11 May Advice for Hospitality Businesses and the Post-Pandemic Environment
Clearly, some industries are taking a bigger hit from COVID-19 than others. Any industry that requires a great deal of interaction with the public, or where people gather in large groups, are obviously having very tough times. Movie theaters and restaurants, for example, have essentially gone dark. Some restaurants are easing the bloodletting a bit by providing delivery. But in the vast majority of cases, revenue is a pale spectre of what it was prior to the pandemic.
Business Brokerage Press hosted a recent roundtable discussion with Bob McCormick, Managing Partner at Murphy McCormick Capital Advisors; Scott Bushkie, Founder and President of Cornerstone Business Services; John Howe, past chairman of the M&A Source and current chairman of the International Association of Business Intermediaries; and Sara Burden, President of Walden Businesses.
Our panelists had some insights specifically for the hospitality industry. While there is no doubt that the hospitality industry is suffering right now, the panelists want business owners in this industry to understand that there are concrete steps they can take now to improve their odds of surviving the pandemic. In this article, we’ll explore a few of these ideas.
One of the areas every decisionmaker and business owner in the hospitality industry should be thinking about right now is staff. John Howe pointed out that staffing problems will continue long after the pandemic has paused or is over. He believes that hospitality businesses will have a tough time getting the staff they need, especially in the short run.
His key piece of advice is to work to have a line on people for key positions. This will allow hospitality businesses to at least get back up and running with basic operations. While it may be awhile before hospitality businesses are at “full steam,” it is critical that they are able to open up in some fashion, as this will translate into much needed revenue. Hospitality businesses looking to survive the COVID-19 pandemic should focus on making certain that key positions have been filled. In this way, the post-pandemic relaunch can be as smooth as possible.
Scott Bushkie explained that there are a lot of hospitality industry people out of work right now, and this represents a real opportunity. Now, is the perfect time to potentially upgrade staff. There are plenty of experienced and proven hospitality people looking for positions right now. The new people companies bring in may come with extra benefits such as bringing their customer, supplier and other relationships with them. For those in the hospitality industry who may have always wanted to upgrade their team, now is the perhaps the best time in history to do so.
When it comes to your clients that don’t feel as though they know what to do right now, guide them towards finding ways of improving their staffing. Employees are an essential element of any business. Business owners who have improved the quality of their staff during this time have also increased their odds of survival.
Bringing in new team members can help businesses not only prepare for the post-pandemic business environment, but also offers up the potential to upgrade a foundational element within their businesses. When you point out these facts out to your clients, it will keep your clients thinking proactively and also help showcase your value as a broker.