What do I do with my hotel staff?

Dear Caroline,

Shortly after the lockdown, I opened a hotel whose launch was disrupted by the pandemic. I got new staff, trained them at my expense, and we have been doing great. However, I have noticed that business is no longer as good as it was initially. The company is only able to pay five of my 10 staff. I have been using my savings to pay the rest. I cannot keep doing this. Please help me find a business sense solution because I do not want to lose my adequately trained staff to other businesses.

Jean

Hello Lydia,

The hospitality industry has had a difficult two years, and it will take time for it to rebuild and come back to the levels it was before the Covid-19 pandemic.  The initial upward trend after the lockdown, I believe, was a response to customers wanting to go out and enjoy time away from home. As time passes, some of the realities, increased cost of living, increase in fuel prices, etc, will impact customer spending power and experience. In effect, they will start cutting back on the “luxuries” and focus on the essentials. The ultimate factor determining whether you remain open for business is the number of customers who walk through the door. I think it is important to review your surrounding and establish whether your competitors are going through the same. This looks like you are visiting their establishments and observing their walk-through. You may also conduct some market research and determine if you have businesses in your location and find out if they have catering services for their staff, i.e. do they have a staff canteen and how is it managed.  You may find that they have none, and given the appreciation many employers have towards staff welfare, they may be open to you pitching as a service provider.

An alternative option to pivot your business is to open it up and provide space for meetings. This option allows charging a small fee for hire because the group also purchases food and drinks.  On collecting the relevant data you will need to spend some time adjusting your business model and making sure your pricing and cost of doing business is correct. You are correct using your savings to keep the business afloat is not sustainable. The options above may also require you to reduce your staff numbers as you change direction, so you need to be prepared for that possibility.

Good luck

Caroline Mboijana,

Managing Director, The Leadership Team (U)  [email protected]