October 16, 2025 • 26 mins
Restaurant Masterminds hosts Paul Barron, Stacey Kane, and Rudy Miick dive into what restaurants can learn from boutique hotels in today's challenging economy. From membership models and personalization strategies to navigating the growing divide between luxury and value experiences, this conversation explores how Gen Z and Gen Alpha are reshaping hospitality expectations. Discover actionable insights on remembering your guests, leveraging technology for meaningful connections, and implementing good-better-best pricing strategies that work in uncertain times.
~This episode is sponsored by: Gusto → https://gusto.pxf.io/PBN ~
#1 rated HR platform for payroll, benefits, and more With Gusto’s easy-to-use platform, you can empower your people and push your business forward. See why over 400,000 businesses choose Gusto.
#RestaurantIndustry #HospitalityTrends #RestaurantManagement
Get Your Podcast Now! Are you a hospitality or restaurant industry leader looking to amplify your voice and establish yourself as a thought leader? Look no further than SavorFM, the premier podcast platform designed exclusively for hospitality visionaries like you. Take the next step in your industry leadership journey – visit https://www.savor.fm/
Capital & Advisory: Are you a fast-casual restaurant startup or a technology innovator in the food service industry? Don't miss out on the opportunity to tap into decades of expertise. Reach out to Savor Capital & Advisory now to explore how their seasoned professionals can propel your business forward. Discover if you're eligible to leverage our unparalleled knowledge in food service branding and technology and take your venture to new heights.
Don't wait – amplify your voice or supercharge your startup's growth today with Savor's ecosystem of industry-leading platforms and advisory services. Visit https://www.savor.fm/capital-advisory
~This episode is sponsored by: Gusto → https://gusto.pxf.io/PBN ~
#1 rated HR platform for payroll, benefits, and more With Gusto’s easy-to-use platform, you can empower your people and push your business forward. See why over 400,000 businesses choose Gusto.
#RestaurantIndustry #HospitalityTrends #RestaurantManagement
Get Your Podcast Now! Are you a hospitality or restaurant industry leader looking to amplify your voice and establish yourself as a thought leader? Look no further than SavorFM, the premier podcast platform designed exclusively for hospitality visionaries like you. Take the next step in your industry leadership journey – visit https://www.savor.fm/
Capital & Advisory: Are you a fast-casual restaurant startup or a technology innovator in the food service industry? Don't miss out on the opportunity to tap into decades of expertise. Reach out to Savor Capital & Advisory now to explore how their seasoned professionals can propel your business forward. Discover if you're eligible to leverage our unparalleled knowledge in food service branding and technology and take your venture to new heights.
Don't wait – amplify your voice or supercharge your startup's growth today with Savor's ecosystem of industry-leading platforms and advisory services. Visit https://www.savor.fm/capital-advisory
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
We are back here on the Restaurant Masterminds podcast, and
of course joining me is miss Stacy Caine coming in
from what prison? Are you in?
Speaker 2 (00:12):
Beautiful Colorado?
Speaker 1 (00:15):
Okay, all right, you're back there, following the lovely area
of mister Rudy Mick, who's also joining us today, our
culture guru. How are you, Rudy?
Speaker 3 (00:25):
I'm so good.
Speaker 1 (00:26):
It's been a while since you've been on the pod,
so welcome back in then.
Speaker 4 (00:30):
Yeah, I'm excited to still be considered a mastermind.
Speaker 1 (00:33):
Yeah, what are you talking about? You're like the og mastermind.
Speaker 4 (00:41):
In the presence of Miss Kane and mister Baron, I'm
so excited.
Speaker 1 (00:48):
We're going to talk about something cool today that we've
never talked about on this show, and that is the Boutique. No,
well I should talk about that, but no, And I'm
dressed like this because I was just on a big
news channel doing an interview in the Crypto space talking
about how it's going to change the restaurant industry. Look
(01:09):
for that it's coming out anyway, was.
Speaker 2 (01:12):
It for the Baltimore Ravens?
Speaker 5 (01:15):
Perhaps why the purple and black of the Baltimore Ravens.
Speaker 1 (01:22):
Well, that's our you know, that's our theme for the show.
Speaker 2 (01:26):
I know, I'm just pointing out this hilarious there you go.
Speaker 4 (01:29):
Well, and Paul is always incredibly stylish, usually in some
shade of black.
Speaker 1 (01:36):
Right, black is the only shade I wear?
Speaker 3 (01:39):
There you go.
Speaker 1 (01:42):
It was speaking of the only shade I wear, and
that is I only go to boutique hotels. And the
topic today, of course, is boutique and beyond. It's how
gen Z and Jena are going to be reshaping the
luxury hospitality industry if they will be reshaping it, So
we'll be hitting that very shortly. Stay tuned. My name
(02:28):
is Paul Baron. As the early pioneer in fast casual,
I've seen the industry evolve from just a few operators
to the most sought after segment by consumers around the world.
Now we're planning to shape its future. Tap into decades
of my expertise identifying the emerging brands and tech winners
(02:49):
in the space. Saber Capital will be fueling the next
generation of fast casual innovation. All right, we're back here
with and Rudy coming in on the topic of boutique
hotels and how the next generation could be the way
that all of this becomes something big. I want to
(03:10):
talk to you guys. First of all, what is your
favorite luxury boutique hotel right now? And say we'll lead
off with.
Speaker 2 (03:17):
You specific hotel.
Speaker 1 (03:20):
Yeah, do you have one that you really like?
Speaker 3 (03:22):
I do?
Speaker 2 (03:23):
I do, I do, I do, and I don't.
Speaker 5 (03:26):
It's it's actually part of a bigger brand, but it
is feels very boutique. It is the w in the
Algarve of Portugal. Oh and I have been now three
times in a year and a half.
Speaker 3 (03:41):
Wow.
Speaker 2 (03:42):
It is stunning with kind of intimate service.
Speaker 1 (03:48):
And okay, so the intimate service brings you in. Is
it easy to get to, by the way, is it
easy to get to or no?
Speaker 5 (03:55):
You fly into a small airport called Faroh in the
south of Portugal and it's about a forty minute drive.
It's right on the coast of Portugal. So, which makes
me sound very bougie that I'm talking about this like that,
but that is my current favorite. However, I used to
(04:18):
be a Kimpton girl all.
Speaker 1 (04:22):
The yeah, like when when you used to be which
did something happen?
Speaker 5 (04:30):
I think what happened is it lost a little bit
of that specialness that you look for in Buccio Hotel
at the same time that I started traveling for work
so much that there wasn't enough that I had to
kind of become loyal to a point system and so
(04:52):
I was a Star War member.
Speaker 2 (04:54):
And then they merged with Marriott, and so.
Speaker 5 (04:58):
Unfortunately Marriott, which has kind of sucked the soul out
of hospitality hotel, Yeah, a lot of ways, except for
some of these unique properties kind of that they had.
Speaker 2 (05:15):
Now.
Speaker 5 (05:17):
The other thing that makes me incredibly sad is that,
as a you know, pretty much a Washingtonian for most
of my life, the w Washington was an amazing boutique
hotel and then it got sold and now it is
the Washington Hotel again, And so that's kind of my take.
(05:38):
The Stacy Tam.
Speaker 1 (05:41):
You're all over the place, You're all over the place.
How about you, Rudy, do you have one?
Speaker 4 (05:45):
Well, I'm going to join stays for the overall theme.
Amazingly enough, I'm still a w fan for the most party.
And ironically in Texas, I've had the opportunity to stay
at a couple of the Valencia properties that we're going
to talk about yes today and they are really lovely
(06:07):
so and the experience has been everything I would expect
a boutique to be. I still got to say that
non boutique, I'll take the Breakers any day, right.
Speaker 1 (06:22):
Oh, well, that's not boutique, that's pure botique. No, yeah,
that's pure lucky down that the Breakers. He's talking about
West Palm, you know, one of the best, you know,
but you guy as well go up to go up
the coastal little bit and just go over to Marrow Lago.
Why not.
Speaker 4 (06:41):
Uh yeah, Well that's a brand twist for me.
Speaker 3 (06:45):
I'm not going to touch that one.
Speaker 1 (06:46):
Okay, brand twist, a.
Speaker 4 (06:49):
Brand twist, but I think the you know, the I
mentioned the name that I mentioned because the best of
boutique touches that gives us that teaste of five of
five stars of just the answer the answer is yes,
what's your question?
Speaker 3 (07:10):
Right?
Speaker 4 (07:11):
And then and then to Stacy's point, go to Portugal,
go to Spain, go to somewhere in the world that
just becomes magic and not only is it yes.
Speaker 3 (07:23):
But it's romance romance with yes. Right there you go.
Speaker 1 (07:27):
Man, Well, boutique wise, uh, for me, high luxury is
going to be shangri la. But once you get down
into you know, boutique, I'm still liking the Kimptons. I
like the Gray in Chicago, which was a good hotel. Uh.
The Ace Hotels, which we're going to talk about today.
I love Ace Hotels. Uh, they've done a good job.
I always remember the Ace hotels. They always have the
(07:49):
most funky bedrooms. Have you noticed that I was staying
one in La Man I thought it was in some
kind of rock museum. It was the most bizarre room
I had ever stayed in. The bed was in the
middle of the room.
Speaker 2 (08:05):
That's rock star.
Speaker 1 (08:07):
Yeah, well, there you go. Everything happens in the middle
of the room. I don't know why, but we won't
go there. Economic landscape we will go into, and that
is talking about the current market conditions. We are starting
to see retail spending dropping like a rock. Credit cards
are flying up in terms of their limits on consumer spending,
(08:31):
which is causing a huge credit problem right now. And
you even have a little bit of what was happening,
which was kind of this whole idea around revenge travel
people you know that has started to go out there
and they're just spending like crazy. But all that's coming
to an end. As well as the issue of now
falling sales in the boutique hotel side of it, falling
(08:54):
sales in casual dining, falling sales and fine dining. That's
happening now, guys, do you think this is a short
term economic downturn or do you think this is the
beginning of something bigger. We'll start with you, Stacy.
Speaker 5 (09:08):
I think what we're probably going to see in the
hotel space is that a hotel is more than a bed.
And so if I come with my with their business
travel dollars or the shrinking leisure dollar in the current
economic situation, that hotel needs to perform more for me.
(09:32):
So it needs to be able to be a solid
workspace like where I can get some work done. It
needs to feed me with something other than like a
hot dog or a sandwich, no disrespect to sandwiches. It
needs to also I may have other things I need
(09:55):
to do. I may need my clothes cleaned, or I
need a laundry part. So I think what people are
going to be looking for is those hotels that have
more amenities but also are giving me a better vibe.
I stay at a hotel in Denver sometimes called the Catbird.
Speaker 2 (10:17):
That aren't any laws. They are miniature lofts.
Speaker 5 (10:21):
It's super viby, has a rooftop bar, has laundry on
every floor, and as a business traveler sometimes I need
to like wash my clothes because I'm on the road
for two weeks at a time. And so I think
people might be looking at their stays that that hotel
(10:41):
needs to serve more than just a place to lay
my head.
Speaker 1 (10:45):
Yeah, for sure. Well, and I think the point behind
that is that the boutique business had always been that way,
don't you think.
Speaker 3 (10:54):
I mean?
Speaker 1 (10:54):
Because I remember the Virgin Hotel when they first launched
in Chicago, we held the fast Cat Actual Nation documentary
documentary airing there for the very first time. Were you there?
You were there, Rudy, weren't you? Yes, what a beautiful
hotel that was. And then I go back there five
(11:14):
years later and this is a dump. Well why do
you think they haven't been able to maintain this level? Well,
in terms of service, you know what, hotels.
Speaker 4 (11:31):
Hotels are no different than any other element of hospitality.
In my opinion, that means that unless we maintain the
brand standard, which is a choice, especially at high level
boutique and you know, quality brands, unless we choose to
(11:52):
maintain the standard, either restaurants or hotels will nosedive almost overnight.
Speaker 1 (12:01):
Yeah right, well, and the table stakes are real. I
mean you have to have a great room, you got
to have great environment, a good bar, all that. The
reason I say that the Virgin didn't pull through was
because of the service. Yeah, the service had completely fallen off.
The hotel bar was used to be an event spot.
(12:22):
Now it was just like, oh man, hey, welcome, how
are you doing? You know, well, you can I get
you throw the menu at you.
Speaker 4 (12:28):
In the world of five star, the answers, yes, what's
your question. In the world of high quality boutique, the
answers yes with some attitude, right, and that sparkle that
everything that Stacy said. And the second that attitude shifts
to yeah, I'm too busy or I don't notice, or
(12:52):
the training goes off. Yeah you're done, right, the vibe changes.
And now the value that Stacey's Stacy was alluding to,
or any one of us is is gone. So why
if the value.
Speaker 3 (13:04):
Is gone, why would I go I'm just not going
to move.
Speaker 1 (13:08):
Okay, So we're going to get into the economic impact
and maybe some of the shift around generations before I
do that I want to ask you guys' opinion on
this one, and that is the Soho house. So we're
going to talk about Ace Hotel. We showed them up
there earlier. We're going to talk about Soho, which has
this membership program. Okay, So when you have they have
(13:30):
houses that are tied to this. Think of this as
like a super boutique luxury Airbnb okay, spas, gyms, screening rooms,
you could do events and that's kind of what But
right now it's New York, London in LA but they
have this membership model on how to get involved with this.
(13:51):
Do you think membership models will work in this arena?
Speaker 3 (13:57):
Membership is where we're headed. It's the next.
Speaker 1 (14:00):
Big Okay you say yes, Stacy's about to say no.
So I like that, could keep going. Say more, Rudy,
say more.
Speaker 3 (14:09):
I think we're well.
Speaker 4 (14:11):
My response to the earlier question about economy, we are headed.
Speaker 3 (14:15):
For a major nosedive, okay in my opinion.
Speaker 4 (14:19):
And that said, this whole topic is about who has
the money and who has the liquid asset to go
play at this, and that's one of the drivers of
membership as a.
Speaker 1 (14:32):
Wellership would tie into that. So you're saying member would
be the gateway into the ultra wealthy or even just
the people that they would want to target for.
Speaker 4 (14:42):
The exactly is, if my company has the capital, we're
going to drive memberships for business travel and if I
have the economy in any especially the cities that you named. Yeah,
membership membership is everything, and we are It's going to
allow us to drive loyalty to another level. It's going
(15:06):
to be the next loyalty piece.
Speaker 1 (15:08):
I will say that the member programs that I'm part
of right now in all different areas, I feel very
loyal to them. So it's interesting that you say that. Yeah,
all right, Stacey. Your counterpoint, what is it?
Speaker 5 (15:24):
Everything I've read about Soho House recently is that lose.
Speaker 1 (15:29):
Lose the idea of Soho House, but the idea of
membership membership. What if you could get a membership to
a Kempton, or membership to an ace or or any
other litany of properties.
Speaker 5 (15:41):
Actually, let me refree, let me rethink this. So there
are a couple of memberships that I'm a member of
that our hotel related and it's purely kind of.
Speaker 1 (15:52):
Perk relations points driven. Yeah, these are loyalty programs.
Speaker 2 (15:57):
No, No, no, No, not loyalty.
Speaker 1 (15:59):
You pay, you pay for it, Yes, okay, you pay
for this.
Speaker 5 (16:03):
In citizen hotels, which are kind of capsule hotels around
the world.
Speaker 1 (16:08):
Yep.
Speaker 5 (16:10):
If you pay like one hundred bucks a year, you
get a significant discount on every booking. Yeah, so I
think that can work. But places that require a membership
to go, I don't know if people have the appetite for.
Speaker 1 (16:28):
That right Interesting, Well, this is going to be interesting
because there are a handful of restaurants that are now
talking about doing memberships with that. And are we entering
that zone of this generational shift, which is especially around
gen Z, which looks at experience versus luxury. That's the
(16:48):
concern I see. Do you think we're going to have
a shift right now, Rudy where Gen X, my generation,
the boomers and maybe even older age millennials that are
going to separate into these high end hotels and that
you know gen Z younger millennaires are going to shift
(17:10):
into more value oriented hotels.
Speaker 4 (17:12):
What are your thoughts, Well, the short answer is yes,
and you do think okay in this in the cities. Again,
this is going to come back to the capital or
access to capital that I have through my network of
either family or inheritance or business and my bet and
(17:34):
we're already beginning to see this, especially in the you know,
in La New York, Chicago, Miami, name and then name
the little resort towns, Saint Bart's, West Palm, whatever it
might be, where there is going to be money and
we're going to end up seeing hotel properties or even
(17:56):
restaurant properties that have different rooms and a friend events,
age groups.
Speaker 1 (18:03):
Yeah, and it's.
Speaker 4 (18:03):
Going to be member driven, AI driven and integrated. You watch,
it's headed this. We're working on three different concepts right now.
Interested are playing in that venue.
Speaker 3 (18:19):
It's really it's coming hard.
Speaker 4 (18:21):
We're we're this is not a happy thing for me
to say, but we are headed to money and no money.
Speaker 1 (18:28):
Oh wow. Okay, well that's another podcast is the division.
But because this is real, you are right, we are
seeing a cultural split right now.
Speaker 4 (18:41):
It's headlong into the world of luxury and man value
completely right.
Speaker 1 (18:48):
So what about Okay, So, Stacy, when you look at
jen Alpha, because there's a lot of early indicators on
this very digital native, they're very value driven. I got
a couple of them run around the house us right now,
and their wellness focused. I mean, my kid is asking
me more about is that good for me? You know,
more so than now. Granted's a lot of it is
(19:10):
because we put it in her brain, but but now
she's actually almost every item, every place she goes, she
asks those questions, those critical thinking questions. Do you think
uh in this to you, Stacy, do you think alpha
will start to drive direction for decisions?
Speaker 4 (19:29):
Oh?
Speaker 1 (19:29):
Of course from this space, because I've never I've seen
it at going to dinner, but hey, mom and dad,
I want to stay at the Four Seasons.
Speaker 3 (19:41):
I mean, I think it's.
Speaker 5 (19:43):
I think it's more like this Jen Alpha is on
whatever they're on, and somebody cool that they follow is
living it up at the East Hotel. Yeah, and there,
like I want to go to there.
Speaker 2 (20:02):
Yeah, and they see.
Speaker 5 (20:04):
Kind of the you know, the coolness factor and yeah,
just like every tis like we're dining why not?
Speaker 1 (20:12):
Well all right, well there you go. Cool factor driven
by influencers to deliver these kinds of experiences. What we're
showing here now is over at the Ace Hotel. There's
the new fan club, Ace Member rate, there's the pet package.
So they're tying right into the kids that have you know, pets,
(20:33):
I say kids, you know, younger adults that are probably
starting to people that can't drink yet, which is really
the big reason you go to the Ace hotel.
Speaker 4 (20:41):
Yeah, so I agree with I mean, it's interesting Stacy
and I are having a little bit of a different
focus on an economy. But I agree one hundred percent
with everything Stacy just said about kids as influencers. There's
two other points with this. You know, if if we
have the means, how do we ever say no to
(21:03):
our kids?
Speaker 3 (21:04):
Right? So here's easy.
Speaker 6 (21:09):
You do it easy, and then listen to the nuance
of our language is, Oh, if I'm around a family
that is about wellness, food, healthy food, and educated enough
and has the means to buy healthy food, that's what.
Speaker 3 (21:28):
I'm going to demand.
Speaker 4 (21:30):
And meanwhile, we're getting rid of the Department of Education,
We're getting rid of you know, who knows where this
economy is headed. And again, I think those are drivers
of these concepts right.
Speaker 1 (21:48):
Well, and you you look at the kind of this
next society that's being built. Right now, We're going to
do a podcast because you you brought up a good point,
and that is the haves and the have nots.
Speaker 2 (21:58):
You want to be on that podcast.
Speaker 1 (21:59):
Now, of course not. Of course it is depressing.
Speaker 3 (22:04):
We don't we don't don't.
Speaker 1 (22:05):
Think it's going to happen, or you don't care it's
going to happen.
Speaker 3 (22:08):
No, I do think it's going to end.
Speaker 2 (22:11):
I think it's it's already happening.
Speaker 1 (22:13):
Okay, the world is.
Speaker 2 (22:15):
A dumpster fire? How many times do I have to.
Speaker 1 (22:17):
Say that that's the new podcast name? Next time we're
going to announce it that way. Welcome to the World
is a dumpster fire right here.
Speaker 4 (22:24):
But in all, in all seriousness, there there is a
place for the valency group for as for the wellness
that we're talking about in the experience we're talking about.
Speaker 3 (22:36):
And it's going to be all the more incumbent.
Speaker 4 (22:40):
I yeah, the dumpster thing is out there, But how
do we maintain some modicum of quality and brand experience
at a low price or lower price? And I do
think there's opportunity for us. I don't I don't want.
Speaker 3 (23:00):
I want to have it be this, you know, Canyon
of Cataclysm.
Speaker 4 (23:05):
I do just think we've got to be really even
more awake and more appreciative of the world in which
we're playing.
Speaker 1 (23:13):
That's right, appreciative of the world we're playing in We're
gonna be this is gonna be a short podcast, but
before we leave, Before we leave, I want to get
two points from each of you. Two points that you
could take away from boutique hotels that you would apply
into the restaurant industry in terms of something to do
(23:33):
for a restaurant operator who's watching the podcast or listening.
What can I take away from that?
Speaker 2 (23:38):
Hit it at the Algar? Right Algar? W Okay, I
hadn't been there.
Speaker 5 (23:46):
I went three times. I hadn't been there in a year,
and at least five different people there remembered me.
Speaker 1 (23:56):
Wow, okay, so by name.
Speaker 2 (24:00):
Wo yeah, and they all.
Speaker 1 (24:04):
Don't you think they just profiled you.
Speaker 5 (24:06):
They have some sort of system where when you're coming in,
they just kind of the name at the ballet and
then everybody knows who you are. And I think kind
of putting that into a restaurant space would be get
to know your.
Speaker 1 (24:24):
Customers, which has always been something that we have pushed
is just take time, know who's on the reservation list
or on your croughs, you know all those Okay, I
like that one. Rudy, you, what would you say?
Speaker 4 (24:40):
I actually think the subtle tea and bigness of what
Stacy just said is gigantic. Is my sense is that
the technology world is going to help us if we
pay attention to it.
Speaker 3 (24:57):
Yeah, to make contact.
Speaker 4 (25:00):
With our guests and within a range. I think the
other piece, so the contact with our guests may be
our name or our favorites, right, and then the other
piece I think that is going to be important is
a range of products that are of equal quality, but
(25:24):
a range of price points, so that there is a
low option as well as a high end option.
Speaker 3 (25:32):
Good better best. Yeah, yeah, good.
Speaker 1 (25:36):
Better best. That's happening now. I think in the restaurant
space to try to equate the value situation that we're
dealing with, because you have some restaurants that just don't
have good value because they've been accustomed charging more. They're
starting to rotate a good, better best model in so
I agree with you, guys. We're going to get this
podcast longer to you. We had to do a short
(25:58):
run on it, but thanks stopping in.
Speaker 3 (26:00):
Guys.
Speaker 1 (26:01):
We'll catch you later right here. Masterminds rock on
Speaker 3 (26:07):
H
We are back here on the Restaurant Masterminds podcast, and
of course joining me is miss Stacy Caine coming in
from what prison? Are you in?
Speaker 2 (00:12):
Beautiful Colorado?
Speaker 1 (00:15):
Okay, all right, you're back there, following the lovely area
of mister Rudy Mick, who's also joining us today, our
culture guru. How are you, Rudy?
Speaker 3 (00:25):
I'm so good.
Speaker 1 (00:26):
It's been a while since you've been on the pod,
so welcome back in then.
Speaker 4 (00:30):
Yeah, I'm excited to still be considered a mastermind.
Speaker 1 (00:33):
Yeah, what are you talking about? You're like the og mastermind.
Speaker 4 (00:41):
In the presence of Miss Kane and mister Baron, I'm
so excited.
Speaker 1 (00:48):
We're going to talk about something cool today that we've
never talked about on this show, and that is the Boutique. No,
well I should talk about that, but no, And I'm
dressed like this because I was just on a big
news channel doing an interview in the Crypto space talking
about how it's going to change the restaurant industry. Look
(01:09):
for that it's coming out anyway, was.
Speaker 2 (01:12):
It for the Baltimore Ravens?
Speaker 5 (01:15):
Perhaps why the purple and black of the Baltimore Ravens.
Speaker 1 (01:22):
Well, that's our you know, that's our theme for the show.
Speaker 2 (01:26):
I know, I'm just pointing out this hilarious there you go.
Speaker 4 (01:29):
Well, and Paul is always incredibly stylish, usually in some
shade of black.
Speaker 1 (01:36):
Right, black is the only shade I wear?
Speaker 3 (01:39):
There you go.
Speaker 1 (01:42):
It was speaking of the only shade I wear, and
that is I only go to boutique hotels. And the
topic today, of course, is boutique and beyond. It's how
gen Z and Jena are going to be reshaping the
luxury hospitality industry if they will be reshaping it, So
we'll be hitting that very shortly. Stay tuned. My name
(02:28):
is Paul Baron. As the early pioneer in fast casual,
I've seen the industry evolve from just a few operators
to the most sought after segment by consumers around the world.
Now we're planning to shape its future. Tap into decades
of my expertise identifying the emerging brands and tech winners
(02:49):
in the space. Saber Capital will be fueling the next
generation of fast casual innovation. All right, we're back here
with and Rudy coming in on the topic of boutique
hotels and how the next generation could be the way
that all of this becomes something big. I want to
(03:10):
talk to you guys. First of all, what is your
favorite luxury boutique hotel right now? And say we'll lead
off with.
Speaker 2 (03:17):
You specific hotel.
Speaker 1 (03:20):
Yeah, do you have one that you really like?
Speaker 3 (03:22):
I do?
Speaker 2 (03:23):
I do, I do, I do, and I don't.
Speaker 5 (03:26):
It's it's actually part of a bigger brand, but it
is feels very boutique. It is the w in the
Algarve of Portugal. Oh and I have been now three
times in a year and a half.
Speaker 3 (03:41):
Wow.
Speaker 2 (03:42):
It is stunning with kind of intimate service.
Speaker 1 (03:48):
And okay, so the intimate service brings you in. Is
it easy to get to, by the way, is it
easy to get to or no?
Speaker 5 (03:55):
You fly into a small airport called Faroh in the
south of Portugal and it's about a forty minute drive.
It's right on the coast of Portugal. So, which makes
me sound very bougie that I'm talking about this like that,
but that is my current favorite. However, I used to
(04:18):
be a Kimpton girl all.
Speaker 1 (04:22):
The yeah, like when when you used to be which
did something happen?
Speaker 5 (04:30):
I think what happened is it lost a little bit
of that specialness that you look for in Buccio Hotel
at the same time that I started traveling for work
so much that there wasn't enough that I had to
kind of become loyal to a point system and so
(04:52):
I was a Star War member.
Speaker 2 (04:54):
And then they merged with Marriott, and so.
Speaker 5 (04:58):
Unfortunately Marriott, which has kind of sucked the soul out
of hospitality hotel, Yeah, a lot of ways, except for
some of these unique properties kind of that they had.
Speaker 2 (05:15):
Now.
Speaker 5 (05:17):
The other thing that makes me incredibly sad is that,
as a you know, pretty much a Washingtonian for most
of my life, the w Washington was an amazing boutique
hotel and then it got sold and now it is
the Washington Hotel again, And so that's kind of my take.
(05:38):
The Stacy Tam.
Speaker 1 (05:41):
You're all over the place, You're all over the place.
How about you, Rudy, do you have one?
Speaker 4 (05:45):
Well, I'm going to join stays for the overall theme.
Amazingly enough, I'm still a w fan for the most party.
And ironically in Texas, I've had the opportunity to stay
at a couple of the Valencia properties that we're going
to talk about yes today and they are really lovely
(06:07):
so and the experience has been everything I would expect
a boutique to be. I still got to say that
non boutique, I'll take the Breakers any day, right.
Speaker 1 (06:22):
Oh, well, that's not boutique, that's pure botique. No, yeah,
that's pure lucky down that the Breakers. He's talking about
West Palm, you know, one of the best, you know,
but you guy as well go up to go up
the coastal little bit and just go over to Marrow Lago.
Why not.
Speaker 4 (06:41):
Uh yeah, Well that's a brand twist for me.
Speaker 3 (06:45):
I'm not going to touch that one.
Speaker 1 (06:46):
Okay, brand twist, a.
Speaker 4 (06:49):
Brand twist, but I think the you know, the I
mentioned the name that I mentioned because the best of
boutique touches that gives us that teaste of five of
five stars of just the answer the answer is yes,
what's your question?
Speaker 3 (07:10):
Right?
Speaker 4 (07:11):
And then and then to Stacy's point, go to Portugal,
go to Spain, go to somewhere in the world that
just becomes magic and not only is it yes.
Speaker 3 (07:23):
But it's romance romance with yes. Right there you go.
Speaker 1 (07:27):
Man, Well, boutique wise, uh, for me, high luxury is
going to be shangri la. But once you get down
into you know, boutique, I'm still liking the Kimptons. I
like the Gray in Chicago, which was a good hotel. Uh.
The Ace Hotels, which we're going to talk about today.
I love Ace Hotels. Uh, they've done a good job.
I always remember the Ace hotels. They always have the
(07:49):
most funky bedrooms. Have you noticed that I was staying
one in La Man I thought it was in some
kind of rock museum. It was the most bizarre room
I had ever stayed in. The bed was in the
middle of the room.
Speaker 2 (08:05):
That's rock star.
Speaker 1 (08:07):
Yeah, well, there you go. Everything happens in the middle
of the room. I don't know why, but we won't
go there. Economic landscape we will go into, and that
is talking about the current market conditions. We are starting
to see retail spending dropping like a rock. Credit cards
are flying up in terms of their limits on consumer spending,
(08:31):
which is causing a huge credit problem right now. And
you even have a little bit of what was happening,
which was kind of this whole idea around revenge travel
people you know that has started to go out there
and they're just spending like crazy. But all that's coming
to an end. As well as the issue of now
falling sales in the boutique hotel side of it, falling
(08:54):
sales in casual dining, falling sales and fine dining. That's
happening now, guys, do you think this is a short
term economic downturn or do you think this is the
beginning of something bigger. We'll start with you, Stacy.
Speaker 5 (09:08):
I think what we're probably going to see in the
hotel space is that a hotel is more than a bed.
And so if I come with my with their business
travel dollars or the shrinking leisure dollar in the current
economic situation, that hotel needs to perform more for me.
(09:32):
So it needs to be able to be a solid
workspace like where I can get some work done. It
needs to feed me with something other than like a
hot dog or a sandwich, no disrespect to sandwiches. It
needs to also I may have other things I need
(09:55):
to do. I may need my clothes cleaned, or I
need a laundry part. So I think what people are
going to be looking for is those hotels that have
more amenities but also are giving me a better vibe.
I stay at a hotel in Denver sometimes called the Catbird.
Speaker 2 (10:17):
That aren't any laws. They are miniature lofts.
Speaker 5 (10:21):
It's super viby, has a rooftop bar, has laundry on
every floor, and as a business traveler sometimes I need
to like wash my clothes because I'm on the road
for two weeks at a time. And so I think
people might be looking at their stays that that hotel
(10:41):
needs to serve more than just a place to lay
my head.
Speaker 1 (10:45):
Yeah, for sure. Well, and I think the point behind
that is that the boutique business had always been that way,
don't you think.
Speaker 3 (10:54):
I mean?
Speaker 1 (10:54):
Because I remember the Virgin Hotel when they first launched
in Chicago, we held the fast Cat Actual Nation documentary
documentary airing there for the very first time. Were you there?
You were there, Rudy, weren't you? Yes, what a beautiful
hotel that was. And then I go back there five
(11:14):
years later and this is a dump. Well why do
you think they haven't been able to maintain this level? Well,
in terms of service, you know what, hotels.
Speaker 4 (11:31):
Hotels are no different than any other element of hospitality.
In my opinion, that means that unless we maintain the
brand standard, which is a choice, especially at high level
boutique and you know, quality brands, unless we choose to
(11:52):
maintain the standard, either restaurants or hotels will nosedive almost overnight.
Speaker 1 (12:01):
Yeah right, well, and the table stakes are real. I
mean you have to have a great room, you got
to have great environment, a good bar, all that. The
reason I say that the Virgin didn't pull through was
because of the service. Yeah, the service had completely fallen off.
The hotel bar was used to be an event spot.
(12:22):
Now it was just like, oh man, hey, welcome, how
are you doing? You know, well, you can I get
you throw the menu at you.
Speaker 4 (12:28):
In the world of five star, the answers, yes, what's
your question. In the world of high quality boutique, the
answers yes with some attitude, right, and that sparkle that
everything that Stacy said. And the second that attitude shifts
to yeah, I'm too busy or I don't notice, or
(12:52):
the training goes off. Yeah you're done, right, the vibe changes.
And now the value that Stacey's Stacy was alluding to,
or any one of us is is gone. So why
if the value.
Speaker 3 (13:04):
Is gone, why would I go I'm just not going
to move.
Speaker 1 (13:08):
Okay, So we're going to get into the economic impact
and maybe some of the shift around generations before I
do that I want to ask you guys' opinion on
this one, and that is the Soho house. So we're
going to talk about Ace Hotel. We showed them up
there earlier. We're going to talk about Soho, which has
this membership program. Okay, So when you have they have
(13:30):
houses that are tied to this. Think of this as
like a super boutique luxury Airbnb okay, spas, gyms, screening rooms,
you could do events and that's kind of what But
right now it's New York, London in LA but they
have this membership model on how to get involved with this.
(13:51):
Do you think membership models will work in this arena?
Speaker 3 (13:57):
Membership is where we're headed. It's the next.
Speaker 1 (14:00):
Big Okay you say yes, Stacy's about to say no.
So I like that, could keep going. Say more, Rudy,
say more.
Speaker 3 (14:09):
I think we're well.
Speaker 4 (14:11):
My response to the earlier question about economy, we are headed.
Speaker 3 (14:15):
For a major nosedive, okay in my opinion.
Speaker 4 (14:19):
And that said, this whole topic is about who has
the money and who has the liquid asset to go
play at this, and that's one of the drivers of
membership as a.
Speaker 1 (14:32):
Wellership would tie into that. So you're saying member would
be the gateway into the ultra wealthy or even just
the people that they would want to target for.
Speaker 4 (14:42):
The exactly is, if my company has the capital, we're
going to drive memberships for business travel and if I
have the economy in any especially the cities that you named. Yeah,
membership membership is everything, and we are It's going to
allow us to drive loyalty to another level. It's going
(15:06):
to be the next loyalty piece.
Speaker 1 (15:08):
I will say that the member programs that I'm part
of right now in all different areas, I feel very
loyal to them. So it's interesting that you say that. Yeah,
all right, Stacey. Your counterpoint, what is it?
Speaker 5 (15:24):
Everything I've read about Soho House recently is that lose.
Speaker 1 (15:29):
Lose the idea of Soho House, but the idea of
membership membership. What if you could get a membership to
a Kempton, or membership to an ace or or any
other litany of properties.
Speaker 5 (15:41):
Actually, let me refree, let me rethink this. So there
are a couple of memberships that I'm a member of
that our hotel related and it's purely kind of.
Speaker 1 (15:52):
Perk relations points driven. Yeah, these are loyalty programs.
Speaker 2 (15:57):
No, No, no, No, not loyalty.
Speaker 1 (15:59):
You pay, you pay for it, Yes, okay, you pay
for this.
Speaker 5 (16:03):
In citizen hotels, which are kind of capsule hotels around
the world.
Speaker 1 (16:08):
Yep.
Speaker 5 (16:10):
If you pay like one hundred bucks a year, you
get a significant discount on every booking. Yeah, so I
think that can work. But places that require a membership
to go, I don't know if people have the appetite for.
Speaker 1 (16:28):
That right Interesting, Well, this is going to be interesting
because there are a handful of restaurants that are now
talking about doing memberships with that. And are we entering
that zone of this generational shift, which is especially around
gen Z, which looks at experience versus luxury. That's the
(16:48):
concern I see. Do you think we're going to have
a shift right now, Rudy where Gen X, my generation,
the boomers and maybe even older age millennials that are
going to separate into these high end hotels and that
you know gen Z younger millennaires are going to shift
(17:10):
into more value oriented hotels.
Speaker 4 (17:12):
What are your thoughts, Well, the short answer is yes,
and you do think okay in this in the cities. Again,
this is going to come back to the capital or
access to capital that I have through my network of
either family or inheritance or business and my bet and
(17:34):
we're already beginning to see this, especially in the you know,
in La New York, Chicago, Miami, name and then name
the little resort towns, Saint Bart's, West Palm, whatever it
might be, where there is going to be money and
we're going to end up seeing hotel properties or even
(17:56):
restaurant properties that have different rooms and a friend events,
age groups.
Speaker 1 (18:03):
Yeah, and it's.
Speaker 4 (18:03):
Going to be member driven, AI driven and integrated. You watch,
it's headed this. We're working on three different concepts right now.
Interested are playing in that venue.
Speaker 3 (18:19):
It's really it's coming hard.
Speaker 4 (18:21):
We're we're this is not a happy thing for me
to say, but we are headed to money and no money.
Speaker 1 (18:28):
Oh wow. Okay, well that's another podcast is the division.
But because this is real, you are right, we are
seeing a cultural split right now.
Speaker 4 (18:41):
It's headlong into the world of luxury and man value
completely right.
Speaker 1 (18:48):
So what about Okay, So, Stacy, when you look at
jen Alpha, because there's a lot of early indicators on
this very digital native, they're very value driven. I got
a couple of them run around the house us right now,
and their wellness focused. I mean, my kid is asking
me more about is that good for me? You know,
more so than now. Granted's a lot of it is
(19:10):
because we put it in her brain, but but now
she's actually almost every item, every place she goes, she
asks those questions, those critical thinking questions. Do you think
uh in this to you, Stacy, do you think alpha
will start to drive direction for decisions?
Speaker 4 (19:29):
Oh?
Speaker 1 (19:29):
Of course from this space, because I've never I've seen
it at going to dinner, but hey, mom and dad,
I want to stay at the Four Seasons.
Speaker 3 (19:41):
I mean, I think it's.
Speaker 5 (19:43):
I think it's more like this Jen Alpha is on
whatever they're on, and somebody cool that they follow is
living it up at the East Hotel. Yeah, and there,
like I want to go to there.
Speaker 2 (20:02):
Yeah, and they see.
Speaker 5 (20:04):
Kind of the you know, the coolness factor and yeah,
just like every tis like we're dining why not?
Speaker 1 (20:12):
Well all right, well there you go. Cool factor driven
by influencers to deliver these kinds of experiences. What we're
showing here now is over at the Ace Hotel. There's
the new fan club, Ace Member rate, there's the pet package.
So they're tying right into the kids that have you know, pets,
(20:33):
I say kids, you know, younger adults that are probably
starting to people that can't drink yet, which is really
the big reason you go to the Ace hotel.
Speaker 4 (20:41):
Yeah, so I agree with I mean, it's interesting Stacy
and I are having a little bit of a different
focus on an economy. But I agree one hundred percent
with everything Stacy just said about kids as influencers. There's
two other points with this. You know, if if we
have the means, how do we ever say no to
(21:03):
our kids?
Speaker 3 (21:04):
Right? So here's easy.
Speaker 6 (21:09):
You do it easy, and then listen to the nuance
of our language is, Oh, if I'm around a family
that is about wellness, food, healthy food, and educated enough
and has the means to buy healthy food, that's what.
Speaker 3 (21:28):
I'm going to demand.
Speaker 4 (21:30):
And meanwhile, we're getting rid of the Department of Education,
We're getting rid of you know, who knows where this
economy is headed. And again, I think those are drivers
of these concepts right.
Speaker 1 (21:48):
Well, and you you look at the kind of this
next society that's being built. Right now, We're going to
do a podcast because you you brought up a good point,
and that is the haves and the have nots.
Speaker 2 (21:58):
You want to be on that podcast.
Speaker 1 (21:59):
Now, of course not. Of course it is depressing.
Speaker 3 (22:04):
We don't we don't don't.
Speaker 1 (22:05):
Think it's going to happen, or you don't care it's
going to happen.
Speaker 3 (22:08):
No, I do think it's going to end.
Speaker 2 (22:11):
I think it's it's already happening.
Speaker 1 (22:13):
Okay, the world is.
Speaker 2 (22:15):
A dumpster fire? How many times do I have to.
Speaker 1 (22:17):
Say that that's the new podcast name? Next time we're
going to announce it that way. Welcome to the World
is a dumpster fire right here.
Speaker 4 (22:24):
But in all, in all seriousness, there there is a
place for the valency group for as for the wellness
that we're talking about in the experience we're talking about.
Speaker 3 (22:36):
And it's going to be all the more incumbent.
Speaker 4 (22:40):
I yeah, the dumpster thing is out there, But how
do we maintain some modicum of quality and brand experience
at a low price or lower price? And I do
think there's opportunity for us. I don't I don't want.
Speaker 3 (23:00):
I want to have it be this, you know, Canyon
of Cataclysm.
Speaker 4 (23:05):
I do just think we've got to be really even
more awake and more appreciative of the world in which
we're playing.
Speaker 1 (23:13):
That's right, appreciative of the world we're playing in We're
gonna be this is gonna be a short podcast, but
before we leave, Before we leave, I want to get
two points from each of you. Two points that you
could take away from boutique hotels that you would apply
into the restaurant industry in terms of something to do
(23:33):
for a restaurant operator who's watching the podcast or listening.
What can I take away from that?
Speaker 2 (23:38):
Hit it at the Algar? Right Algar? W Okay, I
hadn't been there.
Speaker 5 (23:46):
I went three times. I hadn't been there in a year,
and at least five different people there remembered me.
Speaker 1 (23:56):
Wow, okay, so by name.
Speaker 2 (24:00):
Wo yeah, and they all.
Speaker 1 (24:04):
Don't you think they just profiled you.
Speaker 5 (24:06):
They have some sort of system where when you're coming in,
they just kind of the name at the ballet and
then everybody knows who you are. And I think kind
of putting that into a restaurant space would be get
to know your.
Speaker 1 (24:24):
Customers, which has always been something that we have pushed
is just take time, know who's on the reservation list
or on your croughs, you know all those Okay, I
like that one. Rudy, you, what would you say?
Speaker 4 (24:40):
I actually think the subtle tea and bigness of what
Stacy just said is gigantic. Is my sense is that
the technology world is going to help us if we
pay attention to it.
Speaker 3 (24:57):
Yeah, to make contact.
Speaker 4 (25:00):
With our guests and within a range. I think the
other piece, so the contact with our guests may be
our name or our favorites, right, and then the other
piece I think that is going to be important is
a range of products that are of equal quality, but
(25:24):
a range of price points, so that there is a
low option as well as a high end option.
Speaker 3 (25:32):
Good better best. Yeah, yeah, good.
Speaker 1 (25:36):
Better best. That's happening now. I think in the restaurant
space to try to equate the value situation that we're
dealing with, because you have some restaurants that just don't
have good value because they've been accustomed charging more. They're
starting to rotate a good, better best model in so
I agree with you, guys. We're going to get this
podcast longer to you. We had to do a short
(25:58):
run on it, but thanks stopping in.
Speaker 3 (26:00):
Guys.
Speaker 1 (26:01):
We'll catch you later right here. Masterminds rock on
Speaker 3 (26:07):
H
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