Property and Professional Upcoming Hospitality Trends

The hospitality industr y has been hit hard by the events of the past three years But for those who weathered the storm, there are oppor tunities ahead How can SMEs capitalise on the trends set to shape their sector over the coming year?

have had to demonstrate remarkable resilience and agility These attributes will stand them in good stead to take advantage of new trends shaping the industr y – and the consumer landscape that underpins it - when the recover y comes

There are many subtle trends that will undoubtedly impact owners and operators dependent on their market and offering but the following are likely to shape businesses across the broad hospitality industr y in 2023

1. BLENDED WORKSPACE/ LEISURE SPACE

The rise of hybrid working arrangements and the increase of ‘digital nomads’ is a COVID-created trend that seems here to stay Many hospitality venues can capitalise on this shift by enhancing their offering to cater for local home-workers or business travellers Ensuring you have good wifi charging points quiet spaces and quality coffee will help capitalise on demand from this segment

2. COST-CONSCIOUSNESS

It is hard to think of a sector more impacted by the challenges of the past few years than hospitality Almost overnight the pandemic closed the entire idea of travel and eating out and - just as that was ending - spiralling inflation and reduced consumer spending have dealt many firms a hammer blow

According to the Hospitality Market Monitor from AlixPar tners and CGA by Nielsen IQ, the sector now has 13,037 fewer sites than it did before venues were first closed through lockdown three years ago

Hospitality recorded a drop of 4,809 premises across the whole of 2022 with more than three quar ters shutting their doors in the second half of the year

Nearly nine in 10 of these businesses were independents as small businesses weakened by the impact of Covid were forced to close The Market Monitor said many closures last year were the result of spiralling costs, whilst fragile consumer confidence , industrial disputes and labour shor tages have also made it a challenging star t to 2023 for many SME operators

Over the course of the past three years, those UK SMEs that have sur vived

The cost-of-living crisis has undoubtedly tightened available consumer spend for eating out and weekends away According to a repor t by Forbes Advisor 83% of UK consumers have reduced restaurant spend in response to rising domestic costs Hospitality operators will need to ensure that for customers who will be looking for a good deal, that their offering delivers This doesn’t necessarily mean a race to the bottom, however It just means that your business needs to communicate what makes it wor th the spend

3

Evolving Menu Demands

Each year, The Unilever Food Solutions Future Menu Trends Repor t canvasses the opinion of 250 professional chefs working in over 70 different countries, to determine the trends it feels will shape the food and beverage industr y For 2023, it predicts that vegetables will become an increasingly major par t of menu design It predicts their “promotion from side-dish to main event” in response to increasing numbers of vegan, vegetarian and flexitarian diners looking for well-crafted plant-based foods 67% of its operator panel also predict that sourcing local ingredients that help to reduce the carbon footprint of restaurant dishes is a trend that consumers are increasingly looking for

4 INCREASED INTERNATIONAL TOURISM

Why Use a Specialist Hospitality Consultant?

With over 30 years of industr y experience in the Hospitality sector, The Bowden Group’s Managing Consultant David Hunter will work with you to address the following elements:

Profitability Operational Strateg y Staff Management Marketing and The Future of your business

PROFITABILITY & OPERATIONS

Our exper ts will analyse your entire operation and also its key operating figures if they are available We then help you to identify strategies to manage costs and overheads associated with the core Profitability of running a Hospitality business

The largest overhead, even higher than Cost of Sales, is the Labour cost, so, with detailed analysis of your wages and being able to understand ‘’the way your business actually works’’ we can ensure that you are maximising the labour usage in your business

VisitBritain are forecasting 35 1 million inbound visits in 2023 (86% of the 2019 level and 18% higher than in 2022) and £29 5 billion spend (104% of the 2019 level and 14% higher than in 2022) If the latter figure is achieved, it would be a record for the value of inbound spend in the UK in nominal terms

The dollar strength against the pound translated into 380 000 US-based visitors arriving in the UK in the last quar ter of 2022 (a 6% increase on Q4 2019 levels) Businesses that can adver tise to – and cater for - a return to higher levels of tourism from both the US and Europe are likely to fare well But hospitality owners also need to consider increases in middle-class affluence in markets such as China South East Asia Nigeria and India and how that might shape guest and dining preferences

5.

Solving Problems Through Technology

Like many other sectors of the UK economy hospitality has been badly impacted by recent labour shor tages To overcome these staffing issues more hotel and restaurant operators will adopt digital tools such as QR menus cloud kitchens web-based booking and guest ser vice apps This also helps meet a shift in consumer behaviours as digitally savvy Gen Zs and millennials actively digital interactions with mobile ordering and automated kiosks for example Restaurants may also explore and less labour-reliant concepts, such as smaller restaurants and open kitchens where chefs can double up as ser vice staff

The turbulence of the past three years have hit most UK businesses hard, but with economic recover y expected later this year there are new oppor tunities to evolve and prosper

Adapting your business to meet these oppor tunities will likely require some investment If your business does not have the necessar y means to fund this today, you may need to consider external finance

At Capify we offer a range of business loans to help suppor t small businesses throughout their growth journey Check to see if you re eligible for one of our loans by visiting www capify co uk Or, if you’d prefer to talk to a member of our team, we’d be happy to guide you through the process Give us a call today on 0330 822 4906 or see the adver t on page 17

Budgeting, Forecasting, Menu Management, Stock Controls, Purchasing, and controlling Variable Costs are just a few of the other areas that David Hunter your Restaurant Consultant will work on with you and improve with you

MANAGING PEOPLE

Managing people brings with it a whole set of new skills that are now needed more than ever From ‘’Managing the Managers through to Ser vice and Kitchen staff your team needs careful and skilful Management Motivation guidance and Development

MARKETING

We will help you build a workable planned Marketing Strateg y From Digital Marketing such as Social Media marketing, Websites, eMail Marketing and online adver tising, to print design, Promotions and offline adver tising, your Hospitality business should be constantly working on ‘’ all things Marketing’’

If your business is actually struggling, or if you just feel that it could be doing some things better, give David Hunter a quick call on 07831 407984 to arrange a ‘’Free of Charge’’ initial consultation (please quote CLH Offer), when David will discuss with you what could be achieved if you ask us to work with you