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Every restaurant operator across the country is now neck deep in Christmas, implementing plans they put together months ago. Many are now intent on boosting sales after a volatile autumn and will be battling ongoing concerns of consumers cutting back on takeaways and dining out to save money for the festive season. But we can’t afford to become too focused on mince pies and mulled wine – January will be here in no time and it brings with it an eye watering to-do list.
I’m not about to kick off a blog on the restaurant sector by noting that this year has been changeable. Unpredictability is about the only thing we can count on these days, and we all know the reasons why.
That does add a new dimension to January planning though. Retention remains a problem (and not one we’re likely to solve in 2024) and this years’ wage wars will mean that, for many, labour costs are bigger than they used to be. This will have an impact on annual budgeting, and will make for some tough calls when it comes to start-of-year staffing adjustments – particularly for those in the enviable position of being overstaffed going into December.
I’m a firm believer that the long-term solution to the industry’s workforce woes is making hospitality a sexier career choice. The flexibility of restaurant shifts works perfectly for students or those looking for part-time work, but we have a lot to offer ambitious workers who want to forge a career. Operators that provide continued professional development, cross-training and management programmes encourage loyalty and differentiate themselves in a market that offers workers their pick of employers – and will continue to throughout 2024.
Training programmes are far from easy to implement, and there are plenty of quicker wins for managers looking to boost retention as well. Communication and keeping employees up-to-date with what’s happening is one of the easiest and most effective engagement tools, particularly during January when many will be on minimum hours and might not be seeing teammates and managers as frequently as they otherwise would.
Of course, keeping revenue up in January is the ultimate goal and there’s lots of examples out there of creative marketing campaigns aimed at doing just that.
Black Friday sales are no longer the sole domain of retailers. When November 24th rolls around, restaurants of all shapes and sizes will be offering a limited run of Black Friday discount vouchers, redeemable in January. Similarly, gift cards make for popular presents during the holidays, and we’ve seen an increasing number of operators limiting their redemption period to three months to ensure diners using these vouchers do so during quieter times of the year.
January itself is also blessed with a veritable litany of weird and wonderful days marketing teams can plan activations around. National spaghetti day? That’s the 4th. National popcorn day is the 19th and I know no one is going to want to miss national chocolate cake day on the 27th. All are good hooks for discounts and competitions aimed at increasing sales, and play out very well on social media, too. Valentine’s Day will be hot on the heels in February, followed by Mother’s day and Easter in March. There’s always something to celebrate!
We know technology is going to form the cornerstone of many a 2024 management strategy, with 49% of hospitality leaders expecting to increase their tech spend next year. Most (31%) will focus that investment in staff retention and combating the impact of inflation (19%).
With labour the biggest line on most P&Ls, both of those goals are achievable with robust labour management solutions. Artificial Intelligence (AI) is an incredible tool that is already being put to good use in applications like revenue and demand forecasting. These forecasts underpin a huge array of technological capabilities, and can help operators to optimise labour management. Fourth Intelligent Scheduling, for example, predicts revenue in 15 minute periods per item, providing an optimal shift pattern to ensure each area of a restaurant has exactly enough staff on to meet demand. Additional capabilities like Shift Pooling allow operators to share resources across sites, giving staff the option to volunteer for unfilled shifts in other venues. These technologies don’t just optimise labour spend, but also maximise staff experience and improve retention.
As we dive headfirst into the holiday hustle, it’s important to keep one eye on the upcoming year. Balancing labour planning, budgeting restraints and digital transformation against the now all-to-familiar backdrop of growing uncertainty and rising costs is no mean feat.
Hopefully, we’ll all have a chance to take a break over the festive season and enjoy some downtime before 2024 kicks off in earnest. This seems like the perfect opportunity to wish all our customers a fantastic holiday and a very happy new year.
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