Recent data from The Reputation Platform, which uses AI to analyse over 4.1 million hospitality reviews, has revealed the real influence that the customer experience has on the overall success of businesses in the sector.
What’s clear is that there is vast opportunity within the hospitality industry for medium-sized businesses to compete for the market share left behind by huge chains like TGI Fridays falling into administration. This report looks specifically at how a business’s sentiment, engagement and visibility contribute to reputation and can, in turn, affect significant indicators like foot traffic and revenue.
Interestingly, review volume is on the up, increasing by 2.9% in 2024, with the top 20% of locations driving a significant amount more reviews. This increase drives positive sentiment, revealing that the more a business engages with consumers, responding to both positive and negative feedback, the more this positively impacts its reputation and overall success. As an example, hospitality giants Stonegate Group and Mitchells & Butlers have both seen a direct correlation between higher site ratings and an increase in sales.
The sentiment that surrounds a business, defined by the thoughts and feelings of reviewers, offers the greatest opportunity for growth across the industry. Key contributors towards this include:
🍴 Engagement from hospitality businesses – the top locations respond to over 90% of all customer reviews, meaning those who stay in conversations with customers and focus on building communities hugely improve customer relationships and their own reputation by demonstrating commitment to customer satisfaction.
🍴 Affable interactions with staff – while food quality and flavour are still prevalent, consumer focus has shifted to quality of service and the affect this has on the overall dining experience.
🍴 Encouraging immediate feedback – tools such as QR codes and prompts when logging into Wifi pages increase review recency and in turn, the overall volume of feedback.
Looking ahead to 2025, consumer demand for dining and social experiences is still strong, but financial pressures such as rising operational costs and shifts in customer behaviours present real challenges for the industry.
Consumers have much less disposable income, causing them to be more selective in their spending. When they do decide to treat themselves, they’re seeking more memorable and experience-driven outings, as well as eco-friendly restaurants which source locally, reduce waste and plant-based options.
It’s no secret that the recent budget will hit hospitality particularly hard, with the cost of employing a worker set to rise by 10%*. From an operator perspective, a combination of inflation and rising costs are causing businesses to struggle to retain staff. As a result, menu prices are on the up and deterring increasingly frugal customers.
However, progressing technology within the industry is helping employers. Online ordering and food delivery platforms continue to assist the industry, as restaurants’ at-home sales grew a further 6% in September**. Within establishments, restaurants are also adopting new tech to help streamline operations and improve customer service.
Ultimately, it’s clear that review volume and subsequent sentiment are key contributors to reputation, which is proving an increasingly critical asset in the hospitality sector. In an industry which centres around the connection and experiences of real people, consumer engagement continues to make the difference between a vibrant and bustling pub, bar, or restaurant, and one struggling to get people through the door.
At Hatch, we continue to help a variety of brands in the hospitality, food, and drink sectors tell their story. If you’d like to hear more about what we do, you can find us at hello@hatch.group
*UKHospitality
**NIQ Hospitality at Home Tracker
