The Devil is in The Detail – providing avenues for asset growth through F&B operational excellence

As a Food and Hospitality Consultant working with shopping centres, mixed-use developments and stand-alone businesses in Australia, I share with you the many operational challenges I see across different sectors.

It is critical that within broader centres and precincts, operators are encouraged to express their individual brand to the best of their ability, whilst maintaining exemplary professional food & hospitality standards. These achievements combined can underwrite an eclectic mix of well-presented venues which contribute to the distinct experiences that customers are seeking in a modern hospitality environment.

Future Food and the new Sydney Fish Market are working together to ensure an exceptional level of operating standards. Image credit: Alana Dimou Sydney Fish Market

Design is a major contributor in influencing a customer’s perception of a brand. In many cases a high degree of consideration (and expenditure) has been applied to the overall look, feel and materiality of large-scale centres. Much of this good work can be compromised when individual operators do not demonstrate the operational standards which they set out to achieve – whether it be a damaged menu board, inconsistent food display standards, inefficient service, poor cleanliness & hygiene standards or lack of uniform standards. It is essential that property managers and landlords have the tools to maintain a high standard of customer experience across all F&B operators.

Breaking new F&B ground in Auckland — the ongoing Commercial Bay waterfront project, in conjunction with Future Food. Image credit: Izzard Commercial Bay

Getting it right from the start

F&B consumers are likely to support or discriminate equally across hospitality venues depending on the experience – regardless of whether you are a start-up or are carrying an established brand. We understand there is a great deal of emotion, effort and expenditure that is invested into the design of bricks and mortar of the business. Often, many details are either missed or overlooked and at times. Operators simply do not have the experience to undertake such a large project.

Providing each lessee (and their interior designer/architect) with a centre-specific Design Considerations Manual with the critical design success factors that will conform to the broader strategy for the centre with specific requirements is essential for each individual tenancy. Many considerations can be addressed, such as:

• Floor & Wall Coverings

• Fixtures, Furniture and Installations

• Lighting

• Signage & Menu Boards

Future Food continue to provide guidance and work closely with the Queen Victoria Market vendors on F&B operational and design standards. Image credit: Queen Victoria Market

The opportunities to communicate these standards from the outset offer a path to successful relationships between all parties, whilst establishing clear design guidelines for each tenancy. The manual also provides a valuable resource to aid in the operator’s execution in building out their space and communicating its brand in the most effective way possible. In establishing industry-specific standards through a range of targeted recommendations, this manual also serves as a tangible reference point to support landlords and property managers through challenging circumstances which may arise throughout the operator’s tenure, should standards diminish.

Industry leaders understand the value of developed operator standards to ensure great customer experiences.

In addition, a Recommended Standards of Operation manual addresses a variety of hospitality specific principles and practices which can set a benchmark for the tenant. This tailored document will provide operational foundation for each operator, exemplifying the recommended standard for topics such as uniform and grooming, visual merchandising, food ticketing and safe food handling – and more. These recommendations underpin a visually-driven manual which assists both the operator and the landlord in achieving operational excellence.

When things don’t quite go to plan

In a highly competitive environment, food operators are required to deliver excellent professional standards and maximise revenue, day-in and day-out. The modern customer is discerning, knows what they want and typically does not have to travel far, or at all, with food delivery aggregators crowding the market. The hospitality industry, with low barriers to entry, is riddled with inexperience and can often present undesirable of food retail environments, in some cases, harmful.

Under-performing food businesses can develop a self-perpetuating spiral of diminishing operational standards that lead to lower revenue and profit. Once in the cycle, typically a significant ‘intervention’ is required to assist the F&B operator to reset. This is when an independent Operational Review and Recommendations Report is of the most benefit; and can provide the first building block for a positive change. The structured Operational Review has wide-ranging advantages – through its observations can instruct operators with easily applicable suggestions to maximise opportunities for the business. Equally, this report can often provide a tool for landlords looking to achieve more positive outcomes and improve the nature of the tenancy agreement. The basis of these reports addresses the operational shortcomings of each business through a range of in-person and research-driven observations, paired with a set of practical recommendations for the operator to consider.

The experience of going out to eat or drink is rarely just about the food for consumers. Future Food recently worked with Son In Law at Melbourne Central to review operations and successfully set benchmark standards for the venue. Image credit: Son In Law

As mixed-use developments and shopping centres continue to evolve toward an experientially-led offer, it is critical that operators and landlords are armed with the information required to produce the best possible outcomes for all stakeholders involved, both individually and collectively. Providing clear and relevant guidelines and feedback will establish a robust system which can be followed by staff to ensure a unified vision for years to come.