Tony Roma's CEO Talks American Consumers

Summary

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Bloomberg Talks — Tony Roma's CEO Talks American Consumers

Date: December 24, 2025
Host/Interviewer: Bloomberg
Guest: Mina Hawk, CEO of Tony Roma’s

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Episode Overview

This episode features an in-depth conversation with Mina Hawk, CEO of Tony Roma’s, discussing changing consumer behavior in the restaurant industry, the impact of inflation and beef prices, cost-cutting strategies, technology’s evolving role, and Tony Roma's expansion and brand evolution. With a focus on real-time industry challenges and adaptation strategies, Hawk offers a candid view into how the iconic chain is responding to American consumers’ shifting habits and expectations.

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Key Discussion Points & Insights

1. Changing Consumer Behavior Amid Economic Pressures

• Persistent Price Sensitivity: Mina Hawk points out that customer attitudes are heavily influenced by "low confidence and sticky price perceptions" ([00:35]).
• Perceived vs. Actual Value: Despite customer frustration over menu prices, Hawk’s review of four-year sales data shows "a sharp increase" in sales systemwide ([00:56]).
• Adapting Ordering Habits: Customers are adjusting by selecting fewer menu items or waiting for promotional deals ([01:29]).
• Promotional Strategy: Targeted promotions and limited-time offers—implemented at franchisees’ discretion—have driven spikes in demand where used ([01:50]).

2. Navigating Inflation and Beef Price Volatility

• Beef Prices’ Impact: Significant beef price increases (up 15% year-over-year) directly affect a core menu item ([02:32]).
• Reluctance to Raise Prices: Hawk stresses commitment to "keeping pricing quite stable" ([01:50]), and resisting passing costs on to consumers:

  "Our initial reaction is not to pass those differences to consumers. But are we feeling pressure? Yes, we are. The margins are thin." — Mina Hawk ([03:00])

• Supplier Diversification: High costs are pushing Tony Roma’s to analyze operational efficiency, diversify suppliers, and question longstanding practices ([03:00]).

3. Cost Management and Technology Integration

• Labour as a Cost Focus: Labor is identified as the “biggest area of cost,” but jobs are being protected through efficiency over outright layoffs ([04:11]).
• AI & Tech Reforms:

  "Our corporate staff size have reduced drastically. But we are much more efficient due to the technological advancements." — Mina Hawk ([04:11])

• Robotic Servers: Select locations are piloting robotic servers to streamline operations ([04:46]).
• Worker Reallocation, Not Reduction:

  “We’re not shedding employees… but what we are becoming is much more efficient.” — Mina Hawk ([04:46])

4. Expansion Plans and Menu/Brand Strategy

• Active Expansion:
  • Guam: Recently reopened branch, embraced by the local military community ([05:30])
  • Calgary: Plans to reenter due to a resurgence in the local energy sector; projected opening in Q2 2026 ([05:30])
  • Asia Pacific and Middle East: Ongoing and planned growth in these regions ([05:30])
• Brand Heritage vs. Modernization:
  • Emphasis on preserving core identity:

    "We are not… changing our logo, our brand palette, because that's how our customers identify with us." — Mina Hawk ([06:33])

  • Internal modernization focuses on operations and experience, not visible branding ([06:33])

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Notable Quotes

• On Not Passing Costs to Consumers:

  “Our initial reaction is not to pass those difference to consumers. But are we feeling pressure? Yes, we are. The margins are thin.”
  — Mina Hawk ([03:00])

• On the Role of Technology:

  "Our corporate staff size have reduced drastically. But we are much more efficient due to the technological advancements."
  — Mina Hawk ([04:11])

• On Efficiency, Not Layoffs:

  “We’re not shedding employees… But what we are becoming is much more efficient."
  — Mina Hawk ([04:46])

• On Brand Evolution:

  "We are not...changing our logo, our brand palette, because that's how our customers identify with us."
  — Mina Hawk ([06:33])

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Key Timestamps

• 00:35 – CEO Mina Hawk joins, outlines consumer perceptions
• 00:56 – Hawk on sales data and price-related frustrations
• 01:50 – Pricing strategies: stability, promos, and impact
• 02:32 – Host addresses beef price increases; Hawk’s take on cost absorption
• 03:00 – Discussion of supply chain and margin pressures
• 04:11 – Technology and labor efficiency: use of AI, reduced corporate staff
• 04:46 – Clarification on use of robotics and staff reallocation
• 05:30 – Expansion plans: Guam, Calgary, Asia-Pacific, Middle East
• 06:33 – Brand legacy vs. modernization approach

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Memorable Moment

• Holiday Commitment: The interview takes place on Christmas Eve, conveying both the CEO’s and the brand’s close engagement with the consumer community and openness, even on holidays ([00:56], [06:48]).

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Tone

The conversation is candid, pragmatic, and forward-looking. Mina Hawk balances respect for brand tradition with a clear-eyed approach to operational adaptation and international growth, reflecting both the warmth of a legacy brand and the business rigor of modern restaurant leadership.

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Transcript

[Indiana University Representative]

Old playbooks won't solve tomorrow's problems. Indiana University is proving how higher education can create solutions with industry. Our partnerships address future talent and workforce needs, support entrepreneurs and local businesses, and create solutions that turn discoveries into dollars. Together, we're building a model for industry partnerships that fuel economic growth. Explore IU's impact at iu.edu impact.

[Bloomberg Host]

Bloomberg Audio Studios Podcasts Radio News Mina Hawk.

[Bloomberg Interviewer]

The CEO of the international restaurant chain Tony Romas, writes, low confidence and sticky price perceptions are influencing dine in frequency and check size. Mina joins us now. Mina, thank you so much for joining us, especially on this Christmas Eve. Give us a sense of what you've seen change with the consumer this year.

[Mina Hawk]

Thank you for having me. For consumers at Tony Romas, as you know, we are located all over the world and the United States. While there is a perceived value because of the macroeconomic factors of, you know, where we get reviews of people showing frustration about the price of the menu. However, when I look at the sales data over the last four years, I am seeing system wide. We are progressively seeing a sharp increase.

[Bloomberg Interviewer]

So when it comes to what does that mean when consumers are at the actual restaurant, are they still coming in and just going for less options, potentially ordering less off the menu? Are they looking for days when potentially, I don't know if you run any sort of promos, how are you actually weathering this storm?

[Mina Hawk]

So from a consumer point of view, what happened is if you let's say they like our ribs, right, and they try to compare, the data may be from a year or two ago. However, in our system, we try to keep the pricing quite stable. We don't try to pass any difference to consumers because of any macroeconomic factors. But when it comes to pricing, yes, we do run promos. There are deals, there are limited time offers where our franchise partners, if they want, they can participate in it. In units where they are participating in this promos, there are seeing a very sharp increase in consumer demand.

[Bloomberg Host]

Let's talk a little bit about beef prices because that's something that's obviously featuring prominently on your menus. We've seen beef prices go up, up 2.1% for ground beef in September. That is up from 15. That is up 15% from a year ago. How is that being folded into your menu offerings and menu pricing? I know that you say you don't want to be raising prices, but at some point the margins on that, the costs on that become kind of onerous.

[Mina Hawk]

Yes, I agree with you. There are many macroeconomic headwinds out there Right now. But this also give us the opportunity to look into the microeconomics of our unit and see what we can do when it comes to pricing. Our initial reaction is not to pass those difference to consumers. But are we feeling pressure? Yes, we are. The margins are thin. Restaurant industry overall operates on a very thin margin. But in my opinion what I am seeing is the macroeconomic factors are actually allowing us to look into the restaurant systems overall and see where are opportunities to cut back on cost. While the food cost it is high because of various reasons. But are there many options? Are there enough suppliers? How can we diversify our supply ecosystem? These are the questions we are asking internally. While before maybe the restaurants operated on a status quo for many years.

[Bloomberg Host]

And I appreciate your saying that. So can you give us some more specific examples of your cutting back on costs in a way that might be visible to your customer?

[Mina Hawk]

For example, one of the biggest areas of cost is labor. While we like to protect the jobs and make sure that, you know, our workforce remains competitive due to AI and technological innovation. That is one area where we can see some more opportunities to be far more efficient. Our corporate staff size have reduced drastically. But we are much more efficient due to the technological advancements.

[Bloomberg Interviewer]

So are you basically saying that because of AI you were able to shed some employees?

[Mina Hawk]

We're not shedding employees. What we're doing is let's say if there were five employees at the corporate level doing upwork because of the turnaround of projects, the data integration have become much faster. We have robotic server in some of our select locations. But we are not cut back on employees. But what we are becoming is much more efficient. The work of each and every employee where I see it is because of AI and the data integration will become a lot easier and the operation will be much more efficient.

[Bloomberg Interviewer]

When you look in for 2026, anything you can tell us on maybe expansion plans or any changes in the menu.

[Mina Hawk]

In terms of expansion plan? We just reopened in Guam. We had a presence in Guam for a long time. A local military couple just recently last week reopened our Guam unit. And with a very remodeled and it's modern and local military community is extremely enjoying the Tony Roma's over there. We are going back to Calgary. The energy sector over there is doing a combat and Calgary is a very vital market for us. We're anticipating an opening in quarter two. We are growing in Asia Pacific. We are looking into the Middle east as well.

[Bloomberg Host]

Okay, so even as you undergo this expansion, we know that Tony Roma's is a 50 year old restaurant brand. There's a certain brand legacy that you need to protect even as you adapt it for the 2000s. And even the slightest tweak can backfire sometimes. Think about the backlash to Cracker Barrels logo change. How do you modernize the Tony Roma's look and experience without alienating customers in the process?

[Mina Hawk]

When we are modernizing it, we are not, you know, changing our logo, our brand palette, because that's how our customers identify with us. What we're doing is internally, we are trying to see where are the areas of improvement.

[Bloomberg Interviewer]

Thank you so much, Mina, for spending your Christmas Eve morning with us. That, of course, is Tony Roma CEO.

[CVS Representative]

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