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How do hospitality operators gain a competitive advantage?

PUBLISHED: July 2023
10 practical strategies to boost your sales per labour hour

These practical strategies will help your hospitality organisation gain a competitive edge by boosting sales per labour hour (SPLH).

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Why operational efficiency is vital in the hospitality sector

Hospitality is dynamic, and operational efficiency can help businesses gain a competitive advantage through:

  1. Employee empowerment: today’s labour crisis means retention rates are a major competitive advantage. Empowering employees through better communication, flexibility, transparency, and the potential to upskill and grow within the company will enable engaged and productive employees who are satisfied at work. In turn, impacting both retention and profitability
  2. Sales productivity: when operations run smoothly and efficiently, employees can focus on delivering exceptional service, up-selling opportunities, and cultivating customer relationships, thereby driving revenue growth and improving the bottom line.
  3. Cost control and time management: after a few challenging years, battling with Covid closures and its aftermath on the supply chain and staff shortages due to Brexit, the hospitality sector is now facing spiralling energy costs, and high inflation. In parallel, customer behaviours are in a constant state of flux, undergoing frequent and dynamic changes. It’s become a priority to learn how to optimise operations and reduce costs to stay ahead of increasing competition.
  4. Consumer experience: creating customer-centric experiences that truly satisfy the customer and create loyalty is of increasing importance. But unpredictable customer demand and operational challenges make this difficult. Reducing turnover rates, improving employee training and communication are necessary fixes that can help improve customer experience.