August 6th 2024.
Warren Thompson, the CEO of Thompson Hospitality, has been making waves in the restaurant industry. With projected sales of over $1.1 trillion this year, it's clear that the industry is thriving. The National Restaurant Association's 2024 "State of the Restaurant Industry" report predicts that by the end of 2024, over 15.7 million people will be employed in this sector in the United States.
One notable aspect of the restaurant industry is the significant role that Black-owned businesses play in driving growth and development. While Black people make up 13.6% of the U.S. population, only 9% of restaurant firms are owned by Black individuals, according to the U.S. Census Bureau. Despite the challenges faced by many in this industry, Warren Thompson, who founded Thompson Hospitality in 1992, leads the nation's largest minority-owned food and facilities management company. His success story serves as a powerful example of the potential for growth and excellence within Black-owned businesses, demonstrating their ability to thrive and innovate even in highly competitive markets.
BLACK ENTERPRISE recently had the opportunity to sit down with Thompson and gain his insights on the ever-changing landscape of the restaurant business, the importance of diversification, and his philosophy on leadership.
One key factor in Thompson's success has been his deeply ingrained entrepreneurial spirit. As he puts it, "I was always an entrepreneur, even as a kid. I had multiple businesses, from raising hogs to cutting grass to selling produce out of an old school bus." This mindset has been a central element of Thompson Hospitality's culture from the beginning. Originally a restaurant company, the business quickly diversified into contract food service and hotels, allowing it to navigate economic fluctuations and crises like the COVID-19 pandemic.
According to Thompson, the company's success can also be attributed to its entrepreneurial culture. "We attract and retain people who are entrepreneurial," he explains. "In every interview, I ask whether they see themselves as more of a corporate person or an entrepreneur. I want the answer to be entrepreneurial."
For Thompson, leadership means taking calculated risks and evolving with experience. "When I started this company 32 years ago, I took crazy risks," he admits. "I started with $100,000 and made heavily leveraged transactions. As we've grown, I've become more conservative, but I still believe in taking appropriate risks to grow the company." His leadership philosophy is encapsulated in the company's guiding principles, the last of which is "Do the right thing, treat others the way you'd like to be treated." This principle, he believes, is at the heart of the company's culture and drives decision-making at all levels.
Partnerships have played a crucial role in Thompson's journey, particularly in the context of racial issues. He recalls starting Thompson Hospitality in 1992, a time when the country was experiencing similar racial challenges to what we are facing today. His first major deal, franchising 27 Shoney's restaurants, came on the heels of a significant discrimination lawsuit against the company. "Even though they were required to have a certain number of African American franchisees, they were having a hard time. When I approached them, they were eager to do the deal." To navigate these racial tensions and business hurdles, Thompson assembled an influential advisory board, which included prominent figures like Martin Luther King III and Dr. Dorothy Height, who provided crucial support and guidance.
Thompson's commitment to diversity and community is unwavering. As he puts it, "Diversity equals income. It's been a fundamental part of our company from day one." This commitment extends to substantial contributions to Historically Black Colleges and Universities. "We provide about $4 million a year in scholarships and financial support to HBCUs," Thompson reveals, emphasizing his personal connection to these institutions, as both of his parents were HBCU graduates. This focus on giving back and fostering diversity has not only strengthened the company but also created opportunities for future generations.
Hen Quarter Prime, the latest addition to the Thompson Hospitality portfolio, has quickly become a standout in the competitive Washington, D.C. restaurant scene. According to Alex Brown, director of operations, its success lies in a robust marketing strategy and deep community engagement. "If you're joining us for dinner, we'll talk to you about brunch, and vice versa," Brown explains. "We also cross-market with brands like Makers Union and Milk and Honey at the Wharf." This integrated approach helps maximize visibility and attract a diverse crowd to Hen Quarter Prime, solidifying its reputation as a destination for various dining experiences.
Adaptation and innovation are also critical to Hen Quarter Prime's success. Brown notes that the restaurant continually evolves its menu to cater to customer preferences and market conditions. "We offer everything from a casual dinner with chicken and waffles to a more elevated experience with table-side carved Tomahawk and Porterhouse steaks," he says. The beverage program is equally versatile, featuring entry-level cocktails and a large selection of rare bourbons and whiskies.
Hen Quarter Prime's blend of innovative marketing, strategic cross-promotions, adaptive offerings, and community engagement serves as a model for success in the competitive restaurant industry. It thrives under the Thompson Hospitality Group's umbrella, bringing a unique and elevated dining experience to the heart of Washington, D.C.
For aspiring entrepreneurs, Thompson has some valuable advice. "Get knowledge and experience in the business before you launch out on your own," he recommends, drawing from his nine years at Marriott. He also emphasizes the importance of strategic partnerships. "Five years into this company, we partnered with Compass Group, the global food service company. This partnership allowed us to grow our business exponentially." Thompson encourages young entrepreneurs to be financially conservative and seek proper funding, noting that many businesses fail due to being underfunded.
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