Businesses are now taking steps towards normality – and in the hospitality sector, many are looking at ways they can reopen and provide a service that is safe. With social distancing measures set to stay, in one way or another, enterprises now have no choice but to work around it to get their organisations back on track.
And so, the future of UK hospitality is a completely different picture to what we expected at the beginning of the year. Here, we take you through our predictions for the next few months and highlight what the industry is doing to survive and thrive…
Furloughing staff has proven vital to a number of hospitality businesses – allowing them to keep employees on their books whilst their doors have been closed. However, it was announced that the scheme will only last for a total of eight months. And so, from August, businesses will need to start contributing to their staff’s wages too, as well as the government.
Employers will begin paying NICs and pension costs, making up 5% of the total employment costs. In September, the government’s furlough payment will be 10% less and then another 10% less in October. Following this, the furlough scheme will cease altogether. So, if you’re currently taking advantage of this, it’s important to start strategically planning ahead.
Social distancing seating
Government guidelines state that businesses can reopen as long as the relevant social distancing measures are in place. However, for some businesses, this would require reduced seating – which isn’t going to be financially feasible. Instead, they’ll have to find alternative ways to maximise their visitors such as redesigning their space.
Signage will be needed so that new protocols are clear and to ensure the effective management of people. Potentially some businesses will be able to make more use of the outdoors, but this could require them to create additional space for pedestrians. Not to mention, the need for outside heating and shelter. Simulation technology can be a great tool to see how a new space could work.
Businesses are having to make specific adaptations to their services too. Some have already invested in apps to allow customers to order and pay for food and drink without leaving their seats. Others have chosen to switch to delivery or takeaway whilst their physical doors have been closed. As some won’t be able to have as many people on premise, this may be something they continue.
Whilst we don’t know for certain what the future holds for hospitality, we do know that action must be taken now in order to effectively navigate the current climate. Keeping an eye on your finances will be as key as social distancing in the coming months. And there are a few specific accounting aspects you should pay attention to. Though, it might be that this is something you simply just don’t have the time for.
Thankfully, you can instead place your finance needs in the hands of expert accountants – like Nabarro Poole. With our support, you can focus on your business and have the necessary help to see this pandemic through. We can assist you with whatever accounting service you require, including budgeting and forecasting.
Let us support your hospitality enterprise. Talk to the friendly team here at Nabarro Poole today.