Deliveroo announces integration with Lightspeed ePOS system

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Food delivery market leader Deliveroo and ePOS vendor Lightspeed have announced their integration. Lightspeed customers will now be able to see and process Deliveroo orders directly in their ePOS system.

The integration can help entrepreneurs easily incorporate delivery into their business plans, and will empower restaurateurs to become more efficient and increase their profits. This integration will be available to Lightspeed customers only.

An end to chaos, mistakes and extra costs

This integration is the innovation hospitality operators have been waiting for. Previously, offering food delivery meant having to deal with too many iPads behind the counter and the additional work of manually re-entering delivery orders into the ePOS. Not only was this a time-consuming and inefficient way of working, but it was also costly as most restaurants would need a full-time employee to take care of processing delivery orders. This integration solves both problems, eliminating the need for multiple tablets and ensuring that stock updates automatically.

Jerome Laredo, VP EMEA of Lightspeed, states: “At Lightspeed, we have always had a vision of a connected hospitality world and we strive to make our restaurateurs’ lives easier by providing them with the tools they need to grow their business.

We want Lightspeed to be the management hub for restaurants. This integration with Deliveroo is a great example of how we can give our customers an incredible opportunity to partake in the rapidly growing food-delivery market while making their operations a lot more efficient, and we are particularly pleased with that.”

Deliveroo is the first food-delivery company taking a step towards partnering with ePOS providers and remain enthusiastic about the possibilities the integration offers.

Mathieu de Lophem, General Manager, Deliveroo Benelux: “With the goal of helping restaurants thrive, Deliveroo is constantly innovating. Our partners have told us that integrating with their sales systems is such an important step in them being able to provide delivery services – that’s why we’re excited to partner with Lightspeed globally.

Through this partnership, we help restaurants cut out needless time inputting orders into sales systems. This allows front of staff to focus on delivering an amazing dine-in experience, while enabling restaurants to boost revenues through delivery orders.”

For restaurants and other hospitality operators the benefits are clear:

  • Staff processing delivery orders can be reallocated to front-of-house roles, improving the customer experience in store
  • Huge time saving, allowing restaurants to quickly process more orders
  • Reduced risk of errors when inputting orders, providing a better experience for customers
  • More counter space, decluttering the working space for restaurant staff

Nicholas Steiner, Lightspeed customer and owner of Yoobi in London is already using the integration. He says: “Up until now, each delivery order had to be manually transcribed from Deliveroo into Lightspeed by one of our team members. This process was laborious, and opened us up to mistakes which resulted in customers getting an incorrect order and making accurate reporting a challenge.

The integration is exactly what we needed as orders arrive into our Lightspeed system seamlessly. This now allows us to make orders quicker and with greater accuracy for our customers and allows us to have accurate reporting. Not only is the system faster for us, it has also allowed us to reduce our labor costs as at the volume of orders we had on a daily basis, we needed to employ one person just to enter orders into our system. Team is also happy as entering orders into the system all day was not very popular.”

About Lightspeed:

Lightspeed is a Business Partner of the Institute of Hospitality. It is the UK’s leading cloud-based management system for hospitality and retail. With more than 50,000 retailers and restaurant owners, Lightspeed processes over £12 billion in transactions per year in more than 100 countries. Lightspeed customers see on average a 20% increase in their sales within the first year. Lightspeed was founded in 2005, with its headquarters located in Montréal, Canada, and has offices in the Netherlands, Ottawa, New York, Ghent, Brisbane and london.

More information, please visit www.lightspeedhq.co.uk

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Media coverage for Planday Brexit survey

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Earlier this month (12 June) the Institute partnered with workforce collaboration software company Planday to launch their YouGov survey of hospitality managers and staff to find out how prepared they are for Brexit and what impact they think it will have on their business and jobs.

The media coverage from the launch was highly successful, with a total number of 42 pieces of both online and broadcast media. Our chief executive Peter Ducker FIH took part in a total of 13 radio interviews with stations such as BBC Radio Scotland and Jazz FM, with a reach of over 2.4 million people.

There was a total of 29 pieces of editorial coverage, including Press Association, the selective newswire service which feeds the British media, alongside online coverage in the Independent.

The survey received strong pick-up across the hospitality and HR trade media, such as The CatererBig HospitalityHotel OwnerHospitality & Catering News and Boutique Hotelier, some of which included insights from the Planday Brexit Survival Guide.

The coverage did not stop at just the UK, as the research was picked up globally in the US, India, Indonesia, Germany, South Africa, France, Sweden, Portugal, and even included an article in Welsh.

All members will receive a printed copy the Brexit Survival Guide with their copy of HQ Magazine this July. The guide is packed with smart tips on recruitment, retention and staff engagement.

Download your Brexit Survival Guide here

 

 

Dynamic pricing for restaurants?

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Bob Bob Ricard is using dynamic pricing

Some restaurants are starting to follow more closely the revenue management practices used by airlines and hotels. Dora Furman reports

Consumers are most familiar with the use of yield (or revenue) management in the travel industry, as airlines, hotels and car rental companies constantly alter rates based on revenue channel, day of booking and date of future use.

Consumers continue to be extremely savvy shoppers, adapting the way they shop, from changing the time of travel departure (“I can save £200 if I leave at 5am!”) to managing the time and place of booking. Now, they’ve got it down to a fine art.

Businesses such as Uber are leveraging similar yield management tactics, using dynamic pricing to adjust rates by the minute. What sets them apart from the airlines and hotels is the immediate need their services fulfil for customers. Although a customer can book a future journey, the service is most commonly called upon for instant use.

Interestingly, while restaurants have historically utilised yield management through tactics such as printed coupons, app-based offers via the likes of Groupon, day-of-the-week promotions and early-bird menus – the techniques are less advanced compared to what has been happening across the wider hospitality industry, reflecting a more static and less flexible pricing strategy.

The above raises the question, are restaurants leaving money on the table? Should operators be invoking a more flexible pricing structure? Additionally, should they charge a different price for the same product on different days or during different hours of the same day?

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Norse in Harrogate is experimenting with variable discounts

Already popular in the US, some UK restaurant operators have recently started trialling dynamic pricing. One such example is the high-end London eatery Bob Bob Ricard, which is cutting 25% off its bill for off-peak diners, whilst independent operator, Norse, based in Harrogate, is experimenting with set discounts that vary according to the day of the week. Norse has now moved the trials on to Tock, a booking platform which enables customers to choose from a four or eight-course menu at £40 and £60 respectively – booking via two methods. The first option is to leave a £15 deposit, which is removed from the final bill. The second is a ticket-based system for diners who want to secure additional value by obtaining a table at a reduced rate and then finding a date to use it when slots are released. Advance tickets range from £25-35 for the four courses and £40-55 for the offer to try eight. Prices change based on demand, as well as by day and time.

Dora Furman is Vice President, Revenue Management Solutions
For further information about Revenue Management Solutions (RMS), visit
 www.revenuemanage.com or call 020 3755 0960

The remarkable rise of Starbucks in China

56 alan hepburnOur man in Shanghai, Alan Hepburn FIH, provides an analysis of Starbucks’ expansion in China, a country with no tradition of coffee-drinking. What lessons are there for other western businesses looking to break into this vast market?

Last week I was sat in the 30,000 sq ft Starbucks Shanghai Roastery, about five minutes walk from my apartment in Shanghai. I was there for a business meeting, trying to decide between Sumatran, Ethiopian or Nicaraguan, when I realised I was next to a couple of friends. After a quick chat, it occured to me that even in a city of 35 million people with change being constant and exponential, it’s a small world.

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Howard Schultz at the opening of Starbuck’s Shanghai Roastery in December 2017

I arrived here in 2000 as manager of the Portman Ritz Carlton and remember chatting with Howard Schultz when he came to open the first Starbucks in the city (Beijing opened the first one in China in 1999). I somewhat naively asked if he was planning on opening many? He looked somewhat incredulous at my ill-judged question. “We expect 100 in the first year,” he said. They now have 3,000 stores in China and are opening one every 15 hours – projecting 5,000 by 2020.

I was new to China and frankly had not observed much coffee-drinking going on. But what I had missed was … well, pretty much everything.

What Starbucks saw in China was four things: firstly the growth potential in the middle/upper middle class who want to buy an upscale Western experience.

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The floor space of a Starbucks in China is substantially bigger than in the West. People have business meetings, social gatherings, go on dates and get interviewed for jobs in China’s Starbucks. The saying here is: “The first two thirds of your cup is for enjoying, the last third is for staying.” Three quarters of all coffee drunk in China is consumed by 25-35 year olds and 99% of retail coffee sales is instant, but that will change.

Secondly, Starbucks’ growth in China shows the importance of not removing the essence of what makes you successful elsewhere, but shows how this needs to be adapted. As Roy T Bennet once said: “The past is a place of reference, not a place of residence.”

The Macha Frappuccino (220 – 440 calories depending on size) is a huge seller here. Green tea powder, loads of cream, milk and vanilla syrup and not a hint of coffee in sight. I have struggled in the past to get a simple espresso, as very few people are drinking them in China. But that will change.

The Roastery here is a modern-day F&B masterpiece with all the theatre of coffee roasting, artisan bread-making and stunning retail. But take a look at what people are consuming and it’s a lot less coffee than you might expect. But, as I say, that will change.

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The Chinese are not big coffee drinkers, but that has not been a barrier to Starbucks’ success

Thirdly, brands which understand progression from entry-level to premium do very well here. There are famous dumpling shops where you pay four different prices according to where you consume the same dumpling.

The last thing Starbucks understood was marketing. Their social media presence was well-established and generally ahead of most Western brands in China during its first decade here. The rest tried catch-up and some succeeded but most failed. Telling your brand story here needs content and context and it better be entertaining and fun. I spoke with the head of marketing for one of the world’s biggest and coolest sports fashion brands two years ago and he was telling me they had just moved into mobile platform selling. That’s like arriving today in Scotland and telling them you just invented whisky.

Sadly, many Western brands can’t grasp the speed of change and that the Chinese consumer is dynamic, developing and learning quickly. By the time many companies work out their ‘China strategy’ the market may have moved or changed.

I’ve lost count of the number of UK companies (including the famous ones) I speak to and meet with who bring a rigid ‘what made us successful in the past will determine all our action for the future’ attitude and end up closing shop, heading home and blaming China.

Don’t get mad, get prepared. Starbucks’ next Roastery opens in Milan, the home of great coffee and design.  But before we mention coals and Newcastle, I’m betting Starbucks have that well-covered too.

Alan Hepburn FIH has spent more than 30 years in Asia in the hospitality and lifestyle sector. Having run some of the world’s best hotels , he then developed, opened and operated China’s first luxury lifestyle company: the multi-award winning Three On The Bund in Shanghai. The Hepburn Group is a Shanghai/Singapore-based boutique consultancy that works with hospitality and F&B companies from the West, helping them navigate the challenges of market-entry and growth in China and Asia.

 

 

 

 

 

 

 

The positive impact of the Royal Wedding by Neel Radia FIH, national chair, National Association of Care Catering (NACC)

Neel Radia image“The nation is gripped with Royal Wedding fever, as we prepare to celebrate the marriage of Prince Harry and Meghan Markle. The NACC’s members are certainly no exception. We’ve heard from care caterers and chefs up and down the country who are putting in a tremendous amount of effort to ensure that their residents enjoy a Royal Wedding experience to remember.

As with most celebrations, food is playing a leading role. Our members are using their expertise in creating delicious, nutritious meals, suitable for a care setting, to give the elderly and vulnerable they care for a real treat.

Indoor and outdoor festivities include, for example, coverage of the wedding on televisions and large screens, street parties, wedding buffets, wedding breakfasts, Afternoon Teas and BBQs, all featuring carefully-planned, mouth-watering menus, plus beautiful lemon and elderflower cakes to match the famous couple’s wedding cake of choice.

Residents will be involved in the preparations, helping decorate venues and cupcakes, making their own fascinators and being invited to dress in their finest attire for the big day. They will also enjoy music, entertainment, quizzes, dancing, and one care home has even reported that their wedding breakfast will include life-size cardboard cut-outs of Prince Harry and Meghan Markle themselves!

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As well as enjoying delicious food, residents will benefit emotionally and socially. The Royal Wedding provides a fantastic opportunity for them to socialise with fellow residents, staff and visiting relatives and community members. I’m sure the parties will be an enthusiastic subject of conversation in the build-up to the main event and for some time after. The celebrations could also, importantly, help evoke fond memories of their own weddings and family occasions, as well as Royal Weddings of the past. I’m sure some residents will have seen many a Royal Wedding over their lifetimes, including that of Her Majesty The Queen herself!

The NACC sends the Royal couple many congratulations on their wedding day and we wish our members and their residents a wonderful weekend of festivities.”

HQ explores the talent pipeline

001_HQ_SPRING_2018_SPINE.pdfYour latest issue of HQ (second quarter 2018 issue 48) is landing on UK doormats this week. It explores the talent pipeline from a number of perspectives.

Where is our next generation of leaders and senior managers coming from? It is a question often asked  in hospitality management and education circles. Your latest issue of HQ Magazine is packed with answers and opinions on the matter.

Our chief executive Peter Ducker FIH is impressed with the talented and enthusiastic young hospitality management students coming out of universities and colleges. It is up to all of us to ensure they find ways to achieve their full potential within our sector and that we do not lose them to other industries, he says.

Still just 32-years-old, Adam Rowledge FIH is a rising leader on the UK hotel management scene and a superb role-model for new entrants. Our in-depth interview showcases the importance of creating the right culture within the workplace that allows talent to grow and shine.

A UK government review into higher education is now underway, concerned about choice and value for money within a system where almost all institutions are charging the same price for courses. The review may mean some tourism and hospitality courses will either need to change their approaches radically or risk becoming obsolete, says John Swarbrooke of Plymouth University

Of course, a university degree is by no means the only route into a successful hospitality management career. Sue Williams FIH MI, current Hotelier of the Year, is just one of hundreds of professionals who started their careers with the Concord hotel management programme.  Celebrating its 50th anniversary, Glen Harrison MIH reveals all about this unique on-the-job training scheme which specifically targets youngsters coming out of FE colleges who do not want to go to university.

Other contents in this HQ Magazine

  • Peter Jones MBE FIH – Why has the government dropped the T level in hospitality?
  • Passion4Hospitality 2018 – re-live the excitement of our largest ever student and industry networking event
  • The end of business as usual – Angela Roper FIH on vertical disintegration in the corporate hotel industry
  • A winning partnership – how Sheffield Hallam University and Hilton are working closely together
  • Cybercrime and GDPR – what businesses need to do to protect themselves
  • Tableware trends – creativity is all the rage but weird, wacky (and unhygienic) are definitely out

 

 

35 of UK’s Top 100 restaurant groups now loss-making – up 75% in just a year

  • Oversaturated market, minimum wage hike put pressure on restaurants
  • Another minimum wage rise just weeks away

35 of the UK’s Top 100 restaurant groups are now loss-making, up 75% from just 20 last year, shows research by UHY Hacker Young, the national accountancy group.
UHY Hacker Young says that trading conditions have become increasingly difficult for restaurant chains dealing with oversaturation in the market as well as rising costs.
The firm adds that this research comes on the back of the high-profile struggles of several major restaurant chains in recent weeks, including:

  • Jamie’s Italian, started by Jamie Oliver, which has closed 12 branches as part of a Company Voluntary Arrangement (CVA) to restructure its £71.5m debt
  • Byron, the burger chain, which may close up to 20 of its 67 branches following a period of paying reduced rent
  • Prezzo, the Italian chain, which is expected to close some of its 300 branches as part of a restructuring
  • Strada, another Italian chain, which closed 11 branches over the festive period
  • Barbecoa, another Jamie Oliver chain, which entered administration in mid-February
  • EAT, the sandwich chain, which was rumoured in early February to be considering closing some of its 100 branches

UHY Hacker Young says that pressures of competing with numerous similar ‘fast casual’ restaurants in an overcrowded high street are a major driver of many large restaurant groups registering losses over the past year.

It adds that the National Minimum wage, which has risen by an above-inflation 19% to £7.50 per hour over the last five years, has added a substantial cost burden to large restaurant chains. From April 2018, the minimum wage will rise even further to £7.83.

Peter Kubik, Partner at UHY Hacker Young, comments: “More than a third of the biggest companies in the restaurant sector are losing money, and there is little respite on the horizon.”

“Pressures on the restaurant sector have been building for years, and the last year has pushed a number of major groups to breaking point.”

“With Brexit hanging over consumers like a dark cloud, restaurants can’t expect a bailout from a surge in discretionary spending.”

“Consumers only have a finite amount of spending power when it comes to eating out, and the oversaturation of the market means that groups that fall foul of changing trends can very easily fail.”

“The Government has ratcheted up costs with a series of above-inflation rises in the minimum wage, and we are just weeks away from another 4.4% rise in April. That will be tough for a lot of restaurants to absorb.”

About UHY Hacker Young:

 The UHY Hacker Young Group is one of the UK’s Top 15 accountancy networks with 110 partners and more than 620 professional staff working from 22 locations around the country. The offices within the Group provide a wide range of accounting, tax and business advisory services, with a reputation for integrity and reliability within the financial community, and particularly with London’s Stock Markets. UHY Hacker Young are also ranked 15th in the ARL Corporate Advisers Rankings Guide amongst other UK audit firms for advising London Stock Exchange listed companies.

UHY Hacker Young is a founder member of the UHY International network with offices in every major financial centre in the world. Further information can be found at www.uhy-uk.com