Hospitality is in Crisis – Value for Money has almost become the Exception

The post-covid Identity Crisis of the Hospitality Industry: “Staff Shortages”, “Tip-flation” and ever less Value for Money. Read about good and bad Examples.

It borders on absurdity: A section of a pub is closed, due to “staff shortage”. Then I endure an endless wait for my food. And finally, the debit-machine gives me a choice between tipping 18%, 20% or 22%. That’s coercion – and yet it has become omni-present. Some establishment even add 22% to the bill without asking. I understand that many don’t want to return to hospitality jobs. Rents are hard to afford these days, especially in tourist hot spots. Many have been shifting to better jobs or are working from home. The post-covid pent-up demand for travel made customers less critical regarding price and service. I recently talked to a restaurant owner in a small village in Germany. He stated that he never had a staff shortage because he treats his employees so that they stay.

Some striking Examples of how to turn away Customers

We recently were in Victoria, BC:
One restaurant offered Steak-Frites for $50. Tables were so crammed that overhearing your neighbours’ conversation was unavoidable. We left!
At a café, a to-go egg salad sandwich was $17 + tax. I left.
In a pretentious “gourmet restaurant” all we got was over-priced pub-food.

In a posh Vienna café we had pre-heated apple strudel….still frozen inside.

It s very unfortunate to see how unaffordable hotels have become in cities like Vancouver, while at the same time airbnb is being declared illegal.

De-humanizing service is also en vogue: “You are important to us”….says the chatbot. No competent real human in sight. Accountability = ZERO.

If you want to write to the CEO-level, here is a good link: https://www.elliott.org/company-contacts/

Murchie’s Recipe for Success – where the Customer is still King

• unrelenting quality – we have been loyal customers for 30 years now.
• space to breathe – your next table neighbours are not sitting in your lap.
• reliable ambiance – beautifully preserved historic atmosphere with selected art.
• superb value for money – try get such quality pastry anywhere else in Victoria.

More shining Examples for Good Value for Money

• Don Mee, a Chinese restaurant in downtown Victoria
• Joey on Burrard (downtown Vancouver; their Happy Hour is fantastic)
• L. Heiner Café in downtown Vienna

Greed-flation will be defeated by Consumers who can’t keep spending like before

Increased rent or mortgage payments, food-inflation, much higher cost for gas and heating your home – the trickle-down effects are inevitable. Overpriced bad service will eventually feel the consequences.

Don’t be a Pushover – if it’s no good, tell them!

I once complained about a steak only after eating it. The waiter asked: Where is the steak? He said that if he complained to the kitchen, they will not take him or me serious.

Two recent examples of good treatment:
Air Canada provided a very lousy breakfast on a long-haul flight in premium economy – twice was enough for me to write them. I used their website and politely suggested to do better. They thanked me and came back with a 20% discount on any flight. Such things you don’t forget.
Upon returning a long term rental, the Sixt car rental rep asked me if I was happy with the rental. I said yes, except for a long wait time upon pickup. He asked what needed to happen to make me entirely happy. I replied “maybe a small discount”. He refunded me 100 Euros!

Good Service is like a Magnet – it feels so good if someone is authentic and truly cares!