HOSPITALITY WORKFORCE THE KEY TO BUSINESS SUCCESS

Applicants for hospitality jobs are at a two-year low, with the number of job ads at a two-year-high, jumping 20 per cent in February alone.

Observations from a Hospitality Consultant.

Hospitality Workforce the Key to Business Success.

At Future Food, we often choose to write content that provides our readers with a solution to their food and hospitality problems, or an industry forecast to assist with future planning, however today’s contribution comes purely as an observation of the industry from a consultant, who lives and breathes it on a daily basis.

This has not been written to dwell on the past 2 years of disruption, as that has been done to death, however I will preface this by stating that the industry’s recovery is far from complete. This article is also not composed to take a swipe at the industry, as that would not be helpful nor fair in such times. But the truth must be told - this once proud industry appears a far cry from where it once was.

This author’s main concern about the industry, from recent interactions, is that the true essence of hospitality appears to be fractured, momentarily lost, or is suffering collateral damage caused by the havoc of Covid and the pursuing rebuild. The service philosophy that underpins quality hospitality is under threat, where businesses are trying to ‘endure’ rather than ‘exude’ in an industry under unrelenting disturbance.

It is very difficult to witness as a consumer, as an enthusiast and as a consultant in the industry, where there are obvious flaws in service delivery, and limited solutions to overcome these challenges.

Staffing, or lack thereof, is paralysing many sectors at present, none more so than the hospitality industry, where demand is overwhelming supply. Businesses who agonised through lockdowns and capacity limitations are now trying to recover, but at a time that they should be recouping revenue, they are in fact facing self-imposed capacity limitations due to lack of staff to operate their venues.

Business owners are staring down an opportunity cost between short term revenue injections (opening regardless of staffing levels/capability) or sustaining their reputation (scaling back operations to maintain standards), as they are forced to respond to the shift in the industry. A middle ground must be found so that businesses can operate sustainably without jeopardising their service delivery or expecting more from their staff than is feasibly possible. Many venues are opting to open regardless of their staffing levels, and are utilising unskilled, unsupported or insufficient staffing numbers to perform tasks previously delivered by experienced industry professionals. The hospitality leaders, the shining stars, the ones that are part and parcel of the reason why you return to said venues, appear far and few between, taking the shine off critical touchpoints and the polish off service delivery. This is where issues are arising, and the addition of the customary note at the point of sale thanking customers ‘for their patience during such challenging times’, appears to be losing its effectiveness. 

Notes such as this are being widely used across the industry, however customers patience may
be wearing thin.

For the most part customers have been patient, just happy to be out and social again, however with menu prices at record levels - often with a Covid surcharge tacked on - customers are starting to demand greater value for their money but are being underwhelmed by their experiences.

Many businesses are unable to reinvest, consider expansion or new business opportunities, based on the uncertainty that currently shrouds the industry, which may have long-term flow on effects to the industry as a whole. Hospitality has always been a fluid industry, at the forefront of trends, that shifts and changes effortlessly and instantaneously, but we are seeing obvious hesitancy flooding in, that is curbing this traditional confidence and enthusiasm.  This reluctance and sentiment from business leaders may be impeding the industry and creating hesitation amongst their teams, in turn generating industry unease.

With the usual international and domestic workforce levels restricted and the increase in new food and hospitality competition entering the markets, businesses are all fishing in the same pond, that is at risk of drying up. In addition to this, a considerable percentage of local workforce have turned their backs on the industry, electing to turn their hand to a new trade, or jobs with more substantial pay rates, further compounding the personnel issues that the industry is facing.

Sectors such as the construction industry are reporting their highest job vacancy rates in history and with some of the highest rates of annual pay rises in the market, are presenting credible alternatives to many hospitality staff. As a result of this, many hospitality staff are requesting considerable pay rises to stay with their current employer, or as a lure to shift to a new employer, which has inadvertently created pay disparity across the industry, leading to even greater disharmony and absence of job satisfaction within the workforce.

Impacts due to supply and demand have seen casual Kitchen Hands demand upwards of $50 per hour to work on weekends, and Head Chef seeking well in excess of $120k for small to medium sized cafes & restaurants. These types of salaries are not sustainable and in no means healthy for the industry, however are the ultimatums business owners are facing across the country.

In response to this, businesses are seeking new ways of rewarding and motivating their staff by initiating upskilling to ensure their staff remain happy, feel appreciated and to retain them at all (reasonable) costs. This added attention is a good thing and something the industry has been guilty of not prioritising in the past, placing employees first and valuing their contribution and commitment, rather than taking them for granted.

Hospitality employers creating work environments that are flexible, fair, equitable and rewarding is one big positive that we can take away from this experience.

Upskilling and cross skilling of staff is crucial in the current climate to combat staff shortages and skills gaps.

The importance of upskilling and training cannot be undervalued and may present the best interim solution, until we can entice the requisite levels of tourists and skilled workers back to Australia. In the meantime, there must be considerable effort being assigned to getting the fundamentals of hospitality correct, as the ‘basics’ are often routine for teams operating at the highest level, but may not come natural to new staff entering the workforce.

There are great operators who are getting it right, with well trained staff, delivering effortless hospitality of the highest standard, however they have invested considerable time in their staff over time, including during lockdowns, and are reaping the rewards of this now. Improved workplace culture, nurturing ideas and people and offering staff incentives such as education and study tours, farm visits, collaborations and connection with producers have built their teams knowledge, culture and connection which in turn has led to an enhanced hospitality mindset and propagated an environment centred around excellence. 

Motivating staff to enhance job satisfaction and equipping them with hands on experience should be a critical part of any retention strategy.

Customers who have become accustomed to quality service are not overly tolerant to poor service standards, accompanied with a high price tag. Value for money is measured by a number of metrics including service, food quality, portion size etc. and is fundamental in delivering positive experiences and attracting customers back for repeat visitation.

At a time of unprecedented, escalating business expenses, including supply chain costs, cost of goods, increased labour costs and cost of living expenses, hospitality businesses are being forced to conduct holistic pricing reviews to protect their profitability, however many are unable to deliver the requisite experience that these price increase demands.

Prices are on the rise and average cheque sizes are increasing, but where is the value for the customer?

Business owners can protect profit margins through streamlining operations, cost cutting or increasing prices, but in the current market, many are unable to operate any leaner than they currently are, leaving the only controllable option to increase their prices.

The hospitality industry is resilient and will overcome these challenges, however we are unable to put a timeline on when this may occur. In the interim, business owners must think outside the box to try and mitigate these impacts to protect their business for the long haul. Whilst each business is unique, there are options to consider that may assist in overcoming some of these challenges and maybe worthy of attention:

• Exploring alternate job sites and workforce platforms: Supp, Barcats, Sidekicker, Scout,

• Upskilling and multi skilling current staff – kitchen, front of house, barista etc.

• Leading by example – driving excellence in your business, be the initiator of change

• Seek alternate breeding grounds – alternate ‘customer focussed’ industry sectors to attract staff from

• Introduce technology to reduce labour requirements – ordering, payment, bookings, enquiries etc.

• Review outgoings and overheads to reduce unnecessary expenditure

• Streamline business processes to operate leaner

The Supp app is leading the charge in new to market workforce staffing solutions.

Whilst the industry continues to struggle in dealing with the challenges it is facing, let’s keep supporting them where we can, give them time to recover, and respond respectfully to the staff who keep showing up through some of the most arduous conditions they have ever faceds