Alain Guillot

Life, Leadership, and Money Matters

Saving A Hospitality Business On The Brink

Lockdowns have had a significant impact on businesses across every sector, leaving many facing impossible calls for diversification at a time when, in many instances, simply keeping operations afloat was a challenge. However, if we’re playing pandemic favorites (or not, as it would be more accurate to say,) there’s a very strong argument for the fact that the hospitality industry has faced some of the hardest struggles of  all. 

In fact, booking cancellations, complete service closures, and travel bans have all played their part in the loss of as many as 39% of hospitality jobs, and even more of incoming profit. Only now are we seeing a slow opening of things like restaurants and hotels but, with many people still cautious, and with profit losses still very much on their tail, countless businesses face something of a catch 22 in what should be a moment of growth, but could easily turn into a nail in the coffin.

To avoid that, and to join the countless hospitality sector pros who are already set to grow in 2021 despite these challenges, companies need to find a comfortable middle ground by considering these essentials as they dip their toes back into the trading future. 

# 1 – Reassess your business plan

While now might seem like the worst time to implement major shakeups, the entire hospitality industry finds itself in an extreme state of change where, in many cases, the reconsideration of existing business plans is the only possible course for survival. This is especially crucial in light of shifting budgets and, in some cases, limited capabilities that could see recovery taking even longer than the two or more years that experts already predict. Business plan changes in light of reopening should especially focus on the resilience that’s a significant priority across the field right now, as well as the transparency, innovation, and trust necessary to see traffic flowing freely here once more. 

# 2 – Do whatever you can to avoid future closures

Resilience should also be considered in a more immediate sense, with companies who have already faced such long-term closures needing to do whatever they humanly can to avoid the same thing happening again. Unfortunately, as calls for self-isolation continue, even companies given the legal go-ahead are finding themselves having to close again, a fact that’s too often proving fatal. Most obviously, avoiding future closures therefore rests on your ability to keep staff safe by continuing to ask patients to wear masks or refrain from attendance if they experience symptoms, and also by championing continued inter-colleague distancing, and even ongoing table service. Further to this, more long-standing reasons for hospitality closures should also be taken into account, especially given the long periods of disuse that things like bedding and kitchens have been exposed to. Avoiding closure after your first reopening health and safety checks (which will surely be more extensive for the delay) especially depends on thorough and professional cleaning provisions, including the employment of a restaurant hood cleaning service, and even investment in brand new bedding where necessary. A thorough cleaning should also be implemented between stays to ensure that, whatever happens, you’re far more likely to continue offering service as normal. 

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# 3 – Continue to diversify

Diversification has been the saving grace across industries throughout pandemic closures, and hospitality has benefitted more than most. Specifically, distanced restaurant takeout options, or even food subscription boxes, have allowed restaurants to continue competing and sometimes thriving, even in light of these modern-day challenges. Unfortunately, as openings become possible again, countless companies are dropping diversification like hot coals, and are already starting to feel the sting of doing so. This is because countless customers who are still uncomfortable with in-person attendance continue to rely on offerings like these. Further to this, competitive advantage falls altogether by the wayside if your competition continues to offer options like these when you aren’t. As such, it’s essential to continue making time for, and improving, the routes to diversification that you expended so much energy on during lockdowns. In time, you may just find that it’s these routes, rather than reopening itself, that sees you back on your feet and finally thriving. 

Reopening a business on the brink is far from easy, especially as your already stretched profits suddenly have to cover considerations that you haven’t had to worry about in so long. Implement these pointers to ensure that, at every stage of reopening, you can guarantee the return on investment necessary to succeed regardless.