At Paramount Personnel we have digested Square’s Report on the state of hospitality 2023 ‘Raising the Bar’, so you don’t have to!
Here in this blog post, we discuss how venues are planning to continue in their post-pandemic recovery by taking information from Square’s report and survey. We have all the information you need on how UK establishments will boost profitability and reduce costs, so if you work in the hospitality industry this is the blog for you!
The UK’s hospitality industry still faces significant challenges despite being on the way up after the global pandemic. Inflation, staffing shortages, and evolving customer expectations are some of the issues that bars, clubs, and venues are grappling with. To shed light on how successful hospitality businesses remain competitive and continue to grow in this tough market, Square conducted a survey of 300 businesses earlier this year. The survey uncovered key strategies and priorities that are driving profitability and cost reduction in the industry.
Shift Work is on the Rise:
With the changing landscape of the hospitality industry, shift work is becoming more prevalent. The survey revealed that businesses are embracing flexible contracts and focusing on staff engagement, well-being, and training. While some businesses are reducing headcount, others are increasing their use of flexible contracts, temps, and agencies. By prioritising shift worker engagement and support, bars and clubs are improving staff retention and promoting growth.
Real-Time Data for Efficient Staffing:
Successful bars and clubs are harnessing real-time data to predict staffing levels accurately. Point of Sale (PoS) data plays a crucial role in providing insights for decision-making. Businesses are using PoS data to identify peak periods, recognise customer and sales trends, and identify top-performing staff members. By optimising staffing levels, bars and clubs can reduce operational costs and improve staff retention.
Customer Loyalty
In the quest for customer loyalty, bars and clubs are embracing new strategies. Loyalty programs, email marketing, happy hours, and special offers are commonly used tactics. However, businesses are also leveraging influencer marketing and competitions on social media platforms to engage with customers and stand out from the competition.
Managing Stock Loss and Waste:
Nearly half of the businesses surveyed expressed concerns about waste and stock loss. While many have formal processes for tracking stock loss, some struggle with effectively managing inventory based on accurate sales data. To tackle these challenges, businesses are closely reviewing inventory sales data, ordering stock more frequently, and diversifying suppliers.
Harnessing Technology for Efficiency:
Technology is a top priority for hospitality businesses of all sizes. Despite the challenges, businesses plan to invest in new tools and platforms to streamline operations and reduce costs. Integrated software solutions provide a single view of operations, enabling better decision-making and identifying efficiencies. However, businesses also face challenges such as connectivity issues, mobile capabilities, and poor platform integration.
The UK’s hospitality industry has shown resilience and adaptability in the face of challenges. By implementing strategies such as embracing flexible contracts, leveraging real-time data, focusing on customer loyalty, and harnessing technology, bars and clubs are driving profitability and reducing costs.
To download the full report click here.
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