HOSPITALITY2022
ARE YOU READY?
What a tough year. The glitz and glamour of cheap rishi cash has worn off for most. Inflation is running high, increased minimum wages combined with higher national insurance contributions look like a stealth tax. I imagine most if not all independent hospitality business owners and even some corporates are wondering if it's really worth it? If it will ever be possible to turn a profit? Seasons change and storms eventually end, the trick is finding a safe port and ensuring you're not sunk in the meantime. If you have made it this far, Congratulations for hanging in there! So, let's look ahead to silver linings and endless summer days...
ECONOMY
It has been up and down with wild predictions on both sides of the curve. The only thing we can be sure of in the short term is costs of business are rising and customers' expectations of cost are not. I recently came across a menu from the mid 90’s and food prices were very comparable to a typical menu today. Delivering a quality product with appropriate service at great value has never been harder. Innovative service styles that make use of disguised self-service help to address labour shortage/high costs. The term you're looking for is interactive service. This could be a reworking of Hot Stone Cooking, Asian Hotpot concepts or Korean BBQ or even a Retro Fondue. With the shortage of skilled Chefs and the lack of will to pay them accordingly we are bound to see increasingly simple menus with less skill utilised in the preparation.Street food style restaurants that specialise in one or two dishes with a rustic setting are bound to fill the market place from the bottom up. We might even see a comeback of the Automat Restaurant with a modern twist. The age-old equation of cost of work vs cost of ingredients will be closely calculated. The greatest economy can come from watching your wastage! What's going in the bin? What energy can you save? By watching your wastage you will save money and reduce your carbon footprint! That's the kind of 2 for 1 we like. Seriously start thinking about it NOW.
STAFF
Staff Well, where to start... At this point many an owner is looking at staff as a necessary evil at best. With many people leaving the industry in droves realising their hard work and dedication can lead them to an enjoyable work life balance outside the industry. How can this be addressed? As we know pizza parties have long been the duct tape that binds a team together. Pizza parties are now seen as cynical buy off from management who don’t care enough to pay properly. I believe the answer to this is equity, either physically or emotionally. This time buy in means buy in! Education Utilising the government's apprenticeship scheme, it is now possible to qualify up to level 7 at very low cost compared to traditional pathways. Supporting your team in this manner is bound to galvanise them to your long-term plan's whist showing a great level of commitment from both parties . All current apprenticeships Here Shares Depending on your business structure it may be possible to issues shares to long term members of staff or allow a buy in. This option literally allows staff to know they have a physical but by all means small stake in the business Profit share Again, depending on your organisation, it may be possible to set aside a portion of profits to be divided up amongst the staff each year. A notable example of this was Greggs Bakery who did exceptional trading after the launch of their Vegan Sausage Roll. Not only did the staff feel appreciated it bought them thousands of pounds worth of positive press coverage a PR company could only dream of.
Mental Health
The industry has been physically and mentally pushed to the brink. Thankfully there are some great support options out there. The Burnt Chef Project has been helping to raise awareness and support for chefs struggling to deal with the highs and lows of service and life afterwards. The Drinks Trust and Hospitality Action are able to help with grant’s, training and support for those who are experiencing hard time or are between roles. Thousands of people have been helped and supported, if your struggling give them a call. If you're doing well consider a donation and if you care about your teams make sure they know about these services.
CUSTOMERS
Customers are fickle, as we know the last 18 months has seen a huge rise in home delivery experiences. This a double-edged sword as making money from these kinds of services is tricky at best. Wooing people back out again is the key to success. They must feel safe They must feel excited The must feel cared for They must feel like they are getting a good deal They must feel valued. There are a lot of feelings here for a reason. Never forget that you are not just for filling the need to eat and drink, people can and do stay at home for that. Connecting and delivering on an emotional level is critically to enticing your customers out. Competition is stiffer than it has been for a long time. Many businesses will fail over the next two years and victory will be handed to those businesses that consistently feed the emotional hunger of their customers . Some customers have forgotten how to behave nicely and it's important we stand by our teams and stand ready to politely remind them what is and isn't acceptable. Sat Bains recently addressed this issue and brought it to the public's attention.