By most measures, the On Premise is having a tough time. Bars are closing, margins are threadbare and global drinks companies are posting, at best, sluggish figures. But there is one area, albeit unquantifiable, that bucks this trend, the art of – and the need for – hospitality.
Yes, both the execution of, and the demand for, hospitality experiences across the globe has arguably never been as high.
Walk in to any bar, in any city, in any country and chances are that you will be served a good drink and you will be served by a good bartender. You’ll have a good range of options of products to choose from and, if you so wish, your server will transform said products into a delicious concoction that you could only dream of making. If you want to chat, the barkeep will oblige, and if you don’t, that’s fine too. You will likely be well looked after and you will likely have a good time. It’s the basics of hospitality, but it’s those basics that get us hooked and it’s those basics that have never been more ubiquitous. We don’t know how good we’ve got it.
Demand too is growing. Amidst a backdrop of financial pressures easing for the masses, a revival of in-person connections and a renewed desire to disconnect from the outside world or the world on our devices, hospitality is perfectly placed to ride a wave into what may be an epoch of greatness.
Indeed, CGA by NIQ’s latest global research highlights a clear correlation between consumers’ financial positivity and their intention to increase visitation to the On Premise sector.
The biggest factor in that intention to revisit isn’t the quality of food or drinks, it is the quality of experience. Yes, it is the fundamentals of hospitality that both stimulate demand and go on to fulfil that demand. Therefore, if, as a sector, we are to execute the fundamentals with consistent excellence, a virtuous cycle will form to deliver the golden age of hospitality.
Nevertheless, no matter how well the macro trends align to fuel demand, it takes a skilled workforce to deliver, and it is the hospitality professionals; the stars of this particular show, who are critical to its success and who, in my opinion, remain overlooked and under-invested in, given the vital role that they play.
An investment in hospitality staff is more than just an investment in the individual, it is an investment that pays off in a myriad of manners, unlocking a five-way win.
Firstly, of course, the individual benefits. The bartender, waiter, maître d’ or sommelier gains valuable knowledge and skills that help them fulfil their role more proficiently. This in turn means that the venue itself wins, gaining a more proficient and effective workforce who are more engaged with their role and, by extension, less likely to take up offers of employment elsewhere. The third win comes to the suppliers (usually drinks brands) who invest to provide exceptional training and are rewarded with staff serving their products perfectly, recommending their brands and, ultimately delivering a return on investment in the form of sales. The guests themselves on the receiving end of the fourth win, enjoying their perfectly served drinks and expertly serviced hospitality, which unlocks the fifth and final win, that of the On Premise channel itself. The sector benefits from a workforce of better skilled employees, who want to build careers in the sector, alongside a more engaged consumer base.
It seems like a no-brainer then. Invest in bartender training and wider hospitality training and reap the rewards. However, the data suggests that this is not occurring as efficiently, or as widely as possible. In our recent report with industry community, Celebrate Her and hospitality training platform Allara Global showed that just 29% of professionals felt that they receive adequate training for all necessary aspects of their roles. In other words, we are failing 71% of the workforce that we task with delivering the drinks, experiences and memories that keep people coming back. The five-way win is being turned into a five-way own goal, the virtuous cycle is cycling in reverse and, rather than a golden age, we are living through a period of mass closures and poor sales performance.
It is the frontline who will turn that performance around, yet we are failing them. We need to understand their requirements better and we need to offer solutions. If we do that, we will empower a high-potential workforce to deliver great hospitality experiences over-and-above their already high standards. Hospitality professionals are hospitality’s greatest asset – let’s unleash it.
To learn more about CGA’s REACH survey, Bartender Insights and other sources of insights for suppliers and operators across global markets to support your global strategies, contact Charlie Mitchell here.
Originally published in Global Drinks Intel Magazine
