“I’ll see your skills shortages and your rapidly diminishing furlough scheme, and I’ll raise you a major supply chain issue!” The challenges facing those of us in the hospitality industry are piling up around our ears at the moment. Just when we think we’ve got a handle on one issue, another rears its ugly head. As always, hospitality managers and business owners are adapting to survive – this time by raising prices and adjusting menus on a daily basis.
Supply chain issues facing 99% of industry
Hardworking pub, restaurant and cafe owners across the country are being forced to increase their prices, and make major adjustments to their menus as a result of major supply chain shortages. This is according to the latest Business Confident Survey from industry researchers CGA and hospitality workforce management experts, Fourth. The researchers also predict that the problem isn’t going to go away any time soon.
Karl Chessil, the director of CGA explained: “Brexit and covid-19 have dealt two painful blows to the food and drink supply chain, and few hospitality businesses have escaped the impacts. Delivery problems and cost pressures have come at the worst possible time, with thousands of pubs, bars and restaurants only just finding their feet after months of lockdown.”
Prices going up
So what are hospitality owners doing to deal with the supply chain issues? They are having to increase prices. Some 76% of the respondents to the survey admitting that passing the costs onto customers was their only way around the problem. A whopping 88% said they were struggling with reduced product lines and 84% have had some deliveries that haven’t turned up at all.
The result of these shortages is their suppliers charging higher prices, with 82% having to deal with this challenge. Unfortunately for consumers, they will be seeing food and drink prices in the hospitality industry increase as a result of this crisis.
The MD of Fourth, Sebastian Sepierre, added: “The survey paints a very stark picture of the supply chain crisis that is severely impacting hospitality businesses right now. Many in the sector are concerned about how it will impact this year’s festive season, particularly in light of the fact last year’s Christmas trading was severely curtailed by covid restrictions.”
Can a digital menu help you adapt to supply chain issues?
Hell, yes! Britain is a nation of food and drinks lovers and they aren’t going to start staying at home simply because prices rise a little. All the same, we know that hospitality owners hate having to increase prices overnight – especially when they don’t even see the benefit on their own bottom line!
Using Leslie can, at least, take the hassle out of adapting your menu. If you have a digital menu, you never have to shell out for reprints of paper menus. You can make immediate changes to your digital menu items depending on what’s available (or not available!) and you can change prices at the touch of a button.
Leslie gives you the flexibility to change your menu every day if you need to, which could even help you avoid increasing prices and keep your diners fed and happy.
For most hospitality managers and business owners, their customers really are their priority. Making menu items more expensive really doesn’t sit well with most restaurateurs, hoteliers, cafe owners and pub landlords. They want to get back to having dependable supplies of the produce they need when they need it.
They want to charge fair prices to make sure their customers come back time and again. They want this never-ending stream of challenges to stop and to get back to normal. But in the meantime, Leslie is here to help.