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Hospitality industry facing similar problems to retail

  • News
  • July 7, 2015
  • Elly Strang
Hospitality industry facing similar problems to retail

Crowe Horwath conducted the New Zealand Hospitality Market Insights report.

Hospitality New Zealand CEO Bruce Robertson says the aforementioned issues are affecting some of the industry.

“Changes to the drink driving legislation, depopulation of rural communities and a lack of capital and capability to deliver to the increasingly demanding requirements of customers are challenges facing many in the industry,” Robertson says.

He says that refurbishment of businesses is the key to succeeding, as well as delivering an outstanding customer experience through retaining and training staff.

To keep up with the changing industry, managing principal at Crowe Horwath Michelle Dykes has some recommendations for business owners.

These include ensuring your business has an online presence that includes a website and social media for marketing, booking and feedback purposes.

The report says the increased use of social media and referral sites, such as Zomato, means hospitality businesses must adapt and be active online.

As well as this, Dykes recommends business owners get into a tourism frame of mind and make their establishment a “destination” for global and cultural needs.

Despite challenges, there is still strong growth within the hospitality industry.

Unlike retail sales of apparel and goods, a café, restaurant or pub experience can’t be replaced by an online competitor.

Retail sales in the accomodation and food and beverage sector increased by $94 million to nearly $3.2 billion in the quarter ending March 2015.

Paymark data found that in February alone, more than $500 million worth of transactions were made. This was nearly $70 million (12.6 percent) ahead of February 2014.

In comparison, Statistics New Zealand’s retail trade survey for the quarter ending March 2015 found retail sales rose 2.7 percent. The total value of retail sales reached $329 million.

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