It is well documented that the current operating environment for hospitality is a challenging one. However, as we start to see signs of economic recovery, such as the OCR being lowered, this environment can present opportunities to strengthen your business’s position into the future.
At present, it’s especially important to keep an eye on the fundamentals. Suppliers have been passing on their increased costs with pronounced impacts on margins, while less household disposable income has resulted in reduced spend across hospitality - keeping a closer watch on costs is particularly key to profitability in the current environment.
It’s also crucial to consider how you can strengthen a sense of community around your venue. Forming a connection with your local community fosters a sense of belonging for your business, building loyalty and driving repeat visitation. Maybe this entails quiz nights, sponsoring an event at your local school or being an active participant in groups like Chow Luck Club.
For businesses in a strong position, this period of economic uncertainty can be an opportunity to invest in the future. Using potential downtime to focus on expansion, refine your business model, or upskill staff, can set your business up for growth when things start to improve.
However, for those businesses who are finding the current climate especially challenging, it’s important to reach out for help early. Industry experts and organisations like Hospitality NZ can provide the guidance, support and resources needed to explore all the options before making difficult decisions.
Hospitality NZ is focused on advocating for industry support through regulatory reform and lowering compliance costs, and offering advice and resources to help businesses navigate through this time. Our regional managers live and work in your community and can provide practical support to your business.
Our members are also able to access services and discounts through our partnership network, for example The Utility Company can help ensure you're getting the best price for gas and electricity, while our new partnership with the Employers Manufacturers’ Association (EMA) enables members to get advice they need quickly.
Working together has never been more important - we are committed to collaborating across the industry to ensure we can build a stronger and more resilient hospitality sector for the future.