The new Hospitality future: three important areas to consider
Column — The Hospitality Industry and the restaurant business are the areas that the current corona crisis has probably hit the hardest. Stakeholders now find themselves altogether in the same boat, and if we are to survive then we must all pull together. Now is the time to seek out new solutions that will not only inject new revenue but also lay the foundations for a new business environment and growth.
Access to the right technology
Technology is the enabler that drives our ability to run a business in the Hospitality Industry. We are now experiencing rapid changes where hotels and restaurants need to think up new service models and concepts so they can adapt and survive.
Together with other partners, HRS is looking at how we can get restaurants online and give them not only the flexibility to make immediate changes but also prepare their business for a new future. There is a growing demand for solutions that will improve the efficient delivery of food, or other pick-up concepts, where the customer can order and pay without the need to visit the restaurant or deal with the safe space issues that may be with us for longer than we may wish.
“The food industry has highlighted the fact that 59% of restaurant orders from millennials are either in the form of takeout or delivery.”
Coronavirus is undoubtedly the issue of the moment, but it is not the only driving force. The food industry has highlighted the fact that 59% of restaurant orders from millennials are either in the form of takeout or delivery. This trend will not only continue but it will rise, and the current crisis will probably accelerate it further.
Solutions to these challenges can be time-consuming, costly, and involve multiple vendors. The HRS approach is to take on this challenge with some of our partners. New collaborative models are put into place, time and costs are handled creatively, and the right technology is made available.
Converting short term survival into long-term growth
To ensure survival, technology initiatives must be able to start quickly and without the requirement for a large up-front investment. It is also important that once the ‘survival’ period has passed, a percentage of the increased revenue is used to cover the costs of the involved partners in a shared risk model. When the business environment has settled to its new normal, and our customers have adapted to them, they will be in a position where they can rapidly change business models and processes to meet the challenges of the new business landscape to come.
“One [client] experienced an immediate increase in their check average of between 15–20%.”
Customers are already seeing some interesting results after they have moved more of their business into online ordering and digital channels. One experienced an immediate increase in their check average of between 15–20%, they also benefited from several areas of cost savings.
Streamlining the digital channels and integrating their management through the POS system has demonstrated that quality and efficiency can be improved significantly. In some cases, providing the right technology solution to handle online channels has seen a 48% improvement in delivery times, an 80% reduction in errors, along with labor savings that have resulted in a 25% revenue increase.
The right partner
We at HRS are dependent on the survival and growth of this industry. By piecing the puzzle together, delivering critical solutions for survival with models that create short and long-term advantages, we believe that we can not only strengthen our existing customer relationships but create many new ones in the period to come.
We are committed to helping our customers through these difficult times, getting new solutions up and running quickly and effectively, along with risk-sharing models that adapt to the customer situation.
“We have created a common goal of transparency and risk-sharing.”
Together with our partners and solution providers, we have created a common goal of transparency and risk-sharing. The most relevant solutions have been agreed upon, together with an easy step by step approach, and a range of flexible cost and shared risk models.
HRS has been in existence for 30 years and has grown with the industry. Engaging with the restaurant industry to rapidly implement new business models and solutions ensure that we are approaching our future together. All of our people, products, and services are tailored to the needs of the Hospitality Industry, our future depends on everyone pushing in the same direction.
About the author:
Nils Øyvind Karlsen joined HRS in January as Business Development Director Food & Beverage EMEA. Nils is focusing on the development of the HRS POS strategy. Before joining HRS, Nils spent almost 20 years at MICROS Systems Inc., and then with Oracle Hospitality, where he was responsible for F&B sales.
