Meeting the Leaders | Călin Ionescu, CEO Sphera Franchise Group (SFG): Embedding sustainability into business or lifestyle only makes sense if it outweighs the costs

This year, The Diplomat-Bucharest shares with its valued partners and audience, a momentous milestone – the 20th anniversary on the business media segment in Romania. To celebrate this milestone, THE DIPLOMAT-BUCHAREST connects with businesspeople and put into light their excellence and performances in a special event, THE DIPLOMAT-BUCHAREST AWARDS GALA.   This year, the special Awarding Gala ceremony will take place on October 22, at JW MARRIOTT BUCHAREST GRAND HOTEL, Grand Ballroom.

To mark the occasion, we spoke with business leaders about their business sentiment, expectations and conclusions for the first half of this year. We recently talked to Călin Ionescu, CEO Sphera Franchise Group (SFG) and here there are his opinions:

Expectations of this year: For the remainder of the year, we anticipate uncertainty to persist

Given the electoral year, there is a sense of uncertainty which translates into an expectative mood, for both the business environment and the consumers. Moreover, for the foodservice sector, 2024 was an atypical year, which affected seasonality trends, with Easter and May 1 holidays overlapping, the European Championship, and vacations taken earlier than in previous years. 

For the remainder of the year, we anticipate uncertainty to persist, as macroeconomic indicators deteriorate and the Government having to take fiscal measures in response, possibly by the end of this year and most certainly in 2025. While this is the main challenge we are facing, we are confident we will meet our budgeted targets for this year.

Fundamentals of leadership: Train your agility, learn and evolve continuously

The pace at which transformation is happening these days, given innovation in the AI field, makes adaptation and constant improvement a must. So, what I advise my teams is: train your agility, learn continuously, be better than yesterday. And I believe this applies beyond the workplace. Improve yourself because, in this fast-paced world, you risk falling behind.

I believe in leadership that creates the framework which empowers individuals to make their own decisions and enables measuring their own performance; it allows putting their full creativity, skills and potential at work and constant development. And, most importantly, it offers them accountability over their actions and, implicitly, their results.

I also lead my teams for a long-term vision. We have been doing business for 30 years and plan on doing so for the next 30 at least. So, ESG must be embedded in our actions, from reducing our impact on the environment to serving quality products to our clients, developing our teams, investing in local communities and nurturing partnerships with suppliers. These cannot happen without the contribution of each of my colleagues and I ensure that, by setting the pillars going forward for Sphera Group and by personal example, all employees become aware of the importance of sustainable and responsible behavior in their day-to-day work.

Adapting to AI-related progress is a must and not only in our company

In HoReCa industry, the impact may not be that visible or significant, at least for now, but the potential is immense and each of us must be prepared for the change it may bring.

The segment we are operating in is a bit atypical, because human interaction is critical to best service the customers. It’s not only food we serve, but a whole experience. So, people remain central to our business.

However, AI can play a critical role in improving customer service, as well as increasing business efficiency, by better tailoring products and offers. With over 150 restaurants across Romania, we have access to huge amounts of information on consumption behavior and crunching that data with the use of AI can offer invaluable insights. We already use robots for this, so we can see the potential for further progress.

But there are other areas in which AI can play a significant role, from embedding this technology in our kitchen equipment to developing people skills.

Measurement is done by analyzing savings, both financial and time, but also the impact on business – increase in sales, transactions, frequency etc.

Moreover, we have to understand that AI is like a tool, to put it simply. It’s not going to be the IT people who do coding all day long that will discover ways to use it in specific sectors. It’s the specialists and the workers doing daily jobs and running into different situations that can find in AI the solutions to solve problems or make their work easier. But for this, you need to have a change in mentality and, instead of fearing AI or adapting to it, as a reactive behavior, start thinking about how you can use AI to make your life easier at job.  

Growth potential and red flags

We see potential through organic growth, by expanding our network in cities or areas we have not yet covered, but also by increasing frequency and attracting new clients through innovations in the menu and offer deals. We are capitalizing on each of these, and we are continuing to open restaurants, while tailoring our marketing strategy to best meet consumer demands and expectations.  

Another strong growth area that we are considering is entering new geographies or adding brands to our portfolio, strategic moves that would allow us to open a new business stream in the long run. We are constantly on the lookout for such opportunities, analyzing their potential and fit to Sphera’s brand image and values.      

One of the main challenges we have been facing in the past years that persists is inflation and, although on a descending trend, it is still high. So, efficiency and increased attention on the cost side remain critical. However, this comes with opportunities, as well as rising prices put pressure on the consumers’ budget and our menus are a convenient alternative for pricier meal options.

Embedding sustainability into your business or even your lifestyle only makes sense if it outweighs the costs

Positive impact on multiple areas. Embedding sustainability into your business or even your lifestyle only makes sense if it outweighs the costs. So aside from the positive impact on the environment, it has to bring value – be it as a feeling of personal accomplishment for recycling for example or happier employees with improved performance for companies with strong social programs. I truly believe that the most ESG-performant companies in the long run will be those able to take measures, implement changes and carry out activities that are not only sustainable but also efficient from a business perspective.