‍Navigating Hospitality Profitability: Insights from Industry Leaders at "Plating Up Profit"

The "Plating Up Profit" event, hosted by me&u and Lightspeed, brought together hospitality professionals to discuss the ongoing challenges facing the industry and the evolving role of technology in helping businesses stay afloat. 

Panellists Andy Gordon from Tech Pantry, Simone Staltari from Gastronomia Italiana, Tess Myers from me&u, and Rich McLeod from Loaded shared their experiences on staff culture, customer engagement, and the integration of technology to drive efficiency and profitability.

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Fostering a Positive Staff Culture

The importance of staff morale and workplace culture emerged as a central theme throughout the discussion. Simone explained how, at his hospitality group, a key focus is creating a work environment where staff feel valued and supported. He highlighted the practice of balancing workloads to avoid burnout, especially in kitchens, where intense hours are common. “We ensure a 38- 42-hour work week for everyone,” Simone shared, noting that this allows staff to maintain energy and positivity on the job, which translates into better guest experiences.

Andy echoed this sentiment, emphasising the importance of engaging with employees to gather ideas for improvement. "Every month, we try something new, whether it works or not, and we listen to our staff's input," he said. This approach has fostered a culture of continuous improvement within his team, with staff feeling more ownership over the results and outcomes.

Rich added: "Hospitality is like Rome; it lurches from one disaster to the next, but in between, it's bloody fun." His insight highlighted the resilience and passion that keeps the industry thriving despite its many challenges.

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Adapting to Economic Pressures

The discussion also touched on the economic challenges that many venues are currently facing. Andy pointed out that, while customer numbers may not have dwindled significantly, spending has. "We've got enthusiastic people coming through the door, but they're spending less money, and that's something we've had to adjust to."

Simone brought up the dual pressures of cost of living on both guests and venues. His group has had to carefully calibrate their operations to minimise waste and increase efficiency. "Every little percentage counts," she said, pointing to the importance of fine-tuning every aspect of the business to make up for lower guest spending.

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Embracing Technology for Efficiency

Technology took center stage as a critical tool for easing operational burdens and improving profitability. 

Andy emphasised how essential the right tech stack has become, especially in areas like rostering, stock management, and customer data collection. He recounted his experience implementing a kitchen management and stock control system, which initially met with resistance from some team members. However, through persistent engagement and support, they were able to integrate the system successfully, resulting in significant time savings and reduced errors.

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Simone, too, spoke about the challenges of transitioning to new technology. "We switched our POS to Lightspeed, and there were some teething issues, but the long-term benefits have outweighed the initial hurdles”. He said that for technology to be successful, businesses must be patient with the onboarding process and ensure that it is implemented with careful planning and team involvement.

Rich highlighted the transformation of the industry in the last two decades, noting how much easier it is now to access knowledge and resources. 

"Twenty years ago, there was McDonald's on one end, systemised but lacking customer experience, and chaos on the other. Now there's a middle ground where you can tap into the best practices," he explained. He advocated for hospitality businesses to embrace the tech options available, as they can customise solutions to fit their operational needs and growth ambitions.

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Strategic Cost Management and Profitability

When asked how venues can improve profitability in difficult economic conditions, panelists underscored the need for efficiency, particularly in labour and stock management. Simone discussed how optimising staff schedules and reducing waste in the kitchen can make a significant impact on the bottom line. "We’re using tech to minimise the time it takes to place orders, check stock, and manage invoices, freeing up hours that can be better spent improving guest experiences."

Andy highlighted the importance of empowering staff through data-driven decision-making. He shared how his business has moved towards providing staff with real-time reports, helping them adjust stock orders and prep for shifts based on accurate, timely data. "It’s all about breaking things down into bite-sized pieces of reporting and making sure everyone is on the same page," he said, adding that this has led to improved efficiency without sacrificing quality.

Rich shared an anecdote from the 2008 financial crisis, where his team shifted from focusing primarily on revenue to managing all aspects of the business equally: revenue, cost of goods, labor, and operational expenses. "When we spread our attention across all areas, the impact on profitability was enormous. We realised that getting a handle on costs was just as important as driving sales."

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Focus on People, Process, and Technology

The "Plating Up Profit" panel discussion reinforced that the future of hospitality hinges on balancing people, process, and technology. As Rich humorously pointed out, "Hospitality will always have its ups and downs, but it’s still bloody awesome." By cultivating a positive workplace culture, embracing the right technologies, and keeping a close eye on costs, venues can navigate even the toughest economic climates and come out ahead.

The session wrapped up with a final takeaway: maximising the customer experience is key. From encouraging repeat business to upselling, every interaction counts. As Andy concluded, "It's not just about getting people through the door; it's about maximising every transaction, making sure you're collecting data, and getting those customers back into the venue."