Challenges and Methods to Overcome Labour Shortages and Economic Uncertainty

While navigating the industry's challenges and trends, hospitality businesses are implementing automation to save time and streamline operations.

FREMONT, CA: As restaurateurs around the world struggle with high inflation rates, staff shortages, and overall economic uncertainty, technology is a crucial tool in combating macroeconomic conditions. The ability of hospitality operators to do more with less is critical, with survey results indicating that the majority of industry respondents credit the adoption of POS or restaurant management software to streamline shifts, such as new or expanded online ordering systems or the use of new technology to automate tasks.

Digital adoption has greater efficiencies to be realised with new technology and has an important lifeline for hospitality businesses.

Challenges

The top obstacle that hospitality businesses are facing is the rising cost of food and supplies. More than 35 per cent of restaurant owners surveyed indicated this to be their greatest challenge, and 61 per cent of restaurateurs said this is how they are battling inflation, despite the fact that it can be intimidating to raise menu pricing for fear of losing clients.

Restaurants in California were sceptical about increasing their prices, but eventually, they figured out this to be a necessary change. This move to increase pricing proved to be beneficial in multiple ways. To be precise, inflation has given the opportunity to make some price changes that were necessary and advance into new price details that really needed to happen.

While inflation appears to be an important issue, there are two emerging considerations that must be addressed, hiring new staff (23 per cent) and staff retention (11 per cent). At the same time, 47 per cent of hospitality owners believed that executing environmentally friendly strategies would attract more customers.

Industry Strategies for Dealing with Current Challenges

According to a survey, 57 per cent of respondents accepted that over the past two years, new technology adoption has been perilous to their business’ survival. In order to improve food costing and inventory practices, 42 per cent of operators ensured that they were spending precisely and wasting less.

The number of days and/or hours of operation are being restricted by nearly one-third of business owners (30 per cent), particularly during slower months. This is done to save costs brought on by inflation and to avoid employee burnout while working with a workforce that is understaffed. To avoid third-party fees, nearly a quarter (21 per cent) brought online ordering in-house. Around 60 per cent of restaurateurs acknowledged that inventory data are important to them, while 40 per cent of restaurant owners have adopted inventory practices to increase productivity and decrease food waste. All in all, to enhance sustainability, 39 per cent chose to offer vegan options, and 37 per cent adopted a food waste policy.