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1 Getting operational after lockdown 3 – 4 weeks pre end of lockdown Activities during lockdown Opening week 3 - 4 weeks post opening Longer term A guide for hospitality operators

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Page 1: Getting operational after lockdown · that local outlets have provided to their community in a time of need won’t be forgotten. On a more practical note, it’s not a case of turning

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Getting operational after lockdown

3 – 4 weeks pre end of lockdown

Activities during lockdown

Opening week

3 - 4 weeks postopening

Longer term

A guide for hospitality operators

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We’re living through a unique period in history with far-reaching consequences on a personal level as well as for the global economy. There have been challenging times before, of course, with wars, recessions and natural disasters but the Covid-19 pandemic seems to have touched the lives, or livelihoods, of everybody in the world and this is what makes it so extraordinary.

As we wait for encouraging signs that indicate we may be turning a corner, it’s useful to reflect on what the hospitality sector has already achieved in the UK and how it has shown resilience, fortitude, care and compassion through a demanding few weeks, especially when there has been so little certainty. By its nature, it is proving to be resilient and determined, drawing on its innovation, agility and the great people involved.

And that spirit will create positive stories as operators adapt and evolve to provide their services in the new world that emerges. Things won’t be the same, and it will continue to be a struggle for many, but there will be opportunities for change and originality to become part of Britain’s future.

Hospitality brands may merge to exciting new hybrids that learn from each other’s strengths, there will be new brands and concepts and the support that local outlets have provided to their community in a time of need won’t be forgotten.

On a more practical note, it’s not a case of turning the lights back on when lockdown restrictions start to be eased. It’s important that you start planning to make sure you’re as well placed as possible to provide the service that the public wants when they open their doors again. Be realistic and pragmatic, but organised and motivated in order to start rebuilding business on a firm footing.

We know that the prime focus will be on generating cash flow immediately, with a need to reduce costs without detracting from quality and service in the longer term. With these factors in mind, Access Hospitality has produced a comprehensive guide to help you with the planning process for reopening and for the next few months. Each business will be different, but our aim is to provide a template that helps you start putting plans together, to highlight some of the issues to start thinking about at different stages of the planning process and to stimulate some discussion around what business will look like and how it will operate in the future.

We hope that you find it useful and look forward to celebrating this wonderful, vibrant industry together as soon as we can.

Henry SeddonManaging Director, Access Hospitality

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Analysis of budget tracking v spendTracking bookingsRecipe and menu evaluationData quality and big dataAdapting your business model

Improve GP and recoup lost earnings

Get operationalSite maintenance / cleaningStaff planning and labour optimisationOrder suppliesLegislation – including cover restrictionsGet customers through the door (drive footfall)Ramping staff health and hygiene programs

New normal

Financial managementStaff engagement / churn managementRecruitmentMaximise sales via upsellingPlanning for a 2nd wave of Covid-19New landscape of high-streetVersatile and agile

Staff engagementKeep in touch with customersBasic property maintenance and securityDelivery managementNew revenue channelsRents, rates and loans

Focus on priorities

All hands on deck

Focus on guest experienceSimplify offering / control your costsCheck stock levels v bookingsOngoing forecasting to meet customer levels – staff, supplies, etcMarketing pushSuppliers support

Activities during lockdown

3 – 4 weeks pre end of lockdown

3 - 4 weeks post opening

Longer term

Opening week

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STAFF ENGAGEMENT

Although your staff may not physically be on your premises, due to the Covid-19 pandemic, it’s still important to look after their physical and mental wellbeing.

The most successful operations during this time will be those that offer genuine support and timely updates, and give employees some time to manage themselves and navigate through these challenging times, without being too prescriptive.

Communication channels

• Work out what channels work best for both informal and formal communication. Individual sites or departments might have their own WhatsApp group, but formal updates should be done by email or company noticeboard – setting a regular day for the update each week will ensure staff don’t have to keep checking emails if they are furloughed, to know when the update will be coming.

• Sensitive updates should continue as per before Covid-19 and be done at a personal one-to-one level.• Social media, such as staff Facebook or Instagram, are great channels for fun and interactive

communications. Use them to post recipes, links to free training, advice sites and encourage staff to share funny isolation pictures or stories to keep up morale.

Internal support systems

• Make sure all staff know how to access support services such as healthcare or counselling if and when required, whether this is provided by you or free support available from charitable organisations.

Training & Upskilling

• Even whilst staff are furloughed, they can still complete online training courses, as long as the employee does not generate services or revenue for their employers. If you have access to a learning tool, share relevant courses that people can complete. Try to mix up more dry topics such as health and safety or allergen management with more fun content such as how to create popular cocktails.

Focus on priorities

Staff engagement

Keep in touch with customers

Basic property maintenance and security

Delivery management

New revenue channels

Rents, rates and loans

Activities during lockdown

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Staff continuing to work remotely

• Staff not furloughed will need additional support to be productive during the lockdown and keep the business ticking over. Setting them up to be successful at home will help keep them effective, not just in the first week or two, but for the duration of lockdown. Key aspects to bear in mind include:

- Make sure local files are available when working remotely – copy files to your laptop or put documents into a shared area so they can be accessed and shared as required.

- Be aware of GDPR and your organisation’s policy on documentation and data e.g.- it is still important to follow all GDPR guidelines to avoid fines in the future.

- Ensure staff still have time to get fresh air and exercise – it’s important not to get completely isolated, particuarly if staff live alone.

- Make sure you give staff an appropriate level of flexibility in order that they can take the time needed to juggle childcare arrangements or supporting family members through Covid-19.

CUSTOMER COMMUNICATION

Now more than ever before, it’s essential to stay in touch with customers and let them know how you are responding to the changing situation in response to Covid-19.

Where, when and how

• Communication channels should be consistent with pre Covid 19 to have the most impact. If you have only ever used Facebook and Instagram to communicate, don’t necessarily expect great response from bombarding customers via email. However, if you have a CRM system or email facility within your booking tool then updates through this channel are a great way to stay in touch.

• As your marketing team may be furloughed, keeping up the same momentum as usual may be difficult, but posting on social channels as and when possible will help keep your brand front of mind, just be sure to ramp up when doors open again. Quick posts asking followers what beer they are missing or dish they can’t wait to have when lockdown is over will keep customer engagement up.

• If you’re offering vouchers, let them know, customers will want to support their favourite business and community hub. Perhaps you could guarantee a first through the door reservation when business is open again (being mindful covers may have to be reduced initially – see page 12 below).

Communication if offering delivery

• If you’ve moved to a delivery or click and collect model let customers know as soon as possible. Make sure you let them know how to order, where they collect from, any menu changes, and opening times if restricted, etc.

• Allergen information still needs to be clear and concise, and so make sure customers can see this information when ordering (if applicable).

• You’ll want to reassure customers that you are taking all the relevant health and safety precautions in light of Covid-19 and will maintain social distancing during delivery or click and collect.

• Provide dedicated time slots for click and collect customers – existing booking technology like Access Collins can help here, to meet social distancing requirements.

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Lockdown has placed bars, restaurants and pubs between a rock and a hard place, with takeaway one of the only operational options. Although the day-to-day running of UK businesses is halted for the moment, now is the perfect opportunity to invest time in other facets of your company, namely marketing. Here are some pointers to help get you started.

What is your business’s content strategy? If you don’t have one, or what’s currently in place needs a rethink or refresh, use this spare time to go back to the drawing board. Ask yourself what your customer base is interested in and what you think they’d like to see from you during lockdown, and after lockdown is finished. The list of possibilities is endless: in-house recipes, the best things to do in your locality, tips from your teams. Think of a content structure that is relatable and always draw it back to the customer and what you think they will engage with. This will add value to your business and help build your website’s SEO, all while simultaneously building your brand.

If you don’t have a brand story, this is a good place to start your content strategy journey. It is an element of your website that will stand with you in the long term, giving potential customers the opportunity to connect with your brand before making a booking. This is also an opportune moment to reassess your website and its user experience, ensuring everything is updated and ready to go when lockdown is lifted: booking widgets, menus, location, special offers and news, blog pages, social media links etc.

If you don’t have a newsletter or need to update your template, use this time to research what will work best for you and the team who can help manage your communications. Newsletters are an invaluable tool to reach your customer’s inboxes directly.

The importance of being relatable during lockdown is two-fold. Reach out to your customers during this difficult time with honest, transparent messaging. This not only reminds people that you’re waiting in the wings for the green light, but helps to add building blocks to your relationship with the public, resulting in customer loyalty. This can be achieved in your general marketing strategy and the content you curate. With an 87% increase in social media reported by Business Today in March, it’s in your best interests to keep an active presence on your business’s social media platforms. Post regularly and don’t be afraid to experiment with Facebook Live and Instagram Stories. More and more businesses have been engaging with their users by hosting online quizzes and doing real time tutorials on how to make different dishes or drinks from their venues at home.

This is a very difficult time for the hospitality industry, but some good can come from the extra time that is now available from the day-to-day being halted. A smart content strategy is crucial in today’s market, so use this time to create something that will stand both now and in the months ahead.

EXPERT ADVICEBrand building advice from

an company

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BASIC PROPERTY MAINTENANCE AND SECURITY

If you have put the shutters up for the near future, take some simple steps to help keep your property secure.

• As well as ensuring everything is locked up securely and valuables removed, check alarms are working properly and ensure any alarm receiving centres have correct contact information.

• Ensure warning signs for CCTV and security alarms are clearly visible to deter intruders.• Schedule visits where possible throughout lockdown – either by operational staff not furloughed or by a

mobile patrol service.• It’s critical to follow a comprehensive dispense system shutdown during this period. Some excellent

guides have been produced by BBPA and Cask Marque.• If you use a property maintenance system now is the time to set up an action plan for maintaining the

system e.g. clearing down legacy orders, pausing imminent visits, and system healthcheck.

Delivery management

• Ensure new health and safety procedures are followed to help staff maintain social distancing where possible.

• Refer to FSA advice on legal requirements for offering a delivery service. • Review your menu offer in order to simplify the chef’s role. This will help remedy any challenges in

obtaining fresh produce.• Use labour tools to forecast the labour required to implement and run delivery offerings and make sure

your HR system is updated so you can continue to track any hours worked.• Consider offering customers a smaller number of options to help keep stock levels manageable. Explain

to your customers, through regular communication channels, what you’re doing and why; they’ll support you.

• With our sister site launching DeliverMyNight it’s never been easier to help promote your delivery offering.

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New revenue channels

• If you’re an operator who relies heavily on events – whether its beer festivals, quizzes, wine tasting or weddings, is it worth considering going virtual? Live steaming events have taken off during lockdown and customers are willing to pay if the offering is right.

• We’ve seen an increase in voucher sales as local communities look to support local venues and offer some immediate cash flow. Setting yourself up to sell vouchers now to be redeemed when things return to normal can help with some immediate cash flow challenges.

Stock management

If you’ve put the shutters up for the foreseeable future then making sure you dispose of perishable goods is a priority:

• Arrange returns for stock where possible and request credits from suppliers.• Look to sell/donate stock to staff/other businesses or charitable organisations that are still operating if

possible.• Record waste for stock that you weren’t able to return or sell.

RENTS, RATES AND LOANS

• As part of the Government financial support package offered to the retail, hospitality and leisure sectors, you are eligible for a one-year business rates relief due to coronavirus.

• Rates relief will apply to your rates bills for the 2020 to 2021 tax year. You do not have to apply for relief, your local council will apply the discount automatically.

• The Coronavirus Business Interruption Loan scheme has been set-up to help small and medium-sized businesses in order to access finance of up to £5million for up to 6 years. This loan is available to UK based SMEs (small and medium sized businesses) with an annual turnover of up to £45million.

• Grant funding of £25,000 has been announced for smaller businesses occupying retail, leisure and hospitality premises. These will be businesses with a rateable value between £15,000 and £51,000. Grant funding has also been announced of £10,000 for all businesses. You will not need to apply for grant funding, you will be contacted by your local authority.

• The next quarterly VAT payments have been deferred and no payment will need to be made before the end of June.

• At the time of publication, the sector is still awaiting additional support in discussions with landlords and a request for a six-month lease forfeiture moratorium has been requested. This would prevent landlords changing locks and taking control of premises for non-payment of rent. In lieu of additional Government legislation, negotiating with landlords where possible for rent postponement or changes to rental programmes is the main option to ease cash flow.

For more information on business support available please visit useful link section at the end of this document.

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Get operationalSite maintenance / cleaning

Staff planning and labour optimisation

Order supplies

Legislation – including cover restrictions

Get customers through the door (drive footfall)

Ramping staff health and hygiene programs

When the Government announce the timeline for the reopening of some or all of the hospitality sector, there are various steps you’ll need to complete in order to start getting your venues back up and operating, and welcoming back guests.

SITE MAINTENANCE AND CLEANING

Check all equipment is fully functioning and working. Does anything in your venue need to be fixed by a contractor and can this work be carried out quickly and easily before reopening?

We may see increased health and safety and legislation when sites re-open. Make sure you reschedule any Planned Preventative Maintenance visits that have been missed or delayed during lockdown. Priortise those that are statutory and essential – such as lift checks, extract cleaning, etc.

EXPERT ADVICE - Allan Gow, Property Maintenance Consultant

In order to get up and running as quickly as possible run through our property checklist:

3 – 4 weeks pre end of lockdown

Switch on lights gradually to avoid power spikes.

Check all traps for signs of activity and report via a property maintenance tool or pest control if there are any issues.

• If left on, check the temperature. • If left off, switch on and monitor the temperature as it may

take up to 24 hours to reach 11 to 13F depending on the design, installation and brand of equipment.

Switch on beer coolers and gas system.• Clean lines.• flush lines with water.

Lighting

Pest control

Cellar cooling

Beer dispence

TASK DESCRIPTION TASKS

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Hot water cylinders and boilers (hot water pumps and radiators)

TASK DESCRIPTION TASKS

Cold (fresh water)

Gas

Air conditioning

Kitchen extraction

Walk-in freezers / fridges

Bar bottle cabinets

Fridges / freezers (Kitchen etc.)

Open all cold taps and allow water to run for 5 to10 minutes at a medium flow, for example, not fully open.

Check gas lever at the mains is on and check gas lever/switch to the kitchen and individual items are on.

• If left on, run taps for 5 minutes and check temperatures at taps and radiators.

• If left off, switch on and after two to three hours run taps and check temperatures (and if heating required check radiators).

Very much dependent on what kit is installed within your site, but as a general rule turn on the various units gradually and allow to run for an hour or so.

Check the interlock box is powered and not showing a fault. If it is in fault the gas emergency stop button might be pushed in, if so, pull it out and twist slightly (depends on the model):

• Set the speed controller (if fitted) to a slow speed and

• Switch on gradually, over 5 to10 minutes turn up the speed to just below maximum and let it run for a few minutes and then set it to your normal set speed.

If left on, check temperatures and stock condition and if left off, presumably empty stock, clean thoroughly and switch on (step by step, not all at once), freezer may take up to 12 hours to reach temperature.

If left on, check temperatures and if left off, switch each one on gradually and check temperatures.

If left on, check temperatures and stock condition and if left off, clean thoroughly and switch each one on gradually, check temperatures.

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TASK DESCRIPTION TASKS

Ensure they are fully cleaned inside, all parts put back together including drain plugs and run through 2 to 3 wash cycles empty. See below for more detailed advise from CrystalTech.

If left on and the bin is full and closed, check ice condition. Clean and sanitise the bin and switch on, it will take up to 24 hours to fill a large machine bin.

For everything from kitchen equipment to music systems, turn on gradually.

For all types of machines, check the water is connected and switch on the power.

• For fully automatic B2Cup machines, fill with fresh beans and milk, and once heated up make around 5 to 6 coffees and discard them.

• For traditional machines, flush water through the group heads for 3 to 4 minutes and open the steam valves whilst the machine is heating up. Once steam appears, close the valves. After 20 minutes check the pressure gauge is at 1 to 1.3 bar, open the steam valves checking pressure stays at around 1 bar. Fill the grinder with fresh beans and make some coffees.

Conduct your normal weekly and monthly tests and report any

issues via property maintenance tool or head office as relevant.

Dish and glasswashers

Ice machines

Electrical items

Coffee machine

Fire alarms / emergency lights

From the perspective of the Warewashing equipment that we service, you might experience potential problems regarding cross contamination from any build-up of bacteria within the machine or any water that might have remained in it.

The simple advice would be to:

• Check that the machine and filters are clean and in the correct place.

• Ensure that there is a sufficient supply of chemicals (detergent & rinse aid) attached to the machine.

• Fill and heat the machine.

• Put the machine through a minimum of three complete wash and rinse cycles.

• Drain the equipment and recheck filters and clean if needed.

• The machine is then ready for operation.

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ORDER SUPPLIES

You will have probably kept an open dialogue with suppliers throughout the duration of the lockdown; however making this a priority once reopening timelines are known will be key.

• Make contact with your suppliers to ensure that they are open/opening, what supplies they have and to establish if there will be any items that will not be in stock or have a limited supply.

• Get an accurate overview on delivery dates for supplies, and ensure that they will arrive in plenty of time to allow for prep for re-opening.

LEGISLATION

• What could land you fines in the short to medium term? Ensure at least one member of the operational team has responsibility for understanding any new legislation changes and distilling to regional teams.

• When re-opening first takes place, it will likely come at a time when some degree of social distancing is still in place. Create a new table layout, which will reduce your number of covers you can offer, but will allow you to meet the required social distancing.

• We can only speculate at this point what other legislation will come into force around kitchen, staff and site hygiene and cleanliness but visit HSE and UKHospitality as a starting point.

DRIVE FOOTFALL TO YOUR VENUE

With many people having been cooped up for weeks, when the social distancing relaxes there will be a flood of people wanting to catch up with friends and families. It is vital that you put in the correct measures to ensure they will choose your venue over the competition.

• You’ll want to get as many people through the door as you can serve safely. • Promote your venue through all channels to alert customers of the date you will be opening, and what /

if any changes of service this might entail e.g. new menu items, cocktail offers, etc.• Use CRM to send emails to your customer base with this information and with the ability to book a

table where possible.• Maximise conversions – you’ll want to make sure as many enquiries as possible are booked in which

means having the best reservations and enquiry management system in place. People will remember where they went the day hospitality opened again, get it right and they’ll be back time and time again.

• Large bookings made easier – it is likely large groups will be out (catching up with friends and family) so make it as easy as possible for them to make large bookings online and ensure that they don’t go elsewhere.

• The day you tell customers that you will be reopening, have someone at the front desk / phones to help convert any queries, and make sure that customers are confident that their booking has been processed and any questions they have are answered there and then which all helps to reduce the risk of a no-show.

• With social distancing likely to still be in place, there may be a requirement to reduce the number of covers at a venue at any one

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time. Having an interactive, online waiting list / queue can keep customers updated with the wait time and ensure that you are next on their list of venues to visit.

• As a thank you for the continuing hard work for the local key workers, host your very own thank you party or put in special offers to show your appreciation.

• Have a member of staff at the front door to give a warm, friendly welcome to your customers, helping to explain any new procedures / menus etc. and enforce any social distancing measures that may be in place.

• If one site is fully booked during the opening week/s, make sure your booking tool directs customers to your nearby sites instead of local competition.

• If not already, consider setting up reservations through ‘Reserve with Google’ to enable potential customers to book directly from Google listings and maps so they never have to leave Google to make a resrvation.

RAMPING STAFF HEALTH AND HYGIENE PROGRAMS

• Ensure staff receive all relevant training and information on any new health and hygiene requirements.• Increase mandatory handwashing for all members of staff throughout their shift.• Ensure hand sanitiser is placed in key locations around your venue, and ensure your bathroom is well

stocked at all times.• We don’t yet know the degree to which consumer behaviour will have changed, but you may want to

consider limiting guest exposure to items which can be cross-contaminated e.g. remove salt and peppr pots and replace with disposable sachets, keep napkins behind the counter for staff to distribute.

• Clean tables, bathrooms and other points that come in frequent contact more regularly.• Although we are not sure what new processes will be required at this point, ensure your GM has clear

responsibility for their site and has all relevant information to hand to adhere to new guidelines.• Outlet cleaning programmes may need to be increased to ensure consumers see a high visibility of

cleanliness when back in operation.

STAFF MANAGEMENT

As you prepare to open up, you’ll need your HR team’s support to get systems and processes in place rapidly.

• Update HR system and reverse furlough pay process.• You will need to track retraining, expired training requirements and report on minimum levels of

mandatory requirements on site. Consider if you can open the site if do not have enough of each type of trained personnel?

• We may face new legislative training requirements – make sure your HR system can show compliance to the new standard.

• Staff may need refreshers on the day-to-day task management, consider how this can be tracked and reported on a daily / weekly basis.

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All hands on deckFocus on guest experience

Simplify offering / control your costs

Check stock levels v bookings

Ongoing forecasting to meet customer levels – staff, supplies, etc.

Marketing push

Suppliers support

FOCUS ON GUEST EXPERIENCE

People are already starting to talk about which bar, pub or restaurants they are missing and which ones they are heading to first. With the nation being cooped up at home for so long, they will be ready to enjoy themselves and make that first day / evening a memorable one.

• The operators challenge is to make sure customers remember this evening for the right reasons and have a seamless journey from booking to departure, so it’s crucial to get the guest experience right!

• By having the right marketing and reservations system in place in the lead up to opening time, managers should be able to forecast as best they can the amount of footfall to expect.

• Utilising the forecasting data will be key to labour optimisation and ensuring the right staffing levels are in place in these opening weeks to guarantee orders are taken quickly, food is delivered at reasonable speed and queues at the bar are limited to ensure customers have the best possible experience.

• Get it right and customers are much more likely to return help in the coming weeks and months.

CONTROL YOUR COSTS

Control your costs, to some, can be wrongly interpreted as reducing your staff headcount, but this should only be done as a last resort as there are many other operational costs that can be reviewed and help the bottom line.

• How much visibility do you have over your food costs? Do you have supplier prices locked in? The landscape is bound to have changed considerably, so once the rush of the first week is out the way, it will be time to turn the attention to the coming weeks and look at ways to ensure you’re paying the best price without any compromise on quality.

• Is your menu working for you? Are you hitting your GP? How easy is it for the chef or the manager to see what dishes are performing and which aren’t? Menu engineering systems are a great way to get instant live data, which means you can literally stay on the money when it comes to controlling costs.

• How are you managing your stock levels and ensuring you order just what you need to prevent food wastage?

Opening week

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• Ensure you have as much access as possible to business intelligence / data to give you as much insights to costs vs. profit in those first few weeks.

• No discounting in the short term and focusing on products and dishes that make the highest margins will help with that all important cash flow.

• Review existing processes, are there any areas that may not be cost effective, or you are actively throwing money away through waste or by paying unnecessary high prices? However we recommend caution if you try to reduce the quality of any items or ingredients, as it might deliver short term savings but long term impact on guest experience.

STOCK LEVELS VS. BOOKINGS AND RESTRICTED OPERATING

• What system do you have in place to check your stock levels? Daily / weekly stock checks will be needed to maintain stock levels and prevent over-ordering.

• New suppliers may be required to meet demand if existing suppliers have closed or can’t keep up with increased demand.

• Ensure your team know how to track covers and manipulate table plans on POS and booking technology if capacity is restricted due to social distancing during those early weeks.

ONGOING FORECASTING TO MEET CUSTOMER LEVELS - STAFF, SUPPLIES, ETC.

All businesses will now be in the same position of starting at zero and trying to forecast potentially fluctuating sales in those first few weeks and months.

• Make sure there is work going on in the background during those busy opening weeks to monitor expected customer demand and match with staffing and supply levels.

• Use labour optimisation and dynamic forecasting models within your HR and scheduling tool if available.

• Make sure that your management team has visibility of staff forecasts / actuals by site, region and company wide, to ensure you are correctly managing margins.

• When forecasting you will need to take into account that certainly in the short term, we will see a decline in foreign tourism. If your business has sites that usually rely on a high percentage of tourists then you’ll need to take this into account during the forecast process.

GENERATE CASH FLOW

It is likely there will be a push for card payments over cash to reduce spreading of germs for the protection of staff as well as customers, so be prepared for this from day one.

• It is worth reviewing which merchant / POS system you are using as credit card processing times vary depending on the merchant and funds can take anywhere between 24 hours and 3 working days to hit your bank. If you have a roaring trade that first Friday to Sunday, it’s worth keeping in mind those funds won’t hit your bank account until Wednesday, which might be key to paying staff and suppliers.

• Although cash has been linked with Covid-19 transmissions it may be that cards are not that much safer. So in a post pandemic environment operators in coffee shops or food-to-go outlets may see an increase in transaction times for non-contactless payments if cards are wiped before and after a transaction to prevent the spread of the virus.

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• If you’ve been selling vouchers it may be worth limiting how many are used in opening weeks to maximise cash flow. If they have an expiry date - extend it and ensure customers know – this will also need to be replicated in your POS systems to avoid problems when a customer tries to redeem them.

• If cash flow is at a critical level, consider asking regular customers if they could postpone using them temporarily - it’s all about the tone in customer comms - they will understand.

• Another option could be that customers can only use vouchers for food if you sell both food and drink, so ensuring cash flow comes from beverage sales.

• If you already offered delivery or you started this during the downtime and are going to continue via a third party like Deliveroo or Uber Eats it’s worth keeping a close eye on any changes in their policy and T&Cs in the coming weeks.

MARKETING PUSH

You’ll be walking the tightrope of controlling costs whilst generating sales, but this is not the time to cut marketing investment, as there’ll be a rush for every hospitality outlet to get their voice heard and tills ringing. Review the channels and services you have available and make them work hard and effectively for you.

• With your team likely to have been furloughed, plan some simple campaigns that can be applied as soon as possible after re-opening rather than making things too complicated.

• Remember GDPR is still important and operators who don’t adhere to guidelines could face a fine.• Where possible, pull on community ties; there’s been a big focus on local businesses so take advantage

of this affinity. • Make your marketing count and focus on things that matter in the post Covid-19 world. People have

come to appreciate certain aspects of life more whilst unable to leave their home, so appeal to these factors – fresh produce, dedicated workforce, out of home atmosphere, outdoor spaces and spending time with family and friends.

• Avoid offering discounts, no matter how tempting, as this is a difficult course to exit and won’t deliver the profit and cash flow that you’ll need. It’s also important to attract regular, loyal custom rather than the fickle bargain hunters who chase offers and don’t bring any stability or longevity to your business. You may, however, want to run limited offers to say thank you to key workers.

SUPPLIER SUPPORT

• Make sure your suppliers are ready to support your team as they return to work. For GMs / front of house teams using tills it may be useful to have a ‘readiness’ to trade checklist. This would include things like: - Passwords - Business Sheet dates - Stock Results - Hardware status

Ensure support information and user guides are at hand so staff can be helped quickly and easily with any technical challenges. If staff are focused on other business critical tasks, request help from suppliers to ease the burden - they can help with menu updates, data imports, margin controls and stock analysis, system health checks, etc.

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Businesses that have reviewed their operating model during the lockdown and prepared carefully to reopen, will be best placed to react and adapt when the time is right. Ensuring every aspect of your business is in good shape, will enable you to trade as effectively as possible

FINANCIAL MANAGEMENTS

• Use accurate and timely data to monitor business performance, in order to help understand new trends or trading patterns so that you’re able to react and respond appropriately.

• Review sales data at the end of every day, not weekly - without a cash buffer, you’ll need to identify problem sites or underlying issues quickly.

• Be prepared to manage cash flow when any Government or bank lifelines end and negotiate extended payment terms where possible, so that financial commitments to staff, suppliers, etc. can be controlled.

STAFF ENGAGEMENT, PAY AND MANAGING CHURN

• Whether staff have been on furlough or carrying out other duties, don’t take it for granted that they’ll all be as keen as each other to get back to their regular roles. Some will be desperate to get back into their routine, but others may need reassurance and motivation to stay in your team. Listen to their ambitions and work with them on opportunities for ongoing development and responsibilities so that you grow together.

• As part of that development, identify training requirements and put a structured plan in place to demonstrate that you’re investing in their future.

• Staff may be facing their own cash flow challenges, so using an on-demand payment option will help them juggle income and outgoings by drawing down salaries quickly when shifts have been completed.

• A robust tip or tronc system will help retain staff and should be clearly defined. Share your policy with guests, too, as they may be more inclined to give a tip when they know how it’s being allocated and how it’s helping staff who spent several weeks without work.

• You’ll need to keep on top of any legislative and policy changes that affect your staff – there may be changes to SSP and holiday carry over.

New normalFinancial management

Staff engagement / churn management

Recruitment

Maximise sales via upselling

Planning for a 2nd wave of Covid-19

New landscape of high street

Versatile and agile

3 - 4 weeks post opening

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RECRUITMENT

Depending on how long the lockdown continues, we may find it impacts the number of staff coming back when the doors open. With anywhere between 15% – 20%+ of workers in our sector coming from the EU, these individuals may have returned home during lockdown with no means or plans to return to the UK. So rapid recruitment to replace these roles, plus normal staff churn, will be key to ensure you can meet consumer demand.

• Look at your screening and right to work process – having an automated process linked to your HR system could save admin time and effort and help you quickly and efficiently manage the volume of applicants.

• Make sure once staff have been recruited that they can be trained and become a valuable member of the team quickly. If available, share online learning that can be done remotely and make sure to buddy up new starters with experienced team members during scheduling process.

NEW LANDSCAPE OF THE HIGH-STREET

• Monitor what’s happening around you and whether surrounding businesses are reinventing themselves or closing permanently. How will their actions affect your trade and how can you respond? The closure of a big office base or shopping hub may reduce footfall in the area, or closure of a competitor may open up opportunities to attract new customers.

• Customer behaviours may change with the frequency, length or timing of visits to hospitality venues altering. Watch and listen so you’re ready to respond to any pattern that emerges and update stock ordering and staffing levels appropriately.

• A reluctance to handle cash, which could harbour germs, may become more widespread and ingrained in people’s spending habits. As more turn to contactless and other cash free payments, make sure your business is equipped with all the payment tools necessary.

BE PREPARED TO BE VERSATILE AND AGILE

• Implement every aspect of your planning, but keep it under constant review, as there’s likely to be a steady shift in attitude and behaviours whilst things shake down and we shape our new normal.

• Analyse and respond to consumer behaviour and a fluctuating environment and don’t be afraid to go back to core basics in order to survive.

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MAXIMISE SALES VIA UPSELLING

With your staff fully trained and motivated, they are on the front line of getting your business up and running again quickly so the way they interact with customers is crucial.

• Upselling is an obvious approach to increase the spend per head and maximise your sales potential. This practice should be applied naturally and without pressure, but seen as offering additional value and giving guests an excuse to indulge a little after a period of confinement.

• Offer guests the ability to pre-order through relevant technology such as Access Collins, can see guests spending 12% more on average because of the ease of ordering through this tool.

PLANNING FOR SECOND WAVE

We’re in unchartered waters in respect of knowing whether there’ll be a second wave of Covid-19 infections, and everyone is watching to see what happens in other countries. It’s reasonable to assume that you should be prepared for another outbreak, though, which may require further restrictions to be introduced and planning for that now will stand you in good stead if the unfortunate happens.

• Monitor your business closely to understand what worked and what didn’t in the first couple of weeks of lockdown and reopening in order to adapt your business accordingly and be ready to go again if necessary.

• Have a contingency plan to maintain some cash flow if you can. If you didn’t offer a delivery service during lockdown, was it because you didn’t have the chance within the timescales, and could it be an option if you start planning now?

• Put a voucher system in place to benefit from the cash flow it provides and make your customers aware of it to encourage repeat visits, gifts to key workers or to plan a get together with friends or family.

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It goes without saying that generating immediate cash flow will be your biggest priority as doors reopen. However, before looking into the longer term, are there processes and systems you can put in place to get a better handle on your overall finances?

ANALYSIS OF BUDGET TRACKING VS. SPEND

• You have no doubt worked through various different scenarios to help forecast cash flow for the rest of 2020. However, with so much uncertainty, it’s difficult to know by what % to decrease sales forecast data for each quarter, but working up various models with your finance teams and continuing to track and review data constantly will be key to survival in the short to long term.

• Getting on top of your cash inflow has never been more critical. If historically your team provide sales data every few days or weekly and it’s a manual process (prone to errors and inaccuracy) now might be the time to upgrade EPOS and reporting technology to ensure you have this business intelligence available instantly.

• Keeping on top of over-performing and under-performing sites on a daily basis ensures help can be provided quickly where needed, before the situation deteriorates too quickly.

• Monitoring and having full control over operational expenses at site level will have a positive impact on GP.

- Repair & Maintenance - One area that can often be hard to track is repair and maintenance expenditure, if using a

manual process; invoices come in after the work has been completed so budgets are hard to have control over.

- Modern data platforms can provide crucial analysis tools to keep track of what is being spent and where, and this live data is critical for any business looking to reduce repair and maintenance spend.

- Labour optimisation - It’s currently not clear whether, when the doors open, business operators will be able to return to

normal trading practices or you will have to reduce covers to maintain social distancing. This makes labour optimisation a challenge but being agile and open with your team will help the process.

- Make use of labour optimisation and booking data to help plan to correct staffing levels – you will want to ensure you have the right staff to still provide excellent guest experience but keep tight control of costs and not pay staff who aren’t required.

Improve GP and recoup loses

Analysis of budget tracking vs. spend

Tracking bookings

Recipe and menu evaluation

Data quality and big data

Adapting your business model

Longer term

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KEEP ON TOP OF BOOKINGS

• Ensure your marketing and management teams have got instant access to booking information at site, region and group level. This enables marketing to focus efforts on campaigns to support sites and regions with the lowest reservations to achieve maximum ROI.

• Use existing customer data from within booking tools to personalise messages and encourage return visits.

• Spending time and effort generating booking enquiries is wasted if your internal conversion rates are poor. Enquiry management technology enables your team to access enhanced tracking and reporting tools, improving conversion rates dramatically.

RECIPE AND MENU EVALUATION – COST CONTROL STRATEGIES

Food and beverage cost are the biggest expense for operators, alongside labour, so it’s an important area to review to potentially achieve significant savings.

• Make sure you have a strong inventory management process in place in order to achieve food cost control. Reviewing your current processes to track stock-in and stock-out and daily consumption will help identify and ultimately reduce wastage.

• With the right technology you can get real-time reports on stock levels removing the problem of over-ordering (critical to help manage cash flow) or under-ordering.

• Collecting and analysing data of all sales over past six months before Covid-19 will enable you to compare sales for each dish and remove any underperforming dishes to reduce food costs.

• Review portion control to help reduce wastage. Ensuring the right plating of food can help reduce food prices and wastage; things to track include food returned by the customer and extra portions being thrown away.

ADAPTING YOUR BUSINESS MODEL

Take some time to review your business model - doing what you did pre Covid 19 may not work? With potentially more people working remotely post Covid-19, your business may need to start adapting to this new reality. Is your business ready for this?

It’s clear that operations offering an onmi-channel strategy including a mixture of delivery, on-premise, click and collect or even event catering are more likely to recoup cash flow more quickly.• If you’re new to delivery you might need to consider developing your menu to be takeaway friendly?

Many businesses already offer delivery service as core to their proposition however, can you improve or maybe even re-invent this market?

• Look at your current systems to ensure any transition is seamless to your business and customers.• As we discussed above, consumer habits may have changed for short term or long term after the

lockdown period, so with more time available expanding beyond a pure on-premise offering may be a viable future strategy.

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USEFUL LINKS

BIG QUALITY AND BIG DATA

‘Big data’ is the term used to describe extremely large sets of data that come into a business on a day-to-day basis. In the hospitality sector, this will include data on everything from the performance of your venues, customer spending and satisfaction and beyond. It’s not the quantity of data that is generally the problem, it’s trying to consolidate and gather business intelligence to help with decision making - helping you understand overall business performance and improve forecasting accuracy.

• Explore the benefits of a single platform which delivers data from all your key hospitality technology; from sales transaction, bookings, repairs expenditure, workforce management processes and food deliveries. If currently using time-consuming manual processes for sending / receiving data to head office, consider the longer-term benefits of automating these processes. Reducing staff admin, providing better data accuracy, avoiding re-keying and ensuring compliance.

GOV.UK - Business rates relief VIEW WEBSITE

GOV.UK - Financial support for businesses during coronavirus (COVID-19) VIEW WEBSITE

GOV.UK - Complete ban on evictions and additional protection for renters

GOV.UK - Coronavirus (COVID-19): what you need to do

BBC Sounds: Coronavirus: wages to be paid & entertainment venues shut

Institute of Hospitality - Guidance and support during the coronavirus crisis

The Caterer - Coronavirus advice hub for hospitality operators and employees

The Caterer – Dealing with your landlord

Big Hospitality – Coronavirus hub

UKHospitality - up to date coronavirus information for hospitality businesses

Luxurious Magazine – Thieves targeting pubs and Restaurants

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