Hospitality sales up on last week but still down on 2019 by 4.9%

Hospitality sales up on last week but still down on 2019 by 4.9%

 

Following the lifting of restrictions, S4labour (the people, productivity and payroll software provider for hospitality) analysed last week’s hospitality sales figures. Comparing the same week in 2019, they found evidence of an overall drop in sales of 4.9% with food sales down 3.3% and drink sales lagging by 12.6%.
 
In London, total sales were down by 18.6%, with drink sales down 23.4% and a drop in food sales by 10.2%.
 
Non-London sales figures showed a decrease in drink sales by 9.6%, but an increase in food sales by 5.4%.
However, week on week sales saw an increase in overall sales by 6.9%.
 
Commenting on the analysis, S4labour’s Chief Innovation Officer Richard Hartley, stated “Given the current conditions of people having to self-isolate within short notice, we have seen a noticeable number of sites not being able to operate a full trading week. It’s also worth noting the effect this is having on the customers’ ability to show up for bookings as hundreds of thousands are in self-isolation. This clearly is hampering the industry’s ability to successfully trade”.
 

 

Hospitality Sales Down 9%

Hospitality Sales Down 9%

Hospitality Sales down 9%

 

According to analysis from S4labour, the people, productivity and payroll software provider for hospitality, like-for-likes fell last week by 9.6% compared to the same week in 2019. Drink sales were down 17.7%, with food sales down 0.8% compared to the same week in 2019.

 

Trading in London continues to lag with last week’s sales down 24.1%. This was largely attributed to drinks sales, which declined by 30.7%, with food sales down 12.6%.

 

Non-London sites traded below 2019 levels by 6.3%, with drinks sales falling 14%. However, food sales were slightly up 1%.

 

S4labour’s Chief Innovation Officer, Richard Hartley commented, “despite the excellent weather, there are a number of factors that are currently suppressing sales. With circa 5% of the adult population being forced into isolation last week, there is going less people able to get out to eat and drink. While the heat drove stronger performance for rural sites, London’s limited outside space made it difficult to capitalise alfresco conditions. This coupled with the labour crisis, exacerbated by the Covid App, made last week a particularly challenging environment for hospitality. While we wait in anticipation for what we hope will be a great week with restrictions being lifted, these figures show that there is still a long way to go to fully restore consumer confidence.”

 

Technical Updates – HMRC employer bulletin

Technical Updates – HMRC employer bulletin

CJRS Update 

For periods in July 2021, Coronavirus Job Retention Scheme grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September 2021, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.You need to continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. This means, for periods between July and September 2021, you will need to fund the difference between this and the Coronavirus Job Retention Scheme grants yourself.’
 

NI Number Allocation

The digital application service for NI numbers is now open and can be found here. HMRC have advised that Demand is currently high for the service and applications can take up to 16 weeks to be processed.’
 

NI holiday for employers of veterans 

From April 2021 Employers can claim relief on Class 1 NI contributions if they employ a veteran during the qualifying period. The qualifying period starts on the first day of the veteran’s first civilian employment since leaving the regular armed forces and ends 12 months later. 

Please contact the PS4 team if you have any questions.

A Stay-At-Home Euros sees a fall in industry like-for-likes by 3.9% last week.

A Stay-At-Home Euros sees a fall in industry like-for-likes by 3.9% last week.

A Stay-At-Home Euros sees a fall in industry like-for-likes by 3.9% last week.

According to analysis from S4labour, the hospitality people and payroll software, the Euros-Finals weekend saw sales fall by 3.9% compared to the same week in 2019. However, hospitality sales were up 10.3% on the previous week.

 

The breakdown indicated food sales increased by 1.6% but drink sales were down 9.1%.

 

S4labour’s Chief Customer Officer, Sam Wignell stated “It’s clear that speaking to our customers, a lack of staffing resulting from Brexit, COVID restrictions and Track and Trace are affecting staff availability.  This is leading to a squeeze in the labour market for an industry that is heavily dependent on people. Hence, hampering the ability to trade.”

 

 

Revving Up the Engine

Revving Up the Engine

When I go on holiday for two weeks, I always find the first day back pretty tough. Having switched off my mind a little for that period, I find getting back into work on day one really hard, so much so, that I wonder if it is just easier never to have a holiday! I can’t imagine what this is like if you have had three months doing nothing during either major lockdown, but I assume the return to work is pretty traumatic. For those of us who have worked all through the pandemic, and worked harder than ever before, we probably struggle to understand what it is like for those who have slumped back into their school, student, or retirement mentality, and are finding it hard to get back out. For many, while they were excited to get back to work, the pro-longed rest has meant they have found getting up on time, working hard, and being nice to customers all very difficult. It really has been like having a whole load of 16-year-old kids starting work, all at the same time. Of course, the same is true for our management team. They have found that managing staff, motivating teams, and training and coaching individuals is tougher than normal. And they’re doing this while re-learning and adjusting so much of what we do, whether it be covid rules, outside seating or adjustments to opening hours and menus!

 

And let’s not forget the customer. While of course we love them, our experience in our three pubs is that they have expected the engine to be at full speed from the start, with little tolerance for slip-ups. Combine this with the annual price rises we put in right at the start of re-opening, and the customer piece of the jigsaw adds to the pile of stresses; I could swear some people have become ruder but maybe it’s me!

 

So, in that melting pot of challenge what do we need to do? Of course, the answer is completely obvious; We need to train, coach, and encourage like never before, and we need to overstaff so that the management team can focus on team development and training. Our added challenges in Malvern Inns, are that customer demand has exceeded our supply of staff. We have also had some changes in our management structure which means many people learning new jobs. Oh, and let’s not forget the outside trading, covid restrictions and supply challenges to throw in as well as mentioned above.

 

In all honesty, is has taken us until now to get back to focussing on these basics. In the last two weeks, we have re-established job chats and 1-1’s; we have been able to focus the managers on training all staff, not just new ones; and we have properly been able to praise staff when they are doing things right and improve the energy and motivation in the business. It has made me kick myself for not getting focused on this earlier. My main excuse is that we didn’t expect the level of demand early and thought we would have more time. Coupled with a cash crisis, that meant we wanted to save every penny. Hindsight is a wonderful thing, and I dread to think how much more we could have taken if we had invested more, in all these things, ahead of re-opening.

 

But it does teach me something I should never forget. The basics of running a good pub are all about how the management team work with their people. When the management team are on top of the business, the important three activities of training, 1-1’s, and praising good jobs all happen well, and when they are stressed, they all incorrectly fall by the wayside. It has taken us too long to get to this point, but the relief I feel for having got back into this rhythm is massive. I finally feel like we are now managing the situation, rather than reacting to events. We can now focus on growth and improvement in a little more measured way and get a little nearer to that back to normal feeling that we all crave.

 

Alastair Scott is CEO of Malvern Inns, which runs three gastro pubs and an events business, as well as founder and CEO of S4 labour; the people, productivity, and payroll business.