The cost-of-living crisis in the UK is still hitting both hospitality businesses and their employees hard. As operational costs rise and consumers tighten their belts, hospitality businesses face the dual challenge of maintaining profitability while ensuring their staff are adequately compensated. Polaris Elements and Hastee have come together to offer some insights, addressing both the financial needs of employees and the operational challenges faced by businesses.

👉💡📁 As well as the insight piece below, Hastee and Polaris have several resources to help you navigate the cost-of-living crisis, including our e-books Keeping Your Doors Open and The Workplace Wellbeing Study which you can access here.

Hastee: Empowering Employees

In the midst of the escalating cost-of-living crisis, new research reveals a stark reality: 87% of hospitality workers’ mental health is worsening because of financial concerns, exacerbating an already challenging situation. With wages stagnating and essential expenses on the rise, hospitality workers face mounting challenges, including housing and food insecurity, limiting their ability to save and thrive. According to recent studies, nearly 60% of hospitality workers struggle with financial stress, with over 40% citing it as a major concern affecting their overall wellbeing.

Earned Wage Access

Amidst these challenges, one pioneering solution that has emerged is Earned Wage Access, which revolutionises the traditional pay cycle by providing instant access to earned wages, empowering employees to navigate their financial obligations with newfound flexibility and control.

By eliminating the need to wait for payday, providers like Hastee enable workers to address immediate expenses without resorting to high-interest loans, thereby alleviating financial stress and promoting overall wellbeing.

Recent user surveys conducted by Hastee underscore this impact, with 92% feeling more in control of their money thanks to Earned Wage Access and 88% being more likely to stay working at their current employer when this benefit is offered.

Financial wellbeing benefits and education

Another key solution is supporting workers with financial wellbeing benefits and education to reduce financial stress and help them better manage their finances.

These can take many forms such as personalised educational resources, financial coaching, money management tools, employee discounts, and flexible pay options, among other things.

PwC revealed that financially stressed employees are 5 times more likely to be distracted at work, highlighting the potential productivity gains for employers. By investing in these programs, hospitality companies can therefore enhance both employee wellbeing and operational resilience.

Smart budgeting

Smart budgeting strategies can significantly benefit hospitality companies during the cost-of-living crisis. By regularly monitoring expenses, implementing energy efficiency measures, optimising inventory management, adjusting staffing levels based on seasonal demand, and negotiating bulk purchasing agreements, companies can reduce operational costs and improve financial stability.

For hospitality workers, smart budgeting strategies are equally crucial. Creating a detailed monthly budget, setting aside an emergency fund, prioritising debt reduction, automating savings, and utilising employee discounts can help workers manage their finances more effectively. These practices reduce financial stress, increase disposable income, and provide a buffer against rising living costs, ultimately fostering a more engaged and productive workforce.

Polaris Elements: Empowering Hospitality Businesses

In an industry where every decision can impact the bottom line, hospitality businesses are under immense pressure to adapt to the current economic climate. Here are some practical solutions for how your business could reduce some of the costs.

Stock Management and Waste

Effective stock management and efficient point-of-sale (EPOS) systems are crucial for maintaining profitability. The Waste and Resources Action Programme (WRAP) estimated that over 400,000 tonnes of food waste is generated by the hospitality sector each year equating to over £682 million in lost revenue. (And this was before the rise in inflation and associated costs).

21% of all waste is from food spoiling – ensure that everything is stored correctly, and your teams know how to avoid cross contamination and prepare food correctly. Also ensure all your team know how to stock take effectively recording low stock, label items correctly highlighting best-by and use-by dates.

Polaris Quantum is an integrated system that handles menu management, stock inventory and procurement, saving you money and time. With accurate live stock counts based on EPOS sales, it enables businesses to make informed decisions about stock replenishment and pricing strategies.

Optimised Workforce Management

The biggest operational cost for any hospitality business is labour – making up between 30% and 40% of costs (depending on the type of establishment). In the fast-paced hospitality environment, effective workforce management is key to maintaining service quality and operational efficiency.

It is important to ensure that you have the right people in at the best time for your business. Firstly, looking at historical data to help set your opening hours will help you to make the most of your peak times and not waste costs on staffing when it’s quiet. A comprehensive rota and labour deployment system will help you understand and plan your shift patterns to ensure that you are running a lean operation and avoiding unnecessary costs.

Polaris Elements’ labour deployment tools like Polaris Data help businesses optimise staffing levels based on demand forecasts, ensuring that the right number of staff are scheduled at peak times. This reduces labour costs (at least 10% for a lot of Polaris’ clients) and improves customer satisfaction by ensuring timely and attentive service.

Supporting Employee Wellbeing

In addition to operational efficiencies, Polaris Elements recognises the importance of supporting employee wellbeing, which is intrinsically linked to business success. By integrating with solutions like Hastee, employees have access to financial tools that help them manage their earnings more effectively, reducing financial stress and enhancing overall job satisfaction.

In the face of the cost-of-living crisis, hospitality businesses need comprehensive solutions that address both operational challenges and employee needs. Polaris Elements provides a suite of software solutions designed to simplify complex business operations, thereby freeing up valuable time and resources, and Hastee offers tangible solutions for employees to promote stability, resilience, and prosperity for all stakeholders involved.

💡 Hastee and Polaris have a number of useful resources to help you navigate the cost-of-living crisis. You can download our e-books Keeping Your Doors Open and The Workplace Wellbeing Study here.

👉 To find out more about our offering, get in touch at hello@hastee.com

⚡ To find out more about Polaris’ solution, please visit their website and get in touch via https://polaris-elements.co.uk/contact-us/