Guest blog by Net Zero Now

The climate crisis is no longer a distant threat but is already having a very real impact on the hospitality industry. That impact is both direct, resulting in increased costs as supply chains are put under increasing pressure and the cost of energy increases, and indirect, driving new attitudes and expectations of customers, employees, and investors.

But with these challenges come opportunities – to improve your bottom line, to establish yourself as a leader in an increasingly eco-conscious market and to increase the value of your business.

Understanding the Impact of Climate Change on Hospitality

The hospitality industry is uniquely vulnerable to the effects of climate change. Rising temperatures, extreme weather events, and shifts in global ecosystems directly affect the supply chains that businesses rely on, resulting in higher costs and lower / less reliable availability.. Energy prices are also likely to soar as demand for cooling increases and fossil fuel resources become scarcer.

Indirectly, the climate crisis is changing the attitudes of the people who make your business thrive – your customers, your employees and your investors.

• Consumers are increasingly seeking out businesses that align with their values, particularly when it comes to sustainability – 69% of consumers worldwide have changed the products and services they use due to concern about climate change and 64% of British consumers willing to pay up to 10% more for sustainable foods and drinks (YouGov, 2024).
• Employees, especially younger generations, prefer to work for companies that take meaningful action on climate issues – 60% of Britons agree that climate change is the biggest threat to civilisation, with this sentiment being particularly strong among Gen Z (70%) and Millennials (63%) (YouGov, 2024).
• Investors are placing greater emphasis on environmental, social, and governance (ESG) criteria, meaning businesses that credibly address their environmental impact will have access to more funding and will receive a premium valuation of their business (IMD, 2023).

Businesses also face increased regulatory pressure. In the UK, larger businesses (£36m+ t’over) are already required to report Scope 1 and 2 emissions under the Streamlined Energy and Carbon Reporting (SECR) regulations. These requirements are expected to expand in the near future, reducing the threshold to include more businesses and increasing the reporting requirements to include Scope 3 emissions (the emissions from your supply chain, including all the food and drink you buy throughout the year).  This is particularly relevant to the hospitality sector which contributes up to 15% of the country’s greenhouse gas emissions (Net Zero Now, 2024, and where Scope 3 emissions account for c.70-95% of emissions, the vast majority of which comes from the food served (see Figure 1).

Figure 1:  Emissions Sources from different types of hospitality business

Source:  Net Zero Now Customer analysis; Cool Food 2022

The Challenge and Opportunity of Tackling Scope 3 Emissions

As Figure 1 also shows, as an industry, we have a long way to go to meet the 2030 targets for carbon emissions per meal.  Getting anywhere near these targets will take more than removing plastic straws and adding a few LED lightbulbs, hospitality businesses need to understand their full carbon footprint, including Scope 3 emissions, and find ways to minimise their climate impact.

I know what you’re thinking – “it’s too expensive”, “it’s too complicated”, “we’re too busy” – and until recently, you might have been right.  But…

• It’s cost effective: Quite apart from being the right thing to do for your planet, taking positive climate action is the right thing to do for your business. Access to the Net Zero Now Carbon Accounting and Climate Action platform is available from c.£100 per site per year, while the resulting reduction in energy and water use, food waste, staff attrition, etc can save the average site thousands (UK Hospitality estimate the average pub / restaurant could save up to 20% on energy bills through energy efficiency measures alone)
• It’s straightforward: The global guidelines on “carbon accounting” are undeniably complex, but thanks to Coca Cola, Pernod Ricard, Heineken UK, The Sustainable Restaurant Association and many others, business are now able to follow the Net Zero Hospitality Protocol – an industry standard methodology for measuring and reporting emissions that ensures consistency of measurement across the sector as well as clarity on what and how to measure your emissions
• It’s quick & easy: As a Zonal customer, this is where you have a huge advantage. Zonal’s new partnership with Net Zero Now allows you to measure the largest part of your carbon footprint – the food and drink you have bought throughout the year, without lifting a finger.  By integrating Zonal technology with Net Zero Now’s carbon accounting platform, we can provide you with accurate, detailed and regular analysis of your carbon emissions through the Net Zero Now platform.  Where the data is available, we can even provide this on a site by site basis with no additional work from you.

and , as if all of the above wasn’t enough

• It’s good for your business: The Net Zero Hospitality Protocol includes criteria for Certifying your business, first as “On The Road to Net Zero” and ultimately as a “Net Zero” business, giving you a clear and credible way to communicate to your customers, employees, investors and other stakeholders and access the commercial benefits of taking positive climate action.

Ready to turn the climate challenge into a business opportunity? Discover how Net Zero Now’s integration with Zonal can help you accurately measure, manage, and reduce your carbon footprint. Start your journey towards sustainability today—contact the Zonal team and see how we can support your business in leading the way to a net zero future.

Sources:

• British attitudes towards sustainability in 2024: Key insights from YouGov data
• Climate change: change to consumer behavior 2019 | Statista
• Sustainable carbon credits strategy for the hospitality industry | Deloitte UK
• From data to decarbonisation: A roadmap for hotels to reach net zero | SMS
• Urgent action needed for a Net Zero hospitality sector, says new report
• Top 5 Ways for Hospitality Businesses to Reduce Energy Usage – Unyfi

Guest blog by RevenueRich

With a new government in power, continued pressure on household finances and cooler-than-average temperatures to contend with, it’s safe to say that it hasn’t been the easiest summer for the UK hospitality industry. As the low season approaches for many of us, it could be an uncertain outlook for hoteliers, but with savvy use of the right technology, there is a plethora of ways to weather the storm and boost profits over the coming months.

Here, RevenueRich, a consultancy specialising in commercial revenue management, pricing, distribution and analytics for the hospitality industry, gives a quick guide on some of the commercial strategies that are most effective during the quieter months of the year.

#1. The Power of Planning

Stay ahead of your competitors by planning packages to excite and entice new guests at the times you need, well in advance.

Make the best use of your hotel’s facilities, include exclusive discounts and offers and communicate these clearly through collaborative teamwork across your sales, marketing, and revenue management functions; isolated activity rarely yields the best results.

#2. Reap the Benefits of Distribution Partners

Sell the right rooms, to the right people, at the right price! Extend your reach during periods of low demand by engaging with distribution partners, affiliations and Global Distribution Systems (GDS).

These platforms open doors to thousands of potential booking opportunities from online travel agencies, leisure agents, travel management companies and corporate travel departments looking for flights, transfers and places to stay.

Prices and packages can be adjusted to drive occupancy and total sales based on historical data and current trends, to help hoteliers maximise their profits.

Alongside this, revenue management software can support pricing decisions in near real-time using your hotel’s performance trends and local market competitor data.

#3. Nail Your Pricing

Take control of your pricing to boost sales and avoid loss-making promotions. Ensure your rates are set correctly for autumn, winter and beyond by using revenue management systems and techniques with competitor demand and pricing insights.

#4. Data Talks

Make practical decisions and see what does and does not work for your hotel by reviewing your data. Detailed reporting will allow your team to analyse trends, compare data from years gone by and make future forecasts for the low season ahead.

Data collected from your hotel PMS software, revenue management software, and market data sets will help you to create comprehensive weekly /monthly reports with strategic comparisons for planning.

#5. Be Proactive, Not Reactive

Don’t wait too long to react, make it happen! As we said above, planning is key – find the right software and expertise for your hotel, embrace the technology and get your revenue management systems and processes in place with plenty of time before the nights draw in and demand slows.

Choosing the Right Revenue Management System for Your Hotel

It’s no secret that tech now plays a crucial role in business growth for hotels. In fact, revenue management techniques and technology combined can grow sales on average between 5% – 17%.

With their expert knowledge, RevenueRich can help you to shop around and explore the various revenue management systems on offer before selecting the right software for your hotel, team and guests.

With over 45 years of collective industry experience, the team put revenue management, pricing, distribution and analytics at the heart of its approach, to help grow your bottom-line profit.

To find out more about RevenueRich visit our website or call 07709 321 237 to talk to a member of the team about how they could help your hotel.

The current economic headwinds have made protecting margins more essential to hospitality businesses than ever before, but the right technology, in the right place, can help operators both maintain profitability and create a more sustainable business for the future.

Zonal technology can be a vital tool in this drive. From better, more granular reporting, to digital stock checks, to recipe management, waste reduction and more, our systems can help maximise margins and deliver more revenue.

Here are 10 ways Zonal systems can help you be as profitable as possible:

1. Use real-time product sales and stock data to inform decisions

In today’s economic climate, no business can afford to have cash tied up in too much stock or to have items on the menu that just aren’t shifting. Integrated tech systems enable you to monitor the performance of the items you are selling right down to a product level, in real-time. This data will give you all the information you need to make informed decisions around pricing and ordering to boost margins and make potential savings on recipes or suppliers.

2. Analyse consumer spending patterns to plan more effectively

Fully integrated tech that can collate customer spend data from across all your different ordering channels makes reporting much easier, and allows you to more effectively plan staff and inventory requirements. This valuable data provides a view, not just of how your products are performing, but also insights such as what dates and times spend per head is at its highest, via which ordering channels, or the promotions that drive the most spending increases.

3. Reduce strain on staff and help them to be more productive

With recruitment, retention and the cost of staffing an ongoing challenge, any technology that eases the strain on teams whilst helping them achieve more will be an invaluable tool. Order and pay-at-table technology is already a preferred option for many customers and can do just that – taking part of the task performed by front-of-house teams and transferring it to customers.  At the same time, mobile order and pay technology can actually increase consumer spend which means it can deliver increased yield from available capacity and a better bottom line.

4. Drive sales during quiet periods

Times when there are few bookings and little walk-in trade, can be turned into an opportunity for operators with the right technology. With systems that integrate your delivery and click & collect channels, you can increase order capacity on the fly during quieter periods – and decrease it at times when tables are full. This ensures you aren’t leaving any potential revenue on the table or in the takeaway bag, as well as maintaining productivity for the staff you have working.

5. Identify where wastage is happening

Waste of some kind is inevitable, but minimising it is key to maximising margins. One area to look for improvements is in order fulfilment – minimising how much of your stock is going to waste during this stage can provide sizeable savings. Technology that has been designed specifically for use in pubs, bars and restaurants can help here. Such tech enables you to identify exactly where wastage is happening during food preparation, so you can take action before the costs start to add up.

6. Eradicate common errors

Everybody makes mistakes and, while it’s impossible to completely eliminate the potential for errors (no matter how well designed the processes are), the right tech can help. Systems like ours enable you to track staff activity at all points, right down to a button-press level. This insight will help you identify common errors and any patterns of behaviour that may be causing issues, giving you the information you need to make improvements or to offer training to eliminate the issues.

7. Identify cost saving opportunities in the kitchen

By implementing a recipe management system that is integrated with your EPoS, you’ll have oversight of both sales and wastage data in one place. This will make it much simpler to spot cost-saving opportunities and make smarter, more informed decisions about menu options and pricing. This insight will also enable you to see sales trends as they emerge and to identify changing consumer patterns, helping you stay ahead of the market – and the competition.

8. Change pricing and promotions in real time across the business

A fully integrated tech stack draws product and pricing information from one central database. This means that any changes you make can be pushed out across the entire business in one go and with immediate effect. This ability to react in real-time, capitalising on any opportunities as they arise and addressing any challenges, will result in a more streamlined and agile business, and help you ensure you’re maintaining profitability as costs continue to fluctuate.

9. Automatically calculate real-time stock usage

Operators often have large amounts of cash tied up in stock, so making sure you’re on top of stock levels is vital. Technology that automatically updates stock usage in real-time, allows you to identify which items see lots of usage and which don’t, and keep stock levels optimised. Smart systems can even give you estimates of how many days your current stock will last based on current usage data, helping you streamline your ordering and ensuring you don’t run out of anything important or leave cash tied up in stock that might go to waste.

10. Ensure stock is always being ordered from the right suppliers, at the right price

Ordering stock from a number of suppliers, cross checking prices and delivery times is a huge drain on staff time and resources. Zonal’s end-to-end purchasing solution will allow your teams to manage approved suppliers within the system, including what products or ingredients they provide and at what price. This ensures staff are always ordering from the right supplier, at the right price and eliminating the possibility of incorrect ordering.

With our integrated technology working in the background to streamline processes, maximise efficiencies and minimise wastage, operators can be confident they have the systems in place to drive revenues and boost profits, even if the costs of doing business continue to rise.

Click here to take a quick 5-minute self-assessment to see how your current tech stacks up in the above areas!