As you would know, investing in your business is important if you’re looking to stay ahead of the competition, improve productivity, and grow your company. But exactly what hospitality investment areas should you be considering?
The best investments for an existing hospitality business should aim to improve the efficiency of your business (for example, by reducing time and stock wastage) and to increase productivity.
We recently published the results of a comprehensive survey of hospitality businesses, which looks just at these issues. The survey respondents – owners, managers, head chefs, and other hospitality staff – enlightened us on their investment priorities for the future, revealing four areas they considered key investments:
- Hiring and training staff
- Venue furniture and fit outs
Below, we take a look at each area more in depth.
1. Hiring & Training Staff = the #1 Investment
An impressive 72% of respondents considered hiring and training staff an investment priority. And there’s little reason to question in this decision.
Your staff are at the forefront of your business and their attitude can do much to impress – or fail to impress – potential new customers.
Beyond that, hospitality businesses lose on average over half their employees every year, about three times higher than any other industry. Needless to say, the cost of high turnover can really impact your business.
Obvious ways to invest in your employees include offering training and development, improving pay, and providing rewards to celebrate the wins.
2. Engaging in Ongoing Marketing
Marketing is crucial to foster loyalty and spread awareness of your hospitality business, which is perhaps why 65% of our respondents intend to invest in the area.
A mistake many business owners make is to think that marketing is only necessary when the business is experiencing a slump. But marketing isn’t a one-off quick fix. It should be an ongoing process designed to shape your customer base and help you attract the right people to your business.
Thanks to the revolution in social marketing, you no longer need to fork out for TV or print advertising; digital marketing is now commonplace and is fairly cost effective compared to traditional marketing.
If you deliver unique food and fit out your venue in an original way, you may even encourage your patrons to spread the word for you through their own social posts.
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3. Keeping Your Venue Look & Feel Up to Date
If a customer walks into a restaurant to find shabby decor, worn-out tables and uncomfortable chairs, they’re going to think twice about returning.
In addition, if your venue is laid out in a way that doesn’t best maximise the space, you’re going to restrict your staff’s movements, potentially impacting delivery times for food and drinks and leaving the customer with a bad impression.
It’s important to keep your venue fittings up to date, which may be why 56% of our respondents intend to invest in furnishings and venue fit out.
A refurbishment of the kitchen, behind the bar, and of open spaces in your venue can help to modernise the look of your business as well as improve work conditions for your employees.
4. Embracing Business Technology
These days, customers expect purchasing a meal or drink to be a streamlined process with minimal fuss. So it’s important your business is well equipped to meet those expectations.
Not only does the most up-to-date technology – whether it’s accounting, administration, or point of sale software – help make serving customers more efficient, it also automates many of the processes to reduce time and stock wastage.
Almost 50% of our respondents said they were planning to invest in their technical equipment, whether that’s software, hardware or both.
In reality, you should be consistently upgrading your hardware to ensure your venue is always equipped to deal with the latest payment methods. It’s also best to ensure your software is up to date to protect against malware and virus software.
Some business owners hesitate about spending more money than is strictly necessary. Yet even so, they still expect their business to grow and flourish. Indeed, 67% of our respondents said they expected their business to grow in the next year.
But without investing in these areas, your venue will not be well equipped to meet the challenges of more customers – or to be able to draw in new patrons. Learn more about how Impos can help improve your venue today!