Dining out, among other leisure activities, has become somewhat of a luxury for most people in today’s economy. Rising costs for energy, food, and staff, coupled with a cost-of-living crisis that has left consumers reluctant to spend on non-essentials, have created a perfect storm, resulting in numerous high-profile business closures.
So, I was saddened to hear of another significant setback for Scotland’s hospitality sector, after Glasgow-based vouchers and booking site 5pm.co.uk, now rebranded as Kooble, filed for administration, resulting in the loss of 27 jobs.
It’s a move that appeared among many to be rather surprising yet highlights the fragility of businesses dependent on consumer spending, even as the hospitality industry shows signs of post-COVID recovery.
For those unfamiliar with the company, it was founded in 1998 by David Maguire and Ronnie Somerville, and offered discounted deals for restaurants, bars, hotels, and spa treatments. However, in spite of its popularity, it’s been reported that the business struggled with cash flow issues, compounded by leadership disputes and financial losses that has now ultimately led to its demise.
The real shame is that voucher-led businesses like 5pm.co.uk have been pivotal in stimulating consumer spending in the hospitality sector, which was severely impacted by the pandemic. Offering discounts and deals, these platforms have encouraged customers to dine out, book hotel stays, and engage in leisure activities, contributing to the sector’s gradual recovery – but now it appears sadly not enough to stay afloat.
The administration of 5pm is a stark reminder of the continuous challenges faced by businesses in the hospitality sector. Despite efforts to rebrand and restructure, the company could not overcome its financial difficulties. The loss of 27 jobs adds to the unemployment figures in the sector, which is still reeling from the pandemic’s effects.
In 2021, Scotland’s hospitality industry employed around 233,000 people, accounting for about 9 per cent of the country’s workforce. The sector’s contribution to the economy is significant, with a turnover of approximately £10.8 billion in 2019. However, the pandemic caused a sharp decline, with the industry losing an estimated £5 billion in 2020 due to lockdowns and restrictions.
Even years on, post-covid, it seems the competition for customer attention has intensified, making innovative marketing strategies more important than ever before. Restaurants and hotels are leveraging social media to showcase their offerings, create brand awareness, and build customer loyalty.
Visual content, such as high-quality images and videos of dishes, behind-the-scenes looks at kitchen operations, and customer testimonials, can entice potential customers and drive bookings. Additionally, by sharing positive dining experiences, influencers can sway their followers’ decisions, driving traffic to restaurants and boosting reservations.
Voucher platforms like 5pm.co.uk have played a role in mitigating some of the recent losses by driving customer engagement and spending. Their ability to offer attractive deals has made dining out and hotel stays more accessible for all, in turn helping businesses stay afloat.
Nonetheless, the downfall of 5pm.co.uk offers several lessons for the hospitality industry. Businesses must have contingency plans and sufficient reserves to weather unforeseen challenges. Effective leadership and cohesive management are also critical. Internal disputes and lack of strategic direction can derail even well-established businesses.
As consumer preferences evolve, hospitality businesses must stay ahead of trends, leveraging technology and creative strategies to attract and retain customers. Embracing digital transformation, enhancing online presence, and engaging with customers through personalised marketing can create a competitive edge.
It is clear that the customer expectations of hospitality establishments have shifted; they now increasingly seek experiences when they go out. It’s not just about food or drink anymore. Hospitality businesses need to elevate the customer experience from the moment they enter the premises. Prioritising staff training, customer service, and creating an inviting and inspiring environment will encourage repeat visits.
In my opinion, despite the positive trends, the industry cannot afford complacency. Businesses must innovate continually to meet evolving customer expectations. The focus should be on delivering exceptional experiences that go beyond the basics, ensuring that customers have compelling reasons to want to return.
In light of recent political developments, the hospitality sector has reacted positively to the Labour Party’s 2024 election manifesto which vows to replace the business rates system. As the sector navigates these challenging times, supportive policies and innovative strategies will be key to its recovery and growth.
Scots pupils faced a painful wait for their exam results last week when there was a blunder with emails.
Every year pupils need to wait until the start of August which can mean a long summer, but some were more anxious than usual as they received a blank email with no results.
The gaffe from the Scottish Qualifications Authority (SQA) meant some pupils didn’t get a result at all, whilst others received texts which did. Some pupils desperate to find out their results had signed up for both the text and email service but didn’t get either on time.
Surprisingly, some pupils even heard from UCAS on university and college applications before they received their exam marks.
Now results have been recorded, it’s been noted that the attainment gap for Highers has risen to its highest-level, meaning there’s a gap in pass rates between the richer and poorest parts of Scotland. This is the highest point since qualifications were first introduced ten years ago.
In my opinion, I think more needs to be done in schools to support pupils at this stage of their education, especially those who may not be thinking of the traditional routes.
The education system is very much set up for further education, however some pupils may opt for employment or to go down other routes such as apprenticeships or dreaming of their own start up.
Unfortunately, in my opinion, there’s just not enough advice or support out there for those who have an idea of their own.
It Made Me Laugh
It Made Me Laugh
I thought this recent story I came across would crack some of you up.
A woman from Ayr had just been for her messages when she discovered an ‘almost perfectly spherical egg’ in a box of 15 she had just purchased at her local Asda.
In true entrepreneur form, she’s handed it over to auctioneers who are hoping the unusual egg will fetch around £480. It turns out round eggs are thought to be ‘one in a billion’.
So, despite probably spending a fortune on her weekly shopping, she’ll actually make a profit if the egg is popular with bidders.
However, if you’re in the business for one in a billion items, I wouldn’t yolk around, the egg went on sale on the 6th August.
It Made Me Weep
It Made Me Weep
It’s not only the weather that has been disappointing this year, with Scottish retailers forecasting a rise in sales throughout the summer, it turns out it has been quite the opposite.
Retail experts have said early back-to-school purchases have not been enough to recover a slump in sales, instead calling July ‘disappointing’.
Turns out Scots prioritised holidays and social events over shopping, meaning the total sales in Scotland decreased by 1.2 per cent year on year compared with July 2023.
Looks like we prefer holidays and going out during the summer rather than DIY and purchasing larger items like furniture and household items, and I have to admit, I totally agree. I know what I’d rather do.
