by Abby Henson | 4 Dec, 2018 | Blog, Sales Figures
November was an excellent month for hospitality, as like-for-like sales were up by 4.7% compared with 2017 levels- according to a study of over 100 hospitality organisations that use S4Labour scheduling, HR and Payroll software. Drink sales were the main driver behind the strong results; the hospitality industry saw a 6.5% increase on 2017’s levels, with food sales up 1.5%. Despite wet-led businesses experiencing a 0.8% dip in food sales, they were the biggest winners overall, enjoying a 4.8% boost in sales compared to last year. Dry-led sites were not far behind, with an average 4.6% rise. Operators will be cheered by the strong numbers as they head into the festive period.
by Abby Henson | 15 Nov, 2018 | Blog, Press & News
Recently, we were lucky enough to sponsor the Multi Club Conference, the latest in a series of exceptional Propel events. This year’s autumn conference was filled with enlightening talks from a variety of speakers across the hospitality industry. It was a pleasure to spend the day with passionate leaders who genuinely care about what they do and the people they work with.
As industry experts we know how valuable fresh insight can be and it was a privilege to learn from the very best. Here are the key messages we took home with us.
Your people are your purpose
We were proud to see one of our customers, Anglian Country Inns, on stage. Managing Director James Nye spoke passionately about the family run business. These roots have laid the foundation for a successful business as James attributes the success of ACI to making people happy by treating them like family. High quality food and looking after your workforce were strong recurring themes throughout the day. The importance of recognising people’s achievements may be common knowledge but James spoke fervently about letting employees share ideas, so they can perform at their best.
Focus on what matters
Matt Snell, Managing Director of Gusto, also believes that people are your greatest assets. In order to differentiate Gusto from the rest of the Italian casual dining market, they had to focus on their values. These ultimately came from the team, helping to drive innovation and marketing an authentic experience.
Gusto placed a huge value on its team
Persistence beats resistance
Not many can make the leap from the corporate world to creating a restaurant from scratch, whilst also defying family expectations. Yet Yasmine Larizadeh did when she co-founded Good Life Eatery with her partner, Shirin Kouros. Tired of London’s carb-heavy sandwiches, Yasmine found a gap in the market for a one-stop shop for healthy eating. It was inspiring to hear how she overcame challenges, from difficulties with finding the right location to the restaurant being flooded and temporarily closed for a year. Now reopened and thriving, Yasmine owes her success to never giving up and being surrounded by the right people.
Passionate people aim high
Taking to the stage with candid humour to talk about his new venture Rock Point Leisure was Daniel Davies, founder of CPL training. He captivated the audience with a bold yet relatable speech. Amidst the laughter and jokes, his passion for Rock Point shone through. He turned problems into solutions; hiring disengaged youths to pick up litter to clean up the town. Being proud of the town and its people are just a couple reasons why Daniel strives to succeed.
Strong brand, strong revenues
Rounding off the day was area Vice-President of Hard Rock International, David Singleton. It was an incredible opportunity to hear David talk so energetically about Hard Rock and how important branding and strategy are. Passion through the brand and vision to create a memorable experience has led to monumental success for Hard Rock all over the world.
Turn Data into Action
John Upton, board member of Motherclucker and Naked Deli, brings a wealth of experience as former Managing Director of Leon and member of the McDonalds’s UK leadership team. John delivered an insightful talk on how businesses can grow sustainably. Embracing data is critical for any business to succeed, instead of relying on gut instincts to make choices. However, John cautions that it’s important not to get swamped by numbers. Data is there to help you gain insight which should then be turned into action. It’s not enough to look at statistics, you need to use the results to make informed decisions.
Haysmacintyre analyses the biggest impacts on operators
Survival of the fittest
Neil Morgan, Managing Director of Christie & Co, gave us a key overview of trends in the pub, restaurant and hotel sector. Using survey collections, they found rents are rising with the number of venues. This supply and demand issue could lead to a pub closure rate higher than in the recession. Although some may lose out, there are some ‘winners’ experiencing growth. Also looking at trends was Andrew Ball, of accountancy specialist haysmacintyre. His survey analysis suggests that the biggest perceived impact for hospitality businesses is recruitment, with operators struggling to fill vacancies and finding good general managers. This labour shortage will likely be exacerbated by Brexit. On the flip side, businesses offering healthier options on the menu have an advantage as the demand for vegan and gluten-free food is on the rise. To remain competitive in an increasingly saturated market, businesses needs to adapt and keeping an eye out for up and coming trends is crucial.
Technology at the table
Clive Consterdine, Marketing Director at Zonal, was filled with enthusiasm for “guest obsessed” technology and was positive that using mobile apps to order and make payments is now becoming an expectation. A critical part to excellent customer service comes at the end of a meal so making it easier and quicker for people to pay should be a priority. This technology brings further benefits as people tend to spend more when they use an app and it paves the way for targeted marketing.
Quality is key
Propel events are never short of variety. Alongside front-line operators Martin Dinkele, Deputy Manager of research and brand consultancy Morar HPI. He looks at what drives a high net promoter score (NPS) and found that exceptional food quality is the most common reason why people would recommend a venue. Martin claims there is a strong correlation between NPS and year-on-year changes in revenue. However, it’s the perception of food quality that really matters. Higher pricing or a heavier cup can implicate higher quality, emphasising that every little detail does count.
Spending the day with such genuine and inspirational professionals was a privilege. We’re already looking forward to the next Propel Multi Club conference.
by Abby Henson | 6 Nov, 2018 | Blog, Sales Figures
Recent growth in UK hospitality revenues has ceased as October brought a 1% dip in average sales, according to our latest research. Analysis of over 100 organisations that use S4Labour software found the decline was driven by lower food sales, with operators typically seeing a 2% fall. Following a summer of high spending, its likely consumers are now cutting back.
Although many will be cheered by this week’s business rates adjustment announcements, wet-led operators seem to be facing a tougher autumn with like for like food revenues down by 3.7%. Dry-led businesses fared much better and saw an average 0.5% increase in sales, thanks to drink sales rising by 3%. The overall dip in sales trails a strong summer and September for operators, who may anticipate quieter trading in the lead up to the festive period.
by Abby Henson | 24 Oct, 2018 | Blog, Press & News
The labour misconception by Alastair Scott
Our CEO, Alastair, highlights the tough period ahead for the hospitality industry. He reflects on “Worrying times”, an article written by Ann Elliott, chief executive of Elliotts, a leading integrated marketing agency in the hospitality and leisure sector.
Ann Elliott’s recent article in Propel’s Friday Opinion series was a timely reminder that this will be a tough period for the hospitality industry. Recent analysis suggests consumers spent too much during the summer and are now cutting back. This, combined with a mass of cost pressures, will force all of us to work even harder just to stand still – but we have been there before.
Staff costs are, as always, one of those areas we all look at and, like Ann, become nervous that cutting staff costs will make the guest experience worse.
This can be true if carried out in a blunt and imprecise way. However, all our analysis shows the worst guest experience occurs not when we are understaffed but when we are overstaffed. Of course we fail to deliver the quality of experience and speed when we are understaffed and we need to increase the level of team when we are busy, but we also have significant challenges when we are overstaffed. Let me give you two examples.
I was recently in one of my own pubs and there were three staff on. A guest came to the bar wanting a drink but one staff member was too busy tidying up to notice the guest or assumed someone else would do it. Another team member was delivering food to a table, while the third team member was at the back of the pub having a cigarette with one of the kitchen staff “because it was quiet”! If we had only had two team members on we would have done a better job all round and not wasted money.
Recently I was in another pub when a lot of people arrived at the bar but the two bar team members were too heavily engaged in a conversation in glass wash to notice or stop for the customers.
Of course training helps but there is an old adage: “If you want a job done, give it to a busy person.”
Labour management, like every other part of the business, requires insightful and precise management, and managing through historic percentages no longer cuts the mustard. In labour I argue we can genuinely have our cake and eat it by saving costs and improving service, normally with the removal of the wasted spend easily outweighing the reinvestment to grow sales and improve service.
It will be tough in the next six months for those who chose the wrong site, the wrong rent or spent too much on the site but for those who are simply spending more than they need to on day-to-day costs, there is a lot we can do.
Alastair Scott is founder and chief executive of Catton hospitality. He is also a director of three leased pubs.
by Abby Henson | 9 Oct, 2018 | Blog, Sales Figures
Food sales drive rise in September sales for S4 Labour customers
Like-for-like sales in September were up by 0.5% compared with 2017 levels, according to a study of over 100 hospitality organisations that use S4Labour scheduling and HR software. Food sales were the driving force behind this rise as these operators saw an average 3.5% increase across their sites. Wet-led businesses typically faced a leaner start to autumn with an average 2.7% fall in drink sales, partially mitigated from a 1.7% rise in their food revenues. Meanwhile, food-focused businesses enjoyed a 3.7% growth in drink sales. This follows a strong summer of revenues for operators, who will be hopeful it continues into the autumn in the lead up to the busy Christmas period.
by Abby Henson | 9 Oct, 2018 | Blog, Press & News
Top Tips for Efficient Sunday Lunch Service
At this time of year, people are seeking comforting food in a cosy atmosphere. Autumn brings about a high demand for Sunday lunches and this can be critical to overall profitability. Here’s our top tips for an efficient Sunday lunch service.
Staffing up the curve
We often speak to operators who take too flat an approach to shift planning, not varying start and end times to match patterns of sales. If everyone starts at noon but sales don’t peak until 2pm, this adds up to wasted labour costs and staff left standing around. We suggest gradually increasing people’s start times from open to peak, adding an extra person every 30 mins. Staggering shifts to match the rise in sales will be much more cost effective.
When to run out
Preparing for too few or too many covers can really damage the bottom line. It is vital to analyse past sales trends and forecast properly, including looking at likely weather conditions. This will enable you to calculate the optimum level of sales for profits and labour efficiency. Running out is no bad thing (unless it’s super early), as it creates demand for people to come back next time.
Slack & Stress
Sunday lunch is a flagship service and in our pubs accounts for around 40% of weekly sales, so getting the right level of staffing is more important than ever. Sunday lunch is the most reviewed occasion on Tripadvisor in the UK, so the potential impact on reputation is huge. Overstaffing can have negative connotations as it creates the image of a lazy, inattentive service if there are staff lingering round. On the flip side, understaffing can also damage reputation as it leads to a rushed, impersonal service as well as harming sales. Forecasting and scheduling staff properly can help reduce these issues.
Shift Briefings
Especially on Sundays, there is a need for staff to be properly briefed to ensure shifts are as productive as possible. We recommend that management should spend some time with each member of staff, making sure they know exactly what they should be doing, when, and where. A good idea is to allocate staff with primary and secondary responsibilities. Someone’s main role may be to take orders, but if there are no new orders to take, their next priority could be to help on the bar. Not only does this help build a better relationship with staff, it also improves reputation through enhanced service.
Management Shifts
Too often we see managers who avoid scheduling themselves to work the busiest shifts. Area managers should nip this in the bud and make sure enough senior staff are working the busiest services. Each venue should spend time scoping out what a management shift looks like on a Sunday. Are they serving customers or more focused on leading and supporting teams? Effective management presence does wonders for overall staff motivation, service levels, and therefore profits.
Through intelligent analysis of past trends and better forecasting, S4Labour helps you maximise sales and improve service at the busiest times, all while keeping labour costs tightly controlled.
