What Lies Ahead For The Hospitality Industry In 2021

When it comes to the ongoing economic damage caused by lockdowns and social distancing, how will the hospitality industry bounce back this year? 

According to the Australian Industry And Skills Committee, the food and beverage services industry has experienced a notable decline of national employees between 2019 and 2020, dropping from 819,800 to 579, 100. Although this comes after two decades of strong growth which began in 2000 at around 500,600, employment levels are predicted to increase in this industry to 889,000 by 2024.

Of course, it’s safe to say that most are familiar with why the hospitality industry took such a hit this year. Once the effects of the coronavirus pandemic took hold in April 2020, the number of jobs lost in the hospitality sector in Australia alone totaled 272, 816. The highest number of stand downs was also felt by the hospitality industry, which was clearly the hardest hit industry once lockdown measures were introduced - particularly for young people. 

Thankfully, Australia’s response to co-existing with Covid-19 has placed us in an enviable position when compared to other nations abroad. For most states, life is almost getting back to normal - particularly when it comes to dining out with friends, or heading to our local pub on a Saturday night. However, food and beverage providers have had to make some significant changes to allow us these simple pleasures. While we can only hope that the worst is behind us, what does 2021 look like for our nation’s hospitality industry?

Australian Hospitality Industry Trends Predicted For 2021

With social distancing, quarantine and lockdown measures forcing most cafes, bars and restaurants to shut down virtually overnight - business owners were forced to get creative. 

By removing the walk in experience that most hospitality sector providers catered to, many traders turned to technology as a means to supplement their traditional bread and butter income. Although many of the tougher trading restrictions have now eased in Australia, many of the digital strategies adopted by food and beverage service providers don’t look to be going away anytime soon - so what other adaptations are predicted to stay in 2021 for the Australian hospitality industry?

Click And Collect - In order to avoid paying the extra fees for delivery services like Uber Eats, many consumers have instead opted to “click and collect” their meals, coffees and even essentials. It offers a happy medium between dining out, and staying at home.  

Online Reservations - Ongoing Covid-19 social distancing restrictions means that many venues are being forced to operate at half of their usual capacity. What this means is that if you want to dine out, you need to book in advance - and most prefer to do so online. 

Shopping Local - In the unfortunate age where more and more “for rent” signs are popping up in storefront windows all over the world, along with staying close to home - consumers are eager to support their local businesses in any way that they can. 

A Focus On Health - ADM research has found that 31% of consumers purchase more items tailored for their health, and 50% report a preference for foods and beverages that naturally contain beneficial ingredients - ultimately, more people are considering food as fuel. 

Sustainable Products - What you choose to supply as a food or beverage provider should ultimately be sustainable for not only your community, but the planet - think along the lines of cutting down how much plastic you use, and encouraging reusable coffee cups. 

When it comes to navigating your way through business in the Australian hospitality sector, it ultimately comes down to how willing you are to adapt and change in lieu with the times. Businesses who are able to do so will not only survive, but thrive. 

Does Your Hospitality Business Need Some Financial Advice?

Here at Muro, the way that we have developed our business support services for our family of clients helps them to really understand the numbers that we prepare. In turn, this allows them to focus on the things that they do best - great products, great services and ultimately, continuing to run a great business without sweating over the numbers. 

We focus on getting our clients to look to the future of their businesses instead of taking a reactionary approach, and consider every business owner to be an entrepreneur. If you’re ready to think big and to get your financial ducks in a row for 2021, please get in touch with us today at award winning Muro to ensure that you’re on the right path for success.