4 Reasons Events Are Recession-Proofing Hospitality Businesses

At a time when hospitality businesses are being squeezed by narrowing profit margins, many are putting in place recession-proofing strategies and seeking additional ways to drive revenue. Hospitality leaders have met the difficulties of rising inventory costs and staffing issues head-on by diversifying their mainstream business. By adding events and group reservations, they have seen strong ROI.

Why are events an excellent investment, you ask? Not only do private dining and events provide upfront revenue through deposits, but they have high demand and lots of opportunities for cost savings. We’ve put together a list of why events provide economic benefits and why you should consider them if you run a restaurant, hotel, or unique venue.

1. Prix-fixe menus for groups is a good economic strategy

First, a simplified set menu for group events offers cost savings to restaurants, hotels, and venues and a valuable price point that customers appreciate. Because of a fixed menu, food and beverage inventory and costs can be better managed. On top of that, with streamlined menus, there tends to be less food waste.

As for hospitality staffing, a prix fixe menu can reduce workplace stress as fewer variables are involved, which is definitely an upside. Also, chefs’ and kitchen staff’s talents are showcased as they are empowered to create special, even more upscale menu items. It’s just a win-win for staffing — both the front and back of the house tend to be happier and more efficient with set events with standard menus. If you are having trouble with staffing, planning events or group dining with prix fixe can help in recession-proofing.

2. The celebrations keep on coming despite hard times

Regardless of the strain of the economy, people will always celebrate life milestones like birthdays and weddings. While customers during hardship may be cutting back on other areas of their spending, special occasions will always be prioritized. And, most times, people will have a larger budget to celebrate. In a recent Tripleseat survey, respondents say that birthdays are the number one event they will be planning. By offering private or semi-private spaces for these celebratory events, you welcome more foreseeable revenue that these bookings provide with deposits and food and beverage minimums.

3. Work-from-home means more corporate events

There is an astounding prediction for the huge growth of U.S. corporate events — specifically; it is expected to increase 17.3% by 2030.

Take advantage of this by positioning your business to make revenue on anything, including team dinners, product or marketing events, company meetings, corporate retreats, training sessions, conferences, and tradeshows.

Consider opening your venue during off hours to host corporate meetings or use these to supplement during times when business is slow. Look for local companies to determine needs and strive to do repeat business. Make sure to promote your features and amenities, like your corporate-friendly private spaces and up-to-date AV.

4. Using TripleseatDirect will lower labor costs

Proven event solution TripleseatDirect provides financial empowerment to your business when you add self-booking for group reservations. Easily add a streamlined way for your potential customers to book directly from your website, social media accounts, and more. You and your staff can easily control the incoming bookings. Increase profit margins by gaining operational efficiency and savings while leveraging a predictable revenue strategy.

Let TripleseatDirect drive revenue for your business

Are you ready for some recession-proofing? Grow your event business! Put in place a predictable way to drive financial success with private dining, group business, and events, and let TripleseatDirect help you. Schedule a Tripleseat demo to take a closer look at our event management features.