59 00:03:04,600 --> 00:03:08,320 Speaker 3: ensure that the performance is there and that requires boosting 60 00:03:08,400 --> 00:03:11,200 Speaker 3: the moral of your team. And part of the reason, 61 00:03:11,280 --> 00:03:15,639 Speaker 3: I believe is because of the advent of technology, people 62 00:03:15,800 --> 00:03:18,920 Speaker 3: no longer want to come and work in the industry anymore. 63 00:03:19,400 --> 00:03:23,919 Speaker 3: People embrace entrepreneurial spirit, you know, especially young folks thinking, okay, 64 00:03:23,960 --> 00:03:26,960 Speaker 3: we can go to TikTok or Instagram and create our 65 00:03:27,000 --> 00:03:30,360 Speaker 3: own career, which is absolutely fine. But I want Tony 66 00:03:30,440 --> 00:03:33,320 Speaker 3: Romas to be a stepping stone, a place where people 67 00:03:33,440 --> 00:03:35,040 Speaker 3: can come learn and. 68 00:03:35,080 --> 00:03:38,920 Speaker 2: Thrive interesting of course, so using that remote work as 69 00:03:39,080 --> 00:03:42,000 Speaker 2: a recruiting tool. Basically, I do want to talk a 70 00:03:42,040 --> 00:03:45,000 Speaker 2: little bit about pricing because you mentioned creating value for 71 00:03:45,160 --> 00:03:48,160 Speaker 2: customers and we were just talking about high labor expenses. 72 00:03:48,240 --> 00:03:50,240 Speaker 2: I mean, you think about the consumer, the people who 73 00:03:50,280 --> 00:03:53,880 Speaker 2: are spending money at your restaurant definitely feeling the pinch there. 74 00:03:53,960 --> 00:03:57,760 Speaker 1: So how are you handling pricing right now? Have you 75 00:03:58,040 --> 00:04:01,440 Speaker 1: had to cut costs of course as things get more competitive. 76 00:04:01,960 --> 00:04:04,720 Speaker 3: Yeah, the review for pricing it's, you know, based on 77 00:04:04,720 --> 00:04:07,640 Speaker 3: a three sixty degree review. What we have figured out 78 00:04:07,720 --> 00:04:12,280 Speaker 3: is you focus on the stars of your menu and 79 00:04:12,320 --> 00:04:15,800 Speaker 3: then the items that are doing well offer that back 80 00:04:15,840 --> 00:04:20,600 Speaker 3: to your consumers. Because the food price is skyrocketing right now, 81 00:04:21,000 --> 00:04:23,800 Speaker 3: and it also depends like how many location you have, 82 00:04:24,040 --> 00:04:28,000 Speaker 3: and we definitely don't have as many locations as our competitors, 83 00:04:28,040 --> 00:04:32,240 Speaker 3: so we don't have that many buying power. Nevertheless, our 84 00:04:32,279 --> 00:04:35,200 Speaker 3: core focus is to make sure that it is a 85 00:04:35,360 --> 00:04:39,920 Speaker 3: price friendly because traditionally Tony Romas has served families and 86 00:04:40,000 --> 00:04:43,159 Speaker 3: there are so many you know, memories that are associated 87 00:04:43,200 --> 00:04:46,880 Speaker 3: with the brand. Right now, we are in control of 88 00:04:46,920 --> 00:04:49,880 Speaker 3: pricing for our corporate unit location, which is bones and 89 00:04:49,920 --> 00:04:52,919 Speaker 3: Burgers in Tampa, Florida, and then the rest of the 90 00:04:52,960 --> 00:04:56,159 Speaker 3: location we have. The pricing is determined by the local 91 00:04:56,200 --> 00:04:58,839 Speaker 3: market condition by our franchise partners. 92 00:04:59,000 --> 00:05:01,360 Speaker 5: I mean a great having it in the studio. Thanks 93 00:05:01,400 --> 00:05:03,600 Speaker 5: so much for visiting us here in New York. Mohammedy 94 00:05:03,640 --> 00:05:06,400 Speaker 5: the Hawk is the CEO of Tony Romas.