In 2025, as their customers continue to be impacted by the increased cost of living, pubs, bars and restaurants need to focus on reliably delivering the ‘fundamentals’ – because poor experiences won’t be easily forgiven.
That was the headline finding from a new piece of research from Scottish technology firm Zonal, which was released last month.
While the report found that 65% of the general public consider eating and drinking out to be as important to their social lives as it was before the ongoing cost of living crisis, and 64% reckoned hospitality plays an important role in their local community, those facts were tempered by the finding that 54% of them are still either ‘severely’ or ‘moderately’ impacted by the cost of living.
The two ‘biggest bugbears’ identified by customers were long waits for food and drink and hot food being served cold.
The report suggested that the solution to these issues ‘is the simplest in theory and the hardest in practice: consistently nailing the basics’.
“At the end of another challenging but rewarding year for hospitality, it’s clear that delivering the fundamentals of hospitality – great food, drink, service and value – are more important than ever,” said Karl Chessell of research firm CGA by NIQ, which worked with Zonal on the report.
“Our GO Technology surveys have shown that people expect very high standards of their pubs, bars and restaurants and want good returns at a time when cash is still tight for many.
“Poor experiences aren’t easily forgiven, and small issues quickly add up to major frustrations. If consumers don’t like what they get, they know they have plenty of other places to go.
“Nevertheless, the best and most consistent hospitality operators continue to thrive, and our research has shown that people remain ready and willing to stay loyal to their favourite venues when they are properly rewarded and their problems are fixed.
“Most encouragingly for the future, we have been reminded that these venues continue to have a special place in people’s lives and communities.”
Customer expectations are just one of the challenges facing the industry in the year ahead, however.
There was little joy to be found for operators in December’s Scottish Budget, with many operators ineligible for the rates relief announced by finance minister Shona Robison.
Responding to the Budget last month, Nic Wood, director of independent operator Signature Group, said: “Each year, we drive turnover, and every year, we make less profit than the year before due to the cost pressures and factors out of our control – rate increases, labour cost increases and further taxation.
“Passing these costs on to the consumer is not the answer. They too have a ‘walk-away point’.
“To ensure a vibrant hospitality sector and protect jobs, we urgently need targeted support from both the UK and Scottish governments.
“Without a commitment to aid our industry, the dream of profitability in 2025 will remain just that – a dream.”
