This opinion piece was written by:
Alistair Morris
RA Membership Coordinator– Wellington
‘Do what you have always done, and you’ll get what you’ve always got’ is the old saw. Except now you probably won’t even get that. And you need to get ‘more’ to survive.
The challenges facing hospitality are many. They need to be identified and planned for to be successfully overcome. Some challenges stare you in the face while others creep up and catch you unaware. Managers and owners are having to deal with new technologies, Covid-19, social and digital media platforms, takeaways, and deliveries. These are completely different problems than those that existed a few short years ago. Many of our members are experienced operators, but there are many who are new to the industry, and they have found themselves in an equal state of bewilderment as the old stagers.
This article looks at some of the key challenges facing hospitality, providing some tips to help operators of all different levels of experience to stay ahead of the pack.
Inflation and ever-increasing costs
Profit margins are being squeezed more than ever. Inflation has risen and looks set to do so for some time to come.
You need to have a clear picture of your expenses and food costs as these can change dramatically on a weekly or even daily basis. Ask your food and beverage suppliers for help in identifying high margin items that you can focus your menus on. Design your menus so that you can reduce your stock-on-hand. Ensure that the kitchen isn’t over-sizing portions and is using seasonal produce. Keep your wine list and inventory tightly controlled. If you sell high-end wines, see if your merchant will supply on consignment.
Run the ruler over your other costs. Inflation can push these up quickly, so you need to be ever vigilant.
Customer expectations and behaviours
The customer has always been right, and always will be. Changing times have, however, changed their expectations. Some are evident, such as health and safety in the face of the virus. Others, not so much.
The rise of apps has created expectations of convenience and efficiency. Are you missing out on revenue to the venue down the road because of a reluctance to implement new technologies? Make sure you are offering an optimal digital experience for tech-savvy customers.
Ensure your menu caters for the change in tastes of customers. Look at healthier options and ensure there are plenty of vegetarian and plant-based options where appropriate (although not you bbq, slow-cooked, steak, fried chicken etc. restaurants! You need to ensure free-range, organic etc.).
Whatever your selling points, just make sure you have integrity and honesty.
Reputation management
Online review platforms have been with us for some time and are becoming increasingly popular with customers leaving comments, reviews and images. Some reviews are fair and reasonable while others can be devastating. A member recently received a one-star review because a potential diner turned up, without a booking, on a Monday, the day they are shut, and was irate that they were closed. Just imagine how many stars they would have got if they had been open! Seriously though, these reviews can be extremely hurtful, and it can be difficult to know how to respond. If you would like help drafting an appropriate response, please get in contact with us at the Association.
Nervousness about Covid has amplified customers’ vigilance around hygiene practices. Operators have to do the right thing and be seen to be doing the right thing to avoid negative reviews. Keep an eye on your staff and make sure they are keeping to your standards.
If you operate social media, and you should, carefully curate what you allow to be posted. Do not just turn this over to an available teenager; it is important that everything posted is reviewed and aligns with the image that you have for your establishment.
Retaining and attracting employees
We are very aware of the difficulties faced by every single café and restaurant in Aotearoa to staff their venues. Not a day goes by when we don’t field calls from you regarding this. There is no instant fix for the industry, but we are working hard to ease these pressures.
In the meantime, what you can do is make your establishment the most attractive place to work in. This is no different to what you need to do to make it a more attractive place to dine in. Your environment should be fun, hospitable, have generosity and a culture that looks after the staff and customers equally. Staff and customers should be enjoyed and respected. If you are successful in doing so, then people will want to work for you. If not, you will find it difficult to attract and retain staff
Sustainability and environment
It’s far easier to neglect this than not. To do so would be a mistake. Our customers, particularly Gen-XZ and Millennials will willingly pay a premium for a business whose practices are environmentally, socially, and culturally sound. They are not easily fooled either, so you have to really live this pathway and ensure what you are doing is genuine. If you do, it becomes far easier and far more rewarding. Who doesn’t want a better planet for the next generation? There are many organisations that can help you on this journey.
Our industry has faced enormous challenges lately, far more than most. At some point soon, dining out will return to being enjoyed for the great pleasure it is. The actions you take now will go a long way to ensuring your business’ survival, not just now but into the future.