Get Ready for the Festive Season

Christmas is a fantastic opportunity for UK hospitality venues to improve promotion and increase profits, as floods of customers set out to seek the festive cheer and some holiday spirit.

Restaurant Online suggests that Christmas 2024 is generally looking positive for the hospitality industry, with bookings up 54% compared to the same period in 2023.

Additionally, with the unknown impact of the imminent budget announcement brewing, UK Hospitality writes that “if hospitality is to fulfil its ambition to deliver growth to the economy, the sector’s acute cost burden urgently needs to come down”.

So, we’re going to take a dive into the spending expectations of the UK population, and the trends to watch and prepare for to help maximise profits this festive season.

Positive Data so far

Despite some concerns with the cost-of-living crisis, it seems that there is a positive attitude toward Christmas festivities in 2024.

During Christmas of 2023, we saw significant consumer activity in licensed venues with around 73%of people visiting bars or restaurants during that time, despite the cost of living pressures. So despite economic challenges, consumers still prioritised social experiences during the Christmas period.

By July of this year, data showed that Christmas bookings were up by 52%, versus the same time period in 2023, with over half of these booked in for Christmas Day itself. It also seems that group bookings are up significantly compared to previous years.

The busiest trading dates for Christmas bookings in 2024 are predicted to be Saturday 14th December and Saturday 7th December, with large group bookings up 38%. So keep an eye on these days in your reservation system!

Also, higher footfall brings about its own challenges and with increased revenue comes increased costs. The more we sell, the more we need to be on top of our inventories and stock levels, and ensure we have the staff needed to cook, pour and serve.

Consumer Spending Expectations

Though widely celebrated throughout the nation, Christmas is a personal experience that can look very different to different people.

Personal preference and traditions play a part in this variance. But financial considerations are always a factor.

A recent study by the Grocer divided the UK population into three spending categories for Christmas 2024, each at different financial thresholds: “Healthy Households”, “Recovering Residencies” and “Difficult Dwellings”.

As the name suggests, Healthy Households are the most financially comfortable of the three, and make up c.20% of the UK population; their spending on food is predicted to be up 19% this year, versus 2023. This group is expected to seek extravagant experiences and premium menu items this Christmas, creating a good opportunity for higher-end venues to increase revenue and margins through festive food and drink, or incorporate premium packages and experiences into their offering.

Recovering Residencies make up almost 50% of the UK population and describe their financial situation as “OK”. This group toes the line between maintaining an air of financial caution and splashing out a little for a special occasion; their spending on food is predicted to be up 5% this year versus 2023, so we can expect them to add a little flair to their Christmas celebrations.

Finally, Difficult Dwellings represent the lowest income group, making up c.34% of the UK population. Although unlikely to be able to splash out much this Christmas, since their spending on food is expected to be down 6% versus 2023, this category will rely heavily on gift vouchers, loyalty schemes and brands who strike the balance between quality and affordability.

Although spending is generally due to be up this year, venues should pay attention to these three separate audiences and how each associates with their business. So It’s a good idea to be aware of and understand these demographics so you can target your menus and marketing to reach the right groups for your business.

Trends to Watch for Christmas 2024

Like anything, the consumer expectations of Christmas evolve year by year. New fads, trends and products or services replace old traditions all the time, so it’s wise for all of us in the hospitality industry to keep on top of what’s hot right now and stay competitive.

Keywords

According to sources, the search term ‘Pretty Christmas Restaurants’ increases in volume by 429% between October and December, and the search term ‘Instagrammable Christmas Restaurant’ is on an upward trajectory. Consider implementing the Christmas 2024 trends that are relevant to your venue into your marketing, reframing the language if necessary to capture some leads.

Social media continues to take the world by storm, so pushing the boat out with creative Christmas decorations could get you some high engagement on popular platforms.

Creating a Christmas Experience

Other trending keywords this year include ‘Winter themed pop-ups’ and ‘Christmas experiences.’ It seems consumers are moving away from the run-of-the-mill Christmas traditions and seeking unique experiences they can share with colleagues, family and friends.

Are there any local events your venue could contribute to, perhaps with a pop-up restaurant or bar, that can generate some buzz for your brand?

A study by Red Online showed that 68% of Brits are now opting to gift their loved ones with an experience rather than material goods, so incorporating these into your e-commerce offering is a great way to leverage customers who may not necessarily visit you themselves. Through targeted gift vouchers, you can attract the Healthy Households spenders by selling high-ticket experiences, such as three course dinners, champagne on arrival and festive tasting menus.

Sustainability

PWC reports that consumers are willing to pay a 9.7% sustainability premium.

Consumers are becoming increasingly concerned with locally sourced ingredients, “nose to tail” or “root to stem” cooking practices and reduced single-use plastic or food waste.

A festive menu is a great opportunity to showcase a venue’s sustainability policies and partnerships with local, organic suppliers to solidify their eco-friendly positioning.

No & Low Alcohol

A trend to watch this Christmas is non-alcoholic beverages; most notably non-alcoholic spirits, in which some suppliers have recently seen the interest grow.

Non-alcoholic options are becoming more than just a replacement, but rather a first choice. The consumer’s desire for “quick wins” when it comes to their health has been on the rise in recent years, and seemingly not even the traditionally “boozy” Christmas will stand in the way for some.

Other contributing factors towards the rise of non-alcoholic options are financial; customers may be looking to spend less without compromising on atmosphere.

Consider the no or low alcohol drink options your current menu includes; it might be time to experiment with alcohol-free beer suppliers or fresh mocktail ideas to capture interest within this trend. It’s also worth mentioning that the non-alcoholic category is expected to grow considerably over the next couple of years, meaning this could potentially be the start of a new, lucrative avenue for your business beyond the festive period. Getting your non-alcoholic offering right will also give you a head start for the inevitable return of dry January.

Considerations for Venues Christmas 2024
Forecasting

The earning potential over the festive period is huge, and it’s more likely for businesses to hit or exceed their targets by being strategic and forecasting their performance based on historical data.

Although Christmas is typically a high-spend season, deeper insight into trends can empower business owners to make better decisions.

For example, identifying your previous busiest and quietest days can inform staffing and marketing decisions, maximising opportunities for profit and footfall. This might look like revisiting your Instagram ads during quiet days, or ensuring you’ve locked in your A-Team for the craziest shifts this year.

It might be worth keeping a note of the busiest trading dates for Christmas this year and double-checking your venue is ready to meet the demand.

Some further considerations include taking deposits on large bookings to limit your exposure due to ‘no show’s or encouraging pre-orders from a set menu to improve efficiency. These can help you forecast needs on the day and help operations and management.

Stay on top of equipment maintenance

We all want hospitality to thrive at Christmas. We are a firm part of the industry and want to be able to celebrate with family, friends and colleagues. A natural part of that is for our local venues to be bustling and successful. This puts the durability of your equipment to the test, taking stock of your tools and appliances is a smart move. After all, the last thing you need during busy Christmas service is the glass or dishwasher holding things up and taking a member of the service staff from the floor to the kitchen.

Here’s a few quick tips on maximising your venue’s capability to take on the festive crowds:

• Conduct a thorough inspection of all your bar/kitchen equipment to identify any weak links or potential sticking points for a busy service.
• Do you need to increase cleaning and maintenance protocols for a busier season?
• Increase deep cleans of all high-output appliances such as stoves, fridges, ovens, glass and dishwashers to avoid the risk of breakdown during service.
• Is any of your equipment in need of servicing, repairing or replacing?

Executing a Successful Christmas Menu

The seasonal menu is a restaurant’s greatest weapon for profitability, showcasing your team’s creative talent and generating buzz for your venue. Ensure you’re organised and clued up on current trends when assembling your Christmas feast:

• Having options to account for dietary restrictions has become an expectation versus a nice to have with around 14% of Gen Z actively following vegetarian, vegan, or flexitarian diets, often driven by environmental concerns.
• According to The Sustainable Restaurant Association, as millennials have become parents, they are seeking more nourishing meals for their children as opposed to the regular selection of sausages and chicken nuggets, so including children's meals with high quality ingredients is a must.
• Since we know sustainability is continuing to rise in popularity this year, incorporating and promoting these practices into your Christmas menu could be a good way to generate interest - particularly from younger, more socially conscious generations such as Gen-Z who are “fuelling the UK restaurant revival”.
• Restaurants who prepare their Christmas menu earlier in the year are more likely to generate significantly more profit. Preparation gives you time to experiment with and iterate on your ideas, gain critical feedback and start promoting way ahead of the competition.
• Maximising the use of your festive ingredients across other menu items can protect your bottom line, reduce food waste and minimise prep time for your chefs

Staffing

A big pain point within the hospitality industry during the festive period is staffing.

Over recent years, labour shortages have plagued the industry. After losing a lot of talented workers, who returned to their native countries following Brexit and Covid, some venues may be feeling the stress of the imminent festive period.

Further to labour shortage, the hospitality industry has a notorious issue with holiday requests during Christmas, as we’ve said, the staff are celebrating Christmas too. It can be challenging to balance the busiest time of year with allowing your team to take well-deserved time off and celebrate with their family. How do you ensure you have the right staffing levels while allowing your team to celebrate with their friends and family?

Whatever headache you’re dealing with when it comes to managing your team, here are a few things people suggest that may help to mitigate stress:

• Recruit new team members well in advance to get them up to speed or look into hiring agency temporary staff if you need extra helping hands.
• Conduct thorough training leading up the festive period, ensuring your team are compliant, knowledgeable on menu items and can effectively embody the ethos of your brand/venue.
• Consider cross training where viable. This can not only help efficiency but also morale.
• Encourage your team to request their holiday early and introduce a “cut-off” point for Christmas requests. For example, by the beginning of November, those who haven’t requested their time-off already will no longer be considered for annual leave.
• Increase incentive to work during Christmas by introducing a reward system for those who stay on the frontline.
• Review your busiest and quietest days from previous years to forecast the number of staff you’ll need for service this year - reducing the risk of under/over staffing.
  
  

Marketing

According to the Caterer, almost half of UK consumers try a restaurant because of social media.

In that context, Gen-Z are mostly interested in the authenticity and personality of the restaurant, whilst millennials, Gen-X and baby boomers typically care more for a showcase of food and beverage options.

Plus, your happiest customers of Christmas 2024 could become your loyal customers into 2025. During the festive period it’s a great time to introduce loyalty schemes and promote January discounts and events. Why not follow up post events, and evaluate your current marketing strategy and channels: are you utilising social media to its fullest potential?

Final Thoughts

The outlook for Christmas 2024 is largely positive, with spending predictions looking good and plenty of bookings already locked in.

Whilst there is a lot to be positive about, there is no substitute for strategic forecasting and planning for the unexpected. Christmas has the potential to be the hospitality industry’s busiest and most profitable season, however venues shouldn’t leave their success to chance.


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References:

1. https://www.restaurantonline.co.uk/Article/2024/07/26/christmas-2024-already-looking-positive-for-hospitality-with-bookings-up-54
2. https://www.ukhospitality.org.uk/fix-business-rates-to-avoid-inflationary-spike/
3. https://www.thegrocer.co.uk/comment-and-opinion/how-to-prepare-for-2024s-tale-of-three-christmases/695250.article
4. https://pages.theaccessgroup.com/FY25-P02-HOS-CDP-MOF-Resource-Christmas-Marketing-Guide-2024_Christmas-Marketing-Guide-2024.html
5. https://www.redonline.co.uk/travel/g34789185/london-restaurant-vouchers/
6. https://www.pwc.com/gx/en/news-room/press-releases/2024/pwc-2024-voice-of-consumer-survey.html
7. https://thesra.org/news-insights/insights/8-key-sustainability-trends-for-restaurants-in-2024/
8. https://www.classeq.co.uk/news/jobs-in-hospitality-combatting-the-skills-shortage
9. https://www.thecaterer.com/news/nearly-half-consumers-social-media-food-and-drink-recommendations
10. https://www.classeq.co.uk/contact-us