Subjects: The power of superfans – how hospitality can build brand obsession, looking at creative ways to tackle cost pressures, understanding the impact of the ‘at the premises’ ruling on business interruption insurance, moving the dial on sustainability: five boardroom actions for lasting impact
Authors: Katy Moses, Glynn Davis, Steven Swift, Stephen Nolan
The power of superfans – how hospitality can build brand obsession by Katy Moses
In a world where brands are constantly trying to engage customers, it’s easy to get caught up in chasing new ones. But there’s a secret weapon that many UK hospitality brands already have: superfans. These loyal, passionate customers are not just regulars, they’re the ones who live and breathe your brand. They’re your evangelists, your cheerleaders, and they have the potential to boost your bottom line.
Last week, I had the privilege of speaking at the Restaurant Marketer & Innovator European Summit about the value of these customers, building on recent research KAM has conducted in partnership with the British Institute of Innkeeping and Brakes, and how brands can harness their power for growth.
What exactly is a superfan?
The example I used last week was the Taylor Swift superfan who had every one of her songs tattooed on their back. Now, that’s a little extreme, but the short answer is that superfans are those customers who aren’t just satisfied with their experience – they’re genuinely emotionally invested in your brand. They’re the people who turn up rain or shine, share your social media posts and recommend you to anyone who’ll listen.
They’ve been to your restaurant or pub so many times they know the staff by name, and they’re quick to tell all their friends when something new or exciting happens at your venue. Superfans are your loyal tribe, the customers who will keep coming back for more. And bring their friends with them. And tell their friends about you. And maybe get a tattoo of your logo if they’re really invested!
KAM research tells us that 32% of UK adults describe themselves as emotionally connected to a specific hospitality brand, so it’s no surprise they will visit more you often. But it’s not just about the frequency of visits; it’s about the value superfans bring to your business. Superfans are more likely to spend more per visit, provide (free) word-of-mouth marketing and contribute to your brand’s online presence by posting reviews and interacting with your social media channels. They don’t just come for the food; they come for the experience, the atmosphere and the community you’ve created – see Lina Stores for exactly how to maximise the brand story and create a community.
But how do we keep superfans once we’ve got them? It’s not just about the food and drink (though, of course, that is hugely important – superfans tend to value quality more than your average customer). Superfans are deeply connected to the experience you provide. Here’s what our insight suggests are the most common reasons superfans stay loyal to a venue.
Exceptional customer service
Our research shows that more than 50% of superfans cite exceptional customer service as a top reason for feeling emotionally connected to a hospitality brand. They want to feel like they’re valued, whether it’s a friendly greeting when they arrive – by name if possible – remembering their regular drink order, or just the feeling that the staff genuinely care. It’s not just about giving good service; it’s about going the extra mile to make guests feel special. Superfans expect more, and they’ll reward you for it.
Consistent quality and variety of range
Superfans know what to expect from your brand, and they return knowing that they will get a great experience every time. They also value variety – keep them engaged with new menu items, special promotions and seasonal events. A specials menu or guest beer/pop-up food option keeps things fresh without sacrificing the familiar. It’s a balance, but it pays dividends if we get it right.
A sense of community
According to KAM research, superfans are drawn to a venue because it feels like part of their social circle. They may have met friends there, celebrated special occasions or simply found a place where they feel at home. Building a community that gels together around your brand is key.
Exclusive perks and rewards
Loyalty programmes are a no-brainer when it comes to keeping superfans happy. KAM data highlights that superfans are more likely to engage with brands offering exclusive rewards or perks. These customers want to feel like they’re getting something extra for their loyalty – discounts, access to limited-edition items or invites to VIP events.
Build a digital connection
Social media plays a pivotal role in amplifying the influence (and happiness) of superfans. If they’re not posting photos of your latest dish or sharing their positive experiences on Instagram, they’re telling their friends about your venues via WhatsApp or Facebook Messenger. KAM research indicates that 68% of superfans are likely to share their experiences online. That’s free marketing right there!
How to cultivate superfans in the UK hospitality sector
So, how can you turn regulars into superfans?
1. Create memorable experiences. People don’t just remember what they eat or drink, they remember how they feel. We need to provide an environment and experience that creates memories.
2. Make your superfans feel special. Simple gestures can make all the difference. It’s not just about transactions, it’s about building relationships. They like to feel special – what can you give them access to that the average customer won’t get? Secret menu options or merchandise (think Primark X Greggs but on a tiny, personal scale) – something unique.
3. Leverage technology for engagement. Whether it’s a well-designed loyalty app (Anglian Country Inns just relaunched its, and from what I’ve seen so far, it’s great), social media interactions or targeted email marketing, use technology to stay connected with your superfans.
4. Encourage word-of-mouth. Superfans love sharing their passion for your brand. Encourage them to spread the word by offering incentives for referrals or featuring their reviews and photos on your social media. You’re turning your superfans into advocates, which can lead to even more superfans, which can lead to…you get the picture.
Superfans are the unsung (and often untapped) heroes of our industry. They’re more than just repeat customers, they’re brand advocates – an unpaid marketing team, if you like. By providing exceptional experiences, recognising their loyalty, and engaging with them on and offline, you can turn casual customers into dedicated superfans, with or without the tattoos!
Katy Moses is the founder and managing director of sector insight consultancy KAM. This article first appeared in Propel Premium, which is sent to Premium subscribers every Friday. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.
Looking at creative ways to tackle cost pressures by Glynn Davis
Any conversations I’ve had with hospitality and retail business leaders in recent months have invariably worked their way around to the issue of labour costs. There cannot be a single management team across these sectors that is not worried about rising costs and is carefully crunching the numbers to see how to maximise the value from its employees.
UKHospitality has calculated that employing a full-time restaurant staff member will jump by at least £2,500 from increases in the national minimum wage (NMW) and national insurance contributions (NICs). On top of this, a high number of part-time workers will also be caught up in the lowered thresholds. UKHospitality says nearly 800,000 hospitality staff will be involved, costing the industry around £1bn.
With bigger employee bases and high numbers of entry-level jobs, retail and hospitality invariably take the bigger hits from any NICs and NMW changes. This was starkly illustrated by a recent conversation I had with Paul Hargreaves, founder of Cotswold Fayre, whose wholesale business involving selling artisan food into retail stores and farm shops has revenues of £25m per year and employs 40 people, whereas his two Flourish Foodhall & Kitchen outlets, which have a roughly equal split between retail and food and beverage, have sales of £5m and employ 110 people (including part-timers).
He says he found the difference in the cost of labour needed for food and beverage due to the much higher number of people required a “real eye-opener”. If the restaurants weren’t such a powerful driver of footfall to the retail part of the business, then I doubt he’d entertain being involved in the customer-facing Flourish business. From large corporates to small operators, the message is the same.
Is it any surprise that Sainsbury’s recently announced it will cut more than 3,000 jobs as it shutters its remaining 61 in-store cafés, which comes almost three years after it closed 200 such cafés and removed the labour-intensive food counters from its stores.
Scottish chef Dean Banks, who runs six restaurants in Scotland, including the flashy Pompadour in Edinburgh, says he will be reducing employee numbers by 15%-20% and has just scrapped plans to open a 200-seat restaurant in Dundee due to the forthcoming tax rises.
This is drastic action. To avoid such a fate, many businesses are making the strategic decision to focus greater attention on add-on business areas that require fewer people. For some, this involves the push into more hybrid models such as incorporating retail. Copying operators in the US and moving into selling merchandise undoubtedly represents a modest opportunity.
Supplying branded food goods into retail is also proving lucrative for a growing number of restaurant brands. Itsu has made this a key growth area, with 30% of its sales generated this way in 2023, and much more expected in the future. Julian Metcalfe, founder of Itsu, believes it will very soon be larger than the restaurants business, and the rationale for the shift in focus is obvious. “The high streets, especially staff costs, are so expensive,” he said.
For many pubs, the answer has been to reduce opening hours, and maybe consider things like outsourcing the kitchen, with third parties manning the stoves. The real strategic winner though for a growing number of pub operators is adding rooms. The labour costs required for accommodation versus the pub, with its food and beverage, is substantially lower, and staying guests invariably prove to be serious spenders on food and drink in the bar/restaurant – often on quieter nights of the week.
The other strategic route to managing the rising costs of employees is automation. There are not many quick service restaurant (QSR) businesses that do not have kiosks within their outlets. If a QSR brand does not have them, then they are clearly doing it to stand out as the only business not on board with this route to optimising customer flow. There are many other examples of automation being tested and introduced into restaurants, predominantly in the back end, to boost efficiency and strip-out labour costs.
One of the most progressive participants is the London healthy bowls restaurant Common Room, which is run by technology and restaurant start-up Kaikaku. The restaurant has a dining room on the ground floor, while behind the scenes in the basement, it has code writers and hardware designers with 3D printers, constantly innovating the model. Interestingly, its backer, Auctor Group, has just bought the 20% stake in Tortilla that was held by Quilvest Capital Partners. The plan is to bring the cutting-edge tech of Common Room and Kaikaku to bear on a much bigger stage at Tortilla and its more than 120 sites globally.
The heated conversations and exchanges around NICs and NMW increases will undoubtedly continue, but the hospitality industry is never one to stand still and lose heart, so concurrently, we have many constructive organisations looking at ways they can creatively and innovatively adapt to the serious challenges they continue to face.
Glynn Davis is a leading commentator on retail trends
Understanding the impact of the ‘at the premises’ ruling on business interruption insurance by Steven Swift
The insurance industry witnessed a significant development just before Christmas, as insurers were denied the right to appeal the “at the premises” (ATP) ruling in relation to business interruption policies. This ruling, while not a solution to all the challenges faced by policyholders, represents a noteworthy milestone in the ongoing legal and insurance landscape shaped by the coronavirus pandemic.
Here's what this means for operators in the leisure and hospitality sectors. Firstly, some background. The covid-19 pandemic caused widespread disruption across industries, leading to significant financial losses for businesses. Many policyholders turned to their insurance policies to recover these losses. However, ambiguity around policy wordings and coverage led to widespread disputes.
In 2020, the Financial Conduct Authority (FCA) launched a test case to address this issue. Representing policyholders’ interests, the FCA sought to clarify the validity of claims under business insurance policies. The test case highlighted the fact that 370,000 policyholders held approximately 700 types of policies issued by 60 insurers, all of which could potentially be affected by the court’s decision.
The Supreme Court's 2021 ruling focused on policies with “radius” wordings, which provided coverage for losses arising from disease occurrences within a specified radius of the insured premises. This ruling did not, however, address policies with ATP wordings, which cover losses directly attributable to the occurrence of disease at the insured premises.
Due to the exclusion of ATP policies from the FCA test case, many insurers refused to accept claims under these policies, resulting in additional litigation. Recognising the need for clarity, the Commercial Court expedited six test cases for preliminary issue trials in May 2023, with London International Exhibition Centre (ExCeL) serving as the lead claimant. Last September, the Court of Appeal ruled in favour of the ExCeL’s owners, affirming that policyholders with ATP wordings could claim for losses directly linked to covid-19 occurrences at their premises.
Crucially, the court refrained from addressing how the presence of covid-19 at a premises should be evidenced, leaving it to insurers to adopt a pragmatic approach to avoid further legal disputes. In December 2024, the insurers’ application to appeal this ruling was denied, solidifying the Court of Appeal’s decision as a significant victory for policyholders. For operators in the leisure and hospitality sector, this ruling represents a significant shift. However, it’s important to note that this development doesn’t guarantee payouts for every policyholder. Here are the key implications.
Evidence of covid-19 at the premises: Policyholders must provide clear evidence of covid-19 occurrences at their insured premises to support their claims. This could involve medical reports, government data or other reliable sources confirming cases on-site. Also consider communications and records with staff or visitors and the symptoms demonstrated.
Insurer pragmatism: While the court avoided detailing evidentiary requirements, insurers are expected to adopt a pragmatic approach to avoid further litigation. Operators should work closely with their brokers and legal advisors to present robust evidence and negotiate claims effectively.
Time sensitivity: Under the Limitation Act, policyholders in England have six years, and those in Scotland have five years, to bring legal action against insurers. For covid-19-related claims, this means the window for initiating legal action will close by early 2026.
Evolving claims landscape: Since the FCA test case, more than 100 court cases have been filed concerning covid-19 business interruption claims. This evolving landscape highlights the importance of staying informed and proactive in addressing potential claims.
The denial of the insurers’ appeal marks a turning point in the fight for fair treatment of policyholders. We see this as a significant win for policyholders and welcome the court’s decision. The trading landscape for operators certainly isn’t easy, but hopefully this development can help some firms access the insurance compensation they deserve. While the ruling brings hope to many operators, it is not a blanket solution. Each claim’s success depends on the specific policy wording, the quality of evidence presented and the approach taken by insurers. Policyholders should seek expert guidance to navigate this complex environment effectively.
As Joanna Grant, managing partner at Fenchurch Law, advises: “Policyholders with unpaid covid claims who can evidence a case of covid at the premises should act now before their claims become time barred.” Indeed, since the ruling, one main insurer has given some guidance on what they would accept as evidence of covid at the premises in the acceptance of testing. The key is that this hasn’t been tested yet, so I’m working with the various loss adjusters to understand what they will accept.
Also, and crucially, while insurers put covid exclusions on policies from late May 2020, those with renewal dates from December to May could qualify for lockdowns two and three, when the testing regime was in place and providing evidence is much easier. At this stage, it’s too early to provide black and white guidance, each claim needs to be looked at. For businesses looking to leverage the ATP ruling, consider the following steps:
Review your policy: Understand your policy wording and whether it includes ATP coverage. Consult with your broker or legal advisor for clarity.
Gather evidence: Compile evidence of covid-19 cases at your premises, including official health records and communications, including text messages, WhatsApp messages and visitor logs.
Act promptly: With limitation periods approaching, ensure your claim is filed within the stipulated time frame to avoid losing your right to compensation.
Seek expert advice: Work with specialists in insurance and litigation to strengthen your case and negotiate effectively with insurers.
The ATP ruling is a significant development in the post-pandemic insurance landscape, offering a glimmer of hope to operators who suffered immense losses during covid-19. However, navigating the complexities of business insurance claims requires diligence, expertise and proactive action.
By staying informed and working with industry specialists, operators in the leisure and hospitality sector can maximise their chances of recovering losses and securing a stable financial future. This ruling is not just about compensation; it’s about fairness and resilience in the face of unprecedented challenges.
Steven Swift is a director at Sector Associates, the independent commercial insurance brokerage
Moving the dial on sustainability: five boardroom actions for lasting impact by Stephen Nolan
We recently hosted a roundtable with senior executives from the restaurant, pub, bar and contract catering sectors, to talk frankly about the challenges and opportunities in progressing their sustainability strategies. We wanted to understand where they see the biggest opportunities to move the dial on this, and what action needs to be taken both at head office and across the estates.
It’s clear that there is huge pressure on operators to show their commitment to change. They know that environmental issues are key to the decision-making of both consumers and employees, and this only continues to increase in importance. Guests want to know that their favourite places for eating and drinking out are making meaningful progress in their sustainability strategies, and team members want to be sure they are working for an ethical and responsible company – otherwise, they may well go elsewhere.
The challenge lies in driving sustainability progress across every level of the hospitality industry. While smaller businesses are no less committed, their limited resources means that independent pubs, bars and restaurants are at risk of falling behind in their progress and ambitions on sustainability compared with their larger counterparts. Participants agreed that increased support from the government is crucial for operators to advance and meet their goals. However, this alone isn’t enough – industry collaboration is key. Here are five key takeaways for better sustainability practices.
1. Adapt your measurements: If you don’t measure it, you can’t improve it. Hospitality leaders understand that progress on sustainability has to start with a detailed, company-wide understanding of Scope 1, 2, and 3 emissions. Internal progress must be measured to ensure success in reducing all three, so appropriate KPIs should be in place. A total of 84% of hospitality leaders agreed that KPIs and measurements are vital to improve sustainability.
2. Invest in innovation: Technology indisputably plays a big role in sustainability, and 82% of operators see the value in investing in appropriate technology, and return on investment measured in both monetary and reputational terms. All agreed that systems and software help measure and display the goals and milestones of their estate’s carbon footprint or food waste reduction programmes, for example. Actively displaying and communicating this insight also helps showcase the progress the sites are making, helping to inform customers and build loyalty and support.
3. Change comes from the top down: More than three quarters (77%) of operators understand that change has to come from the top, and that if sustainability is a priority at the board level, only then will it become a priority throughout the business. Sustainability goals and progress against these should be a recurring item on board agendas. Keeping environmental plans clear and transparent at this level means they can be communicated across the estate, helping to keep team members engaged and motivated to “do their bit”.
4. Supplier collaboration is key: The bulk of the hospitality industry’s carbon footprint comes from the supply chain itself rather than individual sites. With this in mind, 77% of hospitality leaders agreed that partnerships with suppliers, producers, logistics partners and others are vital. Good, effective relationships with suppliers enable operators to collaborate and accelerate meaningful change, especially around Scope 3 emissions.
5. Recipe reformulation and menu engineering: Recipe reformulation is by no means a new concept and is used across the hospitality sector. Three quarters (75%) of operators reap the benefits of adapting their menus to drive down both cost and environmental impact and increase health benefits. Carbon labelling on menus can also be positive and labelling lower-emission menu items is a good way to improve guests’ understanding of the environmental impact of their choices – a win for both customer and operator.
Final thoughts
It’s no secret that operators have a lot to do when it comes to sustainability, but business leaders can’t meet the challenge alone. To make hospitality truly sustainable, it’s essential that we come together as an industry – sharing advice, resources and best practices, to ensure everyone has the tools they need to drive impactful progress. Download our
new report for further insight from leading UK business leaders on the actions that can be taken to drive positive change.
Stephen Nolan is chief executive at foodservice technology provider Nutritics