By Scott Wright
MORE than 50 independent hotels, bars and restaurants in Scotland have joined a new campaign to help safeguard thousands of jobs in the hospitality industry.
As the sector grapples with a cost of doing business crisis, and it faces the prospect of a third tough winter since the pandemic started, an online commission-free platform has been set up to allow hospitality businesses to promote offers and attract direct bookings.
It comes as hospitality operators struggle under a barrage of costs, with many in the industry having seen energy bills soar by several hundred per cent this year. The cost of other overheads such as labour, food and drink have also been increasing sharply, while last week the of England hiked interest rates to three per cent from 2.25% – significantly increasing the cost of loans and making it more expensive for businesses to borrow.
Many operators are running at reduced capacity and some businesses in rural areas have decided to close for the winter, as the higher cost of doing business combines with weak consumer confidence to make it unviable to trade.
The Help Out Hospitality scheme, launched yesterday, is supported by businesses such as McKays Hotel in Perthshire, Links House in Royal Dornoch in Sutherland, Brewhemia in Edinburgh, Ingliston County Club & Hotel in Renfrewshire, Tyneside Tavern and Mazzoli Italian Kitchen in East Lothian, and Banchory Lodge in Aberdeenshire.
Designed to incorporate all aspects of the hospitality supply chain, including food and drink producers, the commission-free website allows businesses to develop deals and overnight stays at a time when the industry typically sees a drop in trade. It aims to drive footfall and ultimately protect jobs in an industry that employs around 220,000 people in Scotland, representing about 8.6% of the overall workforce.
The initiative has been led by The Full Range, a food and drink procurement company which has worked with suppliers and manufacturers to fund promotions in participating outlets and in turn drive football during November. Producers such as Arran Dairies, Taste of Arran, Grahams The Family Dairy, Campbell Prime Meats, Mark Murphy and Dole Foodservice, Gilmours and George Campbell are among producers supporting the scheme.
Paul Fraser, owner of Ingliston Country Club & Hotel, said: “The world is full of bad news these days, so it’s great to be able to partner on such a positive campaign with support from all our loyal suppliers and collectively being able to give something back to our local community and attract potential first-time visitors.”
Richard Drummond, owner of McKays Hotel in Pitlochry, said: “Help is precisely what the hospitality and tourism industry requires. After the past three years, the closures, the uncertainties, staffing issues, and now spiralling costs.
“The Full Range came up with the Help Out hospitality initiative to support our industry, which the scheme sets out to achieve. However, it not only helps our industry, it also helps everyone, our suppliers, and the end user. It allows us to pass the discount we receive on to our customers.
“Hopefully, this will drive additional revenue to our businesses and offer our guests great savings, which is a win-win for all.”
Alastair Dobson, managing director of Arran Dairies and Taste of Arran, said: “The Help out Hospitality initiative couldn’t have been launched at a better time. We’re all well aware of increased costs for Scotland’s hospitality businesses, who are always striving to provide a great experience.
“The cost-of-living crisis is meaning customers are ever-more careful with their household budget. Creating a no-commission platform which allows businesses to promote their offers and drive customers to direct book is excellent.
“Our region of Ayrshire and Arran is fighting hard to keep businesses open through what will be a very challenging winter, to retain staff, maintain our collective product and visitor experience and also offer value for money.
“The Help out Hospitality initiative will help achieve this. The more people who sign up, the more benefit for our businesses, our visitors and our communities.”
Barry Knight, director of The Full Range, who has spearheaded the campaign, said: “The current cost-of-living crisis is having a significant impact on each and every operator, regardless of business size.
“The sector really is on ‘life support’ if help is not provided to trade more efficiently through the winter trading period. We think our new Help Out Hospitality [scheme] will go some way to supporting businesses where they need it most at this critical time.”
He added: “By leveraging our unique position in the marketplace, we’ve been able to negotiate a support package across a wide range of suppliers and manufacturers which allow our partner restaurants to run promotions throughout the month of November, in turn encouraging diners to eat out and sustain footfall at a particularly vulnerable time for hospitality.”
“By involving suppliers in the process, we can drive meaningful change – generating discounts at the beginning of the process while removing commission on the other end. [it is] a real win-win for the industry, at the same time satisfying consumer demand for great value deals.”
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