3 minutes reading time (519 words)

Hospitality & no shows - what can you learn from this?


I was listening recently to an article on BBC Radio Solent about No-Shows in Restaurants and the impact this had on business and their owners. It is not something I have ever thought about and why would I? I don’t own the business/restaurant that is impacted and as a customer as long as my table I have booked is available, I am happy.

What was interesting for me was that the hospitality industry had thought about it and indeed could give hard facts as to how much it was costing the industry. Because, they recognised it as a major problem and a blight on profit margins.

The figure commonly banded about it is £16bn. Restaurateurs are reported in quoting figures in £1000’s as the cost of No-shows in just one weekend. With tight profit margins business owners know down to the pence how much each empty table has cost them.

The industry as a whole has started to fight back with the use of systems and reservation structures. But, some business owners, sadly are only taking action when the problem has really taken effect and its make or break for them.

So, what has this all got to do with me and you? Well, it got me thinking about the other major factor that impacts on profits for business and that is staff. The loss of staff.

I thought I would do a quick ‘google’ to see if industries such as the Cleaning Industry would be as quick off the mark as the Hospitality Industry in knowing the cost of staff turnover on the profit margins. I thought it would be easy seeing as in the UK there are approximately 500,000 employees in this sector. But, no I couldn’t find the fiqures I was looking for and know exist, if only on the balance sheet of each and every one of the 10,000 cleaning companies in the UK.

What I did find though was some shocking statistics quoting that staff turnover in this sector is sometimes as high as 400%. Yes, I did a double take too! I did check it and found other sources quoting 300% so clearly it is very high. It is no wonder then that a number of companies are running at a virtual loss.

So, that brings me back to the No-Shows. These used to be accepted in the Hospitality Industry as the norm but now things are changing and as a customer we are getting more used to having to pay a booking deposit and not quibbling. The Cleaning Industry has always had a reputation for poor staff retention with apparently little interest in turning this around. But, particularly as Brexit looms and the impact this has on labour availability there is a need and indeed some cleaning companies use it as their USP to attract customers, to keep their staff. The premise being - value your staff and they will value your customer – and the impact this has on profit margins of course is very acceptable too!

Happy staff – Happy Customers – Successful Business.

Try it!

Call Jane 07767702215


Vulnerability - to exploit or not to exploit that ...
Ouch! Staff turnover is painful.

Related Posts



No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Monday, 23 September 2019