How is your business navigating through changing times?
A pandemic, wars sparking a cost-of-living crisis and a post-Brexit exodus of European workers – there’s no doubt the past five years have been some of the most challenging ever for the hospitality industry.
As businesses look ahead, they face significant pressure points from recruitment and retention challenges, changing consumer expectations and staying viable while managing rising costs.
But despite these headwinds, it’s clear the hospitality sector remains a cornerstone of community life, with the industry’s resilience and determination standing out. We are seeing a clear shift in focus as operators are not just surviving, but proactively planning for growth and a brighter future.
The impact of Brexit and the government’s plans to further restrict overseas recruitment alongside the rising minimum wage and national insurance contributions have led to a pressure point on financial viability against staffing, making effective recruitment, development and retention a key battleground for modern businesses.
We’re seeing operators adapt and innovate to mitigate mounting costs, with technology a key reliever; adopting new platforms giving employees early access to their pay or quicker access to tips as a route to supporting financial well-being and retention.
Also a key consideration is the upcoming Employment Rights Bill, which will radically shift the employer-employee relationship. New measures, such as the day-one right to claim unfair dismissal, regulation of zero-hours contracts, increased rights to sick pay, and greater rights for trade unions could leave businesses in difficulty if they fail to prepare for these challenges.
Rising costs are also driving businesses to adapt their spaces to meet consumer demand for memorable, personalised experiences while maintaining profitability; managing real estate effectively can be a significant challenge in this context.
Operators are innovating to find their unique selling proposition, either by collaborating with another business in one property space through entering an underlease, or by undertaking major property renovations to stand out from the crowd. Legal expertise is crucial to navigate these waters, ensuring confident and considered decisions that unlock a space’s full potential.
But as businesses focus on growth and the future it essential that they know where to turn when things go wrong. Issues like contractual disputes, shareholder conflicts, reputation management, and intellectual property challenges can all derail a business’s smooth operation, so timely proactive legal advice should be sought when these issues arise.
It’s also essential that lease terminations, property dilapidations and rent disputes are handled correctly, as these can cause problems long after a business has exited.
For businesses looking to buy, sell or explore a joint venture, commercial legal advice is vital. Proper preparation, such as protecting your brand and IP to ensuring all contracts with employees, suppliers and properties are in order, is key to ensuring a smooth transition.
No matter if you’re a hotel, pub, bar, restaurant or leisure business, strategic legal advice tailored to your needs will help you navigate the challenges and opportunities to enable you to not just survive, but thrive with a bright future ahead.
This article was originally published in The Caterer.
