The Independent Strikes Back - 2020 has changed the Hospitality landscape forever

2020 has changed the Hospitality landscape forever. The Covid19 pandemic was unanticipated and nobody was prepared. Many would agree that the government acted swiftly with generous support measures for businesses and employees during lock down one to preserve employment and bolster the economy.

But with hindsight, and the subsequent second lock down, they either didn’t go far enough or they didn’t have sufficient time to think things through, or they didn’t really understand the impact of what the restrictions were actually doing to consumer spending habits.

Whilst this has resulted in both independent and multiple operators really struggling – not just to break even, but to actually be able to trade at all within the law, there seems to be a route map through all of this - specifically for one sector in the hospitality sector that has been able to really thrive by adapting their businesses quickly and tuning into a consumer frequency that unlocks a seemingly unlimited lockdown revenue stream.

Being able to adapt quickly has never been a strong suit for multiple operators

Tier one, tier three, rule of six and all the other localised restrictions, rules and regulations have left consumers, confused and operators more than frustrated. The confidence that came with decisive and supportive swiftness back in April has been replaced with uncertainty, vulnerability and exposure – all of which make businesses nervous and reluctant to invest. Having said that, the spending nation still needs to eat, still wants to drink and socialize, and because of travel restrictions actually has more disposable income than last year.

So who is cashing in on the new normal?

Closed facebook groups within the hospitality sector are reporting stories within the fast food sector of some businesses that have more than doubled and are even tripling turnover, and many are opening more sites in a bid to scoop up more sales in what seems to be a gold rush scenario whilst other businesses remain closed or struggling.

The driving factors that seem to be creating these increasing upsales occurs when these operators have changed their high street offer to a contactless delivery, click and collect service and marry that to a powerful online presence or marketing campaign. Consumers want to consume but they want to feel safe. Staying in has become the new going out and if no money changes hands, its even cleaner with the added benefit that spend per head online is often double what a walk in customer parts with simply because the decision comes from the stomach and not from the wallet. Not only that, online consumers are less price sensitive too and are conditioned to accept delivery and service charges as an acceptable part of the contract.

Before 2020, you couldn’t imagine anyone paying £25 for battered sausage and chips twice and yet with a side order of onion rings, a drink and a wedge of chocolate cake plus delivery and service charges, this is an every day reality for the small independent shop that has hooked up with an online service provider like Preoday, who take zero commission from the transaction and just a modest monthly fee to give you a superb online platform that knocks the spots off of what the big boys in the business are failing to do. Operators are cashing in by cashing out – offering contactless ways to pay is not only king, it’s good for the economy too. Once you’ve got your click and collect service and delivery business going and your facebook singing, you’ve future proofed and pandemic proofed your operation – and as long as you’re safe distancing in the kitchen and in the shop front, Boris can do the hokey cokey with the high street…

Just be a good sport and leave the VAT at 5% please mate!