The shocking scenes of violence that flared up on UK streets in late July and early August has left many hospitality firms reeling, with sales falling 10% according to CGA by NIQ data. So how can your hospitality firm recover from a downturn in sales?
Data suggests that UKHospitality members saw their sales in towns where protests were planned drop by as much as 40%, with football falling 75% in the process.
With many hospitality firms targeted during the disorder and the horrifying arson attack on a Holiday Inn Express hotel in Rotherham on August 4, 2024, it’s unsurprising to see hospitality activity fall in the wake of the riots.
While the immediate threat of more rioting appears to be subsiding, social media has once again come under fire for allowing the spread of misinformation and hateful content, which appears to be focused on mobilising more rioters to create further disorder on UK streets.
With this in mind, hospitality businesses are facing new, unwanted challenges in a decade that’s already been plagued by the COVID-19 pandemic’s impact on sales.
So, how can your business recover from sales losses in the wake of the riots? Fortunately, there are a number of measures that can be taken as a budget-friendly solution to overcoming shortcomings in revenue:
Help is at Hand
If your hospitality business has been directly affected by the riots, the trade body UKHospitality has set up a support hub to help arrange effective compensation packages.
Whether your business was vandalised, forced to shut its doors as a result of protests, or has staff whose welfare may be threatened in protest locations, the support hub focuses on providing actionable advice and compensation for operational shortfalls experienced.
Crucially, the hub is a great resource for liaison schemes with local authorities and provides financial support procedures that your business may be allowed to claim depending on how it was impacted by the rioting.
For businesses that experienced vandalism during riots, the Riot Compensation Act 2016 (RCA) allows financial remuneration for losses and is certainly worth revising in case you have a claim either now or in the future.
Try to Budget for Marketing
It can be especially tricky when your sales are struggling, but trying to avoid making marketing budget cuts is crucial for getting your hospitality business back on its feet.
In the wake of the riots, more of your prospective customers will be fearful of leaving their homes to use your business if they suspect that there could be civil unrest in your local area. The best way to counter this is through a focused marketing campaign that showcases how your business continues to operate in the area with no safety risks.
Plenty of social media activity showing how it’s ‘business as usual’ for your firm will embolden more visitors to feel safe when making a booking or purchase, and adding some content marketing copy about how you’re improving security measures in the prospect of future civil unrest can help to allay any lingering fears.
Growing your marketing presence doesn’t have to break the bank, and simply adding more images of your business thriving on social media can go some way toward helping to win back lost sales.
Technology to Boost Preparation
Low-cost technologies can not only improve your operational efficiency but also help to build resilience against the prospect of future disorder.
There’s no better way to become more prepared for any challenges that may lie ahead than through the adoption of a modern point-of-sale system.
Modern electronic POS systems can not only help to facilitate flexible payments and real-time customer analytics, but they can also provide automated stock control while facilitating online ordering capabilities.
This means that you can keep on top of your stock should riots ever spark concerns over looting, and if you’re a restaurant that has to shut its doors because of a planned protest, the POS system can help to ensure more revenue streams through easy online ordering.
Tap Into the Power of Community
The power of community always prevails during periods of unrest, and if your hospitality business is located in a town or city, you could find plenty of opportunities to launch partnerships with local tourist spots, restaurants, and shopping centres to drive more foot traffic.
This can be particularly useful for hotel businesses, but restaurants, cafes, gyms, and many more hospitality firms can help boost sales to bring in more customers.
For instance, hotel owners can scope out local businesses that are likely to appeal to guests. By introducing the hotel to these businesses, you can agree to share promotional material and include the respective businesses within lists of recommendations.
You could even create exclusive deals that involve discounts when booking at the hotel with money-off vouchers for partnered restaurants.
Future-Proofing Sales
These actionable tips can help safeguard your hospitality business against the prospect of riots while ensuring that you never lose out on sales because of the unrest.
The shocking riots that have swept across the United Kingdom in recent weeks have hit the hospitality sector hard. But always remember that help is on hand, and low-cost solutions can really make a difference when it comes to boosting your revenue.
For many hospitality owners, the events of late July and early August have been especially troubling, but with the right approach, you can continue to build your long-term sustainability and profitability.