If the name Jean-Jacques Gauer sounds familiar, it should. He is a staple in Switzerland, highly respected and often consulted when it comes to everything hospitality, luxury and business. Mr. Gauer is indeed that Gauer, from the Gauer Hospitality Group and President of the Association of Romande Hotels. With more than 40 years of experience as an entrepreneur in the hospitality sector, it only made sense that I would ask him his thoughts about the state of luxury, the future of entrepreneurship and hospitality in 2021.
What about F&B, specifically Michelin star restaurants?
(JJG) There will be kind of a clean-up in the sense that the 3-stars are unique, they’re fantastic like Crissier. You go there once and you think, Wow! The 2-stars, nearly wow, but not quite. The 1-star, nice but it’s not a 3-star. Then you have the no-star and sometimes you have very good surprises in the no-star. So there might be a change in the grading, not because of Michelin but because of the consumer. The consumer will look at it differently. Will they spend that kind of money in a 1-star or 2-star restaurant? I’m not that sure. Will they spend that much money in a 16/17 point Gault et Millau? I’m not that sure. Is it really what will drive business to the restaurants? I’m not that sure. Nowadays if you get a note or star from one of these big guys (Michelin, Gault et Millau), it’s a picture of maybe 2-3 times a year when your inspector comes into your restaurant. Nowadays you have other tools like Trivago, Trip Advisor and so you have instant feeling of a place everyday by consumers. I think this balances the choice of when you go to a restaurant. When I go to a restaurant, if I go to a 3-star restaurant, I know exactly what I want, I know where I’m going, and how much it costs. But for the other kind of experiences I might not need a guide to help me through that jungle, but I would like to hear or read some reports about some experiences people had in that place. The clean-up will be in the sense that the 3-star will stay there (where it is), and you will have a lot of new creative talent doing their thing.
There is a shift regarding priorities due to sustainability and the environment.
(JJG) Luxury will be simplified. A company who understood luxury since a long time is Hermes. It’s a Kelly bag, it’s a belt, it’s a foulard, that is luxury and there is a story to tell. I think of a hotel with simple luxury like Portofino. They don’t have a big spa. What they have is the best view of Portofino. They have beautiful rooms, a fantastic bar, the piano player is exciting, the food is just stunning, and you can have the best weekend. That’s real luxury. Luxury will be very talented, well trained people working there, trying to guess what the consumer really needs today, without the frills. It will be conscious about being ecological and working with local communities.
What do you say to young people who have the fire and want to try out something new?
(JJG) I encourage young people nowadays, instead of waiting for the good opportunity to be paid horribly in Dubai or in London, I encourage them to become entrepreneurs. To take their own bloody risk. Pull up 2-3-4 people, make a proper business plan, build your own business. An entrepreneur can be making an organic juice bar. You don’t need lots of capital to do that, but you need the guts to do it and maybe risk the money you had from your parents or grandparents. If you’re a very creative chef, do something small to start with. Do it for yourself. I think this might create a new breed of hoteliers, entrepreneurs and restaurateurs. Also, Crowd Funding can work really well for small entrepreneurs.
Following my conversation with Mr. Gauer, I couldn’t help but think about three of the six sections that will be covered in the Luxury Brand Management (LBM) course: People – Luxury consumers motives and behaviors, Strategy - Facets of Luxury Today and Trends - Brand Authenticity and New Trends in Luxury Hospitality. These are all relevant ideas to explore. Some have said that this pandemic has been the great social equalizer and changed the reason and way consumers are spending their money.
“Luxury today is to eat a McChicken at McDonalds at lunch and the next day you’re seated at the best table in Crissier. It is not living like how we used to; first class, limousines, the beautiful suite... today it’s one day you travel with easyjet and the next day, if you have to go to New York, you travel in a plane with a little more leg-room.” Jean-Jacques Gauer.
- What is the most critical step when developing a luxury hospitality brand?
- According to you, what is the importance of the intangible aspects of a luxury hospitality brand (identity, history, status) compared to the tangible aspects of the hotel (interior design, rooms, facilities) in attracting guests?
- Do you observe any change in luxury guests’ sensitivity towards sustainable practices of luxury hotels (i.e. reduction of waste, reduction of energy consumption, renewable energy production, etc.)?