Train strikes, the cost-of-living crisis, tipping legislation, cost rises – you name it, there is always something putting pressure on margins. At the same time, restaurants have to deliver great customer experiences, exceptional value and demonstrate purpose. Not much to ask. 

 

Tough trading times mean taking every opportunity to make marginal gains and marginal cost savings. But there is an elephant-sized gain that very few are seeing and that can be a decisive game changer. 

 

The reason lies in the profound change to the British public’s buying sentiment that materialised during lockdown. Sifting through tens of millions of social media posts and conversations, Brandwatch analysts identified a remarkable and fundamental shift in consumer attitude.

 

Buying decisions were no longer based primarily on: “What will the product, service or brand do for me, say about me?” Suddenly it became: “Will the purchase be positive for my family, my friends, the planet, society?”

 

This altered state of thinking applied to demographics of every income, social, ethnic and cultural background. People wanted to know about the environmental and social practices of those trying to sell to them, with sustainability being most important.   

 

The desire for sustainably friendly buying experiences was massively accelerated by covid, and meeting this expectation has become a real and present imperative. Consumers are no longer surprised or even delighted by brand social conscience – they expect and increasingly demand it. 

 

For some consumers, buying decisions have been markedly tempered by the cost-of-living crisis, but when it comes to leisure spending, the environmental markers are most definitely in play, and people are prepared to pay more. There is abundant evidence of this. 

 

In a new survey of 1,000 UK adults by Lightspeed Commerce, more than 70% of UK adults said they would pay a greater amount for a sustainable dining experience, with a significant proportion saying they would spend an additional £10 or more.  

 

A  broader Capgemini Research Institute study uncovered a similar percentage of consumers will pay more to embrace social issues, while more than half have been attracted by sustainability performance and then switched spending, and are much more likely to then remain loyal for the same reason. These buying patterns are significantly more concentrated among Millennials and Generation Zs. 

 

Of course, there are very few restaurants that have not taken at least some steps to improve sustainability, but overwhelmingly, the results are invisible. Prospective diners and customers cannot see it, or see it easily. Green messages do not stick unless they are firmly pressed home, at which point there is a danger they become too preachy.

 

But also, people often do not trust environmental claims. Since 2021, lack of belief in self-proclaimed green practice has risen from 40% to 48%, according to Mintel. “Greenwashing” is a phrase that is ever present in the minds of a sceptical public, and it is extremely damaging to those labelled with it. 

 

It means that when it comes to the environment, it is necessary for restaurants not only to do, but also to show and tell. And this is the really important factor; showing and telling can be used as a very powerful tool to engage, win and keep diners coming back, as long as what is done has tangible identifiable benefits of measurable substance. 

 

The key factor is doing something simple and memorable that becomes a pillar of the restaurant proposition, by showing that environmental good is really happening. Preferably, this includes an interactive element with customers that takes them on a joint journey. It is the green elephant that few are seeing, or utilising.

 

There are any number of options available to achieve the required outcome, such as asking customers to nominate an environmental cause the restaurant management will make a contribution to. The key thing is to create interaction. Make customers think, make them part of the process, give them a warm and positive feeling as part of the dining experience – something they will talk to their friends about. It creates significant benefits.   

 

Interaction based on sustainability generates positive association with a restaurant. It increases repeat booking ratios and it results in that most powerful of all marketing communication; peer-to-peer recommendation, both face-to-face and on social media. Putting the green elephant to work markedly changes the fortunes of those that see and utilise it, as well as benefiting the planet. 

 

There is a myth in our industry that being understaffed is the biggest challenge to sales growth, and that is the missed opportunity. But the truth is that, while we all want to have the right number of staff, the bigger enemy to service and sales is overstaffing.

 

Let us take the difficult example of when you need 1.5 people on a shift front of house. Clearly you can’t have one, because they would fail, so the right answer is to have two. You might decide that you want one on the bar, one serving and one running food. Then you have three. Comfortable – and many might argue that you have the structure right, service will be great and they can cope with any increase in sales. Good rostering, right? 

 

But I have seen countless examples of what actually happens on this kind of shift. One person does the work of 1.5 people, badly, and the other two people chat. Of course, the customer is forgiving if you have two people working hard and it is busier than expected, but equally, they are unforgiving if they see two people chatting. 

 

We have all seen it too often. Recently, we were doing some customer training and made this point to managers. There was no argument – they all agreed. So, if we can all agree that overstaffing is the biggest enemy, why does it happen?

 

Is it because rotas are written without thinking enough about demand? Is it that people think there is a minimum number on shift that is required and can’t see how to run their business on less? Is it fear that someone won’t turn up? Is it that they overstaff in case they are busier?

 

Is it that the manager really wants to do nothing on the shift so rotas extra hands? Is it that there are a few standard shift structures that are deployed, and the staff don’t want to create any more? I think it is the combination of all of those reasons that causes overstaffing.

 

But what is the cost? The problem with our industry is that the majority of shifts during the week are quiet. If we have 14 shifts a week, then it is likely that at least half of them are quiet shifts, where there is a tendency to overstaff. If, say, 20% of our labour occurs at these points (for one of my own, it is 35%), and we could save 10% of this, then this is still a 3.5% improvement in labour. And we all need that.

 

So, let’s come back to the reasons. In truth, only the first and the last can be solved through systems, unless you control a manager to death and remove any level of authority – an equally dangerous approach. 

 

The rest are achieved through education and training. It has been great to have recently seen both managers and kitchen managers get the point in recent training sessions. But the prize is a big one. Reduced cost and increased sales are the dream ticket. So, let’s bust the myth.

 

Jez Butterworth's new play, directed by Sam Mendes, is now playing at the Harold Pinter Theatre behind Leicester Square in Panton Street. I booked The Hills of California in about October last year, over a particularly lovely breakfast at Farmer J’s, when I thought I needed something to look forward to on what was probably going to be a cold, wet, windy, miserable February day in 2024. It was.



I always think going to the theatre is such a fantastic experience. Deciding when to go, where to sit, what to pay, and then reading the reviews when the play first goes live is a joy. The Edinburgh Fringe, which I am going to again this year, is just like that but on steroids. 

The anticipation of being able to see something terrific on stage is just a joy too. King Lear with Kenneth Branagh, Guys and Dolls directed by Nicholas Hytner, Operation Mincemeat at the Fortune Theatre, Dear England with Joseph Fiennes, and The Motive and the Cue with Mark Gatiss and Johny Flynn have all been sensational to watch over the last few months – particularly the latter.



I have come too late to the party to see Till the Stars Come Down at the National, which is frustrating, though I may be just in time to book for Standing at the Sky’s Edge at the Gillian Lynne Theatre. It’s particularly brilliant to be able to go to a matinee – unheard of pre-covid, to be honest. Only really old people go the theatre in the afternoon, I thought.

Well, they don’t. Every matinee I have been to recently has had the same sort of profile as the evening performance. At this week’s performance, someone was working on their laptop in the break. Not quite work-from-home but in the same spirit, probably. I think they stopped when the play started again, but I can’t be sure.



Of course, what makes the whole experience of going to the theatre so exceptional is planning where to eat either pre or post, preferably pre as there is less inclination to close your eyes during a quiet moment on stage.

 So, pre King Lear, we went to Fallow. Pre Guys and Dolls, it was the Coal Shed. Pre Operation Mincemeat, it was Caravan. Pre Oklahoma, we went to Palomar. And post The Motive and The Cue, it was Mountain.



I thought this week’s choice around Panton Street was going to be a tad challenging as it’s so touristy. I steer clear of looking on TripAdvisor for recommendations as I think its restaurant reviews in central London are often led by that particular demographic. I do use The Infatuation though for advice as it’s good for independent and honest reviews – I have found some really engaging and innovative restaurants on there that I might never have found on more traditional review sites.



I couldn’t get a table at Bancone that it mentioned, and with no chance at the Devonshire, I tried the French House, but no joy there either. But this caught my eye: “Machiya’s already a hit with Asian students and young professionals, who pop in for a cheap solo lunch or to catch up with friends over matcha cake and tea.” Duly booked, it was tremendous.



We shared Horenso No Gomaae (wilted spinach salad with nutty sesame dressing); Nasu Dengaku (miso glazed aubergine with sesame, chilli and spring onion); Tsukune (tare coated chicken skewers with rich egg yolk); and Shake Teriyaki (teriyaki glazed salmon and chives) with a green tea and a low-alcohol, very interesting beer.



My restaurant bill was £22.30 and my theatre bill was £89.50. I enjoyed the play but I loved my food (and coffee afterwards, at Ole & Steen). Simple, honest, beautifully presented food with a friendly service. A busy but small footprint restaurant with a nice team – absolutely all you could ever want before a theatre visit. An afternoon of memory making with a friend – what more can you want in life but just that?

 

Let’s talk about the economic phenomenon of inflation. Some see it as natural, but the current state of runaway inflation is presenting a whole new challenge.

Everything from food prices to energy costs have skyrocketed to unprecedented heights. The inflation rate has gone from a steady 0% to 2%, to a whopping 8% and to 10%. This perfect storm is putting immense pressure on business owners across industries. The hospitality industry is getting hit hard.

Hospitality operators are struggling with the financial consequences of rising energy prices and food price inflation. Suppliers keep raising their rates and energy costs are stubbornly high.

It’s becoming increasingly difficult to manage these mounting expenses. And, on top of it all, global conflicts have thrown a pricing spanner into essential commodities like grain and oils.

The constant price fluctuations and shifting VAT rates are putting a dangerous strain on growth margins and overall profit percentages. It’s a concerning problem that needs immediate attention.

Hospitality owners frequently review and analyse invoices to handle rising prices. Normal, right? But it can be overwhelming and time-consuming, especially in bulk. Many business owners simply don't have the capacity.

In the past, monitoring individual item price increases was relatively easy. You could review each invoice and compare this week’s spending (Y) with last week’s spending (X).

It was a tedious process, but it got the job done. Now you’re forced to analyse overall food costs across every category. Talk about a headache!

Or, you negotiated with suppliers to get better prices for your products. Let’s say chicken used to cost £10 but the supplier wants to charge £15. You could haggle to bring it down to £12. Today, negotiation skills are vital just to keep the doors open. A much tougher task when every supplier is raising prices on everything.

Then, you start hunting for new suppliers? Traditionally, shopping around was an option. But it took time, effort and energy that was better spent running the business. Today, there’s no guarantee that a new supplier will have lower prices because everyone is experiencing the same rate of inflation.

And we can’t forget about the quality of the produce. Switching suppliers or cutting costs can seriously impact the food’s quality. If your business is known for its outstanding food, any compromise in quality could leave your customers disappointed.

Of course, passing on the increased costs to customers is an option. But let’s be realistic: it’s not feasible for most hospitality businesses. Quadrupling menu prices just because energy and food prices have skyrocketed four-fold is off the table.

You need to think about how much of the cost increase you can pass on to customers and how much you’ll have to cover yourself. Changing menu prices and ingredient quantities can have drawbacks and impact the customer experience, too. Will customers be willing to pay more, or will they start looking for alternatives?

What if you’ve already made all these changes? How long will it take for you to notice a drop in customer visits after raising prices? Without data-driven, consolidated reporting, it could be quite a while before you spot the decline. Your loyal customers might be taken aback by the higher prices and quit silently.

New data and reporting technologies can play a crucial role in understanding your financial performance on a weekly basis. No more waiting two weeks after the end of the month to get a clear picture.

But here’s the catch: you need an accounting solution that puts data first. That’s where data-driven accounting solutions can help your restaurant, since it can monitor for significant changes in trends and benchmarks in a timely manner. So you can make informed decisions that impact your business now, not later. 

Amid a cost-of-living crisis, reporting can help you save money and cut operational costs by providing valuable insights. Automated accounting solutions combine traditional accounting with data-driven reporting, helping you meet the challenges posed by inflation. And, the good news is, if you’re already investing in accounting and bookkeeping services, you can already afford these solutions.

Unfortunately, inflation has set up shop, and it seems to be here for the long haul. Data is a powerful tool in the battle against surging prices.

Reporting on costs, prices and customers helps smart hospitality owners make better decisions regarding suppliers, pricing and ingredient management.