Abby Henson, Author at S4labour, Labour Management & Productivity

Hospitality grows sales in April, with a strong May on the cards

by Abby Henson | 4 May, 2023 | Blog, Sales Figures, uncategorised

Hospitality like-for-like sales in April were up 3.3% against last year’s levels, according to the latest S4labour report.

Operators have been facing squeezed consumer confidence and an increase to national living wage levels over the month. Although April’s statistics are still below the rate of inflation, its rate is the second fastest so far this year, so this growth is good news for the sector.

London food sales were up 7.9% driving the capital’s overall uplift of 6.6%. Non-London was also led by food, with an increase of 4.5%.

May will bring a big advantage and uplift in trading across its three bank holidays and warmer weather, with the Queen’s Jubilee weekend in 2022 bringing a 14% increase to week-on-week sales.

Richard Hartley, S4labour’s Chief Growth Officer, said: “Amidst what is a tough period for the industry, these figures are positive. With three bank holidays in May, operators across the country will have much stronger trading as consumer interest in eating and drinking out is set to spike, particularly if the weather is good.”

The Coronation of King Charles III

by Abby Henson | 2 May, 2023 | Blog, Hospitality

Hospitality sales grew 14% in the week of the Queen’s Jubilee in 2022 when compared to the preceding week. Thursday 2nd and Friday 3rd of June were bank holidays, which gave Brits a 4-day weekend through until Sunday 5th, boosted by extended licensing hours and sunny weather.

The Coronation of King Charles III on Monday will be one the biggest events of the year, and will offer a much needed boost for hospitality venues up and down the country.

Unsurprisingly, historic events are a big driver of footfall and revenue for the sector, but they are also the most difficult when it comes to labour management.

Walking the line of operational efficiency and staff motivation becomes increasingly challenging when you throw long, busy shifts and staff who are eager to make their own holiday plans into the mix.

Operators looking to maximise sales must start by optimising their labour. Here are 4 easy-to-implement tips that will set you up for success:

Forecast your peak trading times through historical sales data

Look at your sales during the Queen’s jubilee as a good like-for-like position and consider your demographics. With this data, you can forecast the peak times of guest spending and make sure you have a fully-staffed front of house ready to pull some pints.

Taking this proactive approach to your labour management will guarantee you have your people in the right place and at the right time, reaching full productivity and maximising sales in the process.

Communicate effectively with your team

Particularly during busy holidays, high service levels and informed staff are essential in any venue. Your team needs to know when they are working and what their roles and responsibilities are before going into a busy shift and serving guests.

Early and effective communication of shift briefs and slack tasks to staff means every hour of the day will be filled with a clear sense of responsibility, increasing engagement and maximising productivity.

Listen to your staff

Bank holidays are a great time for the industry, but it’s important to remember that they’re also a time when your staff may want to be with friends and family too.

Striking the right balance between work and life for your staff is really important, especially so in what is now a retention and not a recruitment world.

If your labour is managed effectively with forecasting, advanced rotas and clear communication, you won’t be asking your employees to stay late or come in on their day off, both of which are big drivers of high turnover and low engagement.

Incentives

In the same way you drive sales through deals and special offers, you can boost staff motivation and engagement with incentives. Try and centre your staff around the excitement of the shift, offering the best seller a £50 bonus, for example. This kind of goal will keep your staff motivated and eager to sell, keeping spirits and sales up over the long weekend.

Find out how S4labour can give you the tools for you and your staff to be your best.

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5 Tips to Help you Manage the National Living Wage Increase

by Abby Henson | 13 Apr, 2023 | Hospitality

#1

Get visibility of what you have been spending so that you can start to see the areas you might be overspending.

The only way to do this is with a dynamic system that can give week-by-week and day-by-day insight into what you are spending, rather than just looking at totals for the quarter.

#2

Get visibility of what you’re spending before you’ve spent it so you aren’t burdened with any unexpected costs.

Seeing your costs as you build the rota has a significant impact on efficiencies, and you can avoid finding out too late from the accountant that you have overspent.

#3

Ensure you are paying for actual hours worked.

Benchmark data shows that digital time and attendance saves in the region of 15 minutes of cost per shift compared to relying on inaccurate timesheets.

#4

Make time savings where you can.

S4labour are experts in reducing admin, which can save hours when taken out of the back office and management and returned to the shop floor.

#5

Get more out of your team.

Driving the engagement and motivation of staff with effective communication makes a big difference to how well your labour is spent. Using a team app as a point of truth for shift allocations and tasks will increase productivity for every shift.

March Sales Figures Show 1.8% Drop Year-on-Year

by Abby Henson | 4 Apr, 2023 | Sales Figures

Overall March sales show a decline of 1.8% compared to 2022, albeit with a 6.4% uplift in London despite rail strike disruption.

Rising prices continue to deter consumer spending, meaning like-for-like growth has slowed even more from 1.6% in February to -1.8% this month. March marks another consecutive month where this pattern is emerging, being the first this year to show negative year-on-year figures. December 2022 revealed an increase of 17% in like-for-like numbers, and January 2023 sat at a 4.1% growth compared to 2022.

London drink sales were up 8.9%, leading the capital’s 6.4% overall growth, but these figures sit against low 2022 statistics and higher prices, which indicates that volumes are down. Research also shows that there is a slight increase in the proportion of sites trading 7 days a week in 2023, compared to 2022, so there is an expectation that the numbers would be higher than they are.

Richard Hartley, Chief Growth Officer at S4labour, said: “The impact of inflation is paving the way for a challenging period, especially with labour increases coming into play next month.” From April, operators will have the task of maintaining their current margins by increasing takings, which will be no easy feat considering how much consumers’ disposable income is being squeezed.

February Like-for-Likes Show Little Growth

by Abby Henson | 2 Mar, 2023 | Sales Figures

February sales in Hospitality show little growth, as year-on-year increase sits at 1.6%, despite low 2022 statistics that were affected by Omicron.

Like-for-like growth has slowed significantly throughout 2023 so far. December 2022 saw an increase of 17%, followed by 4.1% in January and 1.6% in February.

The research also shows that there was a slight increase in the proportion of sites trading 7 days a week this year compared to last year.

Richard Hartley, Chief Growth Operator at S4labour, said: “It’s concerning to see little growth despite high rises in prices, indicating that volumes are down as consumer confidence continues to come under strain.”