by Abby Henson | 19 Jan, 2018 | Blog, Press & News
January brings a sharp decline in sales across hospitality, and optimising sales revenue is a hot topic once again.
Our recent analysis found that certain industry sectors have suffered as much as a 60% drop in sales this month compared to December trading. If businesses are to thrive at this barren time of year, upping customers’ spend per head is an important strategy. Here are our top tips for upselling for managers and their teams.
Cross-selling and the ‘Rule of 25’
True upselling, convincing a buyer to purchase a completely different, more expensive item, is rare in hospitality. A customer asking for a sandwich is unlikely to take kindly to being asked to buy a steak instead. Cross-selling, the addition of extra items to complement a main order, is a far more effective approach. The sandwich customer is far more likely to be receptive to the suggestion of adding a portion of chips or a coffee to their meal. A useful guide to staff, the ‘Rule of 25’ is a sales principle that suggests that items offered for upsale should add around 25% total value to the order.
Focus on High-Yield Items
The most effective upselling offers items that yield high profits for minimum labour time. Extra chips or sweet potato fries and additional soft drinks are prime examples of this. While coffee is a high-yield item, depending on your style of coffee machine, it can be time-consuming and labour intensive to serve. Team members should be careful to only upsell coffee at appropriate times. Taking three extra minutes to make the perfect flat white with a queue three deep at the bar is not going to do any favours for your bottom line or customer experience.
Premium lagers are a prime candidate for upselling
Premiumisation
Although footfall fell at many hospitality sites in 2017, particularly wet-led pubs, average spend per head increased by three percent. This suggests a market where customers are increasingly keen to spend a little extra on high-quality products – ideal for upselling. A fruitful technique is suggesting premium brands when a customer doesn’t specify. A vague request for a ‘lager’ or ‘glass of red wine’ should be seen as an invitation to offer higher priced options in the category. Faced with a clear and positive suggestion, the customer is likely to agree.
Eyeline is the Buy Line
Studies into point of sale advertising reveal a significant increase in demand for items given a more prominent position on the bar, or displayed clearly on posters or television screens. It sounds overly simple, but if you want customers to buy more expensive items, simply letting them know they are available has been shown to boost demand by a third. For smaller operators who don’t receive centrally prepared marketing materials, creating effective adverts has never been easier. Templates and free design software are easily accessible online.
Communicate and Incentivise
With upselling, as with most aspects of running a business, the better managers communicate with their staff, the better the results will be. Team members should be furnished with clear information on which items they are expected to upsell and when. It can be a great idea to incentivise your team by offering a reward to the employee with the most successful upsells in a given period, though desire to win should never come to the detriment of customer service!
Think Long-Term
Maximising immediate sales and profits is typically good for business, but shrewd operators know that driving long-term profitability through repeat custom is a superior goal. Well executed, upselling can form part of a tasteful, personal service style that will deliver special experiences, keeping customers visiting your site time and again. Poorly or inappropriately delivered, it can come across as pushy and harm your chances of winning repeat custom. It’s important to know your audience when upselling, and lifetime custom should be prioritised over a quick sale.
Effective upselling is much easier to deliver when staffing levels are optimised. By tying labour demand to sales forecasts and analysing recent and historic trading patterns, S4Labour facilitates this. Call 01295 267400 to find out more, or book a demonstration today.
by Abby Henson | 15 Jan, 2018 | Blog, Press & News
2018 is now two weeks old. January, typically the hospitality industry’s quietest month, is half gone, and the impact to sales for many venues has been dramatic.
| Trading Style |
Trend from Dec (Nov) |
| Late Night |
-60.8% (-28.2%) |
| Hotels |
-40.6% (-21.1%) |
| Food-Led Pubs |
-35.5% (-9.9%) |
| Restaurants |
-32.8% (-14.7%) |
| Wet-Led Pubs |
-32.4% (-21.3%) |
Taking data from our S4Labour software, we analysed trading patterns across hundreds of sites and saw a sharp decline in revenue this month.
Sites across all industry sectors have experienced a significant fall in sales between December’s average trading (excluding the week containing Christmas Day) and January to date.
Venues specialising in late night trade have seen the greatest drop, with total revenues falling by 60.8%. Perhaps surprisingly given the ongoing pressure the sector faces, wet-led pubs suffered the smallest decrease in sales, faring marginally better than restaurants and food-oriented pub operations, though still experiencing a 32.4% decline.
December’s festive season guarantees increased footfall and revenue for the vast majority of hospitality sites. This means the decline of sales into a barren January is particularly pronounced, but analysis of January trade against November’s average also reveals a stark fall.
Again, late night operators were the worst hit, seeing a 28.2% reduction against November’s levels. Wet-led pubs and hotels also experienced a decline of over 20%, while restaurants and food-led pubs saw declines of 14.7% and 9.9% respectively.
Empty tables are now a familiar sight for many
This data highlights how difficult trading in the early months of the year can be for all hospitality operators, and without truly effective management, many businesses fail.
A critical way to mitigate reduced sales is through effective labour scheduling. Labour is typically the largest expense to any operator, so a reduction here can be key to ensuring overall business health against a backdrop of reduced sales.
Through analysing hourly sales data and upcoming sales forecasts, S4Labour allows managers to identify times when they are likely to be overstaffed, and can therefore reduce their labour spend without compromising service levels.
It also allows its users to recognise periods of understaffing, which will be associated with costly missed sales opportunities and a compromised customer experience. Correcting these will drive valuable repeat custom and promote long-term success.
Many S4Labour clients save in excess of £10,000 per site every year, which can be instrumental in ensuring sites continue to thrive through bleak early-year sales.
Click here to find out how much your business could save with S4Labour? Or get in touch today to request a full demonstration.
by Abby Henson | 9 Jan, 2018 | Blog, Press & News
February promises to be an exciting month, as S4Labour are exhibiting at two of hospitality’s biggest trade shows in London.
First up is Pub18, the UK’s only dedicated pub industry show, which opens its doors at Kensington’s Olympia on Tuesday 6th and Wednesday 7th. Two weeks later we will be taking our place amongst a host of first-rate exhibitors for Casual Dining at the Business Design Centre, Islington, on Wednesday 21st and Thursday 22nd of the month.
Trade shows are always a fantastic opportunity to demonstrate S4Labour to new operators and catch up with existing users, as well as rubbing shoulders with inspiring and influential people from all sectors of the industry.
Attendance at both events is free with advance registration. Sign up for Pub18 here, and Casual Dining here. We’re looking forward to seeing familiar faces and forging new relationships.
by Abby Henson | 28 Dec, 2017 | Blog, Press & News
After a few too many pigs in blankets and countless celebratory Christmas drinks, January is viewed by many as a chance to kick-start a healthier lifestyle and reduce spending on food and drink after an indulgent festive period.
Over 3 million people have said that they plan to give up alcohol during the first month of 2018 as part of Dry January: a government-backed initiative to reduce the UK’s alcohol consumption. Dry January took-off in 2013, aiming to improve people’s health, reduce the amount of money spent on alcohol, raise awareness of the negative effects of alcohol consumption, and fundraise for their partner charities.
With almost a fifth of British adults pledging to avoid alcohol, and many more counting their pennies, January can be a difficult month for hospitality operators. After a busy December, footfall and sales will be reduced in most sites, but with intelligent management, this time of year does not have to be damaging for your business.
To combat a likely decline in visitor numbers, operators must consider fresh strategies to bring customers through the door.
The average Brit is predicted to spend more than £200 on alcohol during the week prior to Christmas, meaning consumers’ purse-strings are likely to be tightened in January. Attracting customers into your sites with promotions and entertainment is key to minimising the effects of the looming January lull.
Attractive promotions can provide an incentive to venture out of the house for food and drink, even when cost-saving is a high priority. Modelling their offer on January sales in department stores, JD Wetherspoon have offered a price reduction on a variety of their alcoholic and soft drinks from 3rd-8th January for the last fifteen years, helping to keep the January blues at bay for their 900 sites.
As well as Dry January, general trends suggest that more and more people are turning away from alcohol. Research predicts that consumers will choose soft drinks over alcoholic drinks, even during the Christmas period. However, a third of consumers don’t think that there are enough premium soft drinks available at pubs, bars, and restaurants. With a rising demand, along with the typically high yield that soft drinks bring, licensees can offset the effects of Dry January by increasing the range of non-alcoholic drinks available.
Avoiding alcohol doesn’t require losing the taste and atmosphere that comes with drinking out. No or low alcohol is the fastest growing category in beer, with sales doubling in the last ten years. Mocktails can also be a great way to boost January sales, providing customers with exciting tastes without the guilt that alcoholic cocktails may bring.
Rising numbers of health-conscious consumers, along with those suffering from Christmas guilt and possessing hopeful New Year’s resolutions, mean that it is important to increase the number of healthy dishes, such as salads, on the menu. Being high-yield menu items, these dishes are also attractive for managers looking to boost profit margins in January. However, many customers still want warm and indulgent food during the winter months, so it is important to offer balanced menus.
2017 saw a rise in entertainment-led food and drink venues such as escape rooms and mini golf bars. In addition to revising food and drink offers, a great way to boost sales this January would be to host a range of events, from movie nights to live comedy, to convince customers to venture out to your site.
S4 Labour’s event feature is a great way to ensure that labour deployment remains correct during periods of unfamiliar trading patterns that events may cause; this will lead to the smooth running of events and happy customers.
It is important that news of any January promotions and events is shared on social media, as this is a great way to get people through the door. Show off the exciting new products/events that you’ve got on in January with #TryJanuary, the Morning Advertiser’s campaign which looks to rebel against the idea that January will be a quiet month for hospitality. With most operators now using social media to market themselves, failure to do so can leave you behind.
As well as driving increased sales through new products and events, managers can also boost January’s profitability by turning their attention to internal processes to increase efficiency
Effective labour scheduling is the number one way for managers to increase efficiency in January. Managers should consider greater use of split-shifts, staggered start times, and shorter shifts. The effects to trading patterns brought on by trends such as Dry January and healthier eating require greater consideration of labour deployment within sites. With the expected fall in late-night drinks sales, managers might want to consider redeploying staff from the bar to other areas of the business or from evenings to daytime hours.
S4Labour provides a site’s previous year’s food and drink sales. This feature acts as an advisor to a manager when forecasting their sales, leading to the S4Labour graph suggesting labour deployment that will be reflective of January trading patterns. By splitting sales by food and drink, the graph reflects changes to requirements by trading area.
Encouraging staff to upsell in January will make a big difference to business. With customers less keen to part with their money in January, it is important that staff are active in driving sales. A good way to encourage staff to upsell is to implement a reward scheme for the number of starters and desserts sold with main dishes during busy food-led periods of trading e.g. a Sunday afternoon. Not only will this increase staff interaction with customers, leading to greater customer experience, but will also encourage staff to play their part in boosting revenue.
January is a good time to focus on tasks that are not directly linked to serving customers. With key dates such as Mother’s Day, Valentine’s Day, and Easter fast approaching, January provides a great opportunity to get ahead with the planning and marketing of events and promotions on social media. This preparation will help to boost sales after a quiet start to the year. As well as preparation, a quiet trading period will provide a good opportunity to catch-up on any tasks, such as cleaning and décor work, that may need doing after a busy festive period.
Whilst January may be a daunting time for many operators, it has the potential to be a healthy month for the business as well as the customer. The introduction of new and exciting items on the menu that cater for a health-conscious market, alongside attractive events, will allow hospitality venues to remain appealing during the first month of 2018. An active presence on social media with effective marketing and planning will ensure that the hard work to boost January sales won’t go unnoticed.
Get in touch today to find out more about how S4Labour can promote the health of your business in January and all your round.
by Abby Henson | 8 Dec, 2017 | Blog, Press & News
We are delighted to announce that we have established an integration with leading data and business analytics providers Tahola.
We will work together with Tahola to provide the hospitality industry with a solution that meets organisations’ labour management and business intelligence requirements. This will result in reduced costs, improved processes, and increased revenue for operators.
Both companies recognise the effectiveness of enhancing their own specialism through integration, adding further value for their users. In line with this, Tahola have developed an interface allowing its analytics solution to plug into S4Labour’s labour deployment data, saving mutual customers time and minimising the need for investment in costly bespoke integration work.
S4Labour’s Gareth Thomas, who worked closely with Tahola in establishing the project, enthused about the partnership saying, “Tahola are an excellent organisation who are at the cutting edge of data analytics for hospitality. I’m very excited about working with them to deliver great outcomes for our clients.”
What does the partnership mean for customers?
By combining the speed and capacity of cloud computing with a simple interface to S4Labour and Tahola’s intuitive dashboards, we can provide detailed, near-instant answers to key questions. This frees up managers to focus their attention elsewhere. Data is also visible on mobile devices, allowing managers to spend less time in the office and more time leading their teams and delivering great service to maximise sales.
by Abby Henson | 7 Dec, 2017 | Blog, Press & News
Congratulations are in order for three S4Labour clients who have been confirmed as finalists at the 2018 edition of the prestigious Publican Awards.
Seafood Pub Company claim their 2015 trophy
Seafood Pub Company will vie to claim the hotly-contested Best Food Offer category, an accolade they previously won in 2015, while Anglian Country Inns beat off stiff competition to take their place amongst the candidates for the Best Accommodation Operator prize. Completing the trio are Albion & East, whose Canova Hall site has been nominated for Best New Bar.
Seafood Pub Company operates twelve food-led pubs in some of Lancashire and Yorkshire’s most picturesque locations, with an ethos of sourcing quality local produce to serve classic British dishes and fresh seafood specials. They began using S4Labour’s innovative labour management software in May 2016 and have thrived since, adding two new sites to their estate.
Anglian Country Inns – themselves twice previous winners of the Best Food Offer award – manage 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.
Backed by renowned hospitality investment partners Imbiba, Albion & East took on S4Labour in their Martello Hall site last year, while their second venue Canova Hall opened this autumn. With an offer that’s part restaurant, part cocktail, part nightclub, and wholely impressive, they have been earning rave reviews from customers and the press.
We are delighted to work with a superb array of clients from all sectors of the hospitality industry and proud to be a contributing factor in their ongoing success. We wish Seafood Pub Company and Anglian Country Inns the very best for the Publican Awards finals night in March.
