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.”

Hospitality Sales Experience Slight Decline during November

November’s like-for-like hospitality sales dropped by 4% across the sector compared with 2019 levels, however food like-for-likes were positive.

Food sales were up 2% on November 2019, yet drink sales declined by 10.5%.

Both London and non-London sites also saw their like-for-likes decline last month. London was hit the hardest with a 9.5% reduction in sales, whereas non-London sites saw like-for-likes drop by a smaller 3%.

The Chief Product Officer of S4labour, Richard Hartley, commented: “The slight 4% decline in like-for-likes for the sector is not too concerning, especially given October’s strong 13.5% increase in like-for-likes. December looks to be a pivotal month, as the sector looks to sustain sales amidst the concern in recent booking cancellations.”

Customer Satisfaction—Getting It Right

Contact number: 01295 267400

Ever since S4labour started in 2010, our customer service has always been so important to us. It has been a key focus of ours for years. S4labour are still determined to produce fast, effective and concise customer service. We come from hospitality—numerous people in our team have been or even are currently operators. Customer service is part of our DNA.

Whether you’re raising a ticket with our helpdesk, making a quick call or calling an Account Manager, S4labour aims to always leave you feeling like you’ve done what you wanted to do. Nothing less. From our First Line Support all the way to our Development Team, everyone at S4labour wants to prove that we simply get our customers. 

Okay, so it’s all well and good talking about some buzzwords describing customer service: be that “exceptional”, “unmatched”, or “perfect”—anyone can say that. On that note, let us tell you how we go about giving you appropriate and effective customer service.

 

 

 

 

Easy.

Finding our number is simple. Once you’re logged into S4labour, our contact information is easy-to-find, locate and of course… use. The best part is you get to decide which method of contact you prefer. It’s as easy as raising a ticket or picking up the phone. In fact, here’s the number and email right here: 01295 267400 or email.

 

 

 

 

Constant Support. 365 Days a Year.

Someone from S4labour will always be on hand to help you. If you dial our number or raise a ticket, you can have peace of mind that it will be answered. From 08:30am to 05:30pm, every day (including weekends), one of our team will be on hand. 

 

 

Friendly, Honest, and Transparent.

Okay, apologies for the buzzwords on this one… but we really couldn’t help it because they’re true. Our team are completely solution orientated; we don’t stick to the same old scripts you may be used to. Actually, to be clear, S4labour doesn’t even have scripts. We genuinely pride ourselves on being that friendly voice behind the phone; being that response which really does help solve your query. On the transparency side of things, we’ll let you know exactly what the issue is in as much detail as possible. If we can’t answer your query there and then, we’ll put your query with the right experts to resolve the issue.

 

 

The Dreaded Phone Tree.

You can’t dread something we don’t have. S4labour does not operate a phone tree; we promise we hate them as much as you do. Instead, we have this revolutionary, innovative and groundbreaking system… someone being at the end of the phone. Your call and query will always be met with devotion and solutions. 

 

 

We Don’t Just Know Customer Service, We Know the System. 

The team at S4labour are all trained to a high standard on how to use what we promote: the S4labour system. Not just what it does, but why it does it. Have you ever called a company for help and realised they don’t really know what they’re talking about? That won’t happen with S4labour, all of our employees aren’t just trained to help, they’re empowered to help. 

 

 

A Support Call Is a Support Call!

Our aim of a support call is not to upsell you something. No sales pitches, we promise; it wastes your time. Our focus is giving you the support you require.

 

 

Walking The Walk.

We’ve said a lot, we know. However, what good is it to talk about facts and promises if you can’t even back them up? That’s why we’ve built a Customer Satisfaction Dashboard; letting our customers do the talking.

A Strong Month for Hospitality Sales

Following a strong September for hospitality, October’s monthly like-for-likes are up 13.5% when compared to October 2019. 

In particular, food-led sales performed well with a 17.8% increase in like-for-likes. Drink sales were also up by 9%—much higher than September’s drink like-for-likes. 

Non-London based sites saw their like-for-likes rise by a high 15.5%. As for London sites, their like-for-likes were up too; however by a smaller 3.5%. 

S4labour’s Chief Product Officer, Richard Hartley, stated: “October’s high like-for-likes is excellent news for the sector, especially given the amount of head winds (such as the increase in VAT and supply problems) that operators are facing. The Autumn Budget also spelled some good news for the sector in the years ahead.”

Malvern Inns—Current Challenges

I think we had all hoped that life would return to normal post-pandemic, but it certainly feels like the repercussions of the Coronavirus are set to last far longer than the virus itself. Lockdown gave us the head space to plan and give real thought to how we can improve our people, training and innovate our business. We were optimistic about our place in the wider economic recovery and the feel-good bounce back of the nation. But all of this has now been completely overtaken by a cocktail of challenges that have entered every area of the business. I don’t know whether the lack of staff, and in particular kitchen team, are the biggest challenge. Or, whether the constant failure of the supply chain is now taking more management time. The result of all the challenges is that, as a management team, firefighting has taken over and we are not spending enough time on innovation and growth. Before we know it, VAT and rates will be back to normal and we will have a cost base that has grown to a point where we are not making enough money. This article is a reminder of what we are now trying to focus on in order to drive our business for the long term. How quickly we will get round to them is a different question!

Recruitment and Training:

At the moment, our key priority is recruitment and training. Without the right team our senior team will be in the weeds. Currently we can’t meet the demand on most days—particularly on Sunday. So, being able to recruit and train to meet Sunday demand is a priority. It does seem to be getting better. The end of Furlough has triggered some people to look for work, but more importantly for us has been young people (students or school leavers) who are now wanting to get back into the workplace. This is building up our team one person at a time. Even yesterday one of my managers said 1/3 of the candidates turned up for an interview, which is a higher number than normal. Our real challenge, though, is how we up our game in the long term on recruitment. My guess is that how we have recruited historically will not be good enough for the future, and we will need to connect better with young people and be more persuasive about the personal benefits of some time spent in hospitality.

Pay:

Pay is a real conundrum at the moment. I think we are all worried about ratcheting up pay in the short term and then being unable to claw it back, but equally wanting to find the right level for the long term. I am really puzzled by the challenge we seem to face in tips. I don’t think that our staff actually understand what they earn when they add base pay and tips together, and that we have lost staff who think that they are being paid more in other jobs when the opposite is true. We are seriously thinking about whether we can morph our service charge into price and remove tips from the equation, but it is another big step that may then prove to be wrong. Pay matters and we need to help people understand the pay they already receive before piling more on the top.

Pricing:

As our costs go up, whether it be staff; electricity; VAT; rates; food; drink; or all of the above, we need to decide how much to put our prices up and when to do it. My straw poll suggests that most people are considering a 5-10% price rise currently, but we want to do it in a way that ensures we lose the least volume we can. So, a lot of thought needs to go in to when we do it and which lines we do it on. We also need to spend more time than we have looking for more meat light dishes, which will both reduce cost and fulfil the market move to a lower level of meat in our diet. But of all the 8 blokes I had dinner with yesterday, only 1 chose a meat light dish… chicken pizza!

Productivity:

The government seems to have made it very clear that they are not going to let in heaps of Europeans to help us out of our staffing challenge, so we are all going to have to find customer friendly ways of driving productivity. We have not yet gone down the self-ordering app or self-payment app road, but we will have to look at all the IT led productivity solutions and pick the right solution for our customers in time. We also need to address some of the basics that have slipped a bit, such as how well we deploy staff and how we are managing them to be as productive as possible on shift. This is the challenge of the firefighting regime.

The Planet:

We have just signed up to the Peach led Net Zero regime. I don’t yet know what it entails but recognise that we need to do the right things in the right way, and I know our customers will be supportive. I also think we can make some more steps in packaging waste and our use of plastics, but this will become more and more something we need to work with our local suppliers to solve.

Final Remarks:

Overall, our sales have held up pretty well over the last few months. In truth we have had the demand there—if only we could fulfil it. However, the looming cost moves means that we need to address our core profitability even more urgently, as we know the time from now until April will come quickly. Hopefully we will be fully staffed by then and have made enough moves on the four P’s: pay, price, productivity and planet to make sure we have maintained our underlying profitability.

Propel Multi Club – Female Leaders and Entrepreneurs: Powerful and Inspiring Speakers after an Era of Uncertainty

This was a brilliant event with truly inspirational and honest speakers. There really are some amazing women leading the way in the hospitality industry. These women have had very successful and “purposeful” lives—a word that came up a lot—but they were also unafraid to be honest about the challenges of the work-life balance with having small children. Not to mention issues of failures and confidence that they have overcome. 

This was really the very opposite of a dull conference. We heard the colourful experiences of the formidable Dorothy Purdew (the woman behind the Champneys brand) which included: being rejected for a job at weight watchers; starting her own slimming business to compete; swindling employees; and ugly million pound paintings. Anna Garood (former music producer who grew PoNaNa into an international brand, and now of The Coconut Tree) spoke of her personal jet trips to Ibiza with Liam Gallagher—who was unexpectedly good at scrabble. Well, on the flight out anyway! For pure drive, and a role model to us all, you have to give it to Sarah Willingham: founder of Nightcap and formerly a dragon on Dragon’s Den. Sarah worked her way up from nothing but was always inquisitive and bold; she understands her strengths and really knows how to scale a business.

Covid has been a very challenging time for hospitality, that we all know, but it was great to hear some of the positive stories arising out of Covid. From new businesses and business ideas, to changed perspectives with the drive to carry on making things happen quickly, these stories of success did prove to be inspiring.  

Judy Joo (executive chef, restaurateur, TV chef and founder of Seoul Bird) had a great quote that resonates with us at S4labour. When asked what the best advice you could give to someone running a restaurant, Judy stated: “Efficiency of operations will make or break a business”.