Hospitality in a post-COVID world has been saved
Hospitality in a post-COVID world
Respond, Recover and Thrive
In the face of certain challenges and a still uncertain set of risks, hospitality leaders are concerned about how their companies will be affected and what they have to do next. In the heat of the moment, there are several lessons from history – and from other parts of the world – that can be applied now. These common commercial issues need to be considered now by all hospitality as they reopen to Respond, Recover and Thrive.
Quick, appropriate action can help hospitality weather the COVID-19 pandemic
1. Stay engaged with customers
Customer safety is the highest priority, and the current pandemic challenges should be continually re-emphasised and addressed responsibly at a outlet and asset level.
2. Strengthen Digital Capabilities
With hospitality outlets closed more operators and asset owners are capitalising on pick-up and delivery options or other ways to engage with ‘pent up’ demand. Strengthen your digital and mobile presence and strategic brand alliances to connect with your customer base.
3. Support your talent and revisit your talent strategy
Understand how your talent capacity needs will change with fluctuating demand and create open and frequent communications with employees. Don’t lose sight of forecasting talent demands as the lockdown eases.
4. Shore up the supply chain
Assess operations in strongly affected areas and evaluate the viability of alternate sourcing options. Work with store and asset leadership to implement appropriate inventory management across the board.
5. Maintain business continuity and financing
Confirm that you can find the liquidity your company needs to continue to grow and develop in the face of unpredictability. Investigate all cash flow forecasts and understand mitigation options. Review job grants as well as tax deferral and refund options.
Despite the announcement of an energy price cap, much higher energy and food costs compared with the same period a year ago, have pushed the Deloitte Consumer Confidence Index to a new record low at -20% in Q3 2022, twice as low as it was a year ago.