Tag Archives: Hospitality

Food Businesses – 5 trends for 2022

Informality

A formal service is no longer as attractive to consumers and instead they are going for dining experiences that offer a relaxed service and environment. At the high-end, it has become about paring things back and simplicity. Less is more, and there is an even stronger focus on quality. There is also a notable shift towards greater engagement between staff, guests, and the food. People have a genuine interest in the menu and provenance has become important. Going forward, more fine dining businesses will try focusing on informality and accessibility.

Sustainability

Consumers are aware of the impact food production causes to the environment, and their choices are influenced by the extent that restaurants adopt sustainable and ethical practices. This is not just a fad – the Sustainable Restaurant Association was launched in 2010 with just 50 members, nowadays it has more than 7,000! Articles about the UK’s best sustainable restaurants are frequently featured in online food and travel resources. There will continue to be more transparency about where restaurants are getting their food from, how they engage with or support local producers, and how aspects such as food wastage are handled.

Digital Experience

Fast food, fast casual, casual, and grab-and-go concepts have become more digital, impacting the way we pay and order but also how brands engage with customers. Mobile ordering and contactless payments are standard practices; so, what comes next? Companies are exploring innovations that will transform them digitally. For example, Chilango recently opened its first digital-only venue in Croydon, including a fully digital ordering system. McDonald’s has tested AI which scans license plates with which to, with customers’ permission, predict orders and has also tested the idea of voice assistants to improve its drive-thru experience.

Membership Models

Many restaurants have, out of necessity, toyed with the concept of membership or subscription services. In the UK, M Restaurants offers its members exclusive access to their lounges and benefits such as complimentary breakfast, discounts on food and access to events such as masterclasses, tastings and talks. In the US, Michelin-starred restaurant Quince in San Francisco has created a membership based-model with its sister restaurants and its affiliate farm, Quince & Co, offering members a dining credit, quarterly boxes with seasonal produce and pantry products, and educational workshops.

Home Delivery/Meal Kits

The online delivery market was increasing at a significant rate before Covid-19, and during the pandemic it became even bigger and more important for hospitality operators. The pandemic also led to the growth of DIY meal kits. These meal kits have given the opportunity for many hospitality operators to diversify their revenue streams. Casual food brands as well as fine dining have both been embraced by consumers. Although many believe that the re-opening of the sector will slow down the DIY meal kit market, we believe that more operators will explore this avenue.

“If you try and do everything at once, you’ll never get started.”

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Neither pregnancy nor a pandemic could keep Francesca Calabrese from completing her degree. She reflects on her experience on the BBA Culinary Industry Management.

When I first moved to London, it was really important to me to be independent and not ask for help from my parents. My friends were all going to university and I would have loved to do the same, but as I was working full-time, I couldn’t see how I would be able to get a degree and support myself.

I was aware of Birkbeck because I was working in a hostel in nearby Russell Square, but I hadn’t realised that it had evening classes until I came across a prospectus that somebody had left in the hostel.

As a supervisor, I’ve always liked management, and my other passion is for cooking, as my dad is a chef. Ever since I was little, I’ve wanted to set up my own food business, like a restaurant or bakery, so when I was browsing the Birkbeck website and saw a new course launching with Le Cordon Bleu, BBA Culinary Industry Management, it felt like a sign!

Even after applying and completing my interview, I had my doubts about whether I would be able to manage work and study. However, I decided to give myself this opportunity, so I shifted to working part-time and applied for a student loan to help fund my studies. I’m so glad I did, as the course has been an amazing experience and really important for my future career.

The first year flew by: we had the opportunity to do practical sessions at Le Cordon Bleu, which I found completely fascinating. At Birkbeck, I attended lectures and explored management in more depth through small group seminars.

In the second year, we suddenly found ourselves in the COVID-19 pandemic. Even that felt doable, as our tutors were so understanding and were always available any time we needed help or support.

A global pandemic would have been enough to deal with, but last summer I got pregnant and once again was wondering if I would be able to manage. I can be quite a stubborn person and my friends were sure that I would end up dropping out, but I decided once again to give myself the opportunity to succeed. It was tough: my parents were in Italy and couldn’t come over to help me and the thought of the assessments I needed to do once my son was born was really stressful! At the time, I thought I would never make it, but now I’m writing my dissertation having missed just one class through it all and I’m almost done!

I’m so proud of what I’ve achieved and most of all I’m happy that I didn’t give up. Once things are a bit more normal, I’m interested in exploring food development and eventually opening my own business.

My advice to anyone considering studying at Birkbeck is that it’s really difficult to think in one-year terms: take things slowly, do one thing at a time, one exam at a time and things will get much easier. If you try and do everything all at once, you’ll never get started. Take your time, reflect and do things at your pace.

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Time to say goodbye: Brexit, employment and the hospitality sector

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The UK hospitality sector looks set to be the most affected in terms of economic growth and employment rate after Brexit. BSc Financial Economics student Guglielmo Polizzotto explores where the sector stands now.

According to the Office for National Statistics (ONS), the number of people in work in the UK is over 30 million, with 5.44% of those in hospitality. Between 2016 and 2019, the number of people in work grew by 3.31%, but in hospitality the proportion of workers shrank by 0.04%. In Figure 1, we can appreciate that the difference between hospitality and other industries has been minimal in terms of numbers of employees. To have a better understanding, a look to the employment vacancies is needed.

A 2017 study by People 1^st established that strict government conditions of employment for migrants could be the reason why many restaurants and hotels are struggling to fill their vacancies. The UK government asks for certain prerequisites to grant EU migrants access to employment, such as a pre-existing offer of work from the Home Office and a salary of above £25,600.

An average hospitality worker’s salary stands between £17,000 and £21,000, which makes it difficult for any EU worker who would like to work in the UK. So why could this be an issue for the hospitality industry?

The hospitality sector has the highest vacancy rate compared to other industries in the UK, reaching a peak of four vacancies per 100 people in the past five years. One of the reasons behind these high vacancy rates is that certain positions are considered hard to fill.

Over the last few years, the UK has faced a demographic change, which has seen fewer young people join the labour market and caused a shrink in the pool from which any restaurant or business in the hospitality sector was filling certain positions. Migrants were the solution to this problem; many seasonal or long-term workers are employed to cover those positions which could not be filled by the local workforce.

EU workers have a great impact on those positions considered hard to fill. Immigrants make up 20% of the hospitality workforce and about 70% of these come from EU countries. In a country with a population of over 65 million, it feels absurd that a few hundred thousand fewer workers would create such a problem for the UK labour market. In fact, the issue is more localized than it seems.

Graph showing UK employees in hospitality by region. London and the East Midlands have the highest number of employees in hospitality and almost half of them come from EU countries. In a situation where the number of vacancies is rising, but the pool from which businesses fill their positions is shrinking, it will become harder to find employees in certain areas of the UK. Businesses (who can afford it) will be forced to increase salaries to make jobs more appetising or share the tasks between fewer people and leave certain positions unfilled, which can cause distress and decrease the quality of the job done.

The time to say goodbye to the EU has come, and while the impact on the workforce looks set to be dramatic, the UK is facing another challenge. With decreasing tourism, and fewer people coming to the UK for work reasons, the labour market is impoverished of its cultural mark that made our beloved country unique.

This blog was originally written as an assignment for the Quantitative Techniques in Applied Economics Module.

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