Rising Costs - with rising operating costs and a cost of living crisis both continuing to impact the sector and the bottom line for operators, one of the key challenges to overcome in 2024 remains managing costs and maximising revenues. Lee Brooks, head of food at McMullen’s pub group, said: “I would say one of the biggest challenges we are facing are prices/ costs – food, utilities, wages etc., which have continued to rise for some time and show little signs of slowing. Unfortunately, these costs have to be passed on as we simply can’t afford to absorb them”.

Climate Change – Climate change will continue to have an impact on menus and pricing, according to seamus O’Donnell, culinary director at the Alchemist. He commented: “Crop yields are smaller and size of harvested product is drastically reduced, as well as the results of flooding leading to loss of crops or failure to harvest.”

Staffing - As pressure continues the mount for operators due to skills shortages and other recruitment challenges, this is likely to remain one of the major concerns for businesses this year. Stuart Duff, corporate chef for the UK and Ireland at Hilton, said: “The biggest issue is recruiting quality highly-trained staff into the business at mid-kitchen level – demi CDP and CDPs. I feel this is an industry-wide issue. The national living wage increasing and mid-Skilled chefs who have year’s experience. The gap is getting smaller for the national living wage due to salary structures, thus driving people out of the business of hospitality into higher paid and easier, less skilled roles.”

Energy Efficiency – Sky-high energy costs have been blighting the industry in recent times, with operators keen to get some respite from unsavoury bills, and regulator Ofgem finally showing some signs of support for businesses facing unfair charges from suppliers. Stuart Duff from Hilton said: “I am working on an exciting project of designing the banqueting kitchen for the future. I am looking at the best equipment on the market and labour saving equipment, such as self-cleaning Bratt pans, plated regen ovens, and adequate storage for capacity, creating a linear workflow from preparation to service using the most advanced equipment available and putting this into action in one of our Hilton hotels.”

Menu Options and Design – Menu design and presentation can be a key method to draw in the customer and keep them interested. Dean Wilson Hartles, director of food and drinks development at the Restaurant Group, said: “Use complex descriptions for every item on the menu, but sparingly. Longer, more detailed menu descriptions of dishes can increase sales up to 20%. Doing so gives more information about a dish, making it sound more impressive, and tends to draw attention from the price. However, don’t use complex descriptions for every item on the menu. For some simpler dishes, such as sides, this isn’t necessary. Having thorough descriptions for a select few makes these dishes seem more impressive and so they stand out from other menu items.” He noted that once a menu has been engineered, operators should be constantly reviewing it to determine what is selling well and why some dishes may be under performing.

Digital Growth – In an opinion piece for FEJ focusing on the importance of PizzaExpress’ recent digital transformation, Arslan Sharif, digital and loyalty director, wrote: “whilst developing the PizzaExpress club app has been a key focus for us, our digital transformation has extended to other areas too. For example, in 2022 we simplified our collection ordering journey and made it easier to order via the website for a pre-determined pick up time; more recently in 2023, we introduced PizzaExpress Delivers, whereby customers can order directly from our website for a delivery to enjoy wherever they are.”

Food Waste – Paul Bate, NEC Group food and beverage director, said that implementing advanced inventory management systems can help optimise food margins and reduce waste, while automation technologies can drive labour efficiencies to counter the impact of labour or skills shortages. “Utilising smart kitchen appliances and data analytics can enhance operational efficiency and meet evolving consumer expectations. We were the first catering company to introduce an AI waste management tool (Winnow) to our operations, which has already driven behavioral change in our kitchens though better understanding of our waste streams (product, specification, and process)”. The company said since the technology was introduced at the ICC venue, food waste on site has been reduced by a third, while more than 20 tonnes of food has been saved – the equivalent of over 51,000 meals.

Sustainability – This is one of the hottest industry topics that will continue to be addressed this year. Over at Compass Group, Mr Holmes, said that in response to the call for sustainability where often clients share the same net zero goals as the firm’s, the group is already reshaping practices and aligning with eco-friendly approaches, from ingredient sourcing to waste reduction. He added: “As challenges mount, technological solutions offer a way forward. The biggest issue affecting us at the moment is instability with utilities – both for us and for our guests. It is our responsibility to deliver value against a backdrop of these cost of living challenges which are impacting us all. We are looking at various new initiatives including equipment, software, and waste management, to support us with our key objective to achieve net zero in 2030.”

AI/Automation – Embracing innovations like AI-driven menu optimisation and customer engagement tools will be pivotal for the NEC Group’s catering growth over the next year, Mr. Bate said. He commented: “Our company is committed to focusing on sustainability and efficiency in kitchen operations – driving our waste and efficiency savings with Winnow even further” Arslan Sharif from Pizza Express, added: “Overall, I would say that the future of digital loyalty schemes in the UK dining sector looks strong, especially with the leaps in the advancement of AI technology in recent months, which could have notable implications on delighting customers through even more personalised experiences”.

Kitchen Screens – Kitchen screens are becoming a common trend to help streamline operations, according to Mr. Brooks at McMullen’s and Mr. O’Donnel at the Alchemist. Mr Brooks said: “Having the right piece of kit for the right job is so important, and our biggest use of technology over the last 18 months to two years has been from kitchen screens. The screens take the pressure off the kitchen and allow chefs to focus on the dishes that section needs to work on. It removes the noise of the old kitchen printer which has been known to trigger, removes the risk of a lost ticket, and everyone can see what they need including front of house”.

10 Factors Set To Impact Operators in 2024