Viewpoint: It's time for some positive thinking
Suppliers and businesses should work towards the same goal in these extraordinary times we find ourselves in, says Lord Karan Bilimoria
When I became president of the Confederation of British Industry in 2020, I could not have predicted what was to come in the two years ahead. First the pandemic, then the war in Ukraine, followed by huge supply chain challenges and rapid inflation – it is a landscape unlike any I have seen during my three decades in business.
Hospitality has been among the industries most acutely affected by the economic turbulence, and there is no denying that the landscape in 2023 continues to look challenging, with venues battling the twin headwinds of ever-rising input costs and sky-high energy bills.
But it is not an altogether gloomy picture. While people's budgets will be squeezed, during previous times of economic uncertainty, many people saved money by cutting out bigger expenditures but held on to smaller indulgences, and drinks and meals out fall into this category. Indeed, recent CGA data shows that when reducing their spending, consumers will prioritise visits to hospitality venues over things like holidays and new clothes.
Navigating the ongoing cost challenges will be the priority. The government's efforts to reduce rates and energy bills for the sector has been vital, but the reduction in support from April will be concerning for hospitality businesses, particularly smaller independent venues. Groups like the CBI will continue to fight the hospitality sector's corner. And at Cobra we're conscious of the role we can play to support our customers too.
Pulling in the same direction
Hospitality venues are not isolated, they are part of a huge supply network including big drinks brands, and multinational food and drink companies. We face challenges together, and we grow together. As we look to rebuild and evolve, it's important that venues use this network for support rather than try to go it alone. Communication and creative collaboration with suppliers is key to identifying and capitalising on opportunities to grow.
At Cobra, we've been looking at how we can help our 28,000 licensed stockists across the UK to attract more customers in a difficult environment. It was a big part of the thinking behind our recent work with Punch Pubs & Co. We supported their Mighty Kari Night, working with them to elevate their menu and create dishes that stand out from the crowd, and also pair perfectly with Cobra Beer. The tie-in enabled Punch Pubs & Co to really tap into Cobra's brand power as a way of driving footfall to their venues. And we helped them to build on this even further through prize draws that included a free Kari night meal for four people. It's just one of a host of examples of how we can work together to increase footfall and drive more sales.
Moving forward together
During the pandemic hospitality businesses were a prime example of how businesses can effectively find solutions in the face of unexpected challenges. The way so many quickly shifted to offer takeaways when they were unable to open their doors demonstrated how forward-thinking the industry can be.
We have already shown, during the pandemic, that we have the strength, resource and innovative spirit to navigate any challenge. By continuing to harness this and with the right support from government, we can navigate the challenges we are facing together. And as we look ahead, I firmly believe that the hospitality sector can play a key role in the UK's economic recovery.
Karan Bilimoria is vice-president of the Confederation of British Industry and founder of Cobra Beer
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