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HQ
BUILDING THE BUSINESS
With 2023 upon us, HQ Building the Business examines the art of how to plan in a constantly changing business environment and asks, ‘how good are you at managing change’? Plus: Latest facts and figures on eating out in the UK along with an examination of creativity in the kitchen. Also: Enhancing the member experience – why it’s more important than ever to have a fully manageable, online membership platform. And: who’s the current top of the cocktails pops?
The art of managing change
With a constantly shifting business environment, HQ asks ‘just how good are you at managing change’?
Whether that’ s dealing with changes in procedures thanks to new legislation, or shifting work practises due to an unhappy team, keeping up with – and ahead of – this incessant flux is essential to ensure a healthy future for the club.
2. Planning
Spend time on this stage. Once you know what needs to be done, think through how you will achieve it, consult with others as appropriate. This is a time for detail. Think about what, how, who, where and when.
10 point checklist for facing the change process.
1. What change is required?
Firstmakesurethereisaneedtochangewhatyouare doing. Then establish whether this will be a small improvement to your operational or other procedures,orwhetheramoreradicalprogrammeofactivityisneeded.Thinkaboutallaspects–customers,the team, the company, yourself, your colleagues, competitors and others.
3. Overall objective
Make this clear and easy for everyone to understand and remember – for example, introduce new menu by October 14; review staff rotas by November 27.
4. Goal setting
Having decided the main objectives, set short-term goals so everyone can measure progress. If these smaller goals aren ’t met, find out why and focus on improving things rather than placing blame.
5. Deal with resistance
Many people will naturally resist change, so have plans in place to respond to any resistance and sell ideas. Find out what’ s in it for them – what can they gain by doing it, or lose by not doing it?
6. Prepare your team(s)
Make sure you deal with any training and development needs so your people have the ability, motivation and confidence to deal with what will now be required of them. Work hard to get them on board –peopleachievemuchbetterresultsiftheyhavehelped create something.
7. Deal with knock-on effects
Remember that changing some things will have a knock on effect on others, so be sure to take a holistic approach to the planning process and monitor all areas throughout.
8. Communication
Make sure you put two-way communication mechanisms in place and remember you have two ears and only one mouth, so get the proportion of listening to talking right! You could use feedback meetings or suggestion slips, for example.
9. Make them hungry to succeed
Make your people challenge the status quo drive urgency and momentum and a thirst to see the change process succeed.
10. Monitor, review, plan
Throughout the journey, make sure you monitor and reassess your progress very frequently; a common mistake is to engage in an elaborate planning process and then fail to execute it because people pushed on with the wrong strategy.
This can happen when plans are incomplete or contained errors which might not have been possible to anticipate at the outset. The objectives will be constant but how they are achieved may change several times.
Eating out continues to recover
Latest MealTrak* results show that the number of out-of-home eating occasions were 12% higher than the comparable period in 2021 on a 52 week/MAT basis.
In the latest 12-weeks, there were 807 million eating out of home occasions in the 12 weeks ending 11 July 2022, and the ‘ eating out’ channel was in strong growth at +42% versus the previous year.
Value sales are also up, 24% on a 52 week/MAT basis and +19% on a 12 week ending basis, versus 2021.
TomFender,DevelopmentDirectoratTWC,said: “Encouragingly,forthemomentatleast,valuegrowth remains ahead of occasions, indicating that spends are holding up and consumers are continuing to seek rewarding experiences rather than trying down on prices and functionality. ”
Interestingly (and unusually) growth is currently being driven by older consumers, especially 45 – 64 yearolds,wheregrowthismuchstrongerthanforthe younger age groups across both Eating Out and Food ontheGo.EatingOuthasbeenrecoveringwellinthis 65+ age group, although, says Fender, this has dropped away over the latest 12-weeks, perhaps because this age group is more vulnerable to the impact of rising costs.
“Similarly, over the last 12-months growth in all channels has been driven more by women than men, but this has reversed over the last 12-weeks, with women too perhaps changing their behaviour more rapidly in response to current economic pressures, ” he said.
*MealTrak is a continuous tracking programme for food-to-go and out-of-home consumption, surveying 36,500 consumers a year.
Pornstar Martini remains UK’s number 1 cocktail
Funkin Cocktails ’ Marketing Director, Ben Anderson, looks at CGA’ s newly released MixedDrinksReportandconsiderstheopportunities for on trade venues
The cocktail sector has been on a meteoric rise in the UK in recent years, with the value of cocktails now at £686m and more than 9.6 million consumers nowenjoyingcocktailsintheontrade,whichequates to 1 in 5 on-premise consumers. This provides venues an exciting opportunity to diversify their drinks offering, whilst delivering additional revenue and footfall.
The top 10 cocktails in the UK (Q3 2022)
1. Pornstar Martini – 15.5% 2. Sex on the Beach – 7.0% 3. Mojito – 6.7% 4. Flavoured Martini - 6.3% 5. Long Island Iced Tea –6.0% 6. Daiquiri – 5.7% 7. Spritz – 5.3% 8. Espresso Martini – 4.8% 9. Aperol Spritz - 4.1% 10. Pina Colada – 3.5%
The top 10 cocktails account for more 65% of all cocktails enjoyed in the on-trade making them all important for inclusion on cocktail menus, particularly as one in two consumers say that they prefer classic cocktail serves.
Two serves making popularity gains in the list are the Pornstar Martini (+0.1pp) and the closely related Flavoured Martinis (+0.7pp). The Pornstar Martini continuing to hold the top spot by some distance, whilstSexontheBeachhasnowovertakenMojitoto takethenumbertwospot.Thesearealldrinksonthe sweeter end of the scale, which reflects the everyoungertypicalcocktaildrinker,with18-34yearolds accounting for 53% of cocktail drinkers in the UK.
Consumersarealsocontinuingtoexpectcocktails in outlets that haven ’t traditionally offered these serves, with 46% drinking cocktails in pubs (+8pp). This is reflected in the total share of sales for cocktails rising massively in these venues, hitting 10% in food-led pubs (+122%) and 7.9% in drink-led pubs (+107%). And regardless of the venue, cocktails continue to be a profitable addition with drinkers willing to pay on average £9.05 per cocktail.
However, as consumers increasingly feel the sting of the cost of living crisis, the perception of the value of a drinks menu will become increasingly important with 41% of consumers opting to focus on value when choosing their cocktail. Venues can continue to capitalise on the cocktail boom by promoting happy hours and 2-4-1 style promotion. This may feel like short-changing in the short term, but there are plenty of options that can make cocktails cost effective and high in margin for venues. The Funkin Cocktails Mixer range comes in at an average cost per cocktail of £1.60 including the alcohol, meaning the profit margins per drink are still significant and if made well there is the opportunity to win regular customers.
• www.funkincocktailstrade.co.uk
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HQ
BUILDING THE BUSINESS
Being part of a members club means access to entertainment, information, networking and exclusive benefits. Its success leans heavily on its ability to offer an exceptional experience through a variety of activities and exclusivity.
In our study, we surveyed over 200 individuals with current paid memberships within clubs, sporting organisations and trade associations. We asked them a series of questions about their satisfaction with their current membership offering and what more they might want to see in it.
So how do you create a truly valuable membership experience? Here are six key takeaways from our study.
Online membership portals Having a membership portal that is easily accessible online or through an app has become a standard in memberships. This decentralises information such that members can update their own data, upgrade tiers, and manage payments anytime they please.
Tragically, not all club memberships have caught on. The study found that 64% of members whose membership doesn ’t offer online tools wish it did, as the feature would have been tremendously valuable.
Even when your membership is on-site and frequented by members, it’ s still worth moving your database online and providing log-in access to each member. Bringing your membership online gives you an additional channel to freely communicate and engage with members. The study shows that onethird of club members use their membership at least once a week. This presents an opportunity to boost news and promote events.
Demand for monthly instalment Instalment payments make membership dues appear less intimidating as clients have more time to move their budgets around to make room for dues. As opposed to a onetime payment, instalments lower your membership ’ s barrier of entry to qualified customers which in most cases improves conversion. It makes sense why many memberships offer it as standard.
The study also found that monthly instalments are more commonly paid via direct debit (71%) than recurring card payments (29%).
This tells us that members still want control over their membership payments given how direct debit provides customers a window of time to review transactions. If coupled with direct access to their membership plan through an online portal, you equip customers to review their payment histories frequently and raise tickets in the event that they find irregularities in their invoice. Transparency goes a long way.
Discounted event tickets Events are versatile and can cover a wide range of topics. When staged to stir uptherightamountofengagement,itmakestheperfect vehicle for conferences, certification programs, networking, and entertainment; practically half the benefits a membership could offer. No wonder organisations continue to make space for it in their longlistofmembershipperks,asonecouldinferfrom the 75% of club members who are provided access to events at a discounted rate.
Events are costly and time-consuming. Opening themuptothepublicisalogicalsteptooffsetrevenue spent in event planning time and resources. Drawing a clear distinction between members and non-members is essential to enforce that feeling of
Demand for more membership perks Although 85%oftheclubmemberssurveyedreportedtobesatisfied with their current membership package, qualitative results show that if there ’ s one thing that could be improved in their membership, it would be the presence of “ more ” benefits. This meant more club services, activities, and exclusive offers. Otherwise, they wish for more discounts and special deals on products and services from affiliate businesses.
Loyalty programmes for long-time members
werealsomentionedasanaddedbenefit.Thistellsus that if membership benefits were to be enhanced, it should be in a way that answers the needs of the differentsegmentsinthememberpool.Youensurebetter engagement and retention through this approach.
If you haven ’t leveraged the unique characteristics of the different segments in your membership client base, now ’ s a good time to evaluate. Use that information to update your membership benefits, aligning them with your members ’ evolving needs.
Switching membership platform providers As with any kind of drastic change, switching membership platforms is seen as highly disruptive by members.Whilethismaydiscourageclubsfromswitching platforms altogether, there is a caveat to it.
When asked what they wish to improve in their membership,betteruserexperienceemergedasone of the top answers. Complaints included lack of a
“ quicksign-in ” ,inabilitytoaccesstheirmembership online, and poor design that makes navigation feel like a major chore. Qualitative responses coincide with answers to the question “ what’ s one benefit they wish their membership offered” to which 45% said was an exclusive area for accessing all benefits available to them.
With 91% of members receiving membership benefits, it makes sense to enable better access to these benefits. Without efficient technology in place , club runners may run the risk of disengagement and member churn, which are in the long run worth more than the cost of improving your current membership platform right from the outset.
Better offers and a better platform The study revolves around one pressing sentiment: members want easier access to more membership benefits, implying technological upgrades alongside an investment in more valuable perks. Members are the lifeblood of any membership organisation and their satisfaction determines your success as a community.
In retrospect, there is a logical connection between the two demands. Attractive offers can only go so
farifmembersareunabletohaveaccesstothemor lack an overview of what the benefits they are pay-
ing for. On the flip side, well-designed platforms are empty shells without compelling membership benefits. One might exist without the other but if your aim is to give members more reasons to continue being a part of the club, winning both ends is the smart choice.
In conclusion The pandemic forced millions of individuals to put plans on hold. Now, people ’ s hunger for experience, connection, and learning is more insatiable than ever. What better avenue to cater to all these needs than membership clubs? It’ s worth remembering that this movement doesn ’t come without high expectations. So when the opportunitypresentsitself,youneedtobetheplacethathas it all figured out.
As was drawn from this study, an exceptional membership experience consists of ease, accessibility, control over one ’ s own data, and benefits that scratches the right spot.
Evaluate if your membership checks all the boxes. Andifyoudecidetofillthegapsbeforetheydigahole in your business, start from the two most important areas - technology and a more targeted benefits package.
Enhancing the member
In a new study, Eventcube.io explains why it is more important than ever to have a fully manageable, online membership platform.
MORE DETAILS
Eventcube is described as
‘ a feature rich, white label event and memberships platform for virtual and ticketed events, empowering event organisers ’ . www.eventcube.io
‘No time for creativity’ say UK chefs
Anew, independent survey of contract catering firms across the UK, has revealed the top concerns faced by operations managers, head chefs and general managers, as the sector continues to navigate a dynamic, largely unpredictable, post-pandemic world. The study, commissioned by P2P(Procure-to-Pay)cateringtechnologyfirmZupa, set out to delve deeper into the key challenges impacting day-to-day operations, as the resilience and innovation of UK catering firms is called into question. The study revealed that rising costs is the top concern for 27% of staff. Poor kitchen management was a close second (25%), a further 24% of respondents also cited lack of staff as a key concern, as well as food shortages (24%).
Perhaps more worringly, 99% of respondents say that multiple aspects of their day to day job are being overlooked due to time-consuming manual processes. Staff happiness and productivity is also suffering at the hands of poor team cohesion and outdated processes with 44% highlighting this as a major issue. A further 40% of catering staff believe that lack of training and resource is to blame for low morale amongst their teams, while another 20% admit they are frustrated by unnecessary complexity and outdated technology, which they say is making the problems worse.
Food wastage and sustainability is also reportedly being overlooked within catering firms, due to legacy systems and high volumes of manual admin, with 40% admitting this is a real problem for the sector.
OllieBrand,CEOatZupasaid: “Thislatestsurvey combined with the events of the last couple of years, perhaps highlights that there is no return to the ‘ old normal’ . We now have a ‘ new normal’ defined by unpredictability that requires aptitude, not just acceptance of uncertainty and change.
“Innovation is paramount and recognition that the right technology can help is critical to creating positive change in this sector. However, the survey does raise concerns as many are still failing to make the connection between outdated, manual processes and key operational concerns raised by their staff. ”
The survey also revealed that lack of creativity and innovation is a key challenge for the industry. Lack of training, coupled with poor business vision may also be connected to issues around chef creativity as many blame lack of creativity for several of the sector ’ s top worries.
Chefcreativityinparticular,wascalledoutbyover 20% of respondents who say chefs don ’t have the time to innovate. Many of the respondents are chefs themelves, and when asked what they would do with more time in their working day, 65% said they would invest in the creativty of their cooking and menus.
The research also showed an acknowledgement from respondents, that technology would help their business. Just over half (51%) of respondents said they are looking for technology that is easy to use. A further 48% said that technology fits with the culture of their business and there is also enthusiasm around the prospect of introducing new technology, with 43% saying they are excited by the introduction of new technology.
Brand added: “Despite the obvious gap between outdatedprocessesandbusinessfunctionsbeingside lined, it is clear that workers are over stretched and that this is having a knock on effect on the productivity of catering teams – and quite likely the quality of customer service.
“Staff attrition and low morale are endemic in this sector, and this comes at a time when the focus should be on business priorities like retention, development and improvement of customer service. Technology has the ability to transform operational performance and profitability for the better, so the time is ripe for change. ”
• zupa.com
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High staff turnover and low morale blamed on poor training
An independent study has revealed a clear link between staff training and the resourcing shortages that clubs and the entire hospitality industry is facing.
Polling hundreds of head chefs and general managers, a survey, commissioned by procure-to-pay catering technology firm, Zupa, revealed that 78% of restaurants believe the pandemic has permanently changed their business. The study also highlighted that lack of staff training is being attributed to a variety of operational issues from staff happiness and low morale, to lack of innovation and even food wastage.
A resounding 97% of workers said high staff turnover is a significant problem and of these, 41% blamedthisspecificallyonpoororinsufficienttraining.Stafftrainingwasalsocitedasthetopreasonfor low staff morale (39%), followed by the burden of being short-staffed (34%) and the frustrations of working within disjointed teams (26%).
Neil Shayle, ex-chef and commercial director at Zupa,saidthattheimpactofstaffingandlackofcontinuity is raffecting people on the ground.
“Finding the time and budget to invest in training can prove challenging, but this growing inability to attract and retaingoodpeopleposesasignificantrisktothesector,andweareseeingevidenceofthiswithinourlatest research, ” he said. “By ignoring the need for critical training and engagement programmes that allow staff to grow in confidence and innovate, hospitality businesses are creating a vicious, self-perpetuating cycle which directly impacts their revenue, customer relationships and future profitability. It is vital that operators recognise training as a cornerstone of their people strategy. ”
Quality of customer service is another concern, with 96% of respondents reporting this as a key issue, and of those, 47% said they believed it was linked to lack of staff training.
“People are eating out less and becoming more selective about where they spend their money, ” said Shayle. “The industry is also under pressure to provide more value as well as a differentiated customer experience, but to achieve this they need happy, experienced and motivated staff who have the freedom and the bandwidth to innovate. Therefore, in a sectorstrugglingtoattractandretainstaff,thefocus has to be on investing in, and freeing up more time for the people you already employ. ”
Operational issues attributed to a lack of staff training: 1. Poor customer service (47%) 2. Mistakes (42%) 3. High turnover of staff (42%) 4. Low staff moral (39%) 5. Food wastage (36%) 6. Lack of innovation (32%)
• zupa.com
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Negotiation: how to get what you bargained for
From discussing terms of an employee’s contract to securing the best deals from suppliers, the ability to seal the deal and – ideally – keep everyone happy is essential. Enter the art of negotiation.
Managers and stewards with good negotiating skills are more likely to get good results and have employees who understand what’ s expected of them. Negotiation means developing an ability to resolve disputes and conflicts. It also requires a willingness to work with other people to reach solutions that everyone can live with.
In situations where a whole team/committee is negotiating, each individual should have their own role. Knowing who ’ s doing what and when, is fundamental to the overall negotiation process.
Hereare10stepstobecomingaskillednegotiator:
1. Start with the end in mind
Realise what you want the outcome to be and know how far you can – and are willing to – go.
2. Show respect
Listen and learn about the other person ’ s point of view. Think about whether you can both attain the outcomes you desire and be prepared to meet in the middle.
3. Self-belief
If you believe you can achieve what you want, you are more likely to be successful. Presenting in a relaxed, confident way will help you to reach your goal. Speak clearly and concisely. Avoid appearing desperate, stressed, irritated or angry at all costs.
4. Develop rapport
People like people who are like themselves. Take some time to warm up your negotiating partner and find areas of common ground. Remember your goal is to create and preserve a relationship.
5. Use influencing skills
Learn as much as you can about your negotiating partner so that you will be better equipped to influence him. Listen to the language he uses and then use it too. Find out what is important to him – does hefocusonwhathewantsorwhathedoesn ’twant? Does he seek approval from someone else?
6. Use sales skills
Ask questions and present the benefits of your argument. Find out whether he/she agrees and then handle any objections. Remember to think about the benefits for both parties.
7. Be flexible
Explore all possible solutions and outcomes. Be prepared to adapt if it means you both achieve your desired outcomes. Collaboration doesn ’t mean giving up or giving in.
8. Be focused, firm and determined
Restate your case with confidence.
9. Closing skills
At the end of the meeting, be clear about what you have asked and what you have agreed upon. Confirm in writing afterwards if appropriate. pens. Being reliable and trustworthy will make things easier when you next come to negotiate with the person.
Negotiation is most successful when both parties: • Recognise the value of a relationship and want to continue it • Participate actively in the process • Show consideration and acceptance of each other ’ s perspectives, values, beliefs and goals • Separate personality from the issue involved
Work together to develop a solution everyone can accept.
10. Do it
If you have agreed to do something, make sure you have a plan for carrying it out and make sure it hap- <
Energy consumption and invisible waste
With UK clubs facing an unprecedented rise in the cost of goods and energy prices shooting up, it’s not surprising to learn that 92% of hospitality decision makers are worried. New research from BRITA UK delved deeper into their concerns and offers up advice on saving money.
To help operators combat the energy crisis, and learn simple, energy-efficient steps to reduce their energy consumption by identifying sources of invisible waste, BRITA has partnered withsustainabilityexpertsaspartofitsnewInvisible Waste insights report.
The hospitality sector ’ s energy concerns and desire to operate more sustainably add to the many plates businesses are already spinning, with existing challenges including recruitment and retention issues, the rising cost and availability of raw materials and ingredients, and some areas of the UK continuing to see a reduced footfall.
Nearly three-quarters of decision makers (72%) say they have goals and targets in place to decrease their energy usage and overall environmental impact, yet 86% believe their business could be doing more to achieve this.
David Hall, Managing Director of BRITA UK, says:
“With hospitality operators feeling the pressure to improve their sustainability in an authentic way that avoids ‘ greenwashing ’ their processes, they cannot ignore the impact of the waste they produce on the environment.
“We ’ realltooawareoffoodandplasticwaste,but what about the invisible waste that we cannot see, such as the volume of energy businesses consume each day and night unnecessarily? It’ s vital that we collaborate with companies to tackle the sources of invisible waste together, and there are simple, energy-efficient steps that can be taken to contribute to real change. ”
One of the major sources of invisible waste in hospitality is equipment being left on needlessly overnight,whichissomething45%ofdecisionmakers admit to, despite 65% of them not knowing how much energy the equipment uses during this time. Enter online – visit clubmirror.com and click on the Awards Entry Form tab.
Thoughsomevenuessuchashotelsoperate24/7, equipment including ovens, commercial washers, microwaves, and hobs are all examples given by decision makers of equipment left on unnecessarily overnight, with 25% letting these appliances go into standby mode. And 18% say it is easier to just leave equipment on and, for one in 10 businesses, equipment remains on simply because there is no one responsible for turning it off.
To help operators combat the energy crisis, and learn simple, energy-efficient steps to reduce their energy consumption by identifying sources of invisible waste, BRITA has partnered with sustainability experts as part of its new Invisible Waste insights report.
As well as identifying which pieces of equipment can be safely turned off overnight to improve overall energy efficiency, BRITA’ s report includes actionable tips and hints that can help streamline the process to better sustainability across the board.
To download the Invisible Waste report visit www.brita.co.uk t. 01869 365 851 www.brita.co.uk/professional <
Could your club do more for the environment?
More than six out of ten people want to see venues act more sustainably, citing the use of recyclable packaging, less plastic, less waste, and mobilising renewable energy, as coming top of their wish list, according to recent research from British cleaning chemical brand, Delphis Eco.
Delphis Eco ’ s study of 2,000 adults found that 76 per cent of responders felt sustainability and climate change were very important to them. But it also emerged 56 per cent ofusfeeltoomanybusinessesare ‘ greenwashing ’for marketingpurposesratherthaninaconcertedeffort to make a real difference to the planet.
Mark Jankovich, CEO of Delphis Eco, said: “Hospitality venues can only buy what is available to them, so it’ s important we give them options and help them understand how making the right purchasing decisions can help their own environmental pedigree.
“It’ s clearly important to customers that hospitality venues do business in the right way and this aspirationcanonlybecomestrongeralongsidetheheadlinesweseelinkedtoclimatechangeandtheerosion of our planet’ s resources.
“We want to make sure we are doing all we can, by ensuring we ’ re leading by example. Our cleaning chemicals are non-toxic, plant-based ingredients, yet they are extraordinarily powerful and do an exceptional job. All our packaging is made from 100% recycled plastic, and we offer refills. These are all elements which impact our margin, but we feel it’ s the right way of doing business. ”
Mark and his team have recently been recognised for the production of their ecological cleaning range, receiving the highly coveted Queen ’ s Award for Enterprise in Sustainable Development 2022.
The company was deemed to be ‘ a business making an outstanding contribution to sustainability and oneofonlyaveryfewcompaniestobesingledoutfor recognition through these prestigious awards ’ .
According to Mark the journey to secure 100% recycled packaging was painful and lengthy.
“Wewantedtoevidencethatifwe,asasmallSME couldleadthewayindrivingtheeffectiverecyclingof packaging and give second life to single life plastics, then this was a major signpost for larger manufacturers,whohavesubsequentlyfollowedsuit, ”hesaid. “We are deeply honoured to win the Queens Award for Enterprise in Sustainable Development and everyone within our team is immensely proud of the achievements over the past few years and in how we are really making a difference. ”
Mark Jankovich
