Our rates have doubled overnight, costs are still rising, PAYE and national insurance contributions are going up with wage rises and customers demanding more bang for every pound they spend.
Where does that leave us? Well, as far as I see, it is just Hobson’s choice – no other option. Do or die.
Our prices will have to go up and somehow we will need to get the consumer to sympathise with us.
Consumers are themselves pushed to the max. We have noticed people spending a little less on drinks. The regular diner is cutting down on visits. We have to work harder at upselling and be more imaginative with our social events calendar.
Test of creativity
The issue here is the majority of diners are quite oblivious to costs and, rightfully, are just looking for a great time not the logistics of what that costs.
When we increase prices, most customers think we are raking it in or ripping them off. How will we educate them without taking the romance out of dining/drinking out?
Hospitality is what we are about but charging more than £5 a pint and a lot more for dinner is going to be a challenge for customers’ pockets.
It will be a test of our creativity. We are going to have to work harder than ever convincing people to come out and spend money.
Thanks to the current Government, we have once again been hung out to dry.
I believe in my product
Back down the old route we go, ‘cheaper cuts imaginatively used’ I hear you say, but wait… there are no such things as cheaper cuts anymore. Oxtail is now £12 per kilogram… yes that’s right.
OK, let’s cut costs by looking at energy contracts etc, oh hold on… there’s no leeway there either.
So then there’s only one thing for it. Like I said. Do or die we will have to put our prices up or go bust. We have to be brave. I know it’s a huge risk to charge the right price but I for one am taking my chances. I believe in my product and I have to make it work.
So best foot forward, all positivity and happy thoughts. Buckle up for the ride fellow hospitality travellers, it is not going to be an easy one but if any industry can weather a storm, it’s us.
Oh and fingers crossed that Rachel Reeves might actually wake up and see the light before half of hospitality is decimated (don’t hold your breath).
