Increase In Sales For Hospitality Outlets

It's great to see a success for once rise up out of the gloom of the battered and deflated hospitality industry. Retail has suffered this last year but pubs, clubs and restaurants have been blighted for a longer term than high street stores. And so it was with hope that I read an article on Big Hospitality website yesterday.

It states that sales were up just under 10% this year on a like for like basis, which may not seem a lot but when you've struggled with the economic downturn, dwindling visitors and increased costs it puts hope in your heart. It seems that the milder weather has played a part in boosting sales this year over 2010 as visitors have been able to get out and about and enjoy visits to pubs and restaurants. I remember last year we took the family for a meal during the thaw in December and the pub staff were lamenting the loss of diners over Christmas. One can only imagine the frustration and financial loss of business during such an event. Normally Christmas is a busy time so publicans and restaurateurs would stock up ready for the Christmas trade and party season and so to receive very little return for the hard work and money invested would be devastating.

This rise in sales doesn’t necessarily mean that hospitality and catering outlets are in the clear yet – there’s still a long way to go but it does show promise. The weather is not the only reason companies have traded up it’s also to do with the canny and persistent use of discounting and offers available. Most restaurants and takeaways are now issuing discounted menus and drinks throughout the year and pubs are looking to give a more rounded service to customers, too. Indeed many in house canteens in workplaces and schools are struggling to compete for trade when there are so many more appetising offers accessible.

I think that we as consumers have become used to having good value for money in all areas of our purchasing and whilst we may have less money in our pocket we still want to treat ourselves to nights out and some R&R. It’s very rare for people to miss out on a holiday or a night out even when money is tight – it’s just that the venue they choice has to be more suited to the budget.

Many retail stores who offer high end consumer goods are finding an increase in sales and it’s all about frivolity and liberty for certain consumers – Waitrose reported that luxury toiletries sales were up by 22% this year. There tends to be a desire for the finer things in life when people are surrounded by doom and gloom. Hospitality may find that this trend shifts to the catering sector and that more people will be looking for an upmarket experience if they deem to leave their homes and have an agreeable night out. I think the keyword that will keep the hospitality businesses buoyant is ‘value for money’ this year. That may mean vouchers for family dining or a drink and meal deal or even the happy hour of yesteryear. More upmarket hospitality outlets will need to ensure that the menu offers something enticingly special or they will need to allow for frivolity and luxury with services and décor. I know a local hotel that is offering to arrange collection in a limousine and a champagne reception for Valentines’ day diners just to add a little gaiety and glitz. Here’s to a prosperous year for all hospitality and catering outlets.