Latest news with #serviceindustry
Daily Mail
3 days ago
- Automotive
- Daily Mail
Vertu Motors new car sales growth offsets drop in second hand demand
Bristol Street Motors owner Vertu Motors has hailed strong trading against a difficult market backdrop. Britain's fourth-biggest automotive retailer reported new car volumes rose by 7 per cent on a like-for-like basis in the three months ending May, compared to 5.6 per cent growth across the UK retail market. Comparable fleet and commercial vehicle volumes expanded by 3 per cent despite the UK commercial van market experiencing a decline, while the firm's high-margin service revenues increased by 4.1 per cent. However, like-for-like motability volumes remained depressed, plunging by 23.2 per cent due to market share continuing to shift away from traditional manufacturers. Meanwhile, weaker customer demand and tight supply led to a 3.8 per cent decline in used vehicle volumes. However, used car margins improved from 7.3 to 7.5 per cent during the period. Vertu also said it achieved higher gross profits in its service and parts divisions during the period and its adjusted pre-tax profits were better year-on-year. Following the performance, the Gateshead-based company expects its annual results to be commensurate with forecasts. Robert Forrester, chief executive of Vertu, said: 'Since the beginning of the financial year, a period which includes the important trading month of March, the group has traded well in a challenging macro-economic environment.' But he added: 'This encouraging start to the year is balanced by ongoing headwinds of a challenging consumer and business environment and the Government's ZEV mandate promoting accelerated electric car adoption.' Under the ZEV mandate, automakers must sell a minimum percentage of battery electric vehicles each year in order to reduce the number of cars on the road with internal combustion engines. To avoid fines for not meeting targets, manufacturers can borrow credits from future years or purchase them from carmakers who are complying with the rules. For the current year, 28 per cent of new car sales and 16 per cent of vans have to be zero-emission. By 2030, it must be 80 per cent for cars and 70 per cent for vans. Many automobile manufacturers have criticised the rules for being too ambitious and warned that they could lead to redundancies or billions in lost investment. In early February, Vertu claimed the mandate was causing 'disruption' to the UK new car market and called on the UK Government to introduce 'significant' incentives to boost battery EV demand. Founded in 2006, Vertu operates 195 franchised sales outlets that sell a wide array of famous brands, including Audi, Hyundai, Nissan and Volkswagen. Vertu Motors shares were 0.5 per cent higher at 62.5p by late Wednesday afternoon but have fallen by around 19 per cent over the past year.
CBS News
4 days ago
- Business
- CBS News
Tipped minimum wage set to go up in Chicago July 1, and some restaurateurs aren't pleased
Chicago's restaurant workers are about to get a raise — and not everyone is happy about it. On Tuesday, July 1, the city's minimum wage will go up, along with wages for tipped workers, as part of Chicago's One Fair Wage Ordinance. At a celebration of the ordinance on Monday, the people who lobbied for it at City Hall called it "a total success." The ordinance, approved in 2023, said workers in the service industry who make below minimum wage with tips on top will eventually be brought up to the same minimum wage as the rest of the workers in the city. "My administration will remain steadfast in the passage of the One Fair Wage Ordinance — not only because it was a promise that I made, but because we know that it was the right thing to do for the people of Chicago," said Mayor Brandon Johnson. Right now, the minimum wage for non-tipped workers in Chicago is $16.20 per hour. For tipped workers, it is $11.02. Starting Tuesday, July 1, those figures go up to $16.60 and $12.62. The tipped workers' minimum wage will continue to increase 8% until matching the standard minimum wage in 2028. "Too many workers across Illinois are left behind — stuck on subminimum wages," said Richard Rodriguez, national policy director for One Fair Wage. "Immigrants, women, and people of color are the backbone of the service industry, and they deserve better." Restaurant owners are required to compensate workers who do not meet the standard minimum wage with tips. Proponents of the ordinance said not everyone was doing that. "You need to make sure that all people that wait tables or bartenders are making $16.20," said Sam Toia, chief executive officer of the Illinois Restaurant Association. "If they're not, then employers need to make that up, so nobody makes less than minimum wage. Some members of the Illinois Restaurant Association said they have closed, raised prices, or cut hours because the wage increase has forced them to tighten their finances. Eric Williams is one of them. "You have to make changes. Either you'll have to raise prices, you're going to have to cut servers, or cut down service, or both," said Williams, "and that's what we have done." At Bronzeville Winery, Williams said there has always been a 20% service charge to take care of employees. He said with the new salary increases, his budget h as increased by about $30,000 to pay the difference. "Our servers were fine the way it was, you know, and I think this idea of servers not making money is just, it is a false narrative," said Williams. "From the beginning, the very idea of what they were trying to do was not true — not rooted in any truth." The folks at Fair Wage said they hope to expand the policy statewide. Meanwhile, Toia said he is heading to speak to restaurateurs in Springfield about how this could also impact them. In Washington, D.C., which was touted as a success story for the same policy on the tipped minimum wage, Mayor Muriel Bowser has now called for its appeal.
Hospitality Net
11-06-2025
- General
- Hospitality Net
Details Count: How Small Flaws Can Taint the Entire Customer Experience
Have you ever walked into a restaurant bathroom and found paper towels scattered on the floor or an overflowing trash can? What immediately crossed your mind? What did you think about the restaurant? For most of us, our thoughts jump to, 'If they can't keep their bathroom clean, what is their kitchen like?' I call this the Bathroom Experience, a powerful metaphor for how seemingly minor details can dramatically impact customers' perceptions of a business. A clean bathroom goes unnoticed because it's expected. But a dirty one? That sends customers a message that the restaurant might be neglecting other details. This concept extends far beyond restaurants. Before moving into my current office, I toured the building and specifically checked the bathrooms on multiple floors. The way the building maintained its bathrooms told me what I needed to know about how the property management company handled details throughout the rest of the building. The concept also extends beyond restrooms. Recently, I checked into a higher-end hotel, and as I was relaxing on my bed, I looked up and noticed thick dust coating the air vents. I found myself wondering what I would breathe in throughout the night. We could refer to this as the Vent Experience. These mismanaged details are oversights that create a ripple effect. When a customer picks up a rental car and discovers the glove compartment won't stay closed, they might wonder, 'If they missed this, I wonder if they checked to make sure the brakes were working properly.' Many years ago, my assistant sent a performance agreement to a client who booked me for a speech. The client called me to discuss canceling the booking. It turns out the agreement had a number of typos and punctuation errors. I was shocked and embarrassed. It turns out my assistant accidentally sent the draft she was working on instead of the final version. I apologized and explained what happened. Fortunately, the client accepted the explanation, but I'll never forget his comment, which made me realize how important little details are. He said, 'I am hiring someone who is supposed to be a good communicator. The document you sent had so many errors, I questioned your ability to do the job.' Ouch! That hurt, but he was 100% correct. Here's the point: Details that seem insignificant to you might concern your customers. For some, these examples cause customers to make assumptions about other things that they can't see. So, what's your version of the Bathroom Experience? What small detail is your team overlooking that customers notice and use to judge you and your business? Finding and fixing these details doesn't just solve small problems; it prevents customers from imagining bigger ones. Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep's customer service and customer experience keynote speeches and his customer service training workshops at Connect with Shep on LinkedIn. Shep Hyken Shepard Presentations, LLC. View source
The Independent
04-06-2025
- Business
- The Independent
Nearly half of Americans say tipping has ‘gotten out of control'
With those tipping screens now seemingly everywhere, Americans think that the practice has 'gotten out of control,' according to a new survey. At least 63 percent of US residents now having a negative view of tipping, up from 59 percent last year, according to Bankrate, a financial publisher and comparison service. Yet, the number of Americans who have gotten used to tipping has gone up since the COVID-19 pandemic, when it slipped. There have not been significant declines in tips for service providers, the survey noted, particularly for hairdressers and restaurant servers. 'Tipping is part of the American way of life — it's not going away anytime soon, as much as we may grumble about it,' said Ted Rossman, a Bankrate senior industry analyst. Still, opinions vary. One survey respondent said: 'I feel like businesses should pay their employees better rather than relying so much on tips.' 41 percent agreed with that point, up from 37 percent a year ago. Another said, 'tipping culture has gotten out of control.' Another 41 percent of people agreed with that, up from 35 percent last year. Thirty-eight percent of US residents also said they were annoyed with pre-entered tip screens, an increase from 34 percent last year. Twenty-seven percent of respondents said they were less likely to tip when presented with pre-entered tip screens. Twenty-five percent of people said the same thing a year ago. Only 11 percent of respondents said they tipped more in those scenarios, a decrease of 14 percent. Older individuals, like Gen Zers and boomers, had a tendency to tip more than their younger counterparts, specifically millennials and Gen Zers. 'The high cost of living is a headwind, and many people resent all of the tip creep that has occurred in recent years, with us being asked for tips in previously unconventional settings,' Rossman said in a statement. When asked about the possibility of getting rid of tipping altogether, 16 percent of people said they would be willing to pay higher prices if tipping were eliminated, an increase of 14 percent. Another 14 percent of people said they were confused about who and how much to tip, up from 11 percent. Ten percent of people said they would always tip regardless of the quality of service, which is the same amount as last year. A percentage of Americans aren't expected to face the tip screens as much. About two in five Americans, or 39 percent, expect to spend less on dining out this year, according to Bankrate's 2025 discretionary spending survey. That pivot could likely hurt servers' bottom line. At least 35 percent of restaurant goers tip at least 20 percent at sit-down restaurants, which is down from 37 percent last year. Only 58 percent said the amount they tipped was mostly influenced by the quality of the service, down from 64 percent. Additionally, 26 percent said they felt good when they left a generous tip, down from 29 percent last year. Hair stylists/barbers, coffee shop baristas and home services/repair people saw a decline in tips compared to last year. Fifteen percent of respondents said they always tipped furniture/appliance delivery workers.
Hospitality Net
02-06-2025
- Business
- Hospitality Net
Managing Hotel Labor Costs Today
Managing labor costs in a hotel operation is crucial to maintaining a profitable business while delivering the service level that is commensurate with the scale of hotel. Finding this balance has been especially difficult in a post-COVID-19 environment, when inflationary challenges coupled with labor supply shortages have put further pressures on hotel operations. Labor is one of the most significant expenses a hotel faces, accounting for 30–45% of total operating costs. Managing these costs takes creativity, innovation, organization, and diligence. Adjustments must be carefully considered because making too many staffing cuts can lower profitability and negatively affect the hotel's reputation and guest satisfaction. In the following article, we will describe some of the challenges surrounding labor management and explore innovative ways to manage these costs effectively. Understanding Hotel Labor Costs Unlike many other commercial real estate investments, hotel operating costs can vary substantially with occupancy rates, meaning that a certain portion of costs can be controlled with changes in occupancy. Occupancy levels can fluctuate by week, by season, or with economic changes. The higher a hotel's occupancy is, the more cost-management opportunities exist. During periods of lower demand, profitability is more difficult to maintain, and the expense that is most closely tied to a hotel's usage is labor. Labor costs include wages paid to hourly employees, overtime costs, training expenses, payroll taxes, health insurance benefits, and bonuses. Once you have determined your fixed payroll and benefit costs, which typically comprise the management team and minimum non-management staffing levels, you need to identify your flexible labor costs. Successful management of this expense requires an understanding of daily usage patterns, labor dynamics, local laws, and technology. The Right Number of Employees at the Right Time Instead of maintaining a fixed number of employees, the most prudent hotel operators utilize a variety of tools to access and retain talent. Flexible staffing models allow hotel operators to adjust their workforce needs based on real-time occupancy data and demand forecasts. One of the best and easiest ways to enhance workforce flexibility is to cross-train staff within a variety of departments. For example, front desk staff can assist in the restaurant or valet operation during slower periods, while maintenance staff can help the housekeeping team when the hotel sells out. I remember nights working as a hotel night auditor/front desk agent and folding laundry for the housekeeping department. Cross-training not only provides managers access to a wider in-house talent pool but also provides staff with transferrable skills across a variety of departments, which can lead to greater job satisfaction and even promotions for employees. Another way to scale workforce needs in response to occupancy forecasts is by utilizing part-time and on-call staff. With fluctuating demand, hiring staff members on a part-time or on-call basis provides flexibility, adaptability, and specialized skillsets while reducing overhead by limiting the number of full-time employees and their associated costs, such as benefits. It is important to carefully investigate the pricing for on-call staffing solutions, as many types come at a significant cost. Nonetheless, depending on a hotel's specific needs, utilizing on-call staff may still be the most beneficial solution. One of the most exciting recent innovations in hotel operations has been the implementation of scheduling technology. Scheduling software can help managers predict staffing needs more accurately based on information such as historical data analysis and real-time data integration. Artificial intelligence tools are now modeling labor demand forecasts according to factors like weather patterns, local events, and even traffic patterns. Shift optimization is helping to automate scheduling based on an employee's skills and experience, ensuring that the most qualified person completes each task. And finally, employee availability tracking allows staff to input shift availability and preferences, incorporating the staff members' own inclinations and considering their other obligations. This technology has a strong return on investment; in addition to the scheduling model, it provides management with real-time productivity data, such as work-hours per occupied room for housekeeping. This feature assists managers with training, disciplinary, and reward opportunities to maximize the efficiency of their team. Adopting Today's Advanced Technology and Tools Integrating technology and robotics into the hotel management process might seem like the antithesis of 'hospitality.' However, it is essential to recognize that application of the right methods at the appropriate time can optimize outcomes. When executed with thought and care, technology integration can not only reduce costs, but it can also enhance guests' experience, saving them time and energy during some of the more cumbersome or frustrating aspects of a hotel stay. Digital check-in and check-out processes, either through mobile apps or physical kiosks, can reduce the need for front desk staff, decrease wait times, and improve efficiency. Guests have the opportunity to communicate guestroom preferences, request additional services or supplies, and address other needs before even arriving at the hotel. This allows staff to focus on more meaningful, high-touch guest interactions. It was not long ago that I regularly faced a line of guests patiently waiting to check in to the hotel where I worked, while I simultaneously fielded phone calls from prospective guests hoping to book a room for the night. Today, nearly all hotel bookings are done online. Enhancements in property management systems have automated the booking process and allowed guests to make reservations on the Internet. Gone (mostly) are the days of manual bookings, saving labor time and costs as well as enhancing the overall guest experience. Property management systems also maintain a plethora of data, including guest information, financial transactions, inventory tracking, and revenue management, which helps to reduce the overall administrative burden of the business. Robotics is another potential innovative approach to managing labor costs; however, the upfront cost today is still quite high, making this an unrealistic option. Many anticipated advancements in technology and artificial intelligence will make the implementation of robots in the hotel space more affordable and practical in the near future. Taking It Out-of-House—Streamlining Operations Some components of labor-intensive hotel operations, such as laundry, valet parking, and/or landscaping services, can be far more cost effective if outsourced to a third party. This option is not necessarily always more cost effective, as much depends on the market and property type; however, it is an option that should be evaluated by hotel management. Careful consideration must also be given to the quality and reliability of the outsourced service, as disruptions or inconsistencies in quality can challenge the flow of existing operations. Hiring a third-party consultant to conduct an operational audit is another way to gain insight into operational and, specifically, labor inefficiencies that are negatively affecting the hotel's profitability. By reviewing operational processes on a regular basis, operators can work to eliminate redundancy, assess workflow patterns, and manage staffing levels more precisely. Similar assessments can be made in the maintenance, food and beverage, accounting, and marketing departments, ensuring that teams are working to the best of their abilities, with the right resources at hand and through processes that maximize outputs. Keeping the Team Happy One of the most overlooked and misunderstood aspects of labor management costs is employee satisfaction and retention. Numerous studies have shown that the cost to hire, onboard, and train new staff far outweighs the cost of retaining and rewarding existing team members. Recruiting and training is not only expensive, but it also takes time, which puts a strain on existing team members, the hotel's operations, and the overall guest experience. There are several new and innovative ways hoteliers are responding to challenges in hiring and employee retention. From a recruitment perspective, management companies are offering flexible schedules, daily pay, free meals, subsidized housing and/or public transportation, and robust healthcare benefits. Other opportunities for employee engagement and satisfaction include family-friendly policies, such as childcare support and parental leave; team retreats; wellness programs; and mental health days. Providing career development opportunities through mentorship programs, training, or educational opportunities can be a significant incentive. There are also many low-cost or free ways to create a sense of community and belonging at work, including recognition programs, themed workdays, social events, and cultural celebrations. Creating fun environment where employees look forward to coming to work is sometimes as important as other incentives. Furthermore, going beyond the typical hiring methods by developing partnerships with local colleges and universities or leaning on international visa opportunities can allow hoteliers to establish their property as a dynamic and exciting place to work, while prioritizing the profitability of the asset. Persistent Challenges There are certain assets and markets where labor cost management will remain difficult despite the implementation of the aforementioned solutions. Chronic labor shortages, collective bargaining agreements, regulatory laws, and high-wage markets are only a few of the challenges hoteliers may face that are harder to overcome via internal changes. Externalities such as economic downturns, which can affect hotel revenues, can also make it more difficult to maintain leaner costs while still providing competitive employee compensation packages. The complexity of hotel operations cannot be overstated; however, for nearly all hotels, the labor department presents the greatest area of opportunity for efficiency. Conclusion Prioritizing employee satisfaction and retention, incorporating technology and robotics, enhancing workflow processes and systems, and implementing flexible staffing solutions are some meaningful measures to creatively manage a hotel's labor costs. This holistic approach to labor-cost management, when implemented correctly and thoughtfully, ensures the viability of the operation from an investment perspective while enhancing the guest experience. Reprinted from the Hotel Business Review with permission from View source
