Solving Profitless Growth With AI — Chased by Grizzly Bears and Hunted by Alligators | Season 11, Vol. 6

In today's episode of Hospitality Hangout, Michael Schatzberg "The Restaurant Guy" and Jimmy Frischling "The Finance Guy" are joined by Clinton Anderson, CEO of HotSchedules (now powered by Fourth.)

Clinton shares his journey from a farm in rural Canada to CEO of Fourth, a restaurant technology provider serving 125,000 locations globally. Listen as he discusses the importance of collaboration between operators and tech partners, ideas for controlling volatile back-of-house costs, how purchasing and inventory management remain antiquated for most restaurants, and the key role forecasting plays in profitability.

Clinton also reveals whether he was truly chased by a grizzly bear, arrested crossing the US-Canadian border, and if he speaks fluent Japanese.

Key Takeaways

• [00:11 - 00:58] Live from Kings County Distillery Studios in NYC
• [00:59 - 02:56] PSA — Subscribe to the show
• [02:56 - 05:32] Introducing Clinton Anderson, CEO of Fourth/HotSchedules[]
• [05:48 - 08:37] Clinton talks about Fourth, and the HotSchedules software for maintaining employee schedules and is adopted widely in restaurants
• [07:47 - 08:37] Schatzy's loyalty to HotSchedules, it's been around for more than two decades
• [08:38 - 13:30] A deep dive into Clinton's history, leaving Canada to attend Harvard then Bain & Capital, then investing, then realizing he wanted to lead a technology company toward success
• [09:33 - 10:45] Operating responsibility, leading and motivating a team
• [10:46 - 11:48] Why Fourth? Adding simplicity to a complicated industry
• [11:49 - 13:03] An opportunity to get into restaurants and encourage adoption of a tool that will make lives easier and consistent
• [13:05 - 13:55] Jimmy on taking a similar path in the past in investments
• [13:55 - 16:43] Unbreaking rules — AI-powered forecasting tool by Fourth, anticipate rising labor and food costs, leverage data to become profitable
• [16:43 - 19:27] Predictability is a differentiator, considering the cost of food waste and the idea that not everyone can be winners in the restaurant industry
• [19:28 - 22:45] A lot of restaurant operators don't have time to think about technology
• [22:59 - 24:38] Sometimes the grumpiest customers are the best customers because they tell the truth about what isn't working, a customer advisory council
• [24:52 - 28:32] "It's hard to drain the swamp when you're up to your ass in alligators" and how it applies to the food service industry's biggest pain points
• [28:33 - 33:22] Talking Back: Clinton asks what the biggest challenge facing the average operator is. Everyone discusses procurement, forecasting, software solutions and a lot of equipment
• [33:22 - 35:56] Spice is Right, IHOP Breakfast Sample
• [36:22 - 40:13] Trivia — Clinton edition
• [40:14 - 42:27] Branded Quickfire with Clinton