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From Oil and Gas to Hospitality: A Unique Journey

Matias Pesce’s entry into the hospitality industry wasn’t the typical path of a restaurateur. With over 20 years of experience in the oil and gas industry, working for giants like British Petroleum, Pesce was accustomed to a world of corporate governance, strategic planning, and long-term vision. However, the allure of the hospitality industry and a desire for a change led him to take a sabbatical in Miami, where a chance meeting with the founders of V&E Hospitality Group set the stage for a new chapter in his career.

What makes Pesce’s journey unique is his ability to translate his corporate experience into the hospitality sector. He brought with him a structured approach to business, emphasizing the importance of governance, policies, and a clear strategy. This fresh perspective was exactly what V&E Hospitality needed to evolve from a family-run restaurant group into a formidable player in the hospitality industry.

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Building a Long-Term Vision for V&E Hospitality

One of the first things Pesce did upon joining V&E Hospitality was to establish a long-term vision for the company. In an industry where many businesses focus on day-to-day operations, Pesce understood the importance of planning for the future. His strategy was built on three key pillars:

1. Diversification
2. Brand Building
3. Profitability

These pillars were not just buzzwords; they were the foundation upon which V&E’s growth would be built.

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1. Diversification: Mitigating Risks and Ensuring Stability

In the hospitality industry, diversification is crucial for mitigating risks and ensuring business stability. Pesce recognized this early on and led V&E Hospitality through a strategic diversification process. This meant expanding beyond the company’s initial stronghold in Miami Beach to new regions like Las Vegas and exploring new concepts beyond traditional dining.

Key Areas of Diversification:

• Geographic Expansion: V&E moved into new markets, including Nevada and potentially New York and Los Angeles, to reduce dependency on any single location.
• Segment Expansion: The company diversified its offerings from Quick Service Restaurants (QSR) to casual and polished casual dining, catering to a broader audience.
• Business Expansion: Beyond F&B, V&E is also investing in real estate and hotel businesses, creating a more resilient portfolio.

By diversifying across regions, segments, and business types, V&E Hospitality has built a robust framework that can weather market changes and capitalize on new opportunities.

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2. Brand Building: The Power of a Strong Identity

In today’s competitive hospitality market, a strong brand is not just an asset; it’s a necessity. Pesce understood that building and maintaining brand equity was essential for long-term success. V&E Hospitality’s approach to branding is methodical and focused on enhancing both tangible and intangible assets.

Why Branding Matters:

• Customer Loyalty: A strong brand creates a loyal customer base that identifies with your values and experiences.
• Business Valuation: The value of a business isn’t just in its current cash flow but also in its brand equity. A well-recognized brand can significantly enhance a company’s market value.
• Market Differentiation: In a crowded market, branding helps differentiate your offerings and create a unique market position.

V&E Hospitality invests heavily in building brand awareness and maintaining a consistent brand image across all its locations and concepts. Whether it’s the upscale dining experience at Havana 1957 or the casual vibe at Cortadito Coffee House, each brand within the V&E portfolio is carefully curated to offer a distinctive experience that resonates with its target audience.

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3. Profitability: The Lifeblood of Growth

While diversification and branding are critical, they must be underpinned by solid profitability. Pesce emphasizes the importance of maintaining a healthy EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) as a measure of the company’s financial health.

Strategies for Maintaining Profitability:

• Cost Control: V&E employs strict cost controls, from labor to food costs, ensuring that profitability is not compromised even in challenging times.
• Efficiency in Operations: By optimizing recipes, reducing kitchen complexity, and renegotiating with suppliers, V&E manages to keep costs in check while maintaining quality.
• Strategic Pricing: Careful consideration is given to pricing strategies to ensure that the company remains competitive without alienating customers.

Pesce’s approach ensures that V&E Hospitality not only grows but does so sustainably, with profitability at the core of every decision.

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Leadership and Company Culture: Integrating New Talent

As V&E Hospitality expanded, one of the significant challenges was maintaining the company’s strong culture while integrating new talent. Pesce understood that for the company to grow, it needed to attract top talent, but this often meant bringing in individuals with different cultural backgrounds and work experiences.

Key Elements of V&E’s Culture:

• Family-Oriented Environment: V&E started as a family-run business, and this family-oriented culture remains a core part of the company’s identity.
• Latin Roots: With founders from Mexico and Cuba, V&E’s culture is deeply influenced by Latin traditions, which are reflected in its hospitality and service.
• Passion for Excellence: Across all levels, there’s a strong focus on delivering excellent service and creating memorable experiences for guests.

To successfully integrate new talent, V&E employs a flexible approach, allowing new employees to bring fresh ideas while ensuring they understand and align with the company’s core values. This balance of tradition and innovation is what allows V&E to continue growing without losing its identity.

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Navigating Challenges: Lessons from the COVID-19 Pandemic

The COVID-19 pandemic was one of the most significant challenges V&E Hospitality faced, as it was for the entire hospitality industry. At the height of the pandemic, V&E had to make difficult decisions, including reducing its workforce from 1,500 to just 300 employees. However, Pesce’s leadership during this crisis helped the company emerge stronger.

Crisis Management Lessons:

• Clear Communication: During the pandemic, Pesce and his team maintained open lines of communication with all employees, explaining the reasons behind tough decisions and outlining a path forward.
• Flexibility and Adaptability: The company quickly adapted to new realities, focusing on off-premise sales and online reservations to maintain revenue streams.
• Strategic Rebuilding: As conditions improved, V&E rehired much of its staff, demonstrating a commitment to its workforce and ensuring that the company was ready to bounce back.

By leading with transparency and decisiveness, Pesce ensured that V&E Hospitality not only survived the pandemic but also positioned itself for future growth.

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The Critical Role of Marketing in Restaurant Success

In the restaurant industry, marketing is often overlooked or underfunded, but Pesce sees it as a vital component of success. At V&E Hospitality, marketing isn’t just about driving sales; it’s about building a lasting connection with customers.

Key Marketing Strategies:

• Brand Awareness: V&E invests in both digital and traditional marketing to build brand awareness and reach new customers.
• Customer Engagement: Through social media, online advertising, and email marketing, V&E stays connected with its customers, ensuring they remain loyal and engaged.
• Off-Premise Sales: Recognizing the growing importance of off-premise dining, V&E has invested in marketing strategies to promote delivery and takeout options.

Pesce’s approach to marketing is comprehensive, ensuring that every aspect of the customer journey is considered and optimized for maximum impact.

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Advice for Aspiring Restaurateurs

For those considering entering the restaurant industry, Pesce offers a word of caution: “You have to be very passionate about F&B to start this business.” He emphasizes that while the industry can be incredibly rewarding, it’s also demanding, with countless variables that can impact success.

Key Takeaways for Aspiring Restaurateurs:

• Passion is Essential: Without a deep passion for food and service, it’s difficult to sustain the energy and commitment needed to succeed in hospitality.
• Think Big: A small, short-term mindset won’t get you far in this industry. Successful restaurateurs need to think big, plan for the future, and build a strong foundation from the start.
• Team Building is Crucial: Surround yourself with a talented team that shares your vision and can help you navigate the inevitable challenges.

Pesce’s experience shows that with the right mindset and approach, it’s possible to overcome the industry’s challenges and build a successful and lasting business.

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Conclusion

Matias Pesce’s journey from oil and gas executive to CEO of V&E Hospitality Group offers valuable lessons for any restaurant owner. His strategic approach to growth, emphasis on strong leadership, and ability to navigate challenges have positioned V&E Hospitality as a leader in the industry.

By focusing on diversification, brand building, and profitability, while maintaining a strong company culture and investing in marketing, Pesce has set a course for sustained success. Restaurant owners looking to grow their businesses can learn much from his approach—whether they’re just starting out or looking to take their operations to the next level.

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Key Takeaways

1. Strategic Vision is Essential: Matias Pesce’s success at V&E Hospitality Group highlights the importance of having a long-term vision that guides every business decision. A clear strategy focusing on diversification, branding, and profitability can set the foundation for sustainable growth.
2. Diversification Mitigates Risks: Expanding across different regions, segments, and even industries (like real estate) helps protect your business from market volatility and opens up new revenue streams.
3. Strong Branding Builds Value: A well-defined brand not only attracts loyal customers but also increases the overall value of your business. Invest in building and maintaining your brand across all touchpoints.
4. Leadership and Culture Matter: Successfully integrating new talent while preserving your company’s core values is crucial for long-term success. Leadership plays a key role in maintaining a strong, cohesive culture, even during periods of rapid growth.
5. Marketing is a Vital Investment: In today’s competitive hospitality market, investing in marketing is not optional—it’s essential. From brand awareness to customer engagement, a well-rounded marketing strategy can significantly impact your bottom line.
6. Adaptability is Key to Overcoming Challenges: The COVID-19 pandemic underscored the importance of being flexible and adaptable. Businesses that can quickly pivot in response to crises are more likely to survive and thrive.

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FAQ

1. What are the key pillars of V&E Hospitality’s growth strategy?

V&E Hospitality’s growth strategy is built on three main pillars: diversification, brand building, and profitability. Diversification involves expanding into new regions and segments to mitigate risks, while brand building focuses on creating strong, recognizable brands that resonate with customers. Profitability is maintained through strict cost controls and efficient operations.

2. How does Matias Pesce view the role of branding in the hospitality industry?

Matias Pesce views branding as a crucial element of business success in the hospitality industry. He believes that a strong brand not only attracts loyal customers but also enhances the overall value of the company. By investing in brand awareness and maintaining a consistent brand image, V&E Hospitality strengthens its market position and increases its intangible assets.

3. What challenges did V&E Hospitality face during the COVID-19 pandemic, and how did they overcome them?

During the COVID-19 pandemic, V&E Hospitality faced significant challenges, including the need to downsize its workforce and adapt to new operational realities. The company overcame these challenges through clear communication, strategic decision-making, and a focus on rebuilding stronger. By maintaining flexibility and quickly pivoting to off-premise sales, V&E Hospitality emerged from the crisis in a stronger position.

4. Why is diversification important for hospitality businesses, according to Matias Pesce?

According to Matias Pesce, diversification is important because it helps mitigate risks and ensures business stability. By expanding across different regions, segments, and industries, hospitality businesses can protect themselves from market volatility and create new growth opportunities. Diversification also allows businesses to adapt to changing market conditions more effectively.

5. What advice does Matias Pesce offer to aspiring restaurateurs?

Matias Pesce advises aspiring restaurateurs to be passionate about the food and beverage industry, as this passion is essential for sustaining the energy and commitment needed to succeed. He also emphasizes the importance of thinking big, building a strong team, and having a clear, long-term vision for the business. Pesce cautions that the restaurant industry is demanding, and success requires careful planning and a willingness to adapt.