As an industry reliant on social contact, the pandemic has had a serious detrimental impact on hospitality businesses, particularly small, independent enterprises.
According to the latest edition of the UK Hospitality Quarterly Tracker with CGA, the sector lost nearly two thirds of revenue in 12 months of COVID-19, with around £220 million of sales lost every day from April 2020 to March 2021 due to the severe trading restrictions.*
With the food, drink and accommodation sector being one of the hardest hit by the pandemic, businesses must take heed as they now reopen and look to return to more profitable times. The impact of stock loss on the UK hospitality industry has long been a cause for concern for business owners but now, more than ever, it’s essential that processes are put in place to safeguard against this loss and thereby protect profit.
We have witnessed so many unnecessary and avoidable instances of stock loss because of theft or human error, where controls have lapsed due to operations managers and hospitality business owners failing to take the necessary, required steps to protect their businesses. Whatever the size of the operation, effective stock management is crucial – and the cost of not doing so can be insurmountable; it could even lead to business failure. When the responsibility of running a hospitality business is already heavily demanding, outsourcing the right team to secure regulatory compliance and raise operational efficiency is vital to the profitability of every service-based business.
Marcus Jones, MD of Capcon Reality
*Source: UK Hospitality Quarterly Tracker