It’s fair to say that the hospitality industry has been beset by challenges in recent years. Soaring energy and food prices and a dip in consumer spending have created financial pressures on cafes, bars and restaurants.

With the new financial year still fresh, this is a chance for many venue operators in the hospitality sector to look forward, forecast and prioritise growth. Here’s how you can grow your venue as we enter the new fiscal year to ensure success and stability over the next twelve months. 

Key considerations and creating goals

Given the many challenges hospitality businesses face, from persisting inflation and high interest rates to rent increases, the new financial year is an excellent opportunity to assess performance and reprioritise goals. This is easier said than done, as the multitude of challenges can make it difficult to know where to start.

Firstly, it’s essential to consider your financial health. This means having a fundamental understanding of cash flow, profitability and financial projections for the upcoming year. From here, you can define your scope for investment and growth and start to think about top priorities moving into the next twelve months.

It’s easy to take a very short-term mindset in such times, but adopting a longer-term perspective is crucial. Many businesses rarely take the time to dive deep into each area of their companies and examine whether they’re maximising revenue potential. This can include reviewing staff budgets and marketing costs and investing in new technology to streamline processes.

Investment into new technology, in particular, can be transformative when cutting costs. The National Restaurant Association’s latest Restaurant Technology Landscape Report 2024 revealed that over three-quarters of operators say technology gives them a competitive edge. In addition, Lightspeed’s 2024 Hospitality Insights and Dining Dynamics report found that 91% of hospitality venues already use AI to enhance their operations, from marketing and scheduling employee shifts to inventory management and guest reservations.

But investing in the right technology is just as important, allowing you to cut costs and increase revenue. For example, instead of relying on a patchwork of disconnected systems, integrated platforms, like Lightspeed, can offer multiple solutions in one, including payments, point-of-sale, marketing, loyalty programs, and inventory management, to name a few. For time-poor venue owners, the value of this operational efficiency can be significant.

Once the top priorities have been defined, the next step is to outline more specific goals and milestones, giving you clear direction for the months ahead. This can ensure you stay on track and provide a valuable marker for success as you evaluate progress over the year and when it comes to repeating this process next July.

Utilising data to ensure success

Data metrics can be a valuable tool for analysing and tracking performance. Collecting data, particularly at a granular level, can reveal insights into your business’s operations and highlight opportunities or issues that would otherwise go unnoticed.

Leading technology enables you to receive detailed reports to identify the popularity of menu items and which items have solid or weak profit margins. With this data, it becomes easier to forecast and adjust to seasonal trends. Utilising the data is critical to maximising success and remaining on track against your goals. 

Tapping into alternative financial solutions

Given financial pressures and uncertain economic conditions, many venues seek external investment funding. However, accessing real-time capital is one of the most significant challenges facing independent venue operators today.

Navigating the funding process can be daunting, but by doing your due diligence, you can access the capital you need to grow but on terms best suited to your needs and growth trajectory. Lightspeed Capital, for example, is specifically tailored to support business owners. Rather than a rigid repayment structure, there is no set deadline or interest, instead, you can gradually pay the advance as a percentage of your daily transactions.

Final thoughts

There’s no doubt that hospitality venues today face significant challenges. However, businesses can use these tools by creating clear strategic goals, leveraging data, and finding tailored and flexible funding support to thrive as we continue into the fiscal year.

Written by: Simon Le Grand, Senior Director of Marketing at Lightspeed

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