The Fallout From COVID-19 and Brexit
The UK hospitality and restaurant industry faced many unprecedented challenges over the past two years in the context of COVID-19. The Office for National Statistics (ONS) revealed that the average UK household spent £27.40 per week on food and drinks outside the home before the pandemic hit. In May 2021, spending on hospitality was 70% lower than pre-pandemic levels. However, the government announced that it would provide £1 billion to support the UK hospitality businesses most affected by the fallout of the pandemic. Further, last December, Gov.uk outlined that businesses in the hospitality sector in England will be eligible for one-off grants of up to £6,000 per premise.
The pandemics hit, and the country’s departure from the European Union posed further challenges to many business owners. Namely, hiring shortages, inflation and supply chain disruption. For example, research by Deliveroo found that one in five restaurants surveyed were forced to shut down, increase prices or remove items from their menu. Also, nearly two-thirds of partner restaurants report being understaffed at the end of 2021.
Arguably, the pressure for restaurants to remain open while managing pandemic and Brexit-related disruption are both taxing and uncertain. Deliveroo’s research further found that business owners are subjected to limited opening hours or reject bookings to manage the floor. Managing business operations during a tumultuous period for the hospitality industry could create a volatile working environment or financial unrest, impacting the business’s overall success.
Prioritising Mental Health
Running small and medium enterprises (SMEs) or very small enterprises (VSEs) can lead to several challenges, particularly in the early stages. Some of these include poor invoice management through manual processing, time wasted or responding to customer expectations. However, while business owners marry their skills to balance various tasks, they often do not consider their mental health and wellbeing. The British Association for Counselling and Psychotherapy (BACP) revealed that over two-thirds of SME or VSE business owners prioritise their companies’ financial success before mental health. More staggeringly, 96% admit to keeping the stress of running a business ‘bottled up’.
The undeniable effects of poor mental health could cause business owners to ‘burn out’, thus compromising their health and impacting their business goals. Therefore, the reflection and reframing of business structures to better counteract the pandemic’s challenges and Brexit are necessary to guarantee business success.
Utilising Automation
In an era of excellent technological advancements, especially highlighted through curfews and lockdowns, business owners have adjusted to the new normal. They are taking to technology to fight for business resilience. One such trend that Hospitality Insights found was businesses disrupting traditional operating methods and encouraging local and national entrepreneurs to leverage technology for performance-related benefits. The key function of technology today could alleviate some of the challenges above, bringing about more order and clarity in the daily running of the business. Some effective systems that business owners use include accounting software tools and automated invoice and payments platforms to manage supplier invoices effectively.
The future for the hospitality and restaurant industries is brighter despite the drawbacks. ONS found that consumer-facing services, including food and beverage, rose to a 6.8% increase in January 2022. However, to continue to grasp and drive this momentum forward, business owners should reflect upon their business goals, care for the well-being of themselves and their staff and leverage the benefits that technology brings.
