May Experiences High Growth Rates for Hospitality

May Experiences High Growth Rates for Hospitality

Hospitality sales during May increased by 10% on 2021 levels.

Wet-led sales were up 16.5%, while dry-led sales were still up but by a smaller 4.5%.

Sites in London experienced high growth as sales improved by 30%; non-London based sites also saw a rise of 7% on May 2021 levels. London’s increase may be a result of restrictions in 2021 causing dampened sales, given there was limited outside space in London for hospitality sites.

It is important to note sales in May 2021 were during Covid-19. S4labour have ensured the data includes sites who could operate outdoors as well as indoors during May 2021.

Richard Hartley, Chief Innovation Officer at S4labour, said: “This last month has seen the struggles of staff shortages, inflation and energy costs continue to bring challenges for the sector. Although the increase for London is positive, the figures show just how much Covid-19 affected the Capital from a sales perspective.”

The Power of Integrated Hospitality Tech

The Power of Integrated Hospitality Tech

The world of hospitality tech is vast. There is a seemingly never-ending list of technologies that can fit into our businesses to help do things “better” than before. Over the last 10 years we have been spoilt for choice. There are solutions out there for recruitment, rotas, communications and team engagement. Not to mention solutions for payroll, produce orders, tracking financials, marketing and customer engagement. Our tills have all become more automated, more accurate, and more compliant. You want a robot serving your guests, juggling dishes whilst telling jokes? Not a problem. We even have excellent data guys like Tenzo and Tahola that pull all the data we have stacked into our businesses into one place, giving clarity and visibility of all the benefits gained from this technical revolution.

 

Is all of this technology a good thing? Is it good for the customer and, critically, is it good for our businesses? Clearly every business is different. Even though I don’t see my local traditional Italian rolling out waiter bots or my independent watering hole taking on a business analytics suite just yet, there is a different mixture of hospitality tech that is the right fit for most of us. This will depend on the scale, style and priorities of the business. However, most businesses have come to understand that doing nothing will likely result in being less efficient, less productive and being left behind our competitors.

 

When looking at what tech is right for your business, one of the key places to start is by considering what your priorities are. Maybe it’s labour cost saving, growing sales, marketing, or a smooth EPoS system. As technology has become better and more critical to our industry, so has its consolidation. There have been some excellent innovations in hospitality that tackle the unique challenges we face. Yes, there’s still a significant amount of innovation and solutions being developed. We’ve also seen some giants of the technology service sector who can offer most operators pretty much everything – all under one roof as a multi-purpose tech supplier. You can now get your schedules, payroll, tills, F&B platform, analytics and more from just one supplier. This sounds like a positive thing for the industry: everything you need in one place and on one bill. Big tech has recently been on the acquisition trail, snapping up some of the best and brightest prospects in the hospitality tech world. In the last year, we have seen hospitality’s leading providers in training, compliance and ordering brought under the same roof as event booking and labour planning platforms in one big tech.

 

The question to consider is: can innovation, value for money, customer service or user flexibility ever be improved by the consolidation of tech? Unlikely. Innovation happens when specialists in their field are given the freedom to continually perfect the areas that they excel in. Customers benefit most when they can form close relationships with their suppliers, acting as the external voice that feeds into the product development.

 

The consolidated approach works well for those who want the mediocracy of everything. The under one roof offering tends to give operators one outstanding product, but a disappointing “everything else”. An operator can get one incredible piece of kit, but they’ll miss out on the best of everything else. Take Yapster for example: it’s brilliant and integrated with everything. If you want the best for team comms and leadership, go speak to Yapster. Yapster is an independent business with the best-in-class tech. Even though you could get a product from a consolidator, who can put team comms and EPos on the same invoice, there’s a sacrifice. You’ll likely end up with a weaker team comms platform in your business and a mediocre EPoS.

 

S4labour is 100% focused on being the best people system in the market. There is no other leadership, development or account management team more ingrained and experienced in hospitality productivity than S4labour. Over half of the winners at this years Publican Awards use S4labour, showing just how the best in the industry, who value the productivity of their teams above other tech, use S4labour. S4labour is also integrated with everything else in the category of market leading products. You can have the best people system, integrated with the best till systems, integrated with the best ATS, forward pay, training platform, marketing, comms, tipping etc and seamlessly link it all with S4labour.

 

By taking a sidestep around the “under one roof” consolidations, you will find a sea of the best of the best and you won’t need to compromise on any part of your technological priorities. The wonderful thing about everything that doesn’t sit with the consolidators, is just how well it all works together and how good we have all become at making the customer experience seamless and integrated with each other. Hedging your tech suppliers really is the only way to ensure you get an uncompromised solution.

April Sales Experience Growth Compared with Pre COVID-19 Levels

April Sales Experience Growth Compared with Pre COVID-19 Levels

Data from S4labour shows that hospitality sales during April increased by 3.7% on 2019 levels (pre-Covid-19).

Dry-led sales experienced the most growth with a 7% rise on 2019 levels; wet-led sales still grew but by a smaller 1%.

Sites outside of London were up 3.7% in sales last month, whilst London sites’ sales increased by a similar 3.5%.

Richard Hartley, S4labour’s Chief Innovation Officer, said: “The overall increase in April’s sales will have been a small positive for some food focused businesses. However, the ongoing difficulties surrounding recruitment is proving to be extremely challenging for the sector, and potentially stinting sales growth for some businesses.”

Top 4 Payroll Jobs to be Done By FY23

FYE is a brutal time of year for payrollers. It is the most common time in any business cycle for head office payroll employees to hand in their notice, you can check out the jobs sites now and see just how many Payroll Exec vacancies have just been published in the last few days. It’s true that hospitality payroll can be hard enough to tackle at any point in the year, flexible hours, enrolments, holiday etc, etc, etc can make it painful enough, let alone the additional burden that the upcoming deadlines of a year-end brings. If you are meant to be preparing your year-end payroll responsibilities right now, and found this blog while procrastinating, well, we sympathise and offer you hope and a little steer on some key things to get right. 

How not to stress over your FPS

 Sending a final Full Payment Submission (FPS) can be a huge job, but it is critical to identify and rectify any potential errors before submission. While this must be done before or on your employees’ payday, getting organised early can avoid the agony of retrospective adjustments. 

Doing this manually on spreadsheets by hand will inevitably be time consuming and inaccurate, however a good payroll system should handle and automate all of this for you. When you run the final period of a tax year in S4labour, the ‘Final submission for year will automatically put’ indicator on the FPS for you – if no employees are being paid, this will go on the EPS.

Get in to TAX CODE mode

For each employee working for you either old or new, on the 6th of April you will need to have a payroll record and the correct tax code to use in the new tax year. You should check the P9X document published by HMRC that explains what tax codes employers must change to on 6 April. Here is the all important link to the HMRC website where you can view the P9X document – https://www.gov.uk/government/publications/p9x-tax-codes

This document is not for the faint hearted, but the good news is that your payroll software should keep you and your employees up to date automatically. S4labour has a direct link to HMRC, and their tax updates are received via electronic updates to make the process seamless.

Always P60 before you Party

At the end of each final year and no later than the 5th of April, all employees must be given a P60 that summarises their total pay and deductions for the year. It’s good to get organised with your year end jobs, but processing P60’s shouldn’t be done before the final payslip has been issued.

The P60 is auto generated when the final payroll of the tax year is completed and accessible to employees via their S4labour employee portal on final pay day for the tax year.

Its Getting Late to do an Update

Each year, businesses must get updated and aligned with the latest rates and thresholds for Income Tax, National Insurance, Student Loan Repayments and National Minimum Wage. There is a great deal of information on this on the HMRC website. However, for those who don’t have time to keep track of the annual changes (or factor in more than 7 hours of sleep at night), your payroll should do all of this hard work for you.

HMRC updates are automatically done through S4labour each year, so you do not have to worry.

 

If you would like to know more about how Payroll from S4labour, you can book a demo below.

Hospitality Sees Another Uplift in Sales

Hospitality Sees Another Uplift in Sales

Hospitality sales figures during February increased by 4% when compared to the same month in 2020. It is important to note that, in February 2020, there were some declines in sales due to public anxiety surrounding Covid.

Sites based within London experienced lower sales than February 2020. Both wet and dry-led sales declined by 8% and 7% respectively.

Non-London based sites saw a large 13% increase in dry-led sales, with stable wet-led sales compared to February 2020.

Richard Hartley, S4labour’s Chief Innovation Officer, said: “After 2 full months of trading following a tough festive period, to see another positive month of sales reveals some form of stability for the sector. The sector will benefit from the lifting of Covid restrictions, however the rise in VAT coming in April is causing concern for all operators.”

S4labour and Newtelligence: The Rise of App-Based Table Ordering in Hospitality

S4labour and Newtelligence: The Rise of App-Based Table Ordering in Hospitality

The last couple of years have seen huge changes in consumer behaviour. However, for any paradigm shift there has to be a catalyst supporting this change. The way people have gone about ordering food and drink — be that in a pub, bar, restaurant or cafe — is not the same as it once was. Ordering to your table from your phone, without having to stand up, is at times now quite standard. As well as this being an incredibly convenient solution for restaurant-goers, the operational benefits mobile ordering entails aren’t lacking in numbers. S4labour and Newtelligence have come together to explore the technological phenomenon: mobile ordering… and just how useful it can be.

Staffing levels are in constant conversation across the hospitality sector. Covid-19, isolation periods and lockdowns have heavily damaged the industry. It’s no surprise that, when speaking to S4labour customers, not having enough staff to meet sales demands was a massive concern for the sector. Table ordering functionality arguably is part of the solution to this problem.

There is definitely a case for some customers wanting to simply order something without the usual conventions and conversations. Ultimately, there’s nothing wrong with this. Sometimes, someone will just want an extra drink or snack and not have to queue or have a conversation. In fact, some individuals choose to have their entire dining experience through an app. Data from PYMNTS goes as far as suggesting that 41% of restaurant sales are generated through digital channels, such as apps or aggregators. Even though this doesn’t specifically mean table ordering apps, it acts as a clear indicator to consumers wanting to digitise their dining experience. But, what does this all mean for our original point of debate: staffing levels?

App ordering doesn’t necessarily mean you have more staff, but what it does mean is they’re more likely to be doing the right tasks at the right time. Front of house, when mismanaged, can be a chaotic environment. In an environment where app ordering doesn’t exist, front of house’s responsibilities can be exhaustive: welcoming customers, checking in on them, preparing drinks, communicating with back of house staff, serving food and drink, dealing with complaints, taking orders, printing bills and clearing tables. It can be a lot.

When ordering on platforms such as Newtelligence’s food2go service, the requirements for front of house staff are significantly reduced. Instead of approaching customers for new orders, dealing with amendments, reducing queue times and taking payments, front of house can prepare orders from point of order and spend more time on improving customer experience. And, importantly, improving productivity.

This goes beyond increasing staff productivity; there’s also something to be said for revenue growth. The question arises: do you actually end up ordering more on an app instead of traditional ordering methods? A statement from Pepper in The Morning Advertiser believes so, stating that average transaction value per customer has increased through app ordering on their platform. Assuming this is true across the board, the opportunity of greater revenue from orders should not be ignored. Not to mention all the drivers which encourage this, be that upselling through questions like “Do you want anything else with that” or “Add this to your order”. Yes, waiters can and will do this where appropriate. However, on apps customers may feel they have a heightened sense of autonomy and are less hassled — potentially encouraging more purchases.

All this said, it’s important to consider the counter-points. We started off this article suggesting changes in consumer behaviour has led to app ordering becoming standard. Yet, there will be individuals who prefer experiences that aren’t reliant on technology. This is totally acceptable. There will be hospitality sites who pride themselves on their front of house staff having excellent interpersonal and rapport building skills, and are a pivotal part of their business-perception. Additionally, app ordering may encourage a party of guests to be distracted on their phone — limiting social experiences. In light of these points, it’s essential to treat app ordering as a hybrid-model. Ordering to your table from your phone shouldn’t replace customer service; if anything it will enhance it. Staff members will have more time to focus on customers, as opposed to taking orders and printing bills.

The market for this product is ever-growing. Recent climates from Covid-19 and staff shortages may have accelerated its popularity, but improving customer service and speeding up processes only helps grow businesses. App ordering combined with effective deployment can be useful tools to boost productivity. S4labour enourages cost saving and sales enhancing rota creation. When combined with food2go, front of house staff have more time to focus on customers and not take as many orders, revealing opportunites to improve business bottom lines.

For more information on our new partner, Newtelligence, get in touch with them today.