Page 2 - Hospitality Report July 2021

Introduction
The hospitality sector has faced many changes in economic conditions over the past few years. The decline of the high street, conflicting trends in technology such as social media to improve marketing, yet at the same time making it easier for people to connect online. Increasing market penetration of large franchises such as Costa and Starbucks opened more opportunities from a need for convenience, with drive-through stations and the growth of franchised branded outlets on new housing estates, services, etc. Before the pandemic, these trends were creating significant challenges for independent coffee shops and restaurants to compete. The hospitality landscape was rapidly changing before the pandemic, so how could an industry survive the unpredicted onslaught of further significant challenges?
The pandemic brought an additional set of challenges for hospitality businesses to compete, stay in the minds of customers and keep going. Despite the adversity, the spirit of the hospitality sector nationally has been admirable. The pandemic brought with it imposed lockdowns, uncertainty with the rise and fall of a deadly virus, business finance challenges, new people resource challenges with furlough and changing customer attitudes and behaviours. In the face of extreme adversity, while some hospitality businesses closed their doors, many adapted, innovated, and found a way through. Some even started their new hospitality business venture!
The answers lie somewhere in business attitudes, innovation, and seeing the opportunity. Although there was immense adversity for hospitality as a sector, the pandemic brought a new set of options for those who embraced the challenge. The same restrictions were imposed across the industry regardless of size or scale. Smaller businesses had the opportunity to respond in an agile way and differentiate themselves. Eat Out to Help Out received positive and negative press, yet the publicity brought a mindset to the public and customers. “I can support hospitality, feel good and support my local economy.” Lockdowns and deprivation of hospitality brought a newfound appreciation of the sector. Slowing life down in a lockdown brought positive and negative implications to mental health and the value of being out and being social became highly prized.
We made observations throughout our Innovate UK-funded project in how the hospitality sector has innovated in response to rapid changes in market conditions. While some slowed down, others flexed their enterprising muscles, remained positive, and looked for opportunities.
We captured 23 ways hospitality businesses have innovated, adapted, and provide insights into opportunities emerging from the pandemic. We want the report to inspire hospitality business owners and leaders in their approach and open new opportunities for their business in a new normal and a new economy.
Each stage of the pandemic presented new opportunities to innovate and has informed how we have adapted the research project to develop our products to support the sector.
1. The Closure of Hospitality
2. Re-Opening
3. A ‘New Normal’ for commercial advantage.
The report also uncovers some of our research findings in consumer attitudes and behaviours, with data from our trials that collaboration of local businesses to date at writing the report facilitated over £12k into Wakefield hospitality within just two months.
“As a business, we were severely impacted by the closure of hospitality. As innovators ourselves, we looked for the opportunity and adapted to challenges brought by the pandemic. Eat Out to Help Out presented an opportunity and winning the bid with Innovate UK meant we could build technology that would adapt to emerging opportunities and continue to support the sector. We are excited to have the opportunity to work with positive businesses that seek to collaborate, innovate and positively move forward”. Ali Gordon – CEO & Founder Not Usual Ltd and Eat Out Round About.