/
The Most Influential Chain Restaurant Leaders 2023
The Most Influential Chain Restaurant Leaders 2023

The Most Influential Chain Restaurant Leaders 2023 - PDF document

ciolook
ciolook . @ciolook
Follow
5 views
Uploaded On

The Most Influential Chain Restaurant Leaders 2023 - PPT Presentation

This edition features the The Most Influential Chain Restaurant Leaders 2023 that are at the forefront of leading us into a better future ID: 1000414

#internationalbusinessmagazine #topbusinessmagazine #Globalbusinessmagazine #BlogsonEntrepreneurshipandBusiness

Share:

Link:

Embed:

Download Pdf. The "The Most Influential Chain Restaurant Le..." Pdf file is the property of its rightful owner. Permission is granted to download and use this file for personal, non-commercial use only.


Presentation Transcript

92/,,668(, /v/v]PZu]vPZuP]vPv]vZ'o}o&^}E}oWhvv]vPZd]}(/vGvo�}(]vv )) ))    #(.#.3C #(.#.3C ~|| )) ))    #(.#.3C #(.#.3C ~||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n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n-"# KDLQUHVWDXUDQWVDUHDSURPLQHQWDQGFRPSHWLWLYHLQGXVWU\DQGWKHPRVWLQXHQWLDOFKDLQUHVWDXUDQWOHDGHUVSRVVHVVFHUWDLQTXDOLWLHVWKDWVHWWKHPDSDUWIURPWKHLUFRPSHWLWRUV+HUHDUHVRPHRIWKHTXDOLWLHVRIWKHPRVWLQXHQWLDOFKDLQUHVWDXUDQWOHDGHUV7KHPRVWLQXHQWLDOFKDLQUHVWDXUDQWOHDGHUVSRVVHVVVWURQJEXVLQHVVDFXPHQZKLFKHQDEOHVWKHPWRPDNHLQIRUPHGGHFLVLRQVDQGGULYHWKHLURUJDQL]DWLRQVWRVXFFHVV7KH\XQGHUVWDQGWKHQDQFLDODQGRSHUDWLRQDODVSHFWVRIWKHLQGXVWU\DQGDUHDEOHWRGHYHORSDQGH[HFXWHVWUDWHJLHVWKDWPD[LPL]HSURWVZKLOHHQVXULQJFXVWRPHUVDWLVIDFWLRQ6XFFHVVIXOFKDLQUHVWDXUDQWOHDGHUVSULRULWL]HFXVWRPHUVDWLVIDFWLRQDERYHDOOHOVH7KH\XQGHUVWDQGWKHLPSRUWDQFHRIFUHDWLQJDSRVLWLYHGLQLQJH[SHULHQFHIRUWKHLUFXVWRPHUVDQGDUHDOZD\VORRNLQJIRUZD\VWRLPSURYHWKHLUPHQXRIIHULQJVVHUYLFHDQGRYHUDOODWPRVSKHUH7KH\OLVWHQWRFXVWRPHUIHHGEDFNDQGXVHLWWRLQIRUPWKHLUGHFLVLRQVDQGVWUDWHJLHV7KHPRVWLQXHQWLDOFKDLQUHVWDXUDQWOHDGHUVDUHDOZD\VORRNLQJIRUZD\VWRLQQRYDWHDQGVWD\DKHDGRIWKHFXUYH7KH\DUHQRWDIUDLGWRWDNHULVNVDQGWU\QHZWKLQJVZKHWKHULW\n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n-"# : ;: :: d^$^ d$d EW$ ESFNBnEFNFu]vPZuP]vPv]vZ'o}o&^}^&g}BF?NgFhvv]vPZd]}(/vGvo�}(]vv^&B&?FF& SB9&}&BFNN?&FNgh&BSNSB&BB&N?&nF}B&FF&dnFFn&B8@:@ : ;: :: d^$^ d$d EW$ ESFNBnEFNFu]vPZuP]vPv]vZ'o}o&^}^&g}BF?NgFhvv]vPZd]}(/vGvo�}(]vv^&B&?FF& SB9&}&BFNN?&FNgh&BSNSB&BB&N?&nF}B&FF&dnFFn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rvFLHQF\DQGUHGXFHH[SORLWDWLRQ=DUD=DPDQL&KLHI6ROXWLRQV2\rvFHU)HDWXUHG3HUVRQ  cBN"Bh;  "bJB|bJBJy�;�O  X|"Oi�N|i�yJBN"|"J  �yX"BJ�""B-DQXDU\    &8"�OB�;J"  y"" XB   &�J�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rvFLHQF\DQGUHGXFHH[SORLWDWLRQ=DUD=DPDQL&KLHI6ROXWLRQV2\rvFHU)HDWXUHG3HUVRQ  cBN"Bh;  "bJB|bJBJy�;�O  X|"Oi�N|i�yJBN"|"J  �yX"BJ�""B-DQXDU\    &8"�OB�;J"  y"" XB   &�J�R v}}vPU/}oo]l}}vU(}u.vv}}]ou]Uv}uu]vZv}ZvZ]uZ]}lZ}v}(}vro]v}l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v}}vPU/}oo]l}}vU(}u.vv}}]ou]Uv}uu]vZv}ZvZ]uZ]}lZ}v}(}vro]v}l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dKKEd/EhdK'h/Zz^d�.05;⌕耀Z^dhZEd^/EdK/d^Eyds�.05;⌕耀Khd/KE&ZKD�.05;⌕耀'zd�.05;⌕耀K'EZzX/tEddKddZdDKZ&ZE,/^^dKKhZKEWdEKD/Edd,DZd^/Et,/,tKh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dKKEd/EhdK'h/Zz^d�.05;ĶZ^dhZEd^/EdK/d^Eyds�.05;ĶKhd/KE&ZKD�.05;Ķ'zd�.05;ĶK'EZzX/tEddKddZdDKZ&ZE,/^^dKKhZKEWdEKD/Edd,DZd^/Et,/,tKh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sZd,zZ^Ut,s�sKWhE/YhE,/',�zZs�DEhUt,/,tZD/E^d&^d/ED/Ed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sZd,zZ^Ut,ss�KWhE/YhE,/',�zZs�DEhUt,/,tZD/E^d&^d/ED/Ed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dWddT ,JY(.414402FLF_NSJNSUWNSYFSIINLNYFQTS \\\HNTQTTPHTR BEFFSF  ]&NFEFFSF  ]&NFEFFSF  ]&NEFFS  8YF^NSYMJPST\SSFBN& EdWddT ,JY(.414402FLF_NSJNSUWNSYFSIINLNYFQTS \\\HNTQTTPHTR \r\r)PEUDFLQJ   LQWKH  \n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r\r)PEUDFLQJ   LQWKH  \n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d7'&" dZE(}%d7'&" HVSHFWIXOO\6XEPLWWHGE\(PLO\+DUWVWRQH)RXQGHU &(2RI)URP7KH+DUW0DQDJHPHQW//&6LQFHWKHVWDUWRIGUHDGHG&29,'RQHWKLQJKDVEHFRPHFOHDUWKHUHLVDKXJHVKRUWDJHRIFRPSDVVLRQLQWKHZRUOGERWKLQWKHZRUNSODFHDQGLQVRFLHW\DVDZKROH7KHHIIHFWVRIWKHSDQGHPLFRQJOREDOKHDOWKHFRQRPLFDFWLYLW\DQGGDLO\OLYHVKDYHHPRWLRQDOO\RYHUZKHOPHGSHRSOHGVRPXFKLW\nVQRZRQGHULQDUHFHQWVXUYH\DOPRVWKDOIRIWKHUHVSRQGHQWVVWDWHGWKDWWKHSDQGHPLFKDVKDGDQHJDWLYHLPSDFWRQWKHLUPHQWDOKHDOWK$ODUJHVFDOHFULVLVVXFKDVWKLVIRUFHVOHDGHUVKLSWRVWULSGRZQWRLWVPRVWIXQGDPHQWDOEDVLFPDNLQJDSRVLWLYHGLIIHUHQFHLQSHRSOH\n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nWKHOS,WLVLPSHUDWLYHQRZPRUHWKDQHYHUOHDGHUVDUHDZDUHDQGSD\LQJDWWHQWLRQWRZHOOEHLQJRIWKHLUWHDPPHPEHUV,IDQHYHQWKDSSHQVWKDW\RXIHHOPLJKWLPSDFWVRPHRQHRQ\RXUWHDPKROGDPHHWLQJDQGFKHFNLQZLWKWKHP6KRZLQJWKLVW\SHRIFRPSDVVLRQEXLOGVWUXVWDQGOR\DOW\,WFUHDWHVDVDIHVSDFHIRUWKHPLQVWHDGRIDGGLWLRQDODQ[LHW\LQWRDQDOUHDG\VWUHVVIXOHQYLURQPHQW7KHQHHGIRUFRPSDVVLRQLVQ\n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nWWDNHWKHYDFFLQH RWKHUWKDQ*RYHUQPHQWWUDYHOUHJXODWHG EHFDXVHRISROLWLFDOSUHIHUHQFHKRZZRXOG\RXIHHO":KHWKHU\RXZDQWWRDGPLWLWRUQRWWKHDQVZHULV$ZIXO6RSOHDVHKDYHVRPHPRUHFRPSDVVLRQEHDOLWWOHQLFHUDQGUHPHPEHU\RXQHYHUNQRZZKDWWKHSHUVRQQH[WWR\RXKDVEHHQWKURXJK'RQ\nWMXGJHDERRNE\LWVFRYHU(9(5SHUVRQFDQPDNHDGLIIHUHQFH/HW\nVEHWKHJHQHUDWLRQRIFKDQJHPDNHUV $90 u]o,}v&}vK&}udZ,DvPuv ZZZFLRORRNFRP_-DQXDU\_ ZZZFLRORRNFRP_-DQXDU\_ $PNQBTTJPO%VSJOHB %d7'&" dZE(}%d7'&" HVSHFWIXOO\6XEPLWWHGE\(PLO\+DUWVWRQH)RXQGHU &(2RI)URP7KH+DUW0DQDJHPHQW//&6LQFHWKHVWDUWRIGUHDGHG&29,'RQHWKLQJKDVEHFRPHFOHDUWKHUHLVDKXJHVKRUWDJHRIFRPSDVVLRQLQWKHZRUOGERWKLQWKHZRUNSODFHDQGLQVRFLHW\DVDZKROH7KHHIIHFWVRIWKHSDQGHPLFRQJOREDOKHDOWKHFRQRPLFDFWLYLW\DQGGDLO\OLYHVKDYHHPRWLRQDOO\RYHUZKHOPHGSHRSOHGVRPXFKLW\nVQRZRQGHULQDUHFHQWVXUYH\DOPRVWKDOIRIWKHUHVSRQGHQWVVWDWHGWKDWWKHSDQGHPLFKDVKDGDQHJDWLYHLPSDFWRQWKHLUPHQWDOKHDOWK$ODUJHVFDOHFULVLVVXFKDVWKLVIRUFHVOHDGHUVKLSWRVWULSGRZQWRLWVPRVWIXQGDPHQWDOEDVLFPDNLQJDSRVLWLYHGLIIHUHQFHLQSHRSOH\n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nWKHOS,WLVLPSHUDWLYHQRZPRUHWKDQHYHUOHDGHUVDUHDZDUHDQGSD\LQJDWWHQWLRQWRZHOOEHLQJRIWKHLUWHDPPHPEHUV,IDQHYHQWKDSSHQVWKDW\RXIHHOPLJKWLPSDFWVRPHRQHRQ\RXUWHDPKROGDPHHWLQJDQGFKHFNLQZLWKWKHP6KRZLQJWKLVW\SHRIFRPSDVVLRQEXLOGVWUXVWDQGOR\DOW\,WFUHDWHVDVDIHVSDFHIRUWKHPLQVWHDGRIDGGLWLRQDODQ[LHW\LQWRDQDOUHDG\VWUHVVIXOHQYLURQPHQW7KHQHHGIRUFRPSDVVLRQLVQ\n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nWWDNHWKHYDFFLQH RWKHUWKDQ*RYHUQPHQWWUDYHOUHJXODWHG EHFDXVHRISROLWLFDOSUHIHUHQFHKRZZRXOG\RXIHHO":KHWKHU\RXZDQWWRDGPLWLWRUQRWWKHDQVZHULV$ZIXO6RSOHDVHKDYHVRPHPRUHFRPSDVVLRQEHDOLWWOHQLFHUDQGUHPHPEHU\RXQHYHUNQRZZKDWWKHSHUVRQQH[WWR\RXKDVEHHQWKURXJK'RQ\nWMXGJHDERRNE\LWVFRYHU(9(5SHUVRQFDQPDNHDGLIIHUHQFH/HW\nVEHWKHJHQHUDWLRQRIFKDQJHPDNHUV $90 u]o,}v&}vK&}udZ,DvPuv ZZZFLRORRNFRP_-DQXDU\_ ZZZFLRORRNFRP_-DQXDU\_ -\r�\r?\n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�vv}vvr}}lK ZZZFLRORRNFRP_-DQXDU\_ ZZZFLRORRNFRP_-DQXDU\_ -\r�\r?\n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�vv}vvr}}l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n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n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a^SRbbW^]MZAQhbbRh^SLMa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a^SRbbW^]MZAQhbbRh^SLMa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|} o~o~~|| ))%#(! ))%#(! || || .#(! .#(! |} o~o~~|| ))%#(! ))%#(! || || X]}o}}lX}u