by Abby Henson | 14 Mar, 2018 | Blog, Press & News
The champagne corks were popping for two S4Labour customers, who claimed category wins as the prestigious Publican Awards last night.
Seafood Pub Company claim their trophy
Seafood Pub Company, who manage twelve sites in the North West of England, saw off stiff competition to secure the coveted Best Food Offer prize. They pride themselves on an ethos of sourcing quality local produce to serve classic British dishes and fresh seafood specials, and have quickly built a superb reputation, having previously won the same award in 2015. They began using S4Labour’s innovative labour management software in May 2016 and have thrived since, adding two new sites to their estate.
Meanwhile, Anglian Country Inns, themselves twice previous winners of the Best Food Offer Award, received vindication for their recent investment in their overnight offer, taking home the coveted Best Accommodation Operator title. Their estate covers eight destination pubs with rooms spread across Norfolk and Hertfordshire, and have won a host of awards and plaudits for their stunning refurbishments of historic English inns. They became S4Labour customers in early 2015 and their directors have often spoken warmly of the relationship between the two companies at industry events since.
We work with a large number of fantastic operators from all sectors of hospitality and are delighted to share in their successes. We wish the hard-working and high-achieving teams at Seafood Pub Company and Anglian Country Inns our warmest congratulations.
by Abby Henson | 13 Mar, 2018 | Blog, Press & News
Last Wednesday we were lucky enough to sponsor the Propel Multi-Club March 2018 Conference. With a line-up of industry experts delivering talks on a variety of topics, we were eager to hear what they had to say.
The talks were of a high quality, with speakers combining their experiences with opinion on the current market and what the future holds. The event was chaired by Propel’s very own Paul Charity, whose questions to the speakers gave us plenty to think about. Here are the key points that we took home with us.
Nervous Time for Hospitality
With stories of struggles within the casual dining sector prevalent in day to day news, it was right that the day kicked-off with a talk on the current challenges and opportunities in the market.
Discounts, high levels of competition, and business rates were reoccurring themes highlighted by speakers as causes of the challenges we are experiencing within casual dining. As most people are aware of the challenges being faced, Ian Edward, an expert on mergers and acquisitions, shared his knowledge on what actions businesses should take to counter them.
With his working background, Ian focused on how an organisation should best prepare to sell. Ian advised to ‘cut or improve their tail of failing sites’ to attract investors or buyers to purchase a healthier business. With more and more competition in the sector, high streets are becoming heavily congested with casual dining sites. However, Ian was full of praise for S4Labour client, Loungers, commenting on how they have bucked the trend by opening sites in areas overlooked, areas such as the Market town of Hinckley.
Deliveroo
There is no doubt that Deliveroo has impacted the hospitality sector, whet her it has been for better or for worse was up for discussion at the Propel Multi-Club Conference. Deliveroo was mentioned by many of the speakers, sharing stories of their experience with the food delivery company. James Hacon, Group Brand Strategy Director at Thai Leisure Group, spoke highly of Deliveroo and the positive effect that it’s had on their businesses. James explained that Thai Leisure Group offer Deliveroo drivers free food in an effort to keep them close to their venues, leading to improved delivery time and service; many people in the room seemed keen to take his advice on-board. On the other hand, in a discussion with Propel’s Paul Charity, chairman of Mitchells and Butlers, Bob Ivell, argued that Deliveroo couldn’t work in many of their sites, such as the ever-growing Miller and Carter steak restaurant, as you can’t transport a steak as easily as a pizza.
Yasha Estraikh, of Piper.
Yasha Estraikh, of investment company, Piper, reported on the findings of an exclusive survey of UK food service operators, which revealed the effects of the growth in food delivery on their businesses. Overall, reading of the survey was not happy. The main issue operators found with Deliveroo was the cost; Deliveroo take around 30% on all food they deliver, resulting in very little left for the operator. Other issues included, such as loss in restaurant footfall and drivers being disruptive when collecting food, ruining customer experience in the restaurant. Despite the negativity, there were positives raised, such as the increase in breakfast sales – particularly on the weekend.
Importance of Cost Control
After a delicious lunch, we all returned to our seats for a talk by Tim Barrett, analyst at Numis, on the unprecedented current cost environment in the food service sector. Tim began by asking the audience to raise their hand if their labour costs had risen within the last 12 months, and nearly everyone in the room raised their hand.
Tim highlighted the introduction of Business Rates, National Living Wage, and the Brexit result as causes of a significant rise in costs across the sector leading to many businesses struggling or closing.
Despite the gloomy nature of the topic, Tim was hopeful for the near future. He urged operators to avoid the common inclination to increase food and drink prices for customers to regain profit margins as this can have a negative effect on business. Instead, Tim suggested operators should look to cut costs where possible, with a strong nod towards labour scheduling systems, such as S4Labour, as a solution to gaining control of business costs.
Franchise and Growth
Continuing the theme of optimism and growth, we enjoyed talks from Nick Taplin, Chief Executive of Black and White Hospitality, and Max Hilton Jenvey, Global Head of Franchise for Chopstix.
Both speakers emphasised the importance of branding in their growth. Max told the story of how Chopstix revolutionised their in-store appearance and branding, to make themselves more attractive to the customer and a popular proposition for a potential franchisee. Both Max and Nick stressed the importance of uniqueness and simplicity in their product; by providing a relatively simply offering, delivered at a high standard, leading them to stand out in a crowded market, gain higher customer satisfaction, and keep control of their costs.
Nick, business partner of Marco Pierre White, spoke enthusiastically about bringing destination restaurants back into hotels. Much like Loungers bucking the trend of site location, Nick wants to keep the Marco Pierre White restaurants off the high street, and in doing so, differentiates their restaurants from other chains. The success of this and their overall brand was evident, their sites are performing well, their books are selling, and a film about Marco’s life is set to be released in 2019.
Max Hilton Jenvey speaking about the franchise model of Chopstix.
The Beauty of British Hospitality
With great minds sharing their experience and knowledge of the sector, it was hard to not feel a sense of pride and excitement about British hospitality. Sarah Bridge, founder of the aLadyofLeisure.com, shared her fondest memories of her travels across the UK. Sarah stressed the importance of operators striking the right balance between going the extra-mile and being overly-attentive. For example, we were told the story of when she a swarm of bees entered her room at the Manor House, Castle Combe, causing distress, she was moved to another room, and later found in there the gift of two jars of honey from their very own hive with a cute message saying that ‘we (the bees) are sorry we disturbed you earlier. Next time you visit we promise to bee-have!’. It was a pleasure to see that the ‘personal touch’ is still alive within British Hospitality.
We were lucky to hear Paul Wells, Chairman of Charles Wells, recount the journey of the Charles Wells pub estate. What was pleasing to learn from Paul, was that despite some of the challenges Charles Wells has experienced in the past, they had undergone European expansion, their family values remained, and they maintained a focus on localism. Paul spoke passionately about their journey of opening pubs across France; showing how the core aspects of British pubs, such as good quality cask ales, were popular across the pond. Paul got us excited for the future of Charles Wells, hinting at more experience based culinary experiences within sites, such as their pizza, pots, and pints offering, bringing the Kitchen into the restaurant.
With stories of struggles within the casual dining sector rife within the news at the moment, it would have been wrong for speakers to overlook challenges and issues. However, the overall message was that we are in the latter phase of the storm that we are presently enduring, and operators should be starting to look up again. It was clear that the people in the room were looking to achieve tighter management of their businesses, which would lessen the effects of a challenging market. Despite the current nervousness in the sector, talks on growth, branding, and franchising certainly whetted the appetite for the future of hospitality.
by Abby Henson | 9 Mar, 2018 | Blog, Press & News
S4Labour CEO Alastair Scott was featured in the latest edition of the always excellent “Friday Opinion” series of articles published by Propel Info, one of UK hospitality’s most respected institutions.
S4Labour CEO Alastair Scott
In response to a previous piece written by the Thai Leisure Group’s James Hacon, Alastair discussed the challenges and opportunities that define the burgeoning relationship between hospitality brands and technology providers.
The article can be read in full below.
James Hacon’s article recently was, as a technology provider and an operator, very interesting and thought provoking reading in Friday Opinion. His core argument is the big technology players are reluctant to integrate with the smaller players, and even more so when they have a competing product. This is hampering innovation and just as importantly leading to a less efficient and/or effective sector.
My first point is this is understandable. The small players have most to gain from openness and the large ones the most to lose. Just watch how Apple has changed from arguing against the Microsoft machine to in effect adopting the Microsoft position now it is big enough to want to close out the competition. As a supplier that is transitioning from a small supplier to a larger one, I really do understand both arguments. So we should all understand in any commercial world that is how people will rationally behave. Therefore, the real question is what can operators do to ensure they have the freedom to choose the best systems and select a group of products that works for them?
My advice is to only work with people you trust and can have a relationship with. The cost of adopting most technology platforms is not in the cost of the product but in the substantial effort and energy it takes the organisation to change the working practices to make the most of the technology. As an operator we have had three different restaurant booking systems in four years and we wish we had made the right decision first time around. In my view it is more important to pick a partner that has a similar philosophy than the partner with the best product right now. For me that philosophy would critically include how they want to take the product forward, and also their attitude towards integration.
We have struggled with determining the right position regarding integrations. However, now we offer free access to the data we hold on behalf of our customers. Our commercial argument for this is other suppliers will be keener to work with us and thus will recommend us more positively and more frequently than our competitors. This integration decision is, of course, harder when your competition may have a competing product, but if you believe your product is the best product on the market it makes that decision much easier, which we of course do.
I believe we are only at the start of a major software revolution in the hospitality sector. Historically, because we run small individual units, the software costs have been prohibitive. With the software as a service model reducing the large upfront costs of purchasing software for a site, lots of sites can use the same platform giving a small site great massive economies of scale they haven’t been able to access before.
And so I think once we really apply our brains there will be lots more solutions, and they will come thick and fast. My advice to all operators is to understand your providers’ approach to your data and make sure that it works for you. But then I would say that wouldn’t I – we still think like a small player.
by Abby Henson | 14 Feb, 2018 | Blog, Press & News
2018 has already seen a number of superb multi-site operators begin using our industry-leading S4Labour workforce management and HR software.
Increasingly, business leaders are recognising the value our systems bring them to reduce costs, increase sales and service levels, and improve processes, and are eager to come on board.
Butcombe’s Hatchet Inn – Bristol’s oldest pub, dating to 1606
Our newest clients include Butcombe Brewery‘s 24-strong managed estate in the South West of Engand and the McManus Pub Company, who manage twelve sites in and around Northampton.
Family-run McManus have a superb local reputation, fully justified by their venues which range from picturesque village locals to elegant urban night-spots. They join us having been impressed with S4Labour’s functionality and customer service compared to their previous supllier.
Butcombe, who won a gold medal at September’s World Awards, take the same ethos of market-leading quality into their pub operation. They have recently embarked on ambitious plans to quadruple the size of their pub operation, a project we relish the opportunity to support.
Joining them as S4Labour users are two smaller, but nonetheless very impressive London-based brands. Good Egg Restaurants serve wholesome Jewish-inspired cuisine alongside craft beer and cocktails, and implemented S4Labour concurrently to opening their second site, recognising their need for the clear multi-site reporting and insight it brings.
Flight Club are at the forefront of the experiential hospitality movement, offering a traditional pub pastime – darts – in sleek, modern surroundings, accompanied by an eclectic food and drink offer ideal for sharing. Unsurprisingly, they are expanding quickly and are in the process of adding their third UK site. They immediately appreciated S4Labour’s intuitive interface and clear visibility of trading patterns across their at times complex operation, leading to labour spend savings.
It is a pleasure to work with such impressive operators, and thoroughly enjoy supporting businesses from all sectors of UK hospitality. We are keenly looking forward to working with all S4Labour customers, old and new, to drive long term success in 2018 and beyond.
by Abby Henson | 9 Feb, 2018 | Blog, Press & News
Hospitality venues can look forward to Valentine’s Day as an opportunity for increased footfall and boosted sales. However, Valentine’s Day isn’t always a day that managers love. Here’s our advice on how to make this year’s event a success.
Boost Sales
Valentine’s Day is a great way for operators to drive increased sales. Being a special occasion, food menus should be specially made for the day. Create one-off dishes and consider adding more expensive ingredients to menu items that you wouldn’t otherwise be able to serve. Bubbles must be on the menu, obviously displayed to the customer, and possibly part of a promotional offer. Ensure that you offer a range of sparkling wine, from accessible prosecco to high-end champagne. This will allow you to quench the thirst of your guests’ cork-popping desires, whilst not pricing them out of the experience.
Don’t be afraid to over-do the site atmosphere – guests will want something special. Dim the lights, ensure tables have lit candles, play appropriate music, and don’t shy away from clichéd rose petals.
As customers will be willing to spend the extra cash on Valentine’s Day, you should make sure that they receive the highest level of service on the night. This year Valentine’s Day falls on a Wednesday, so it’s important to staff appropriately for the increase in sales. You may have to rota members of your team on for the Wednesday night which may go against their usual working hours. Aim to try and get tables filled via prior reservation so that you can deploy the correct number of front and back of house staff to deliver the best level of service.
See how S4Labour can help you to rota the right staff numbers on to deliver great customer service and not over-staff during busy periods.
Help your staff to be best prepared for the night. They need to be looking their best and working their hardest to deliver memorable customer service. Make sure that they have manageable table areas, don’t rush their customers, and upsell as much as they can. Guests will be more likely to tip generously on Valentine’s Day and this can be a great incentive for your staff to be on top-form.
Despite the apparent opportunity for increased revenues, Valentine’s Day can be a tough date for some operators. For many it proves to be hard work for not a lot of return. Seating tables of two can limit the numbers of covers that most restaurants can serve in a night, especially if your site has fixed, larger tables. Because of this, it’s important that reservations are staggered so that guests aren’t rushed, but still optimising covers.
Take a Different Approach
Know your market, don’t feel obliged to put on a dining experience if that’s not what you specialise in and if it’s not what your customers are looking for. There are two big-ticket Champions League football matches being played on Valentine’s Day this year, Porto v Liverpool and Real Madrid v PSG. With many pubs marketing a Valentine’s Day themed evening, publicans may find big profits from marketing themselves as a destination away from the schmoozing and a home for exciting football and great beer.
If you’re worried about not standing out this Valentine’s Day, then give something different a try. Hosting a special event could boost footfall in your site and leave lasting memories with your customers. A speed-dating event on Valentine’s Day could be an exciting and different way to spend the 14th February for those who otherwise wouldn’t partake in the festivities.
S4Labour’s event tool is a great way to ensure that you have the right people, in the right place, at the right time to deliver great customer service and not running the risk of over-staffing.
With hospitality sites being ideal destinations for couples on Valentine’s Day, it is important that you market yourselves well. Social media campaigns and promotional offers will be sure to help you get numbers through the door and drive sales, whether you plan to offer nothing but romance, or an alternative evening’s entertainment.
by Abby Henson | 5 Feb, 2018 | Blog, Press & News
By working intimately with some of hospitality’s biggest and best operators, we are able to gain valuable insight into the industry’s trading conditions and trends.
Taking data from over 100 organisations who use our S4Labour labour management software, our new research, which has been featured in the Morning Advertiser, has revealed that Christmas Day is an increasingly significant contributor to operators’ revenues. The research, considering venues across a full range of industry sectors, found that like-for-like sales on Christmas Day 2017 were up on average 21.2% on 2016 in food-led sites. Wet-led operators saw on average a 15.4% increase.
Reports published by two of the pub sector’s biggest firms support our findings. Marston’s and Mitchells and Butlers (M&B) both enjoyed like-for-like increased sales of 5.9% across their 1,550 and 1,780 respective sites. Marston’s saw Christmas Day sales in excess of £4 million for the first time, while M&B served over 225,000 meals on the day.
Our analysis also revealed that sites that opened on Christmas Day were in an overall minority. 35.5% of wet-led venues opened for business, while 51.5% of food-led sites welcomed customers. This represents a slight decrease on 2016, when Christmas Day fell on a Sunday.
Catton Hospitality director Richard Hartley commented on the findings, “We have recently spoken to many customers who enjoyed very healthy sales on Christmas Day. We anticipate this will continue next year, and the opportunities for operators are apparent.”
