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How Do You Manage a Crisis in Hospitality?

How Do You Manage a Crisis in Hospitality?

When a crisis strikes in the hospitality industry, the response can be as diverse as the challenges faced. A Restaurant Owner recounts leveraging networks for effective crisis solutions, while we also explore additional answers, including real-time feedback for adjustments, that highlight the adaptive strategies of those in the field. From immediate emergency protocols to ensuring guest safety and comfort, these insights delve into the decisive actions taken by professionals during critical moments.

  • Leverage Networks for Crisis Solutions
  • Revise Spending and Pricing Strategies
  • Communicate Effectively During Crises
  • Initiate Emergency Preparedness Protocols
  • Prioritize Guest Safety and Comfort
  • Adapt Services to Conserve Resources
  • Use Real-Time Feedback for Adjustments

Leverage Networks for Crisis Solutions

Recently, on a busy Sunday, we were hit with an unexpected challenge when ESPN and Disney entered a month-long dispute with DirecTV, resulting in the removal of those channels from our TVs. Initially, it was a minor frustration for guests trying to watch the US Open, but the situation quickly escalated into a full-blown crisis as the college football season kicked off and fans couldn't tune in.

After more than 30 years in hospitality, one lesson stands out: Your network is your most valuable tool. (For those unfamiliar, we old-timers call it a 'Rolodex.') Within a few frantic texts to industry colleagues, we uncovered a workaround using multiple streaming services. While we couldn't stop the blackout, we could control how we responded.

Our quick thinking didn't just resolve the issue—it turned into an opportunity. Guests appreciated the effort and praised us, especially after hearing other venues hadn't yet adapted. At the end of the day, hospitality is about anticipating needs and solving problems in real-time, and this situation reinforced that a proactive mindset and strong connections are key to keeping guests happy, no matter the crisis.

Jeremy Gifford
Jeremy GiffordRestaurant Owner, Walters Sports Bar

Revise Spending and Pricing Strategies

In times of crisis (or not), the most important steps we took in our establishment involved cutting unnecessary expenses, improving operational efficiency, and revising our pricing strategy. First, we analyzed all areas of spending and eliminated or minimized non-essential costs. This included negotiating with suppliers for better deals and reducing energy consumption where possible.

Also, we optimized staff schedules and streamlined processes to ensure that we maintained high service standards while reducing labor costs.

In terms of pricing strategy, we adjusted our menu prices to reflect current market conditions, offering more flexible pricing options and focusing on value-added items rather than across-the-board increases. Additionally, we considered expanding our reach by targeting new customer segments and refining our marketing to emphasize local appeal, especially given the changing demand in the area.

Alkis S.
Alkis S.Owner, Kuzina

Communicate Effectively During Crises

In the event of a crisis within the hospitality sector, the first step is to initiate a thorough and effective communication strategy. This entails keeping all stakeholders, including guests, staff, and possibly the media, informed with clear and concise information. Providing accurate updates regularly can help to maintain trust and minimize confusion and panic.

It's important to use all available channels of communication, such as public announcements, emails, social media, or dedicated hotlines, ensuring the message reaches as many people as possible. Enlist the help of communication professionals if necessary to craft appropriate messaging strategies. Establish a calm, authoritative presence through communication to guide everyone through the crisis.

Initiate Emergency Preparedness Protocols

When a crisis strikes in a hospitality setting, it is crucial to act quickly by initiating emergency preparedness protocols. These plans should have been created and practiced well in advance, covering a wide range of possible scenarios. The execution of these plans should be efficient and directed by a designated crisis management team to ensure that response efforts are coordinated and effective.

It's also essential to regularly update and practice these plans so that all staff are familiar with the procedures and can respond instinctively. The goal is to ensure a swift and organized response that mitigates the impact of the crisis. Review and practice emergency protocols regularly to keep them effective and fresh in the minds of your team.

Prioritize Guest Safety and Comfort

In managing a crisis in the hospitality industry, the safety and comfort of customers should always take precedence. Immediate actions should focus on ensuring that all guests are out of harm's way and as comfortable as possible under the circumstances. It may involve arranging for alternative accommodations, providing necessities, or offering emotional support.

Empathy and care shown during a crisis can have a long-lasting impact on customer relations and brand reputation. It is essential that all staff involved in managing the crisis are trained in customer service and empathetic engagement. Train your team in empathy and customer service skills to prepare them for crisis situations.

Adapt Services to Conserve Resources

Adjusting services appropriately is vital when facing a crisis in the hospitality industry. This may require temporary changes to standard operating procedures to conserve resources. These adjustments could include reducing the frequency of certain services, reallocating staff to more critical tasks, or temporarily closing certain facilities.

The key is to maintain as much normalcy as possible while ensuring that resources are used wisely. This approach helps the establishment stay operational and can lead to quicker recovery post-crisis. Ensure that you have a flexible business model that can adapt to unexpected changes in resource availability.

Use Real-Time Feedback for Adjustments

During a crisis, it is important to implement a system that captures real-time feedback from guests in order to adjust tactics and respond effectively. This continuous loop of feedback and adjustment allows the hospitality provider to address issues promptly and make improvements on the fly. It is also an excellent way to demonstrate to guests that their opinions are valued and their comfort is a priority.

Furthermore, feedback helps identify unforeseen issues that may not have been considered in preparedness plans. Actively seek feedback from your guests to help navigate the crisis more efficiently and effectively.

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