Keys To Navigating Rapid Growth In The Hospitality Industry Navigating exponential progress in the hospitality industry requires a strategic approach to staffing, maintaining high standards, effective leadership, training, innovation, and careful planning for the future.
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The hospitality industry has undergone significant changes in the past four to six years, characterized by fast-paced growth and expansion into new Middle Eastern markets. This evolution presents a unique set of challenges and opportunities that require strategic planning and adaptability. Having been deeply involved in this industry, there are always insights to navigating these changes, the key learnings gathered over the years, and the essential strategies needed to thrive in this dynamic environment.
Maintaining high standards amidst growth
As hospitality brands expand, maintaining high standards becomes a complex, yet imperative, skill. The increased reliance on temporary workers in certain markets can disrupt the balance of retention and culture, leading to a loss of momentum. To counteract this, constant retraining and overseeing operations are essential to ensure that the quality of service, products, and the environment remain consistent.
A core team of dedicated professionals is necessary to run every business efficiently. Typically, in a seasonal model, the core team should constitute about 60% or more of the workforce, supplemented by 40% seasonal workers. Seasonal employees must be thoroughly trained to uphold the brand's standards, ensuring that the customer experience remains seamless regardless of the workforce composition.
Embracing challenges in staffing and seasonality
One of the primary challenges in the hospitality industry is accessing a willing and capable workforce. Legislation in various markets, such as in the UK where we have recently opened a Tashas cafe, has made it difficult to internalize a foreign workforce post-Brexit. The pandemic has also shifted mindsets, particularly in the service industry, making it increasingly challenging to find individuals interested in working in hospitality. This issue is compounded by regional nuances, such as the seasonality in Saudi Arabia, where business is significantly impacted when customers travel during the summer. Arguably, the challenges in Saudi Arabia and the UK do intersect and mirror each other when it comes to talent retention.
To address these challenges, operators must adopt innovative staffing strategies, including seasonal contracts and part-time work, to ensure they can sustain their business model year-round. It is crucial to maximizing footfall during high seasons and be flexible in workforce management to maintain service quality and customer satisfaction. These factors have major implications in regions like the GCC where work is tied to one's residency in the country. This means knowing the country's legislature is vital to adhere to labour laws and regulations.
Leadership, innovation, and market trends
Effective leadership and a clear vision are critical in managing rapid growth especially when expanding a hospitality group internationally. Leaders must focus on retaining a core team that drives and impart the organizational values and culture into the new markets. This strategy helps maintain the quality and standards that customers expect, regardless of seasonal fluctuations, temporary workers, or other variables.
Innovation and market trends play a significant role in navigating expansion. For instance, some markets lead in terms of innovation, while others lag. Being present in both of these instances is advantageous, making it possible to share learnings from one and implement in the other.
Adapting to challenges like the labour market conditions or complexities of new supply chain processes, requires great research, tapping into expert advice and sometimes onboarding new technologies. These strategies are essential for managing growth and translating this into year-on-year progress effectively.
Future outlook and strategic planning
Planning the timing of expansion strategically is crucial for long-term success. Meeting the wish list of timelines can be challenging due to various factors such as funding, construction delays, logistics, and training requirements. It is vital to plan development sustainably and efficiently, ensuring projects are spaced out properly so that the team can execute growth effectively. Sustainable growth, rather than accelerated or rushed expansion, is often the key to continued prosperity. This was a crucial condition for the group when planning for the opening of Flamingo Room, African Lounge, Perlage and Collective Africa in Abu Dhabi in 2023.
At Tashas Group, in the latter half of 2024 and into 2025, the focus will be on retrospectively analyzing the progress made thus far and avoiding overextending group resources. The Hewlett-Packard adage "more businesses die of indigestion than starvation" comes to mind here. Planning for logical and sequential timelines is crucial, as it allows for adequate time for all of the necessary components to be fulfilled properly, thus avoiding the pitfalls of over-expansion and expensive repercussions.
Customer-centric approach and attention to detail
Putting the customer first is paramount in the hospitality industry. It is essential not to succumb to fleeting trends or make hasty changes that feel unnatural. Consistency across all customer touch points is crucial, and any oversight must be swiftly adapted to ensure that customers do not suffer. Attention to detail and an unwavering focus on quality are the secret ingredients that drive success in the hospitality industry.
Customer experience should always be at the forefront of decision-making. While it is important to innovate and adapt, it is equally important to ensure that all customer touch points remain consistent. This consistency builds trust and loyalty among customers which is vital to thrive.
Navigating exponential progress in the hospitality industry requires a strategic approach to staffing, maintaining high standards, effective leadership, training, innovation, and careful planning for the future. By focusing on these areas, we can ensure sustainable growth and continue to deliver exceptional and memorable customer experiences. At the end of the day, the secret sauce to success is attention to detail and focusing on each key aspect. The journey is filled with challenges, but with the right strategies, people, and a customer-centric approach, the hospitality industry can thrive and achieve lasting success.
Related: Follow The Leader: Natasha Sideris, Founder And CEO, Tashas Group
