The budget is here & reopening is near. What’s next for hospitality?
Following our recap of the 2021 budget and the UK government’s announcement that hospitality venues can reopen outdoors in April and indoors in May, we outline 4 key areas hospitality brands should consider as they prepare for post-lockdown business.
We read that high street retail was already failing and Covid has accelerated its demiseby five years. Those operations relying on office workers for their trade, may struggle to return. As home working has become the norm, the city-based sector is in jeopardy. Well maybe, but we hope not. Hopefully the property owners will still find innovative ways to keep their buildings occupied.
Those that cater to consumers who enjoy going out to eat for social occasions will see a return to trade as the public begins to treat themselves as the pandemic continues to lift and the vaccine has its effect.
2. Delivery Services
Delivery services will continue to thrive being an additional lifeline for many consumers and food operators alike. Uber Eats have doubled turnover since lockdown, and Just Eat is now a £6bn business, with predictions this market will grow to an estimated £19bn¹ by 2023.
With commissions of up to 35% per delivery, is this another overhead a struggling industry cannot afford? New entrants to the market are offering 'fixed cost' delivery direct to the consumer at circa £5 per delivery, a game-changer for pubs and smaller businesses wanting to get into the delivery market, but until now could not afford to.
We still need feeding three times a day and innovative restaurants are setting up popups, community kitchens, box schemes and street food stalls, with pubs operating as local shops and 'take-aways'. Getting food out to the consumer and the community by whatever means possible seems to be the common thread linking all of these ideas.
Businesses need to stay in the market until conditions change, that means reducing overheads until revenues increase. Negotiating lower or no rents with landlords, taking advantage of the Furlough scheme and its extension, cutting and controlling costs through Covid are important considerations, plus simplifying menus to include higher margin plates when doors open again. For larger chains, outsourcing is a positive solution, for skills such as HR, accountancy, marketing and other departments, making the business run leaner.
Paperchase have over 30 years of experience in providing essential accounting, analytical, and consulting services to the hospitality industry and are here if you need guidance finding your way back to successfully running your business in these challenging times.
To speak with a member of the team and explore how we could potentially help please call 020 8633 7700 or email firstname.lastname@example.org