Page 36 - February 2022

RLI LEISURE INSIGHT

2022: The Year

of Recovery?

Covid-19 has presented challenges for businesses across a variety of sectors. However, it is
impossible to deny that the hospitality industry has faced the worst of these challenges. Sam
Martin, COO of Peckwater Brands argues that this is the year that the hospitality industry
begins to recover.
ultiple national lockdowns, coupled with the numerous offering. In doing so, cafes, restaurants and bars will be able to regain the
impositions of social distancing measures, have caused momentum lost between 2020 and 2021 and get their businesses back
Mmajor disruption to hospitality businesses’ operations. And on track throughout the coming twelve months.
even with the end of social distancing restrictions coming into effect late The question, therefore, is what actions we can expect hospitality
last month, the pandemic is still likely to cast a shadow over bars, cafes, organisations to take in 2022?
and restaurants. As Omicron demonstrated, the emergence of new
Covid variants has the potential to grind the industry’s recovery to a halt. Exploring different options
And such uncertainty has, understandably, caused sector confidence There will be no one-size-fits-all solution for cafes, bars and restaurants,
to falter. but positively, there are a number of different approaches available that
will suit businesses in different ways.
The cost of the pandemic For example, pivoting to offering takeaway services to customers has
Whilst national lockdowns and social distancing measures were a proven to be an effective option. Whilst social distancing measures have
necessity throughout the pandemic, they have taken an inevitable toll been wound down substantially, there is no guarantee that customers
on the hospitality sector. A recent survey amongst 250 decision makers will automatically feel comfortable in a dine-in setting. As such, offering a
within UK hospitality businesses, commissioned by Peckwater Brands, more flexible service to cater to all preferences could provide a simple
revealed that over six in ten (63 per cent) experienced a decline in solution to ensuring revenue does not suffer, as the UK begins to grow
demand for their services since March 2020. accustomed to post-pandemic life.
This had an inevitable impact on industry turnover. Peckwater Another option could be to review and explore different supply
Brands’ research found that over two thirds (67 per cent) of hospitality chain solutions. 2021 saw cafes, restaurants and bars suffer from supply
businesses experienced a notable decline in income since the beginning chain delays, which ultimately caused a great deal of food wastage,
of the pandemic. menu limitations, and customer dissatisfaction. Accordingly, hospitality
However, the cost of the pandemic is not limited to monetary losses. businesses would be wise to explore different suppliers and courier
Disruption amongst supply chains and staff shortages has also negatively services. For example, some may consider switching to a local supplier,
impacted the operations of 69 per cent and 67 per cent of restaurants, minimising delays in cross-country delivery. Doing so will, in turn, help to
bars and cafes, respectively. improve quality of service and encourage repeat custom.
Such figures suggest the emergence of a vicious cycle for these Another, lesser-known route to driving income increases could be to
organisations. Indeed, if they are unable to offer customers the quality explore the concept of virtual brands; a restaurant that exists entirely
goods and services they advertise, said customers are less likely to on third party delivery platforms (such as Deliveroo, Just Eat or Uber
return to the venue. As such, their income will decline further, meaning Eats) without the need for a brick-and-mortar location. Adopting a
that they are unable to adequately invest in their business to improve virtual brand could help venues with unused kitchen capacity to expand
their offering. their offering by adopting new menus, entirely separate from their
Under these circumstances, industry confidence is low, with over two existing brand. In doing so, they can explore new food trends, cross-
fifths (44 per cent) of cafes, restaurants and bars in the UK predicting utilise ingredients, limit waste, and expand operational capacity. Most
closure within the next five years. importantly, however, it provides
These figures paint a fairly dismal picture for the future of the such businesses with a new stream of
hospitality industry. However, evidence does also suggest that businesses income. Some brands have purported
are willing to be flexible and adapt their existing operations to survive to see an increase of £12,103 - £39,823
this tumultuous environment. in additional income each month since
adopting a virtual brand.
Growth and survival Even as the UK continues to embark
Positively, it does appear that cafes, restaurants, and bars across the on its post-pandemic recovery, clear
UK are open to change in the coming years, to safeguard their survival challenges lie ahead for the hospitality
as the country embarks on its post-pandemic recovery. Peckwater sector. Factors like changing customer
Brand’s aforementioned research found that almost three quarters (74 preferences, supply chain issues and
per cent) of hospitality businesses have already conducted an in-depth financial stability will remain prevalent
analysis of their current operations to understand where improvements throughout 2022. However, if hospitality
can be made. businesses are willing to review their
Of course, every business will have its own unique set of long-term existing operations, and remain
ambitions: from expanding menu offerings to regional or national flexible in their approach to recovery,
expansion. That said, I imagine that in the immediate aftermath of a I remain cautiously optimistic that
pandemic, most organisations will share the same short-term goal 2022 will see a restrengthening of the
- to increase revenue without hindering the quality of their existing hospitality industry.

36 RETAIL & LEISURE INTERNATIONAL FEBRUARY 2022