A second look at sales, after the curfew was introduced.

A second look at sales, after the curfew was introduced.

Analysis from S4labour that hospitality sales from last week were down 21.2% compared to the week before the curfew (2 weeks prior), with sales of food down 19.1% and drink sales down 23.2% on two weeks before.

While weekly like-for-likes continue to fall, like-for-like sales are down 13.5% when comparing last week with the same week in 2019, with London suffering a 38.4% decrease in sales when compared to last year, versus a 5.2% decrease in the rest of the country. The figures suggest that London is adjusting to a new decreased level of trading, and that may take a while to recover. It is also worth noting that roughly 10% of sites are still yet to open after lockdown measures were introduced.

Chief Product Office Richard Hartley commented “This level of decline is unprecedented and worrying for the industry, although the weather may have played a part. As the curfew has been introduced, diners and drinkers will start to head out earlier, as a closer look at sales shows that a larger proportion of sales came in earlier. Behaviours may continue to change as we adjust to the new timings.”

A first look at year on year sales, after the EOTHO scheme.

A first look at year on year sales, after the EOTHO scheme.

 Analysis from S4labour shows that hospitality like for like sales in September were down 4.3% compared to the same month last year. With consumer confidence boosted in August by EOTHO, the momentum seems to have continued as sites that were trading showed like for like growth in food sales of 12.4%, while drinks sales were in decline of 16.3%. It’s worth noting that this only takes into account sites that were trading,  9% of sites are still closed.

Outside of London performed better than London, with 2.3% growth compared to 28.2% decline. On top of this, 15% of London sites were closed compared to 8% of Non-London. We see this as a reflection of the impact of working from home, and that London relies on a steady flow of commuters into the city. The effect of the curfew was not fully realised in the month and we will continue to monitor this impact of this and the change in consumer behaviours.

Richard Hartley, Chief Product Officer at S4labour, commented “The continuation of sites’ own offers after EOTHO has definitely bolstered sales. We are concerned about the ongoing impact of the curfew as initial data shows this has had impacted by circa 13%.”

 

 

A first look at the impact of the 10pm curfew on hospitality sales.

A first look at the impact of the 10pm curfew on hospitality sales.

10pm curfew drops sales by 12.9%. Analysis from S4labour shows that sales over Thursday to Sunday when comparing the week prior to the curfew with last week show a 10.9% decrease in food sales and a 14.7% decrease in drinks sales.

The impact of the latest challenge is another stark reminder of the effect that Coronavirus is having on our industry. EOTHO is becoming a distant memory and the requirement to think of news ways to drive businesses forward is evermore important. Sam Wignell, Chief Customer Officer at S4labour, commented “I have never spoken to so many customers who are having to look at new innovations to drive sales and keep their businesses compliant. It will be interesting to see how consumer behaviours change as we become accustomed to the new regulations.”

Click here https://lnkd.in/eqseJ2V to view more industry analysis from S4labour

This data only includes sites that were open for August.

How to keep labour costs firmly in hand

How to keep labour costs firmly in hand

As published in BII 

New normal, same old same old

 

2020 has brought a wave of challenges, some expected (April’s minimum wage increase), others less so; who could have foreseen the COVID-19 pandemic?

This unpredictability has made controlling our labour spend equally challenging.

 

Whilst the global context of a pandemic means we are adjusting to a new normal, much of what we should have been implementing as best practice for controlling labour cost remains the same.

 

Although initiatives like “Eat Out To Help Out” and Rishi’s VAT cut have all helped to stimulate public appetite for returning to hospitality venues post-lockdown, the benefit has been offset to a certain extent as operators labour costs have increased, particularly on training on new hygiene measures and enhanced cleaning processes.

 

Plan, plan, plan

 

The discipline of planning your rota is more important than ever. The US and Europe traditionally have had a stronger weekday dining out culture, in contrast to the UK, whose culture is more akin to a weekend binge. EOTHO has proved that consumers are open to adapting their behaviour and are happy, and for now able, to afford to dine out during the week. As operators we too have had to adapt but it is also opening up a wider opportunity. It is much easier to manage a business that doesn’t have such highly defined peaks and troughs throughout the week – as long as you plan.

 

The business can work much more efficiently as the kitchen is not being slammed with high demand at weekends. Similarly, stock rotation is quicker and there is less waste. Food is also fresher and therefore food quality improved, generating a knock-on effect of happier repeat-business customers.

 

Brief the shift

 

Looking ahead, when the furlough scheme comes to an end in October, disposable incomes are likely to shrink as the unemployment rate rises and dining out becomes more of a luxury. There may be less opportunity to upsell your desserts, your coffees and the like. Ensuring you deliver a clear shift briefing at the start of every shift means you can maximise those upsell opportunities now. Also make sure all team members have slack tasks allocated to ensure those extra cleaning tasks are covered off. Manage the workload on every shift effectively across your team so that everyone is stressed or slack equally and are still motivated to provide great service.

 

If these new consumer habits become engrained the “new normal” of regular weekday dining might even mean that January and February don’t have to be the dry spells of old.

Tom Marshall is a former Brakspear GM and M&B lead general manager. He is our in house productivty guru with over 12 years expereince managing high profile venues.

Hospitality Sales Figures Press Release from S4labour

Hospitality Sales Figures Press Release from S4labour

Weekly hospitality sales down 9% on last year but remain 10.4% on pre EOTHO levels.
 
Analysis from S4labour shows that in the first full week without any government support, hospitality like for like sales were down 9.0% on the same week last year, albeit 10.4% up on the last week of July.
 
Despite the overall slip in like for likes, food sales continue to be in growth, up 4%. This is in contrast to the 17.5% decline in drink sales comparing last week with the same week in 2019.
 
Chief Product Officer, Richard Hartley stated that the figures indicate that EOTHO has successfully generated some residual effect in driving out of home eating habits. With the U.K. in recession and the withdrawal of EOTHO, it is unsurprising to see some tailing off of sales. However, with operators standing on their own two feet, it is highly encouraging to see that food sales are still in growth.

Notes to Editors:
To interview Richard Hartley, S4labour, please contact Matt Sweetman, Digital Marketing manager, on 01295 267400 or matt@s4labour.co.uk.
S4labour are a leading provider of labour management software and an award-winning independent consultancy firm.  Go to www.staging.s4labour.co.uk for more information.