Get ready for an exciting year in hospitality! With growing consumer optimism and price stability, 2024 promises a dining boom. The latest UK consumer survey by Bidfood shows nearly half of the consumers want to dine out at least once weekly. Yet, challenges such as labour costs, regulatory changes, and operating costs loom. To thrive, restaurant leaders must adopt creative, adaptable strategies. Let's delve into these trends and challenges, discovering how practical solutions can turn these obstacles into opportunities.
Opportunities and industry outlook
In the ever-evolving landscape of the restaurant industry, several key trends are shaping the way businesses operate and cater to customer preferences, with a strong focus on healthy dining, affordability, authenticity, sustainability, and innovative technology integration.
#1 Food Trends
The industry is witnessing a significant focus on healthy eating. Providing diverse and inclusive menu options, including plant-based choices, is a positive move to attract a wider customer base and tap into changing culinary preferences. According to Bidfood's Food and Drink Trends 2024, 48% of consumers are actively seeking foods that contribute to their physical wellbeing, while a remarkable 71% believe in the mood-boosting power of food aromas.
In today's challenging economic climate marked by a cost-of-living crisis, a significant majority, specifically 77% of consumers, are actively on the lookout for dining establishments that offer not only delicious meals but also prioritise affordability, ensuring that they receive exceptional value for the food and service. It's crucial for restaurant leaders to keep prices reasonable while ensuring they don't cut portion sizes or compromise on the quality of service.
But, some restaurants struggle to offer lower prices in this market. Therefore, it's important for them to understand that many customers highly value authenticity. In fact, 56% of them are happy to pay more for genuinely authentic dishes, like Eastern European cuisine. This shows that people really want unique and genuine dining experiences.
#2 Sustainable Practices
Embracing sustainability trends like eco-friendly packaging can attract environmentally conscious customers. Restaurants can opt for biodegradable, compostable, or recyclable materials for their takeout containers, utensils, and packaging. This not only reduces environmental harm but also appeals to eco-conscious diners who appreciate businesses that care about the planet.
Sourcing ingredients locally is a win-win strategy. It supports nearby farmers and reduces the environmental impact associated with long-distance transportation. Local produce tends to be fresher, enhancing the quality of dishes, and it allows restaurants to create a seasonal menu that reflects the flavors of the region. This connection to the community also fosters customer loyalty.
Food waste is a major issue in the restaurant industry, both in terms of sustainability and financial impact. By implementing measures to reduce waste, such as careful portion control, creative use of leftovers, and donating surplus food to charities, restaurants can significantly cut down on their environmental footprint while also saving on operational costs.
#3 Technology Integration
Online self ordering service is another tool restaurant chains are heavily investing on. Post COVID, numerous restaurants left their menus online and accessible via a QR code or an app to, place orders, and make payments, revolutionising the restaurant experience. This technology-driven approach enhances convenience, reduces wait times, and allows for customisation, giving customers the freedom to tailor their orders to their exact preferences.
Comprehensive ERP software solution that plays a pivotal role in efficiently overseeing and controlling a restaurant's stock of goods, inventory and suppliers. By automating various tasks such as tracking inventory levels, monitoring product movement, and generating purchase orders, it not only prevents overstocking or stock outs but also minimises waste and optimises costs.
The integration of robotic waiters into the UK restaurant scene has swiftly moved from a concept to a widespread reality. These robotic assistants efficiently manage routine tasks like delivering food directly from the kitchen to the customer's table and clearing away dishes. Their presence allows staff to concentrate on more complex and customer-centric tasks.
The Challenges Ahead
The challenges ahead for the hospitality industry, particularly in light of the minimum wage increase, the new salary thresholds for sponsored workers, and the continuous challenges of sector labour shortages are poised to create a staffing crisis that demands long-term solutions from business owners to ensure uninterrupted operations.
#1 Minimum Wage Increase:
The UK government's decision to increase the minimum wage to £11.44 per hour for those over 21 will affect annual salaries and operational costs in the hospitality sector.
#2 Sponsorship Salary Thresholds
From Spring 2024, the salary threshold for sponsored workers will increase from £26,200 to £38,700. This change will make it challenging for hospitality businesses to sponsor roles like chef for key cuisines such as Chinese & Italian. Skilled sponsored workers will also face limitations in changing employers unless the new role offers at least £38,700 as a basic salary.
#3 Labour Shortages
The sector faced significant labour shortages, as highlighted by the Office for National Statistics' data showing over 30,000 vacancies above pre-pandemic levels. This issue was further underscored in summer 2023 by UK Hospitality, revealing a 48% increase in vacancies compared to pre-Covid levels. According to Chief Executive Kate Nicholls, "Staff shortages continue to pose a significant challenge, leading many hospitality businesses to operate below full capacity." This not only hampers the ability of restaurants to accommodate reservations but also raises the expenses associated with recruiting new employees.
Cost Reduction Through Technology: A Closer Look
As we dive into the future, the primary hurdles are centered on overheads and cost reduction. With growing consumer confidence and price stability, the market reveals substantial promise. To fully harness the potential within this thriving market, the pivotal strategy lies in uncovering the most efficient and intelligent solutions for restaurant operations. Enter the era of fully autonomous service robots, poised to deliver a multitude of advantages.
#1 Cost-Efficiency and Enhanced Efficiency
Service robots like the Keenbot T5 or T6 can substantially reduce front-of-house costs. Contrary to the common belief that service robots are prohibitively expensive, they are surprisingly affordable and bring a multitude of benefits. Firstly, these robots significantly boost serving efficiency, ensuring that restaurants can smoothly handle varying peak hours without the concern of staff shortages or the need to reduce operating hours, which could impact the quality and consistency of service. By automating routine tasks, staff wellbeing is improved as they can redirect their focus towards more customer-centric tasks.
#2 Affordability and Multifunctional
These service robots are not just functional but also interactive, often equipped with AI voices for greetings and a range of expressions, offering customers a novel dining experience. The cost-effectiveness of these robots is particularly noteworthy, with the cost of implementation being as low as £250 per month assuming lifetime of 5 years. This level of affordability makes such technology an accessible option for many restaurants, presenting a cost-effective solution to streamline operations and enhance both the customer experience and staff efficiency.
#3 Reliability and Long-term Solution
Apart from their cost-efficiency and affordability, another valuable benefit of automated service robots is their reliability. These robots can perform tasks consistently, without getting tired or making mistakes, which ensures that customers receive a dependable and consistent level of service on every visit to the restaurant. This reliability is a key factor in enhancing customer satisfaction and building customer loyalty, which can provide a substantial advantage for restaurant businesses. Additionally, robots from NEOS come with a one-year warranty and up to five years of aftercare services, further supporting the product's reliability and support.
Leading restaurant groups in the UK, such as SSP, Boparan Restaurant Group, Hard Rock International, and Din Tai Fung, have been among the early adopters. Lisa Gibbons, Chief Operating Officer of Bella Italia, highlights the benefits: “By having intelligent robots conduct simple tasks, such as retrieving dirty dishes, our teams are able to focus on doing what they love and delivering an amazing experience.”
Conclusion
As the hospitality industry enters through the challenges and opportunities of 2024, it's clear that adaptability and innovation will be the keys to success. To thrive in this dynamic landscape, consider exploring the benefits of fully autonomous service robots to streamline your restaurant's operations, reduce costs, and enhance the overall dining experience. By visiting NEOS Robotics, you can delve deeper into the world of service robots and gain insights on how to seamlessly integrate them into your establishment. Staying at the forefront of these transformative technologies will position your restaurant for a prosperous and successful year in the ever-evolving hospitality landscape.
Sources:
CGA and Bidfood 2024 Food and Drink Trends consumer survey, sample size 2,003 (UK adults)
UK Hospitality (2023). Hospitality vacancy rise prompts calls for action.
The Caterer (2022). Bella Italia trials robot waiter to support restaurant staff.