Recent statistics from the ONS show hospitality has 174,000 vacancies. These staff shortages are growing, and hospitality businesses face rising input costs as operators compete for staff, as well as causing one in three hospitality businesses to reduce their hours of trading. The resulting £21bn loss of trade to the sector, and over £5bn in foregone tax revenue for the Treasury, urgently needs addressing.

 

Two separate but related approaches might help to solve this crisis. The first is about how we attract more school and university leavers to the sector, and the second is how to attract economically inactive over-50s into hospitality, perhaps for the first time.

 

In relation to school leavers, I feel we are often our own worst enemy. The constant litany of doom and gloom about our prospects is hardly calculated to persuade young people, or their parents, that hospitality can offer them a rewarding, long term future. We need to work much harder to pass the ‘mum/dad test’. Convincing parents that working in pubs, bars or restaurants is anything more than a stop-gap, part-time earning opportunity for when you are at university, but when you leave you should seek a ‘proper job’, is an unfinished task.

 

There are fantastic career paths available at venue level and at operator level. In what other sector could a young worker start as a glass collector and end up chairman of the board? Where else could a woman or man in their mid-20s be managing a venue with an annual turnover in excess of a million pounds? The excitement and challenge or running a large city centre pub, bar, restaurant or nightclub is tailor-made for ambitious, aspirational young people. Yet we have a tendency to talk ourselves down and give the impression that we are only a tax break away from disaster.

 

Hospitality is a sector in which training opportunities have been revolutionised over the past 30 years, with apprenticeships offering routes of entry to high paid, high skilled occupations. You don’t need to have gone to university to climb the ladder of success, but you do need to demonstrate practical and people skills.

 

I know things are tough at the moment, and all sectors are having to adjust to coping with the aftershocks of several major crises – the hangover from the global banking liquidity crisis, post-covid supply problems and high inflation. I genuinely believe our sector can lead the way out of these crises and help our national recovery. I am pleased, therefore, that the government has continued with business rates relief, and indeed increased it from 50% to 75%.

 

In relation to attracting the over-50s to our sector, I refer you to Paul Chase’s recent thoughtful article in which he pointed out the demographic dilemma – that those aged over 65 make up 45% of the population aged over 18, and 18.9% of the total population. That statistic points to why we have a problem with those of working age diminishing as a percentage of the total population. Since the pandemic, we have seen a marked increase in the number of people in their 50s becoming economically inactive. There is a large potential pool of labour here. There are 4.6 million 50 to 54-year-olds in the UK, with 3.7 million of them living in England. 

 

I believe there are many advantages to employing people in this age group. There are some 800 Conservative Clubs affiliated to the Conservative Clubs Association, of which I am chief executive. We simply don’t have a significant problem with recruitment of staff. The reason is that most of our clubs often recruit people who are more mature in age and who live locally. Many are looking for part-time employment, and these ‘older’ workers have many advantages – life experience, a good work ethic and reliability. 

 

Also, let us face it, hospitality is not always family friendly in terms of the hours staff are asked to work. Older workers whose children have grown up are often more flexible in the hours they will work and more likely to stick with the job. The government is very keen to explore ways in which economically inactive older workers, some but by no means all on long-term benefits, can be returned to the workforce. Perhaps this is something trade bodies should explore with government.

 

If we attack our workforce problems from both ends of the age spectrum, I believe we can go a long way to solving it. New patterns of work are emerging post-pandemic, and we must be prepared to adapt to the changing world of work in order to attract young talent, as well as the well-honed skills of an older generation.

Many years ago, the chief executive of Signet Jewelers (post the era of Gerald Ratner and his prawn sandwich meltdown) told me that in the ideal world, they would close their stores for nine months of the year and just trade over the three months around Christmas, because it accounted for as much as 90% of the company’s annual sales.

 

This skewing of sales to specific periods of the year has, of course, long been a feature of restaurants, bars and hotels located within tourist-driven locations, who have faced the challenge of operating businesses with dramatic seasonal peaks and troughs. They have traditionally stockpiled their cash during the peak season and used this to tide them over as they have limped through the quieter winter period, catering largely for the local clientele.

 

But this year the situation has changed dramatically, and a growing number are choosing to effectively hibernate over the winter months as a result of increased utility charges, the ongoing chronic staff shortage and the cost-of-living crisis that has dampened customer spending. These have combined to make it unviable to keep the doors open.

 

In recent weeks, we have seen The Coast & Country Hotel Collection close two of its sites – The Ship & Castle in St Mawes and the Valley of the Rocks hotel in Devon – with a plan to reopen both in the spring. Other venues succumbing to the pressures are The Dining Room restaurant at Abersoch in Wales; Michael Caines’ Harbourside Refuge restaurant and bar in Cornwall; and in keeping with its hedgehog logo, the Suffolk coast-based Hog Hotel went into hibernation at the start of November.

 

Nathan Jones, co-founder of the Hog Hotel, said at the time of the temporary closure: “Having done the mathematics, we would just become busy fools at the expense of supporting the employment of staff, paying the government its taxes, lining the utility companies’ pockets…and trying to support our suppliers. There is nothing in this for us except projected losses, so I am not prepared to continue.”

 

Reductions in trading is not restricted to coastal resorts catering to tourists, because the cutting of opening hours is reflected across the whole hospitality industry, encompassing urban and country-based businesses. As many as 35% of food and drink operators are reducing their hours, according to Haysmacintrye, with 40% of companies citing energy costs as the chief reason for their actions, while 28% identify staff recruitment as the primary driver.

 

Such drastic measures are not just a UK phenomenon either, because US restaurants are also having to resort to the same tactics to support their businesses. Weekly operating hours have been cut by an average of 6.4 hours, with the independent operators worst affected as they are losing 7.5 hours trading per week, according to Datassential. New York’s metropolitan area is being hit particularly hard as restaurants have, on average, been slicing off more than nine hours per week. 

 

Here in the UK, many well-known chefs are among those amending opening times, including Sam Harrison, owner of Sam’s Riverside in west London, who has closed the venue on Sunday nights and all-day Monday because, despite strong customer demand, he cannot overcome the severe staff shortages. Tom Kerridge has also taken the same course of action across his venues, with some places dropping from seven days per week trading to only five. He is also looking at booking schedules and other timings that could be adjusted to ensure service standards can be maintained despite the shortage of staff in a number of positions.

 

New openings are also reflecting these constrained operating dynamics, with the high-end Woven by Adam Smith restaurant at Coworth Park in Berkshire choosing to open a modest four nights a week and only two lunch services. Such reduced trading hours enables all the team to work a four-day week, which Smith says is ultimately creating a sustainable restaurant, with front of house and kitchen staff enjoying a much better work/life balance.

 

This scenario of fewer restaurant workers burning themselves out from clocking up horrendous amounts of hours each week is undoubtedly a serious upside to the current difficulties in the industry. But let’s hope those hibernating venues do all return to successfully trading again in the spring; that the reduced trading hours of restaurants is merely a blip; and that they can soon return to operating with much more freedom and again be in full control of their own destiny.

Thorley Taverns are a family business with over 50 years behind them. They have 18 pubs across Kent and 400 employees. Like almost all hospitality venues, they are facing exponential rises in utiltity bills, business rates and consummables. Phil Thorley, whose father founded the business, is determined to keep it going for another 50 years. The challenges are obvious but the outcome will be a positive one, thanks to his determination, vision, and creativity. 

The good news is that there are many other Phils out there, determined to overcome the monster. In spite of everything being thrown at the hospitality sector, many venues are remaining upbeat about the future and embracing whatever changes – quick wins or longer term investments – are needed to ensure they remain competitive and profitable. 

This is why I am confident that venues will survive if they take measures to secure the loyalty of customers within their locality. People will still want to go to their favourite pub or restaurant, perhaps less often, but viewing it as an affordable treat. Attracting and keeping these customers is a challenge many venues will overcome if they have the right strategy in place, coupled with the determination and vision to see it through. Thankfully, most do. 

There are many other examples of venues (and brands) making profits from venues which have tackled these sorts of challenges meaningfully and with consistency. Take Loungers, for example. Their pace of expansion is phenomenal. It’s café-bar group has just opened its 200th venue and has expanded its roll-out plans to 30 sites a year, up from 25. They are benefiting from changes in consumer behaviour, with more people staying and working locally, as well as demanding exceptional service with professionalism and a smile.

Similar successes within smaller independents are also well publicised and offer inspiration to other family run businesses. Many of these have built up an excellent reputation and corresponding loyal customer base. However, changes in the way they operate are still necessary if they want to remain competitive and move with the times. The reality is that customer behaviours are always changing, never more so than now.

I have seen this change at first hand. To be honest, behaviours were changing before covid, but brought more sharply into focus as we came out of lockdown. The good news is hospitality has been quick to recognise this and take advantage, prioritising their social media coverage and associated drive for pre-booked sales.

There is no doubt that overcoming the monster threatening the future of our beloved hospitality industry has never been harder than it is right now. However, there are many with the determination, confidence and vision to do so. Hospitality is hoping for more help from government, especially considering its position as the third largest private sector employer, double the size of financial services and creating £130bn of economic activity while generating £39bn in tax revenues. Every reason for venues to feel valued and confident about the future.

It’s the anticipation that gets me before I arrange a weekend away – the excitement of planning, the exploration of options, the final choosing of accommodation and restaurants, the nervous booking (right day, right time?) and then the love of the journey. What will it all be like? Will it be better or worse than I expect? What will the others think?

 

Our weekend in Bruton earlier this month had all these elements, from Friday night until Tuesday morning. Where would we stay? What should we visit? Where should we eat? Of course, Bruton is not short of options. The Airbnb was bijou but well planned and a short walk to the high street – useful when there was little in the way of a welcome pack and no milk.

 

Saturday morning saw us have breakfast at the Old Pharmacy, a stunning building with far reaching views but, unfortunately, a shortage of chefs and, therefore, cooked breakfasts. So far, not everything was going totally to plan.

 

Then, a day at Wincanton Races, which were sponsored by Hall & Woodhouse. My strategy was to bet on any horse which had a female on the race card – jockey, owner or trainer. “Very predicable”, commented my host. My winnings though, for the day, bought us the papers, a croissant and two cups of coffee on the Sunday.

 

Sunday lunch was at the Roth Bar and Grill at Hauser and Wirth. The setting is a former farmstead near Bruton, and the gardens here were created by Piet Oudolf – both completely stunning. The rain that day though was of biblical proportions, flowing into the lunch area and making for a slightly cold experience with little atmosphere in the dining room itself. Need to try again on a warm sunny day.

 

But that narrative excludes a real highlight of the weekend (the best one, of course, being our stay at The Newt on the Sunday and Monday), which was our Saturday evening meal at Matt’s Kitchen on the high street.

 

The confirmatory email said: “Thank you for your booking request, I’ll get back to you as soon as I can. When you have received an email from me that your booking has been confirmed, here are my bank details for you to pay for your table, £10 non-refundable deposit per head…please remember to bring anything you wish to drink. You can pay the balance of your bill with either card or cash. Cheers, Matt.”

 

Just those few words suggested that this experience might just be that little bit different – and indeed it was. Matt is the chef. He owns the place and lives upstairs, opening his 25-30 cover (I guess) restaurant on Thursday, Friday and Saturdays only. The meal is set, no choice, and he serves the food himself – helped by a couple of teenagers. It was warm, friendly, welcoming, eclectic, eccentric and genuine.

 

Matt used to be a painter and decorator but loves food. He buys, prepares, cooks and serves himself and responds personally to emails, hence the very informal approach. It felt as if his balance and quality of life was exactly where he wanted it to be, enabling him to close the restaurant and go travelling whenever. A contented man running his own restaurant. He probably wouldn’t call is a simple life but, without denigrating the experience in any way, that’s what if felt like – someone doing what they loved, doing it well and earning what they wanted to earn

 

It was a veritable feast. Each dish was lovingly explained, hugely tasty, beautifully presented and a joy to look at and eat. His delight in each dish was so apparent and wonderful to see, and it was so brilliant to be able to talk to him personally about how he started and how he lived. This was hospitality exactly how it should be. I can’t wait to go back and plan another trip from beginning to end.