Hospitality Industry Challenges 2024
Technology and the business environment are constantly changing especially in the Hospitality Industry. With each new change comes challenges and opportunities. Without the right outlook, your restaurant business can suffer from a lack of growth or even decline. Yet Hospitality industry challenges can be useful to develop a strong business strategy and positive actions to succeed in a disruptive environment.
In this article, we'll explore the top hospitality industry challenges in 2024 and how businesses can prepare for them.
What are the top challenges for restaurant?
Keeping up with technology
The rapid advancement of technology in the hospitality industry brings both benefits and challenges. The industry has become increasingly competitive with the rise of online booking platforms and comparison shopping. Businesses must constantly adapt and innovate to stay ahead. Technology has also raised guest expectations, as they now have a platform to share experiences and expectations through online reviews and social media. To meet these expectations and maintain a positive reputation, businesses must provide exceptional service and amenities. Constant upgrades are necessary to keep up with evolving technology, although it can be costly and time-consuming. Nonetheless, it is crucial to stay competitive and meet guest expectations.
Smaller talent pool
Brexit is going to affect how many potential staff are available for work. Already, migration from EU countries has significantly declined, and this trend is only going to continue. Therefore, staff management is going to get harder. With fewer workers available in the potential labour pool, wages will increase as competitors try to retain key staff and attract newly qualified staff. While money is one motivator, it isn’t always the best. Instead, you should look at having better work-life balance benefits that attract staff to your restaurant. These are often less costly and more motivating to staff, especially millennials.
Workforce Management Challenges
Managing human resources in the hospitality industry is a significant challenge due to its heavy reliance on the workforce. This challenge is amplified by the industry's high turnover rates, which are anticipated to persist in the future. Consequently, businesses must continually recruit and train new employees, incurring both financial and time costs. Additionally, attracting and retaining top talent proves to be a challenge in the face of the gig economy and the growing demand for skilled workers. To overcome this, businesses must offer competitive compensation packages. Furthermore, managing a diverse workforce brings its own set of challenges, including language barriers and cultural differences. To ensure a harmonious and productive team, effective communication and training strategies must be implemented.
New restaurant and hospitality industry trends
While many smaller restaurants might still use some of the older sale systems, which includes a notebook and pencil, using more modern technology like ordering apps and EPOS systems, can push your restaurant business to the next level.An EPOS system is a fantastic way to reduce the time it takes to get orders from customers to the kitchen. Therefore, the productivity of all your staff can increase, and this can lead to better profits. In addition, integrating EPOS into your restaurant means that there are fewer mistakes in orders from poor handwriting. This reduces food wastage in your restaurant and negative experiences with your customers. For better results, use a handheld POS that will help you save even more time.
Modern restaurant marketing
The best way to market a restaurant is changing. Previously, you had to rely on word-of-mouth and local media tactics to help build brand loyalty and attract new patrons to your restaurant. However, the internet has changed things and now marketing your restaurant needs not just timely adverts in local press and word-of-mouth.Now you have to utilise social media, especially networks like Instagram, to promote your site. You should also use email marketing, a good website and review sites. However, this isn’t a bad thing. A good website can include an online ordering system for restaurants that can mean you can collect orders before customers arrive, or accept collection orders for an extra revenue stream.
This year could be your restaurant’s year for growth. However, you need to be sure that you’re tackling common challenges that are happening in 2020 and turn them into opportunities for growth.
Speak to one of our EPOS experts for a free restaurant tech consultation.