Hospitality innovators shine in times of crisis - Ted Schama

This article first appeared in CoStar on March 20 2020

In this unprecedented time of crisis, it’s incredible and heart-warming to see creativity once again rise from the hospitality sector, writes Ted Schama, Managing Partner at Shelley Sandzer.

Restaurants, bars, cafés, theatres, and cinemas are by their nature creative industries, and are often managed by people who are innovators or ‘doers’. Over the last few years we have seen F&B operators adapt to shifts in consumer behaviour, with increased emphasis on vegetarianism and veganism, non- and low-alcohol, and sustainability in all parts of the product and service. These significant changes have happened over time and without a sense of urgency, which makes the way in which the industry is rising to the challenge of the current crisis all the more impressive.

Some businesses are looking at rewarding customers in the long term for their support in the short term. Patty and Bun’s offer of a 10% discount for life with the purchase of a voucher is a prime example of how to incentivise spending now and boost future loyalty. A discount that lasts forever is guaranteed to keep people coming back,

While many are using a voucher-led strategy, others are altering their operations to enable a greater focus on deliveries. This is happening in all parts of the UK, but it is the more neighbourhood spots in particular that will benefit from scaling down their restaurants, almost converting into a dark kitchen geared up for deliveries. Kricket and Pizarro, amongst others, have crafted new menus that work with delivery, and the likes of Patty and Bun, who are already well versed in the art, are ramping up their efforts.

This is not quite the golden ticket you might expect of course, as you need to keep the entire kitchen stocked whilst taking a hit on commission from the home delivery partner, but as a temporary measure the benefits outweigh the costs. It helps that the delivery partners themselves are taking reassuring steps including no contact services, whereby the food is dropped at the doorstep, minimising risk for customer and courier alike. Operators and delivery partners are working collaboratively, doing everything they can to keep the industry buoyant.

Restaurants and cafés are also taking proactive steps to ease the strain on supermarkets. Leon has plans in place to turn their 75 plus sites into mini-supermarkets, acting alongside a new e-commerce platform for those who cannot get to a store. In addition some community-led locations – such as Riding House Café in Fitzrovia and Harri’s Kitchen in Dulwich – have committed to operating as grocery stores for local residents, providing the basic items that have been flying off supermarket shelves.

A number of landlords are also playing their part, actively promoting home delivery options from operators in the destinations, something previously almost unheard of. Others are going even further by implementing ‘go local’ communication campaigns to help support businesses and communities, bringing together operators and consumers to support one another.

It is human nature to crave personal contact and interaction. So, as we face an indefinite period of working from home – or for the more unfortunate, self-isolation – it is inevitable that when the time is right, customers will be back populating restaurants, bars, cafés, theatres, and cinemas en masse. These institutions are often responsible for instilling a sense of community spirit, which will be in high demand when the country starts to re-find its feet.

Until then, we will continue to see incredible innovation and creativity from the hospitality industry as we navigate this testing period. It’s just what they do.

Ted Schama, Managing Partner at Shelley Sandzer