One third of hospitality businesses now operating at a loss: One third of hospitality businesses are now operating a loss following the £3.4bn of additional costs that hit the sector in April – an 11-percentage point increase on the last quarter, according to new research. The survey by UKHospitality, The British Institute of Innkeeping, the British Beer & Pub Association and Hospitality Ulster, also revealed six in ten have had to cut jobs, and 63% have reduced the hours available to staff in order to try and mitigate the increases and stay afloat. The trade bodies said the findings lay bare the impact of recent increases to employers’ national insurance contributions and the changes to business rates on hospitality businesses. More than half of operators said they have been forced to cancel investment and, with 76% of hospitality operators reporting they have had to increase prices, there is also a knock-on effect to consumers and the wider economy. In a joint statement, the trade bodies said: “The government seems to be setting itself up to miss its own targets with these most recent cost hikes for the hospitality sector. Hospitality is vital to the UK economy but is under threat from ongoing costs rises, which the April increases have only exacerbated. Jobs are being lost, livelihoods under threat, communities set to lose precious assets and consumers are experiencing price rises when wallets are already feeling the pinch. The government must act urgently to mitigate for the changes to employers’ national insurance contributions and deliver on its promise of root and brand business rates reform. The overall tax burden on our sector must be reduced, including consideration of the long-standing ask of a VAT cut for the sector, so the hospitality industry can return to investment, job creation and growth in communities the length and breadth of the country.”

 

Honest Burgers launches first digital loyalty programme: Honest Burgers, the Active Partners-backed business, is launching its first digital loyalty programme. Honest Insiders will launch on Tuesday, 10 June, offering exclusive rewards for customers when they visit any of the brand’s 39 restaurants. Honest Insiders will reward customers with a stamp each time they visit Honest Burgers and sister concept, Honest Smash + Grab. Customers will receive complimentary onion rings for signing up to the rewards app. On their third visit, they will receive complimentary chicken wings, or chicken tenders at Smash + Grab on their next visit. On their fifth visit, they will earn a stamp for a soft drink when they next come to Honest Burgers, and once they’ve reached eight stamps, customers will be able to enjoy a free burger of their choice. Customers will also receive personalised offers and rewards, a treat during their birthday month and access to exclusive events. Chief marketing officer Marcus Denison-Smith said: “Honest Insiders is our way of thanking our customers – honouring each visit with a digital stamp and rewards along the way. Beyond gathering stamps, being an Honest Insider will offer surprise and delight treats, birthday gifts and access to exclusive events – things that we believe our customers would really love, so we can recognise them on a more personal level. We’re delighted to have reached the first key milestone of our loyalty strategy and look forward to delivering more Honest value to our customers in time to come.” Honest Burgers founder Philip Eeles will be among the speakers at Propel’s Operational Excellence Conference in partnership with Purple Story. The conference takes place on Wednesday, 9 July at One Moorgate Place in London and is open for bookings. Eeles – who is also co-founder of Pineapple, which collects and benchmarks people metrics from 75 business on a quarterly basis – will reflect on starting a new restaurant in the current market; the need for a balance between taste, operational efficiency and gross profit; and how people metrics underpin overall performance. For the full speaker schedule, click here. Tickets are £295 plus VAT for operators and £345 plus VAT for suppliers. There is a 20% discount for operators and suppliers who are Premium Club subscribers. Email: kai.kirkman@propelinfo.com to book.