How have the Euros impacted June’s sales?

Like for like sales were pushed up 3.3% in June, the latest sales data from S4labour reveals.   The data showed an upswing of 6% year-on-year in London, whilst sites outside the capital were up 2.7%, marking a minimal uplift for operators across the country.   June saw England’s first three Euro games kick off, along with good weather, which helped encourage sales slightly throughout the month. Both wet and dry-led sites did see some benefit of the football, with sales up 3.7% and 3.1% respectively.   Chief Growth Officer at S4labour, Richard Hartley, added: “The impact of the football and warm weather was much softer than operators would have hoped and expected. While dining out often takes a hit during key sporting events, it would appear that neither food, nor drink-focused venues have been able to fully maximise. However, with the team’s win on Sunday (30th June) securing England a spot in the quarter finals, operators will be hoping to see more games (and hopefully celebrations) throughout July to really boost sales this summer.” 

Set it and forget it: How template rotas make labour management effortless  

One of the most frustrating elements of management in hospitality is the drift in labour cost. After a huge amount of effort working with the team to get to the right cost for a week, including NI and holiday, holding to the same labour cost in subsequent weeks seems to undo itself at a more rapid rate than we are happy with. 

We all hope that we can leave labour management alone to run itself for a few weeks (or maybe months), before revisiting the site and resetting the numbers. Having to go back to it early and rework it, undermines the focus and energy we put into streamlining the process in the first place. And ultimately, it leaves us with a sinking feeling and a bit of resentment for the team running the site, because we feel they could have done a better job managing it all.  

Our hospitality bones want to focus on service and sales growth, leaving labour management to run itself and not require too much of our time. This is possible, but the process needs to become more routine and more consistent first. How? One way I have found works well is using rota templates.  

If we put a load of effort into getting the rota right, we then want it to be repeated. Writing a rota is hard: deciding when people start, and how many you need is vital. But we also have to take a different approach to the ‘who’ and ‘when’ for each day of the week.  

The person who is best at line cleaning might always need to come in early on a Wednesday; the manager might always need to work on a Monday because there is a head office meeting, and then there’s the kitchen. Someone might work on a Thursday because they prepare the desserts for the weekend, and another might be the best at carving the Sunday meat. These intricacies all play a part in gross profit – in fact, there are more to consider before we even get to the simpler ones, like how many hours and on which days. 

Once you have considered all of the people and their particular skills and foibles, you can decide where an hour can be removed here and there. And, just as importantly, you have planned a rota that is economic for your business. 

Typically, a rota can flex up by 15% without needing any more people if the sales spread relatively evenly across the week. So, a rota for a £20k week will be pretty solid, up to say, £23k. 

In reality, not many rotas need to be written to optimise your business. If I take my own restaurant, there has been a £10k spread in sales across all the weeks of the year. The only exceptions are the very highest weeks, like Christmas, or whenever there’s special events and bank holiday weeks. But, generally, 5 templated rotas will run most of the year for the business. 

When I look at our customers, I find them gravitating towards starting from scratch, even when we have spent time writing the rota with them. Inevitably, these rotas cost more and have a negative impact on sales because they don’t consider all of the nuances that are required.  

This process doesn’t just apply to the rota – the same goes for your shift planner. A well-written shift planner will include all the detail needed to run your specific business really well: the right people in the right places and the critical float roles utilised effectively and with the right purpose. Having no shift planner equals a poorly run shift, as the team are not clear on what they are doing. Shift planning remains the key to a great team, great retention, great service and great productivity. 

Too often, I find that businesses treat the shift plan as an afterthought. Writing a plan for, say, 6-on shift is the best approach, as you can then add the 6 team members to that plan, rather than the other way round. The same goes for using templates – they will massively reduce the drift in cost because the basic principles are agreed first. Together, the two create a first-class business! 

Gen Z and Hospitality: A call to action for leaders 

A recent topic that seems to come up often when I talk to industry colleagues is the appalling damage covid has done to Gen Z. For a while there has been much talk of the academic damage done, but less energy is focused on the social damage, particularly when it comes to the implications it has had upon them entering the workforce.  

If you are currently employing 16–20-year-olds, you are dealing with a generation that were between 12-16 when the pandemic began. School closures, remote learning, and social distancing measures completely rid them of face-to-face interactions for a long time. Of course, this led to an increase in social anxiety and discomfort in real-world settings. For many Gen Z workers, the prospect of engaging with customers, colleagues, and supervisors in person is really daunting. And, of course, within our industry, the need for social skills when entering the workforce is essential! 

As an industry, we see it in the people we recruit. Our teams struggle with some basic engagement skills; eye contact, initiating conversation and smiling, among others. As operators, we are having to work much harder than we did pre-covid to help young people through this journey. And we must – our industry survives on young people and improves the lives and capability of so many. It also helps people to develop essential life skills. 

This is unprecedented territory for us all – how do we help? From talking to others in the industry, I know there has been a focus on teaching conflict resolution and better customer service etiquette, whether that is through mentoring, or role-playing different scenarios. The other big one is opening up communication, to create an environment where employees feel comfortable asking for advice or discussing challenges, whether it be job-specific or general social competencies.  

We rely on young people in our businesses, so we want to encourage and support them so we can retain them. Gen Z are tech-savvy, quick learners, and often more open to change and innovation than older generations. I find that these traits can be really undervalued by leaders, but in our post-pandemic world, they need more recognition – particularly now we are increasingly relying on digital solutions and service models everywhere! 

In our pubs, I always enjoy it when I see the younger members of the team getting dropped off in a nice Range Rover. Their parents could easily afford to give their children the money they are earning. But instead, they recognise that working, particularly in hospitality, gives them much more. For starters: a work ethic, an ability to understand the value of money, an ability to talk to other people and engage with different generations in a meaningful way. These skills are invaluable and cannot be taught by staying at home or by asking mum and dad to fund your life every weekend!  

And beyond this, I think that our industry is now more important to UK plc than it has ever been. It would be great if, at some point, the government stopped taxing us to the hilt, and instead helped drive an industry that prepares people for the working world in a way that school, or even university, cannot. It is real work, with real customers and real expectations. 

I heard recently that hospitality employs over three million people. But given the high staff turnover, the percentage of young people that are in some way involved and moulded by hospitality is immense. An incredible number of the people I meet have, at one point in their journey, worked in hospitality, even if it was only for a summer.  

We need more recognition for the job we do, and more support for helping people through this journey. One-to-ones and coffee chats are all part of the training journey, but I think that one of the most important things is praising people when they do a good job. This is the reinforcement people need to try harder, be braver and challenge their fears. 

I do not think I am alone in believing that our standards have dropped since covid. We are all working hard to build back and get to the levels we want, and even to go beyond that. Of course, many things have changed due to covid, but with change also comes a real opportunity for hospitality leaders to shape a more resilient and capable workforce. So, get to it! 

Boosting your people management game with S4labour and Talent Funnel

Effective people management is key to keeping operations running smoothly and staff delivering a service that matches demand and keeps customers coming back. From hiring to staying on top of labour laws and regulations, keep your people management simple and effective with S4labour and Talent Funnel.

Hiring made easy

Talent Funnel’s applicant tracking system (ATS) is the first step in getting top talent into your business. Like S4labour, Talent Funnel takes a best-in-class approach when it comes to its offering – specialising in pre-hire.

Attract. Engage. Convert. Onboard. That’s the four key areas of the hiring process that the ATS focuses on. With key concepts such as automaton, “speedy support”, and usability at the centre of the platform, Talent Funnel have created a system that is “easy and logical to use”. The result? A platform that ensures users spend less time on admin and more time doing what they love. Hiring great people.

Processing candidates is a breeze. Finding those standout hire no longer fees like a chore. And the time you get back to focus on delivering a top candidate experience is rewarding. Once the ATS is paired with S4Labour, a truly seamless experience for both hiring teams and candidates is achieved.

Happy staff, happy life 

When you nail your hiring and onboarding processes, you’ll not only find well-suited team members for the job, but you’ll see a major improvement in retention. Making a good impression and giving your team everything they need to be their best is key to long-term productivity and employee satisfaction. With S4 Connect, the employee app, your team own their onboarding and the ongoing management of data and documents.

 

Perfect schedules, lower costs

Getting your labour levels right every shift is one of the biggest drivers of engagement, productivity and overall cost management and sales growth. With hour-by-hour deployment, you can match sales demand to meet every peak and trough throughout the day. You’ll have the right people at the right time, ensuring you deliver a great service and don’t overspend on labour costs.

Smart decisions with data

With S4labour and Talent Funnel working together, you’ll get a treasure trove of data. Track how well your hiring process works, see how your staff are performing, and keep an eye on labour costs. Complete visibility of important trends and information helps you make smarter decisions to achieve better operational outcomes.

Stay compliant with ease

Worried about labour laws and regulations? Don’t be. Talent Funnel keeps your hiring process documented, and S4labour handles ongoing employee records and ensures you have complete compliance-confidence.

In a nutshell

Pairing S4labour with Talent Funnel is like having a secret weapon for your hospitality business. They streamline everything from hiring to managing your workforce, helping you save time and money while keeping your staff happy.

May sees LFL sales up 6.6%

The latest data from S4labour reveals an increase in like-for-like hospitality sales in May, with an overall rise of 6.6% compared to the same month last year. 

In London, sales were up 9.7% year-on-year and non-London recorded a 5.9% rise compared to May 2023.  

Wet-led venues experienced a modest increase of 3%, whilst dry-led sites saw a significant boost with an 8.4% increase in sales compared to last year. 

Richard Hartley, Chief Growth Officer at S4labour, commented: “The industry’s performance in May has been encouraging, particularly when we consider the extra bank holiday last year for the King’s coronation. With both London and non-London venues showing robust growth, and the significant rise in sales in dry-led sites, we can see a growing trend towards dining out, possibly fuelled by warmer weather.”

Engagement and fairness: improving retention in hospitality

When we talk about labour management, our minds tend to run straight to the cost of labour in terms of weekly P&L. With the cost of staff wages increasing, we are right to be thinking about how much we are spending each shift on staff, but paying your staff is not the only increasing cost to manage when it comes to labour. The cost of replacing staff is another major controllable cost for operators, and the solution is found in providing engaging and fair workplaces for teams.

High staff turnover levels remain a major concern for hospitality businesses. In 2023, UK Money reported that the industry has the highest turnover rate in the UK, with an average of 37.6% of employees leaving jobs each year. And, when you consider the actual cost of recruitment (especially if you are using an agency), as well as the cost of induction and training over a number of months, high turnover really poses a big obstacle to stability and growth. However, evolving legislation and innovative solutions are pathing a promising pathway for tackling the struggle of retention.

Improved communication and engagement will keep your teams happy

In order to foster an environment of loyalty and satisfaction, hospitality teams need to feel engaged and supported in the running of every shift. Knowing when they are working, who with, and what they are expected to achieve in each shift are key first steps in setting a good standard of communication. Another big driver of retention is also in knowing there is open communication with managers, particularly regarding holiday, ‘not available’ hours and swapping shifts.

In March, S4labour released S4 Connect – an app designed to bring together everything hospitality staff need to be their best and stay productive and engaged every shift. Read more about S4 Connect here: S4 Connect

With S4 Connect, employees can look after their own data and documents, view and book holiday, and see shifts and shift briefs, all in one place.

Team members do not need to access any desktop version, instead they can manage documents such as P45s, contracts and RTW from their mobile. Shift briefs set out all the information they need to be fully engaged and productive, including slack tasks, incentives, and specials.

Holiday management is taken care of, with functionality that lets employees request new holiday, see accrued holiday, and track upcoming holiday requests. For any particular day, staff can also see employee holiday count, so they know not to request days that are already taken.

S4 Connect also allows staff to notify managers of ‘not available’ shifts for half or full days. Shift swapping is built in, so an employee can request to advertise one of their shifts, and a team member of the same role can offer to pick it up, with managerial approval.

How Grtfl supports Engagement and Fairness

True long-term retention hinges on fair reward systems for hardworking teams. This is where Grtfl excels. In a recent study, 49% of millennials said they would, if they had a choice, quit their current jobs in the next two years due to a perceived lack of fairness and transparency from their employers. This indicates that nearly half of young workers prioritise fair treatment and transparency over other benefits. As of recent reports, Gen Z accounts for around 30-35% of hospitality workers, with Millennials comprising about 42%​ (Hotel News Insights)​​ (Hospitality & Catering News)​. This demographic shift highlights the importance of engaging younger employees effectively to enhance retention and job satisfaction. Grtfl’s platform offers a modernised approach to what has historically been a labour-intensive, and concealed process. The platform is designed to give teams more transparency than ever before on their tips and automate the process for businesses. Giving the team real-time earning updates throughout the period, can reduce shift latency and pave the way for a better-motivated workforce. Implementing people-first initiatives that ensure fairness and transparency will not only provide a direct ROI but also incentivise people to stay within the industry.

The Grtfl and S4labour partnership is a game-changer for the hospitality industry and is an excellent example of how businesses can utilise technology to attract and retain talent in the industry. By integrating fair and transparent reward systems with robust management tools, hospitality businesses can boost engagement, reduce turnover, and foster a loyal, motivated workforce. Look after your people, and they’ll look after you.