Long-term growth depends on service
Nine out of 100 - that doesn't sound many. Call it "nearly 10%" and the figure begins to look better. So, nearly 10% of the businesses listed in the recent Sunday Times list of the UK's top 100 fastest-growing companies can be found in the catering or hospitality sector. That's not bad, considering that large parts of the industry say that they have been suffering from "poor trading conditions" for the past two years. There is obviously life out there and growth to be had.
In fact, it could be even better than this snapshot suggests. One industry analyst has claimed that the survey, which grades companies on their sales growth between 1999 and 2002, underestimates the hospitality sector. He says that there are businesses in the market, particularly hotel groups, that have performed even better than those listed.
This is encouraging, as it suggests that operators in the sector are more robust than many - investors and analysts among them - currently believe.
But there's something else as well. A grouping of successful companies in a list such as this - flawed as it might or might not be - gives us an opportunity to look for common denominators. What do the go-getters in this industry have in common?
Successful companies have a focus, a drive, a shared vision and a common goal. They adapt, they look for opportunities and they seize the moment, whenever and wherever it happens. But, on top of that, if there is one overriding factor common to all successful businesses in this sector today, it is an emphasis on customer service.
Hear what Robin Hutson, Caterer's new Hotelier of the Year, says: "Hotels at any level should be about comfort and service." Hutson's Hotel du Vin chain is built on the delivery of "stylish yet unstuffy hotels in which a focus on basics such as customer service keeps standards up…".
This is a point often lost on operations that go through a tough time. They look at their "product", they strategically reposition themselves in the market, they cut their cost base - but, unless they invest in their service levels on the front line, unless they focus on the needs of the customer, they will never realise their full potential.
It's a simple truth often overlooked by businesses which forget that they are part of the "service" sector. As the Sunday Times list proves, paying attention to this basic principle can lead to company growth, even during a general economic downturn.
