By Marisa Bidois, Restaurant Association of New Zealand CEO.
Hospitality Business Exclusive:
The hospitality industry is no stranger to challenges, but the current economic climate has posed further hurdles. As businesses navigate rising costs, fluctuating consumer confidence, and an ever-evolving market, it is crucial to adapt and innovate.
Despite these challenges, members remain optimistic about the future and believe that brighter days are ahead; we just need to navigate through this tricky period. So, what can be done to keep the doors open, staff engaged, and the ovens on? Here are a few strategies that can help hospitality businesses survive in these turbulent times.
Double Down On Marketing
Marketing is more critical now than ever. Attracting and retaining customers should be a top priority. Effective marketing campaigns can highlight what makes your establishment unique, whether it’s your menu, atmosphere, or special events. Social media platforms, email newsletters, and loyalty programmes can keep your business at the forefront of customers’ minds. Don’t underestimate the power of storytelling to create an emotional connection with your audience. Follow popular businesses on social media and see what they are doing that you can emulate for your business.
Leverage AI For Marketing
If in-house marketing skills are lacking, AI can be a game-changer. AI-powered tools such as Chat GPT can help create personalised marketing campaigns, analyse customer data, and predict trends. Automated email campaigns, social media scheduling, and targeted advertising can all be managed efficiently with AI, freeing up time and resources for other critical tasks.
Menu Optimisation
Optimising your menu can significantly impact your bottom line. Focus on portion control and the use of seasonal ingredients to manage food costs effectively. Seasonal ingredients are often fresher, more sustainable, and cost-effective. Streamlining your menu to feature popular, high-margin items can reduce waste and improve efficiency. Consider creating flexible menus that can easily adapt to market fluctuations and supply chain issues.
Dynamic Pricing Strategies & Promotions
Dynamic pricing strategies can help maximise revenue. Adjust prices based on demand, time of day, and special occasions. Implement promotions and discounts during off-peak hours to attract customers. Offering value-added promotions, such as prix fixe menus or bundled deals, can also entice customers to spend more.
Focus On Customer Experience
Exceptional customer experience is the key to repeat business. Train your staff to provide outstanding service, from the moment a customer walks in until they leave. Personal touches, such as remembering a regular’s favourite dish or special occasion, can foster loyalty. Cleanliness, comfort, and a welcoming atmosphere are non-negotiable. Collect feedback and continuously strive to improve the customer journey.
Community Engagement
Engaging with the local community can strengthen your brand and build a loyal customer base. Organise local events, collaborate with community groups, and support local causes. Hosting events such as charity dinners, farmers’ markets, or live music nights can draw crowds and enhance your reputation as a community hub.
Diversify Revenue Streams
Diversification can provide a buffer against economic downturns. Consider alternate revenue streams such as catering services or take home meals. Retailing popular products, such as signature sauces, baked goods, or branded merchandise, can also boost income. Explore partnerships with delivery platforms or create your own delivery service to reach a wider audience.
Training & Development
Investing in your staff through training and development can pay dividends. Well-trained employees are more efficient, provide better customer service, and are more likely to stay with your company. Offering career development opportunities can also improve job satisfaction and reduce turnover. Use any downtime to train employees, ensuring they are ready to perform at their best when business picks up again and keep them engaged.
Financial Management & Cost Control
Careful financial management is essential. Regularly review your financial statements and keep a close eye on cash flow. Identify areas where you can cut costs without compromising on quality. Negotiating with suppliers, reducing energy consumption, and implementing cost-saving technologies can help improve your bottom line.
Embrace Technology
Technology can streamline operations and improve efficiency. From reservation systems to inventory management, the right technology can reduce manual labour and errors. Mobile ordering and payment systems can enhance the customer experience and increase table turnover. Stay updated with technological advancements and invest in tools that align with your business needs.
Adaptability & Innovation
Finally, adaptability and innovation are crucial. Stay informed about industry trends and be willing to pivot your business model if necessary. Upskill yourself by attending events like The Restaurant Association’s Ignite conference, designed to offer business owners practical skills you can use in your businesses. Experiment with new concepts, such as pop-up events, collaborations with other businesses, or thematic dining experiences. The ability to innovate and adapt quickly can set you apart from competitors and keep your business resilient in the face of economic challenges.
While the road ahead may be challenging, a proactive and innovative approach can ensure long-term success and sustainability. Embrace the changes, leverage new technologies, and continuously seek ways to improve your business operations. Stay connected with your community, listen to customer feedback, and be ready to adapt to their evolving needs.
By fostering a culture of resilience and creativity, you can navigate economic uncertainties with confidence. With the right strategies in place, your establishment can emerge stronger and more competitive than ever before.
