Hospitality Leaders Discuss Industry Challenges at Chamber Roundtable

Date: 17/06/2024
Author: Simon Cronin
Company: Greater Manchester Chamber of Commerce

Greater Manchester Chamber of Commerce hosted a roundtable event for the hospitality industry last week to discuss the changing face of the sector. The event, sponsored by Chamber Partner Nybble, covered a wide range of topics from skills and technology to customer service.

Lewis Crowe, Head of Business Development at the Chamber, chaired the meeting, which was attended by senior representatives from Nybble, as well as leading hotels and restaurants. The meeting began with Lewis outlining how the Chamber wanted to help the industry share experiences and best practice and come together as a collective voice.

Changing Behaviour

Attendees were asked how customers’ behaviour had changed since the pandemic. There was a general feeling that the Thursday and Friday after-work drinks business had gone due to people working from home, meaning that the 4pm to 7pm slot was very quiet with people only going out later in the evening. Trade was said to be very unpredictable on weekdays, making it hard to decide on staffing levels, although weekends remained busy. One business said it was losing £6,000 a week because of people working from home. Lunch-time business was also said to be in decline, with people preferring to stay in the office and finish their work rather than go out for lunch. Fridays were especially quiet as so many people wanted to work from home that day. Half-terms were also hitting the hospitality trade more than before the pandemic with people working from home while their children were on holiday or booking the time off work. Those attending big conferences now tended to go home afterwards rather than spending money in local businesses.

Home Versus Office

There was a feeling that empty offices were having a negative impact and there would be a return to the office. Employers were reported to be providing food to encourage employees to come into the office. While homeworking had its benefits, it was said young people needed to meet colleagues in-person in order to learn. Some felt service training was needed as people were not always getting a good experience when they came into the city centre.

Staffing and Diversity

Staffing problems following Brexit were highlighted as a major issue as experienced EU staff had left the country and workers who wanted to come to the UK found it harder to get here. Businesses were encouraged to engaged with big players such as the delivery companies, with one attendee explaining how Deliveroo had done a feature with them on black businesses as part of Black History Month. Ethical policies were raised as a key issue, particularly the Good Employment Charter. The importance of incorporating the diversity of Manchester was also highlighted with the city being home to a range of communities.

Technology and Digital Exclusion

Ram Gupta, Managing Director of Nybble, stressed the importance of using social media, saying: “You need an ‘Instagramable’ business as it drives that visitor economy and gets young people out of their homes.”

But other businesses raised the issue of digital exclusion, pointing out older people had money but didn’t know where to spend it. These older people were not on social media and didn’t use the wi-fi when they visited a business and were therefore not being picked up as customers. This group still wanted printed material such as brochures and like to use cash.

One business had introduced a push button service at tables so customers could order easily without having to worry about catching the attention of a member of staff. AI was felt to be an area of future growth with cameras able to recognise body language and smiles. Ram Gupta pointed out how a data-driven business could enhance the customer experience, but said people had to feel that they could trust you with their data. Others pointed out not everyone was ready to use technology with some older customers preferring to pay by cash and disliking the use of QR codes to download menus and order. To succeed, businesses needed to look at attracting a range of age groups rather than just concentrating on young people. There was a feeling the industry needed to look at engaging with different communities when it came to networking, for example those who didn’t drink, to avoid the danger of only connecting with the same types of people at every event.

Growth Through Experience

Experience-led hospitality was hailed as a growth area, with people wanting to experience things such as the theatre in person. Since the pandemic, customer expectations were said to be higher but service levels were lower, as experienced staff had left the industry. While Manchester was praised for offering outstanding hospitality products, there were calls for a strategic approach to improve the hospitality experience and more training for staff. Concerns were raised that a job in hospitality was too often seen as something to do before you got another job and the industry needed passionate and skilled people. However, it was pointed out hospitality was a hard industry to work in due to the late hours and employers had to do their bit to help people see it as a career they can progress in. Some felt young people were not just looking at pay, but wanted a good work-life balance and were more concerned with wellbeing than previous generations.