When Josh Kern became CEO of SPB Hospitality in June, he had been serving as interim CEO for almost a year. He has been with the brand since 2018, when he joined as chief marketing officer. 

Kern joins several recently appointed executives to the company, including chief development officer Michael Casey, who started in July to focus on the new unit development and team growth. Last year, the company appointed Jessica Hagler to permanent CFO after she served in an interim capacity. 

Under his leadership, the company completed its merger with Krystal in April 2022. SPB’s  parent company, Fortress Investment Group, bought Krystal in 2020 for $48 million after the brand filed for bankruptcy. 

Since SPB Hospitality was formed in June 2020, it has purchased several major restaurant companies, including Craftworks and J. Alexander’s. It now operates over hundreds of restaurants and breweries in 35 states and Washington, D.C. Under Kern, the company will continue to explore opportunities that can help it expand into new regions. 

With fresh leadership at the company, Kern shared via email some of the challenges SBP will continue to face, including the ongoing labor shortage. He also shared how SBP plans to overcome these potential roadblocks and what the future holds for the company, including what to expect from mergers and acquisitions. 

This interview has been edited for brevity and style. 

RESTAURANT DIVE: What are the biggest challenges your company faces this year, and what are your strategies to overcome them?

JOSH KERN: The biggest challenges SPB Hospitality faces this year are the ongoing impacts of the fickle economic landscape and the evolving consumer preferences in the restaurant industry. To overcome these challenges, we have developed several strategies. First, in this challenging economic environment we are focusing on enhancing our food quality, hiring and training the best people possible and enhancing our restaurant appearances. 

Secondly, to adapt to changing consumer preferences, we are continuously analyzing market trends and consumer feedback. This allows us to modify our offerings, introduce new menu items, and incorporate innovative technologies to enhance the overall guest experience. We are also investing in new digital marketing efforts to better find new audiences for each of the brands.

What lessons have you learned from previous positions that you bring to your current role?

From my previous positions, I have learned the importance of effective communication and collaboration across all levels of the organization. As a leader in my current role at SPB Hospitality, I strive to foster an open and transparent work environment where ideas can flow freely, and everyone's contributions are valued. Additionally, I have gained insights into streamlining operations and optimizing resource allocation, which I am applying to ensure the company's efficiency and financial stability.

What excites you about your company’s trajectory for the next three years?

What excites me is our commitment to innovation and growth. We are constantly exploring new concepts, expanding our presence in different markets, and investing in technology to improve operational efficiency. Furthermore, our focus on sustainability and responsible practices aligns with the values of today's conscious consumers, which opens up exciting opportunities for us to make a positive impact while remaining competitive in the industry.

What’s a trend that concerns you that people aren’t talking about?

One trend that concerns me and is not getting enough attention is the increasing labor shortage in the hospitality sector. As the economy chugs along, there is a surge in demand for skilled workers, yet the industry is struggling to attract and retain talent. This could lead to a strain on our operations, potential service quality issues, and may impact overall growth. To address this, we are exploring various strategies such as offering competitive benefits, enhanced training programs, and creating a positive work culture to attract and retain talented individuals.

How are you thinking about M&A opportunities for SPB Hospitality?

SPB Hospitality is carefully evaluating potential acquisitions and partnerships that align with our strategic objectives and complement our existing portfolio of brands. We are looking for opportunities that can provide us with geographic expansion, access to new customer segments, or innovative concepts that resonate with today's consumers.

Additionally, we are mindful of ensuring that any M&A activity fits within our financial capabilities and is well-integrated into our existing operations to maximize synergies and value creation. Thorough due diligence and a well-defined integration plan are key components of our approach to M&A