With every new year comes new hospitality trends, but industry experts are recommending focussing on the basics in 2024 to succeed.
It’s been a difficult 12 months for the industry as cost-of-living issues have impacted on consumer spending.
Australian retail sales only rose 0.3% for December 2023, while cafes and restaurant spending fell 0.3%. It is expected purse strings will continue to be tight throughout 2024.
According to restaurant technology company SevenRooms’ General Manager, APAC Paul Hadida (above) hospitality venues should focus on fundamentals not frills in 2024.
“With the new year comes new challenges, new opportunities, and, of course, new trends,” Hadida said.
“In recent years, there have been many; from QR codes and digital loyalty programs to kitchen automation systems and AI-generated (artificial intelligence) processes. In 2024, there will be more of the same.
“For example, investment in artificial intelligence will skyrocket, venues will diversify their menus – think non- alcoholic drinks and vegan options – augmented reality (AR) and virtual reality (VR) will become more prevalent, consumers will demand more experiential options and more.
“However, we believe the biggest driver of success for on-premise bars and pubs will be doing the fundamentals well.”
According to Hadida, pubs and bars must prioritise retention rather than acquisition, and to do so they must focus on their guest experience.
In fact, according to SevenRooms research, two in three (68%) Aussies are focusing more on the quality rather than the quantity of their dining experiences, as a result of cost-of-living pressures.
“Make every touch point seamless and memorable,” Hadida said.
“Make it easy and convenient to find – then reserve – your venue online. If the process is clunky, you’ll lose them to a competitor. Provide ways for them to upgrade at the point of reservation – for example, to have a bottle of prosecco or cake waiting, for birthday or anniversary bookings.
“Make it easy for them to get in touch with your venue. Add them to virtual waitlists and send notification alerts if new reservation slots open up. And if they refer a friend, reward them with a perk. The incentive isn’t only valuable for them, but for your business too.
“These sound like straightforward strategies, and they are – but they have a huge impact on guest experience.”
Personalisation is key
Hadida said that through approved data – collected via, for example, direct reservations or QR order and pay – on-premise venues can understand their guests’ habits and preferences, then target them with personalised automated marketing.
“Imagine two guests at your bar; one reserves during happy hour and splits a pitcher of beer with their friend,” he said.
“The second has a penchant for expensive whiskey. If you’re promoting a rare new Scotch blend, it’s likely only one of those two customers will be interested; just as only one would be interested in a new local IPA. The more personalised your venue
can be, the better their experience and the more likely they’ll return.
“Through these simple, yet fundamental tactics – and a focus on building relationships and enhancing experiences – you’ll be better placed to improve loyalty, retention, and revenue.
Review booking slot procedures
According to Hadida there are fundamental ways to optimise hospitality booking slots in 2024 using data.
“Analyse your booking slots and average turn times,” he said.
“If your reservation slots are two hours, but the average turn is just 75 minutes, consider reducing your slots to 90 minutes. That means you can seat more guests, and improve opportunities to drive revenue.
“In addition, every previously time-consuming, manual, behind-the-scenes process you can automate – from reservations to contactless order and pay and marketing automation – the more time you and your team can spend providing the meaningful human experiences people remember, recommend, and return for.”
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