The hospitality industry is tackling shrinking margins with ready-made cocktails and technology

It is the biggest problem in the catering industry: the turnover of cafes and restaurants is increasing, but this is mainly due to higher prices, according to director of FoodService Institute (FSIN) Inga Blokker. Young people may spend more than older generations, but sales volume is declining.

Like every industry, the ‘hospitality sector’ also suffers from staff shortages. After construction, the catering industry has relatively the most vacancies: statistics agency CBS counted there were 64 per 1,000 employees in the third quarter of last year.

Due to this scarcity, entrepreneurs shorten their opening hours. “For example, a restaurant can only open for four days instead of six,” says Florentine Rijkmans, director of the Horecava trade fair. “You miss a huge part of your turnover, even if you are full every evening.” The fair, which took place this week in the Amsterdam RAI, placed a strong emphasis on working more efficiently in the catering industry. Four trends:

1 More ready-made

Pub owners who want to sell more with fewer staff could find more than enough inspiration at the Horecava. Several companies promoted ready-made cocktails. The idea is that bar staff can serve cocktails much faster if they only have to add some ice cubes to a syrup mix.

Weekend Drinks’ promise: “Serve a ten-euro cocktail in the same time as it takes to pour a beer.” Additional advantage of ready-made: the end result is the same every time, so you don’t need trained cocktail makers. For businesses without an alcohol license, wholesaler Bidfood has syrups that can quickly be used to make bubble tea (also called boba tea).

Suppliers are offering more and more products that should reduce preparation time in the kitchen, Horecava director Rijkmans also sees. “Think of pre-cut vegetables. There are also all kinds of ready-made products available that allow you to put together meals without spending too much time.”

Director Blokker of trade organization FSIN: “As an entrepreneur you are relieved of your worries with these types of products, but you do lose some margin. You have to find the balance in that.”

2 More technology

During the corona pandemic, terrace goers were already introduced to it: QR codes that allow you to order via your phone instead of at the counter. Remarkably, this option has disappeared from many catering establishments. Anyone who scans the peeling sticker is often presented with an empty web page.

“Entrepreneurs are afraid that you will take away service with such an ordering system,” says Blokker. “But it actually gives young people a sense of control; for them, service adds. QR codes certainly do not fit into every concept, but it can really play a role in business operations.”

A star restaurant will indeed not work with QR codes, Rijkmans confirms. “But you do see them in concepts with a more informal character, or there are kiosks with touchscreens where you can order yourself.”

Robotization offers another solution to the workforce shortage. The electronic employees are not always visible to guests. For example, there are cleaning robots that make rounds through the store after closing time, and preparation robots can help with work in the kitchen.

In some businesses, serving robots have been driving around with trays for a few years. “Such a robot obviously costs a lot of money,” says Rijkmans. “You have to be able to earn that back. This will happen faster for a restaurant with three hundred seats than in a neighborhood bistro with forty seats.”

3 More chains

The search for economies of scale stimulates chain formation in the catering industry. In 2010, 7 percent of catering locations were part of a formula, last year this was almost 11 percent. calculates ABN AMRO.

Delivery and takeaway restaurants are the main cause of this. More than 27 percent are part of a chain. Cafés apparently attach more importance to autonomy: there is currently too little chain formation there to be reflected in the statistics.

However, many businesses are owned by the same catering owner. This is rarely reflected in the name of the café, although such businesses do purchase jointly. For example, Hell’s Kitchen Horeca Group in Rotterdam now operates fourteen bars, each with its own concept. The Amsterdam 3WO even has thirty.

4 Less waste

Combating waste is an easy way for catering entrepreneurs to improve their margins. Anyone who has to throw unsold products in the waste bin is also throwing away money. Some stock is desirable; operators don’t want to tell customers no.

Rijkmans: “You can also serve smaller portions. Now people don’t always eat everything and it ends up in the trash.”

Apps like Too Good To Go, which allow consumers to collect leftover food from stores and restaurants for a small fee, can also help prevent waste.

The organizers of the Horecava set a good example. In the donation room participating companies could donate leftover products to the Food Bank.




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