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Takeaway food performance during Covid-19

Before Covid-19, the takeaway food delivery market – delivering foods that are ready to eat – was estimated to account for 8% of the value of the overall UK foodservice sector. With the temporary loss of the eating-out market, many food establishments are turning to takeaway delivery. While this offers the industry an opportunity, it is unable to compensate for eating-out losses.

Data from Kantar shows that delivery occasions saw a surge in the week before lockdown (16 to 22 March), with delivery trips up 57% year on year. This suggests that people were swapping dining out for takeaway delivery due to social-distancing advice. The proportion of full-service meal occasions that were delivered surged to 20.8%, up from 2.6% the week prior (Kantar OOH, w/e 22 March 2020).

During lockdown, an initial slump in takeaway deliveries was reported by delivery apps, due to fears around food carrying the virus and the loss of office deliveries. There are now reports that, after several weeks at home, people are turning to comfort food in the form of deliveries, however it remains an ever-changing picture, with the use of meal-delivery services wavering week by week. According to MCA’s Channel Pulse survey (from 6 to 12 April), the average frequency that people used takeaway delivery was 2.3 times that week. This compares to 2.1 times in the week prior, and 2.3 times in the final week of March. Even at dinnertime, the biggest occasion for takeaways, only 13% of people who would normally have eaten out opted for takeaway delivery, with the majority choosing grocery shopping instead (MCA Eating Out panel w/c 6 April 2020).

The absence of big brands, such as McDonald’s and Wagamama, has contributed significantly to the decline, as the market relies on these brands for volume. In the week before it closed, McDonald’s accounted for 20.5% of all delivery occasions (Kantar OOH, w/e 22 March 2020). This was up from 10% in the previous week. Fast food chains are beginning to reopen some sites for delivery, including Burger King and KFC. However, these restricted reopenings are likely to only bring a small positive swing.

Opportunities for growth

It’s therefore clear that grocery shopping, rather than takeaway delivery, will benefit most from eating out closures. Some supply chains cannot easily shift from supplying foodservice markets to grocery, with the dairy sector an example of this. As such, pursing the growth opportunities in the delivery market will be important for many supply chains to help reduce loses from Covid-19. Below we outline some of the opportunities which do exist.

  • Play on treating

We are eating an additional 503m meals in home per week – delivery or takeaways break up the boredom, and reduce the need for cooking. The main reason to have a meal delivered is as a treat, with this cited as a reason in 27% of deliveries, up three percentage points week-on-week (MCA’s Channel Pulse, 6 to 12 April). Tap into this need through communication.

  • Reassure food fears

People are unsure about the safety of food deliveries, despite delivery apps like Deliveroo and Just Eat offering contact-free delivery. The Food Standards Agency published advice for consumers on 17 April, which clarifies that “it is safe to have takeaway food delivered if the business you order from follows the Government’s safety guidance”. Therefore, be explicit to consumers about how your business is ensuring food hygiene.

  • Fly your local flag

Research from CGA suggests 43% of the GB population either have, or are planning to, support local pubs, bars, restaurants or cafes as a result of Covid-19. A popular way to do this is through hot food delivery.

  • Offer affordability

MCA’s Channel Pulse shows the biggest barrier to having food delivered is expense, and at the moment people are hugely concerned about personal finances. Some delivery apps have waived or reduced their fees in order to help restaurants gain orders. But if you are going it alone it is important that your offering is affordable.

  • Look beyond the evening meal

Dinner is more important to takeaways than it is for the overall eating-out market. In the overall market, lunch accounts for 27% of occasions (MCA, YE Dec 2019). Therefore this is a gap which can be filled through offering lunchtime delivery options.

  • Offer what people want

British, according to MCA’s Channel Pulse for 13-19 April, is the most popular delivery cuisine during these troubled times. Think about which British dishes can survive travel to people’s home, maintaining the restaurant quality standard. Burgers are the next most popular option, with fries on the side. Well-known pizza brands have remained open but there is still an opportunity here for Italian restaurants as pizza is the third most popular delivery option. Lastly a ‘curry night’ is also appealing, with curry typically being the top dish for lamb in the eating-out market. It’s not just food either – a survey from CGA at the start of lockdown showed 11% of people have purchased alcohol online for the first time or more often than usual due to Covid-19, therefore adding this to your offering could be beneficial.

Longer-term outlook

In the long term, it’s likely that the takeaway food delivery market will see accelerated change from the virus, but it won’t be immediate due to the current uncertainty. As people move away from restaurants and have less spending power, takeaways may prove a more cost-effective alternative to going out to eat. Also, with more brands (particularly fast-food brands) starting up again, this may help support takeaway food delivery growth. However, with the eating-out market accounting for an estimated 80% of the total foodservice market, and takeaway only 8%, any growth won’t be enough to compensate for overall losses.

For more information on new EPOS Till Systems, online ordering e-commerce software and smart cloud back office technologies please contact South West Systems by clicking this link.

 

Posted in E-Commerce Onliner Ordering By SWS Marketing Team

Cloud Computing and Changes

5 May 2020 09:24:46

Without cloud computing, businesses would now be in even deeper trouble.    

According to Canalys—an analyst firm—$107 billion were spent on cloud-computing services all over the world last year. That amount is 37% more than in 2018. It is predicted that public cloud services will rise to 17% this year, totalling $266.4 billion. With the COVID-19 pandemic changing the way businesses run and employees work, the investment in cloud computing has allowed the transition to working from home happen relatively smoothly for many companies. If the Coronavirus had hit in 2010, businesses would have been in even bigger trouble, with only $6,300 a year being spent on cloud computing during that time.

Why this is important for your business:

If you’re not convinced that leveraging cloud is a good thing to do, the coronavirus pandemic should have convinced you that the cloud is now and essential thing to do. Even if you have desktop or older applications, you can still move them to a managed server environment. The important takeaway is that you need to have a cloud strategy for your small business going forward. South West Systems range of EPOS Till Systems and cloud back office software can help your business with that strategy

 

Posted in SWS EPOS Till Systems By South West Systems Marketing Team

Covid-19 Business Survival Guide

16 Apr 2020 11:56:23

Covid-19 Survival Guide for Businesses

We are in unprecedented times with the Covid-19 pandemic ravaging the retail and hospitality sector. Public health organisations and governments may advise us on how to deal with the disease here and now, but there are many unanswered questions as to how to deal with the fallout.

In this article we share some of the advice we are giving to our restaurant and foodservice clients in these turbulent times.

Ideas to keep sales and protect the business

 

Right now, we are dealing with forced closures of services and even borders, public health advice to keep distance socially, and considerable consumer health concerns. This is highly likely to be followed by low consumer confidence, less disposable income and continued health concerns - not to mention the potential societal changes that may result in long term reductions in travel as companies have been forced to manage in (low-cost) remote working modes.

During this time we will be fighting for every sale, but what can be done to keep the money coming in?

  1. Reassure you customers that you are taking the risks seriously through your processes and procedures. Look to spread out tables more than usual and utilise social distancing. Communicate the actions you are taking in store and online. Reassure your guests that you take disinfection of surfaces seriously.
  2. Take even better care of the guests that come. Give them the best experience you can with extra special touches - this will help you drive more repeat business, but also reinforce good old word of mouth and online reviews.
  3. Make more from each guest. Alongside taking care of each guest, remember that people are likely to be eating or drinking out less often right now, so they may be more willing to spend more when they are. So be sure to upsell those sides, bottles of wine and desserts.
  4. Look to delivery & collection.Like the old proverb says "if the mountain won't come to Muhammad, then Muhammad must go to the mountain." While people may not come out to your bar, pub, cafe, restaurant, they still must eat, so consider how you can maximise the delivery business. If you offer your own delivery, offer to do no-contact drop off or even popping food out to people's cars if they drive to collect. Promote it out to your databases and on social media with keywords such as safe at home and reinforce the actions you are taking in reducing contamination. South West Systems offer a range of EPOS Till Systems / software that incorporate a delivery and / or collection platform which can be added to any pre-existing website on any website platform. Please enquire here.
  5. Recipe boxes.A step further on from the delivery and collection opportunity, you could look to offer recipe boxes with the items needed to cook guests' favourite items on your menu.
  6. Encourage people to buy gift vouchers. Many businesses have turned to encourage customers to buy gift vouchers for future visits or gifts, which is a great idea. This will bring cash in the short term, and ensure that you will have guests in the restaurant in the future. 
  7. Create low key reasons to visit. With major events being cancelled and potential health concerns aroundbig gatherings, you could look to put on low key seated events on a local level - keeping numbers manageable and distance between the tables.
  8. Convert more guests. Think about what incentives you can give to the team to help them drive the local marketing on their site. If you are within a hotel, consider incentivising the reception team. Each time make the team ask if they can book the table, not if they would like to, but "Can I book you a table for tonight?", language matters
Posted in Coronavirus By South West Systems Marketing Team

Marketing Matters

26 Mar 2020 17:04:17

Why Marketing Matters During The Pandemic | South West Systems EPOS Tills

We are in unchartered times. Few if any have experienced the fear and threat of a pandemic – at least in modern society – and no business has experienced such a widespread, global shutdown before. It’s one thing when a supply chain struggles or there’s a recession; quite another when you literally have no idea what the next day will bring and we really are in an unprecedented era.

So here’s my take on the situation now, and what happens next. Many of the hotel managers I speak to nowadays were not managing hotels at the time of the most similar disaster – foot & mouth disease – which struck down livestock, but which also brought almost the entire tourism & hospitality industry in the UK to a standstill.

Those were dark times indeed, when overnight the UK sector saw almost 100% cancellations and we were left in limbo. Of course, in real terms, the two are poles apart – one was geographically isolated, the other widespread; one was animal, the other human; one was industry specific, the other across the board. Yet I also firmly believe that there are lessons we can learn from what has gone before.

At the time, foot and mouth was one of the worst incidents the sector had ever seen, made worse by the fact that the government only recognised it initially as an agricultural impact, not a tourism one. Covid-19 puts it to shame, but I still firmly believe that there are lessons to be learned.

Lessons learned from foot and mouth disease

Let’s imagine for a moment that the government bail-outs have done what they need to and we’re emerging from the shadow of Covid-19 with an impacted but still operating business; what then? Well based on what has been before, I believe that we need to:

  • Globally publicise that we are open for business. As well as showcasing our own businesses, Visit England and Visit Britain need to rise to the occasion with all our support, to kick-start the focus on the UK as a great destination to visit. After foot & mouth, we were slow off the mark to attract visitors and it took a long time for tourism to return to ‘normal’ in the UK – at least two years in fact. We can’t afford for that to happen, so you should be planning how and why you are going to promote your business to potential visitors.
  • Capitalise on new trends. The global pandemic will serve as a reminder that there is a risk to international travel – both in terms of unknown disease, and in terms of loss of money / holiday bookings through cancellations. After foot & mouth, it took a long time for reputations to rebuild and we were very slow to capitalise as an industry on the changes in customer behaviours. With COVID-19, I predict that there will be four major trends that businesses need to be ready for:
    • Booking local – I think for a year at least the pandemic will prompt people to look local with their travel and focus on the UK and Europe. Businesses will be well-advised to tailor their offerings for a local marketplace including short-breaks, arrival by car and public transport and the ‘self-isolation’ or perhaps more aptly self-reliant staycation experience.
    • Booking last-minute – just as it was with foot & mouth, the unpredictability around travel will serve to make people risk-averse and they will see advance booking as an unnecessary risk. This means booking much closer to the date of travel and being more cautious about where they book and when. Businesses should be considering the balance between last-minute bookings and last-minute deals – so you don’t end up undermining your own proposition – as well as ways to add value for those booking direct.
    • Booking independent – if there’s one thing that is trending on social media at the moment, it is a reminder to shop and visit independent businesses rather than chains. People are being reminded that small businesses employ ‘real people’ and that every pound spent makes a big difference directly. I imagine that the next 6-12 months at least will maintain this focus, so now is the time to update websites, remind people that you’re not a big chain and perhaps feature the people behind the brand to inspire future bookings.
    • Sustainability – people are already heralding the silver lining of COVID-19; a sharp and unprecedented drop in pollution and emissions to make a much healthier outdoor space. Reinforcing the trend to ‘book local’ and travel closer to home, people will also be seeking to improve their carbon footprint. They’ve realised they can live without impact and there’s a laser focus on what ‘staying in’ can really do, so prep yourself now to get ready for the influx. I’d recommend paying the incredibly affordable fee to get a Quality in Tourism REST assessment which independently grades your business on its sustainability and offers advice on how to improve. See www.restourism.com for more.
  • Marketing matters – an apt point given the title of my column – but it really does. Marketing & communications are usually the first thing to go and the last thing to come back, because it is an ‘easy’ and obvious cost saving from the budget. I appreciate, no one is budgeting at all at the moment and for the near future, this is an entirely moot point, but my advice is to re-establish a marketing budget as quickly as possible. Your business cannot be successful without customers and you cannot get customers without marketing in some form, so make it your first choice, not your last.During foot & mouth, most businesses opted not to market, but this passive approach to promotion means your business is not ready to capitalise on either the trade that is there or the new trade when it returns. If you’re really struggling, use this as an opportunity to see how you can do it differently and more cost-effectively. Outsourcing to an agency can lower the overhead in the short-term; joining organisations that can help market you e.g. your local DMO can help; and reducing previous budgets to get started, but not removing them completely is a possible compromise.
  • Trust that it will get better, but adapt if you must. Unlike foot & mouth where the grants and financial support were extremely limited and came significantly too late, the government support, albeit limited as it is, will hopefully get us all through the worst of it until trading can return to normal. What you cannot lose faith in is that the business will return and it will grow in momentum, but it may not be exactly as you expect. My advice is to prepare now – use the time to come up with new strategies and consider how you can adapt. I remember one case of a fine dining establishment locally that lost all its trade back then. The market wasn’t there for a fine dining experience straight off, so they added a bistro experience in one part of the dining room and used that to keep the business afloat. It worked and their adaptation was key!

So what should businesses be doing now?

It’s not possible to ‘trade’ when you have an order to lockdown, but the sector can and should learn from other sectors and consider who and how employees can work from home. It’s perhaps not what any of us want or need right now, but I feel we must take advantage of the situation however we can. If I was still running a hotel, I would be:

  • Updating processes and doing virtual training. You have a captive audience in your team who aren’t ‘too busy’ doing something else, so how can you take advantage of the time to bring them up to date? Brainstorm ideas, conduct online training, update process manuals and make sure your staff are upskilling and keeping in touch with the business. You can then reap the rewards when you reopen.
  • Planning strategically. You have no choice but to plan ahead and although the predictions might be out of whack and your budgets might not be as big, you have little choice but to return to ‘business as usual’ as quickly as possible. They say luck is what happens when preparation meets opportunity, but I prefer to think of it as prosperity.
  • Inspiring people to travel – virtually that is. They might not be able to travel now, but they can save that inspiration for some what’s to come and change the way you use your social media so that people aspire to visit, when they can that is!
  • Being fair and humane. We’re all taking it one day at a time as guidelines change overnight and businesses adjust, but the feeling of panic is no reason to behave anything but ethically. I often witter on about the way that you say things being important, but it really is. You only have to look at how badly Britannia Hotels has looked after its staff to recognise this situation being handled badly. It’s worth remembering that people have long memories, and so does the internet.  Behaving badly or in any way that is perceived unfair will not just impact your reputation now, but also your ability to bounce back when we’re out of it, so be careful what you say and do, and if you do have to do something difficult, do it as fairly and favourably as possible. The same applies to cancellations – I know it is hard to part with the cash you’ve already been paid and it is your prerogative not to do so, but being a bit flexible is the best way to gain a customer for life. Over the last few weeks, I’ve seen a real split in approach, with those offering free cancellations and postponements getting high praise, while those who refuse to refund are being slated. Yes, there is a financial implication, but surely there has to be a compromise, particularly if you want these guests to be your guests of the future.

So what should businesses be doing as we recover?

Aside from building on the plans you are making now, the most important thing of all is to be agile. I can’t say for certain what will happen, nor can I promise that things will return to the way they were before, but I am certain positive things will happen and it’s up to us to take advantage of them. Be prepared to deviate from what you’ve done before, adapting to the needs of your future customers; be prepared to change your proposition or at least adjust it in the short term; and be prepared to do things you’ve not done before, if that’s what the world demands of you.

Posted in Marketing By South West Systems Marketing Team

Coronavirus Covid-19 News

26 Mar 2020 16:54:05

Covid-19 / Coronavirus News with Wetherspoons Staffing issue

The media and the Twitterati have had a field day vilifying the founder and owner of pub chain Wetherspoons over his decision not to pay his staff in light of the coronavirus restrictions.

Tim Martin had sent an email to his 43,000 staff saying he could not afford to pay them in full, prompting protests online and off, claiming that he was ‘greedy’ and that he should ‘furlough’ the workforce instead of simply not paying them.

The obvious question to such idiocy is: pay them with what? 

Let me set out a few principles here for those who do not run businesses and may wonder about how certain decisions are arrived at in the boardroom. 

  • In order to pay staff, it is necessary that any company has cash at hand of an equal sum to the wages due
  • In order to continue to generate cash for future pay cheques, not just this one, any company must have customers continuing to buy its products or services
  • In order to survive a crisis involving the evaporation of these two things, as has happened in the last 14 days across the UK retail and hospitality sector, a business must minimise existing liabilities and certainly not take on new ones

Why do I use the word ‘liability’? For those who feel I have transgressed with a terribly passe (for our Google-shaped 2020 corporate culture) implication that employees are a financial liability just the same as any other supplier receipt or overhead, it is not them I am talking about. Though for the accountant, labour is undoubtedly an overhead like any other.

The liability of which I speak is chancellor Rishi Sunak’s so-called ‘bailout for businesses’, which does nothing of the sort. 

First, it was the Coronavirus Business Interruption Loans, which were already a croc of the proverbial in that they required businesses to take on unsustainable new debt that they have no hope of repaying even once the dust settles, so diminished will the economy be. These have been exposed even more so this morning as it emerged that the banks tasked with the £330bn of lending want personal guarantees from business owners, even though the government said it was underwriting the loans. That tells you all you need to know about what the City thinks of the Treasury’s prospects over the next six months.

Next, it was the ‘furlough’ scheme, already useless in that it requires the employees not to work during their furlough, and requires employers whose problem is a catastrophic lack of cash to produce wads of it and pay the wages. Oh, and wait to hear from the taxman on a rebate who knows when.

In this setting, does anybody really think Tim Martin is wrong to do what he did? You do not have to be a chairman or an accountant to see that no money in equals no money out – if Tim Martin’s employees want a job to go back to when the crisis begins to abate, then he is acting in the only way possible.

It does appear that he has backpedalled on wages now, to which the critics will say ‘Aha! So he did have the money!’ But alas, he has counterweighted his bowing to pressure on wages with an opposite and presumably equal moratorium on paying suppliers. How many times must it be said? No cash means no cash. Someone has to bear the brunt. His workers’ wages are now safe, but what about those people who work for his suppliers? 

But Tim Martin must be a millionaire with a business that size, perhaps another line of argument. Again, anyone with any experience of running a company will know that even large ones can run at a loss, the founder having secured his overdraft or debt facility against all his personal assets acquired during better times (if he ever enjoyed them), and so he has nothing to hand out personally. Not that there is a legal mechanism for him to do so.

So forgive me, but with a grotesquely inadequate package of nothingness from the chancellor, as far as small businesses are concerned, I’m with Tim Martin, against all the fatuous naysaying and grandstanding from people who have never had to find a wage bill in their life. He must retain cash where he can, because there is none coming in, and nowhere to go.

It may be disgraceful to try and prioritise the survival of the business over ‘’the honourable thing’, but if that’s true then only disgrace and dishonour will mean any jobs are left to return to once the restrictions are lifted. Right now, Sunak offers no alternative.

Posted in Coronavirus By South West Systems Marketing Team

New Hotel Acquirer Hilton Bristol Airport - South West Systems EPOS Till Systems

The Ability Group has acquired the Hampton By Hilton Bristol Airport from CIMC Capital Ltd. in a £24m deal.

The hotel comprises 201 bedrooms, two meeting rooms, a gym, lounge area and food and beverage facilities.

It is located adjacent to the airport’s terminal; the only branded hotel at Bristol International Airport. There is the opportunity to expand the hotel to include an additional 50 rooms.

The deal was advised by global real estate advisor, CBRE.

Anuraag Badola, director, Hotel Investment Properties, CBRE said: “We are delighted to have advised CIMC on this transaction.

“This asset is a well-presented, modern hotel that benefits from both its association with Hilton Worldwide and its prime strategic location as the only hotel in Bristol Airport, an important transport hub for the city of Bristol and the south west region.”

Posted in Hotel Hospitality By South West Systems Marketing Team
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