Businesses must be tech-savvy, improve their service standards and ensure their menus and design are innovative if they are to succeed in the future.
That’s the message from Luke Johnson, chairman of investment vehicle Risk Capital Partners that backs the likes of Giraffe, Feng Sushi and Patisserie Valerie, who addressed a roomful of hospitality operators at a recent R200 conference.
He said a more competitive market, increasing regulatory burdens and rising costs have created a more challenging environment for hospitality businesses than ever before.
“I suspect the easy times are now over,” he said. “In 2011 we need to find new routes to growth if we want to maintain the buoyancy of the past. Competition out there is ferocious and in the meantime Britain’s consumers are not optimistic. For many hospitality operators these are possibly more challenging times than in the past.”
He advised delegates to consider a number of initiatives, some to be taken together and some individually, to continue trading their businesses successfully throughout 2011 and into the future.