Customers, customers, everywhere but not a seat to sit

The great unlocking of the leisure and tourism industry has already started.  

Some pub gardens were open at 12:01am on 12 April ready to serve their first pint since 6 January, whilst others without outdoor space find themselves unable to open until at least 17 May.  

One of the greatest challenges for the hospitality trade now is how to find the space for these returning customers.

Whilst the Government has announced that customers will no longer need a scotch egg to enjoy a pint, they will need a seat.  

Social distancing also means there is a need for space, and to maximise the available space requires creating barriers between groups. 

A further challenge is created by customer confidence. If customers feel overcrowded, believe regulations are not being followed appropriately, or sanitising is not up to their required standards then they are unlikely to want to return.

2021 is being branded as the year of the staycation. The UK holiday trade has seen a 300% increase in bookings during January – March with a reported 90% of people feeling safer holidaying in the UK than abroad. 

One of the greatest challenges the leisure and hospitality trade will have this summer will be how to service all this demand.

After suffering the economic effects of COVID-19 since March 2020, businesses will be desperate to attract customers and maximise this opportunity.

As already discussed, the limiting factor for businesses in generating revenue this summer will not be the demand, but the ability to service that demand. It is great to have 200 customers queuing up, but if you can only serve 40 at a time they will very likely go elsewhere to another business that can look after them.  

Customers will also go elsewhere if they do not have trust in your ability to keep them safe. Ultimately, any actual or perceived inability to keep them safe will have potentially irreparable reputational damage for the business.

Investment

The solution will likely come through investment, although many businesses have already decreased their reserves just to survive to the point where their ability to invest is now diminished.  

There are many funders available that can help businesses invest now to be best prepared to service the increased demand they will see in the summer.

Investment could be in the form of redesigning indoor areas, creating additional temporary barriers, PPE, and cleansing costs, including additional employees.

Bishop Fleming’s partnership with Capitalise provides us with access to hundreds of lenders that we can put you in touch with.

We can also help you to develop business plans to help secure the necessary investment to adapt and recover your business.

Further help available

If your business requires a review and some possible restructuring in order to be more effective and efficient, please contact our Restructuring Team for a conversation. You can also check out our articles and guides in our Restructuring Knowledge Hub.