5 challenges hotel and restaurant professionals will face in 2016

It’s that time of the year again when we go back to our drawing boards to review the past year’s performance and look ahead to the coming year, which includes reading through predicted market trends in the industry.

Instead of trends, though, I’ll be identifying the main problems that professionals in the hotel, restaurant, and institutional industry will face. It is only when we prepare ourselves to address these challenges can we fully maximize what the market holds in 2016 in the Philippines.

Whether you’re a supplier, business owner, or manager of hotels, restaurants, and institutions, you may likely face 5 key challenges in 2016:

 

Competition

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Conrad Manila under construction, designed by WOW Singapore. Photo grabbed from wow.sg

The industry is booming in a way that sees more hotel and food players – and subsequently suppliers, too – coming in. For instance, there are 6,773 hotel rooms under construction in the Philippines, according to STR Global in February. Competition is the No. 1 concern among managers these days, and it is a challenge for companies who aim to increase sales turnover.

In the face of competition, managers must ask: Will it be price-driven wherein more innovation are introduced thereby increasing the product price? Or continue with the current system thus utilizing the old price in exchange of bigger sales turnover?

 

Quality results

Granting that sales turnover increases, how about customer complaints? Without giving enough focus on quality, you may also find the number of complaints increasing, which will be eventually bad for your business.

 

Equipment and production line

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Managing maintenance and labor costs, and mulling the question of outsourcing, must be confronted in 2016. Photo grabbed from Facebook

Along with the increase in number of new hotels and restaurants, suppliers in the outsourcing business such as laundry and linen rental are rising as well. Older properties find themselves with aging equipment in their laundry, kitchen, and housekeeping. Should these be replaced with newer, more efficient ones?

Re-layouting, retrofitting, and retooling these equipment for better services and lesser operation cost must also be considered. If you’re a hotel, you may likely be mulling about completely outsourcing laundry to save on maintenance and labor costs.

 

Labor

Labor is one of biggest expenses in the service industry, leading managers to streamline processes to manage labor costs. In 2016, reducing labor cost must support efforts to improve sales.

 

Utility Cost

The industry is heavily dependent on electricity, water, and gas; kitchen facilities and water heating are reliant on electricity or fuel, while laundry on water and electricity. These costs have been rising over the past years. Maintaining or reducing the cost with better services or products on a foreseeable higher utility price must be considered.

 

If you have any questions, feel free to email me at rhapolega@yahoo.com

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