Hospitality Industry Continues to Experience Shortfalls in 2022

Hospitality Industry Continues to Experience Shortfalls in 2022

The first full week of 2022 saw hospitality sales fall by 30% compared to the same week in 2020. 

Drink driven like-for-likes fell by 32.5%, whereas food sales were down a lower 27%. 

London sites are continuing to experience worse like-for-likes than sites outside of London, with sales in the capital declining by 36% on 2020 levels. 

S4labour’s Chief Innovation Officer, Richard Hartley, stated: “Speaking to customers, the availability of staff to meet sales has been a real issue for the sector. In some instances the demand is there, however the limit on available employees appears to be reducing opportunities for businesses. Hopefully as restrictions are eased, more staff are readily available and consumers gain more confidence.”

Key Festive Dates Suffer Significant Sales Slump, following a Difficult December for Hospitality

Key Festive Dates Suffer Significant Sales Slump, following a Difficult December for Hospitality

Hospitality sales for December were down 12% compared to December 2019.

Both drink and food sales experienced declines, with sales down 11.5% and 13% respectively.

London sites’ sales were hit the hardest as like-for-likes fell by 23% on 2019 levels. Non-London sites also saw downfalls, however by a lesser figure of 10%.

As for specific dates, London’s sales dropped on all occasions on 2019 levels:

  • Christmas Eve sales down 38%, with drink-led sales down 40%
  • Christmas Day sales down 23.5%
  • Boxing Day sales down 25%
  • New Year’s Eve sales down 11.5%

Non-London sites, however, were much less affected on specific holiday occasions — Christmas Eve saw food driven like-for-likes increase by 3.5% while Christmas Day’s overall sales were down 11.5% on 2019 for sites outside of the capital.

Richard Hartley, S4labour’s Chief Innovation Officer, said: “December has been an incredibly difficult month for the sector yet again. As we enter further into the new year, it is important that no more restrictions are imposed on the sector.”

Christmas Hospitality Sales Take a Concerning Decline

Christmas Hospitality Sales Take a Concerning Decline

The Christmas period saw hospitality sales decline by 30% when compared to 2019 levels.

Sites within London experienced a 50% decrease in sales on 2019 levels, whilst sites outside of the Capital saw their like-for-likes drop by a lesser 26%.

Week-on-week sales were also negative, with sales falling by 18% compared to the previous week.

These figures are from businesses that had at least a 14-day trading period over Christmas — meaning closed sites’ sales during Christmas are excluded. If closed sites were to be included, the sales figures would reveal even larger declines.

Richard Hartley, Chief Innovation Officer at S4labour, said: “The festive period is critical for the sector, and these figures spell concern on current consumer confidence. With this, it is vital no further restrictions are put in place as many businesses are struggling to survive.”

Hospitality in London Suffers 30% Decline in Sales

Hospitality in London Suffers 30% Decline in Sales

As Christmas uncertainty begins to continue, data from S4labour shows sites within London are down 30% on last week’s sales.

The week-on-week decline was experienced by the whole sector too, however non-London sites saw their sales drop by a smaller 6.5% on the previous week.

Sector like-for-likes were also in decline, with the Capital again suffering as sales fell by 16% when comparing the same week with 2019.

Richard Hartley, Chief Product Officer for S4labour, said: “The announcement of Plan B and rumours of increased restrictions have clearly damaged consumer confidence heavily, and with Christmas fast approaching, the industry has a challenging time ahead”.

System Update 17.12.21

System Update 17.12.21

Following several weeks of investigation and updates with S4labour, we have have summased the fixes that have been put in place inorder to support system stability and performance.

The Login Procedure

On Monday morning, the system was being hit with 600 – 1000 login attempts per second, over 100 times more than any typical day of the week. This led to hundreds of thousands of calls to the server every minute, resulting in slower system performance and on occasions causing the system to crash.

We are still investigating the cause for this volume of login, given the recent announcements from other SaaS businesses in recent month, it is likely to be a bot attempting to breach our security procedures. The good news is that, while the system has suffered performance and speed issues, all of the security procedures did their job and kept S4labour secure.

However, we have and are continuing to implement a number of significant architectural changes to both improve the security of S4labour and ensure that system performance is not impacted in the future.

Server Duplication

As well as increasing the server capacity by 50% for the main system, we have added an additional server, dedicated to the login process. This will mean that any impact that login demand may have on S4labour, will not impact on anyone who has already logged in. This will also mean that, if demand remains high, and the login server needs resetting, users already logged in will be unaffected.  

CAPTCHA

The introduction of the CAPTCHA on Thursday the 16th of December will significantly reduce the impact a bot could have of draining server capacity going forward.

Login Control Procedures

The login process is controlled to allow up to 30 logins per second. This combined with the CAPTCHA will mean that the login server cannot reach maximum capacity, but there is a possibility of a 3 second delay between logging in and being let into the system at peak demand times. We will be monitoring server load closely and should the system near CPU capacity, we will update this control appropriately. This may slightly increase the time it takes to get into the system by a few more seconds. However, we now have the ability to do this very quickly and with no disruption to anyone already logged into the system.

Hospitality Sales Experience Decline Amidst Plan B Announcement

Hospitality Sales Experience Decline Amidst Plan B Announcement

Following the Plan B announcement from the Prime Minister, data from S4labour shows weekly hospitality sales have dropped by 9% when compared to 2019 levels.

The like-for-like decline was felt by both London and non-London sites, with the Capital experiencing a 16% drop in sales last week on 2019 levels. Non-London sites saw a smaller 7% fall in weekly sales.

The Chief Product Officer of S4labour, Richard Hartley, commented: “Even though there is not a noticeable change in hospitality sales as a result of Plan B, the announcement will certainly not help the situation—likely affecting corporate-led venues’ sales the hardest. Speaking to customers, operators have experienced hundreds and hundreds of lost covers and cancellations. As a result, hopefully the sector sees resilient consumer behaviour as well as no further restrictions.”