Hospitality: What costs will affect your business in 2024

The last number of years have seen a series of increasing costs for all small and medium sized businesses in the UK and Ireland and many economic factors continue to cause challenges particularly for the hospitality and catering industry. While some are easing into 2024, others remain of concern. So what are the factors that the industry will need to consider as businesses get ready for their busy seasons in 2024? Whether the business is looking to diversify, grow, invest, or simply maintain the status quo, here we look at the factors that will have the biggest impacts.

 

Cost of Labour: Cost of labour recurs as one of the most significant costs in hospitality. This will increase in 2024 and in foreseeable years, as workers in the UK will see wage increases depending on their age from 01 April. From this date, workers aged 21 and over will be entitled to the National Living Wage of £11.44 per hour. This is a rise of £1.26 per hour for those aged 21-22, and a rise of £1.02 for those aged over 23. Those aged under 18 and aged 18 to 20 will also see rises in their minimum hourly rates to £6.40 and £8.60 an hour respectively. Those employing apprentices at the current £5.28 rates will also be affected, with apprentices’ hourly rates rising to £6.40 per hour.

Similarly in Ireland, the National Living Wage increased on 1 January 2024. The national minimum hourly rate becomes €12.70. This rate applies to employees aged 20 years and above. Sub-minimum hourly rates apply to employees aged under 20. These rates are €11.43 for those aged 19, €10.16 for 18-year-olds, and €8.89 if aged under 18.


Sick Leave: As part of a 4-year plan, the Irish government is gradually increasing employer-paid sick leave which will rise to 10 days in 2026. As part of this plan, the entitlement to paid sick leave recently increased from 3 to 5 days for employees. While this measure aims to provide protection and certainty to employees who are unable to work due to illness or injury, the government recognises that the overall cost of doing business is of concern particularly for small businesses. As part of targeted measures to support businesses, the increased Cost of Business Scheme announced in Budget 2024 provides direct financial support to small businesses directly impacted by increased costs. The scheme includes a once-off grant which will benefit up to 130,000 small and medium businesses from a fund of €250m.

In the UK, employers without a company sick pay scheme should pay Statutory Sick Pay (SSP) to eligible employees. This is £109.40 per week and paid by the employer for up to 28 weeks.

Energy costs and geopolitical factors: Businesses and households alike were hit by soaring energy prices after the Russian invasion of Ukraine in February 2022. In the UK the Energy Bills Discount Scheme runs until March 2024. However this has been most beneficial to heavy energy-using sectors, particularly manufacturing. In addition, recent research has suggested that over half of SMEs were unaware of the financial support it provides and therefore have not availed of potential savings.

Across Europe, while many predict energy prices may drop in 2024, they are unlikely to fall to pre-invasion levels.

Events affecting shipping in the Red Sea and recent drought in the Panama Canal have the potential to affect the price of global raw materials and cereals, as rerouting options mean more time and cost. These have not materialised into significant additional costs for businesses at the end of distribution chains as yet, but it remains to be seen if this happens should these events continue long term.

Inflation: Inflation in the UK stalled at 4% in January, having fallen significantly during 2023. While this is some good news for the hospitality sector in that this is a long way from the 10.4% rate just a year ago, it may not stay at this rate. Many analysts believe it may well hit the Bank of England’s 2% target later this year but that may not last if as expected, energy prices continue to fluctuate.

Similarly in Ireland, the inflation rate is currently 4.1%. this is a drop of 0.5% on the previous month. Hospitality however had one of the most significant price growths in the 12 months to January. This is no surprise as multiple factors are contributing to the challenge of doing business in this sector. According to the Restaurants Association of Ireland (RAI), this includes low margins, rising costs and the housing crisis. Among costs, the RAI points to increasing PRSI rates which will increase by 0.1% in October, and the VAT rate which returned to 13.5% last September.

Looking for ways to reduce costs in your hospitality or catering business? Find out more here.

Practising good food safety in hospitality

According to the UK Food Security Report 2021 (chapter, Food Safety and Consumer Confidence), most consumers in the UK trust the food they buy and eat to be safe and accurately labelled. Indeed, the level of food business compliance with food safety regulations remains generally high.

Reports of food safety incidents have increased since 2010. Although this is largely due to better detection rates and reporting, it does highlight the need for food practitioners to constantly be aware that incidents of food poisoning, outbreaks and allergic reactions are always a real risk. With this in mind, restauranteurs and caterers should make it their business to regularly update themselves and their teams on the importance of temperature monitoring for food and how bad practices can affect their customers and their business.

Implications of poor food safety

Poor food safety practices can damage your business reputation and brand. If your food is contaminated due to poor food safety practices, you will have to:

  • withdraw contaminated food products,
  • stop individuals from consuming them, and
  • your business will potentially suffer from reputational damage.

Damage to your reputation, even when repaired, can create a dent in the perceived credibility of your business. By following proper food safety practices, you can help prevent reputational risk and protect yourself against potential litigation, bad social media reviews, and more.

Temperature control

Maintaining the correct temperature of food is crucial for ensuring food safety. Food that is not stored or cooked at the right temperature can lead to the growth of harmful bacteria, which can cause foodborne illnesses. This can be particularly dangerous for new businesses if they do not have staff with the experience or knowledge to implement proper food safety practices.

According to the Food Standards Agency of the UK, it is important to use a calibrated probe thermometer to check and monitor the temperature of food as part of your food safety HACCP management system.

Remember to ensure that temperatures measured are also recorded. To simplify the process, use a digital temperature monitoring system that allows you to take temperature readings across multiple locations if necessary, and which also allows you to record data and retrieve reports whenever these are required for audits and inspections.

 Keeping records

How many times have you tried to retrieve information of any kind, only to find that the information you need can’t be found? Maybe it was filed incorrectly, maybe it was deleted in error, or maybe the ‘correct’ file was incomplete or contained bad data. Keeping accurate, reliable and accessible records is critical in a highly regulated food safety environment.

Reduce the risks of manual processes by using a digital HACCP system that can provide your HACCP records automatically. As well as providing real-time reporting, a digital system provides data analysis and insights that can highlight trends at sites, allowing you to make data-driven decisions to help improve the business.

Securing your data

Finally, remember to always ensure that your data, particularly data kept digitally, is secure. Losing your data or being a victim of a cyber attack not only inconveniences your business, but risks losing data that you need for EHO inspections and audits. Whatever the food safety system you employ, make sure it gives you the flexibility to assign roles and permissions only to staff members as required. Opt for a system that has been developed for GDPR compliance, with vulnerability management and threat modelling incorporated into its security testing. Any system should also includes controls such as multi-factor authentication.

Food safety in always the number one priority in the hospitality industry. Poor food safety practices can risk your customers’ health and damage your business reputation and brand. Use digital technologies to improve food safety processes and reduce the risk of foodborne illnesses. By adopting best practices both in food safety and your digital technology, you can help protect your customers, your business, and your brand.

For more on digital HACCP for hospitality, contact Kelsius.

Ensuring Patient Safety: The critical role of monitoring medicine temperatures in hospital wards

Maintaining the integrity of medicines is paramount in healthcare, and temperature monitoring emerges as a linchpin in this process. Hospital wards are dynamic environments where a multitude of medications are stored, each with specific temperature requirements. Deviations from these requirements can compromise the efficacy of drugs, potentially jeopardising patient outcomes.

Precise temperature monitoring in hospital wards is indispensable for several reasons:

  1. First and foremost, many medications are sensitive to temperature variations, and even slight deviations can alter their chemical composition. This is particularly crucial for drugs treating conditions where potency is directly linked to therapeutic success.
  2. Secondly, patient safety hinges on the reliability of medications. Anomalies in temperature can render medicines ineffective or, in extreme cases, harmful. Monitoring systems not only provide real-time data but also trigger alerts when temperatures veer outside acceptable ranges, enabling swift corrective actions.
  3. Regulatory compliance demands rigorous temperature control. Healthcare institutions must adhere to stringent guidelines to ensure the efficacy and safety of medications. Failure to meet these standards can lead to severe consequences, including regulatory penalties and, more critically, compromised patient care.

Monitoring the temperature of medicines in hospital wards is not just a regulatory formality; it’s a proactive strategy to safeguard patient well-being. By investing in robust temperature monitoring systems, healthcare providers demonstrate their commitment to delivering medications at their utmost efficacy, contributing significantly to the overarching goal of ensuring optimal patient outcomes.

Click here to learn how wireless temperature monitoring systems can help your healthcare environment.

More choice means more food safety challenges for grocery industry and food retailers

Throughout the UK and Ireland food retailers, brands and service providers consistently strive towards the highest standards when it comes to the food products and services they provide on a daily basis. The grocery trade here is characterised not only by a level of service second to none, but also by the care and attention paid to the quality of food delivered to every customer at every interaction.  

This doesn’t happen by chance. Food retailers must invest time, effort and earnings on regulatory compliance, training, audits and inspections to ensure that they meet food safety requirements. safefood’s latest research has shown that this is very much front of mind for many food businesses. Their research has found that just under half of all small food businesses surveyed (45%) claimed that ‘food safety and ensuring compliance with regulations’ is their top priority. But almost two-thirds (64%) said they are extremely concerned about the impact of a poor food safety audit or enforcement on their business.  

This should be no surprise in a sector dominated by such high standards, but the concern is reflective of an environment that is growing in terms of greater demands. Today’s customers have higher expectations with more diverse dietary needs and a wider range of health and lifestyle preferences. In food retail increasing competitiveness, higher costs, and labour shortages all merge to present a multitude of challenges for management.  

Savvy store managers will be familiar with various tools of digital transformation that help to improve store efficiencies. One tool however that addresses these multiple challenges while maintaining compliance and food safety standards is digital HACCP.  

Whether across one or many stores, a digital HACCP system saves store managers and food handlers time by automating what are otherwise time-consuming, manual processes. A robust digital HACCP system uses a wireless temperature monitoring system to significantly reduce the time staff spend recording temperatures and completed food safety tasks.  

The system removes the need for paper folders and manual paper records and eliminates the risk of stock loss due to fridge or freezer temperature excursions using automated real-time alerts via SMS, email or voice message. Such a system will also make audits and inspections easier, as data and records are available at one touch using a touchscreen device.  

For operations across multiple locations, this is particularly useful for management to remotely access live or historical records for any store. Companies such as Kelsius (www.kelsius.com) deliver digital HACCP systems to food retailers large and small and can customise a system to suit the size and needs of any retailer.  

The food sector is constantly changing and growing. Store managers who look to grow their business should look to technologies such as digital HACCP to ensure that as their operations grow, they can rest assured that this is not at the cost of maintaining high levels of compliance and excellence in customer service.

Click here to learn how wireless temperature monitoring can help your food retail business.

The importance of medicines management in operating theatres

Monitoring the temperature of medicines in operating theatres ensures the efficacy of medicines to protect patent safety, ensures regulatory compliance, and minimises the medicinal product waste.

Medication Efficacy

Many medications administered in operating theatres, such as anaesthetics and antibiotics, rely on precise chemical compositions for optimal effectiveness. Deviations from recommended temperatures can compromise their potency, leading to suboptimal results or, in extreme cases, treatment failure.

Patient Safety

The well-being of the patient is the foremost concern in any medical setting. Temperature-sensitive medications, when administered outside their specified temperature range, can pose risks to patient safety. Inaccurate dosages or compromised efficacy may result in adverse reactions or inadequate responses to treatment.

Surgical Procedures

Certain medications used during surgical procedures, like muscle relaxants and pain management drugs, require meticulous temperature control. Ensuring these medications are within their specified temperature ranges is crucial for the success of the surgery and the postoperative recovery of the patient.

Regulatory Compliance

Healthcare facilities must adhere to strict regulatory standards, including those related to medication storage and administration. Monitoring and documenting temperatures in operating theatres are essential components of compliance. Non-compliance can lead to regulatory consequences and impact the reputation of the healthcare institution.

Quality Assurance:

Temperature monitoring serves as a proactive quality assurance measure. By implementing robust monitoring systems, healthcare providers demonstrate a commitment to delivering medications at their highest quality. This not only ensures patient safety but also contributes to the overall success of medical interventions.

Prevention of Medication Wastage:

Temperature fluctuations can lead to the degradation of medications, rendering them ineffective. Regular monitoring helps identify issues promptly, preventing the wastage of expensive drugs and ensuring that resources are used efficiently.

The temperature monitoring of medicines in operating theatres is integral to maintaining medication efficacy, ensuring patient safety, complying with regulations, upholding quality standards, and optimising the overall success of surgical procedures. It is a crucial aspect of the broader commitment to providing high-quality healthcare.

Click here to learn how wireless temperature monitoring systems can help your healthcare environment.

Food safety for your new small business

Kelsius food safety for new food businesses

Thinking of opening a food business? Make sure you’re HACCP compliant to protect your clients and your reputation right from the start.

What is HACCP?

HACCP (Hazard Analysis and Critical Control Points) is a systematic approach to identifying, evaluating, and controlling food safety hazards. As a food service owner it’s vital to understand HACCP principles and implement the required regulations across business operations constantly and consistently. This includes conducting a hazard analysis, establishing critical control points, setting critical limits, implementing monitoring procedures, and maintaining proper record-keeping. By adhering to HACCP guidelines, you can proactively prevent and address potential risks in your food business processes; protecting you, your reputation and your customers’ well-being.

Local compliance

Regardless of the scale of your business or your market location, you must ensure that you comply with all local food safety regulations. While there are universal standards and guidelines, contact the food safety regulator for your market for information and advice on the regulations regarding food handling, food storage, hygiene practices and labelling. The Food Standards Agency (FSA) is the agency responsible for the system that regulate food businesses in the UK. In Ireland the Food Safety Authority of Ireland (FSAI) provides new businesses with a comprehensive range of information on how to achieve good hygiene standards and how to comply with the law.

Make food safety your number one priority

The best way to ensure consistent adherence to food safety regulations is to instil among staff from the start that food safety is their number one priority at every stage of the food supply and delivery process. Management and staff responsible for the business’s HACCP system must undertake adequate training in the application of HACCP principles. All food handlers must be instructed on food safety and hygiene and should be trained based on the level of activity they are involved in. Companies such as Kelsius can help in the delivery of food safety training for your staff.

Set the standard

Consistency is key when it comes to food safetyKelsius FoodCheck 2.0 for new food businesses management. Processes that can help you adhere to the regulations include standardising your products, developing comprehensive and easy-to-understand processes, applying consistent quality control measures, and always using reliable suppliers who you can trust to provide quality ingredients and products. This makes it easier for you to implement a robust traceability system should you need to quickly identify and recall any potentially contaminated products.

Protecting your brand

Successful food businesses are as much about the service provided as they are about the food, and good service leads to a trusted brand that customers will come back for again and again.

Use technology to help you save time and money on meeting food safety regulations – time and money that you can redirect to providing a high level of customer service and developing a product range that your customers will love. Get the balance right for your customers, your reputation and your business, and you’ll have the right ingredients for long-term success.

Want to learn more? Click here to find out about FoodCheck 2.0 from Kelsius – a digital HACCP system that provides wireless temperature monitoring, traceability, checklists and more for food businesses large and small.

Kelsius helps Tesco Ireland reduce food waste

Falcarragh, Co. Donegal, 9 May 2023 – Irish technology company Kelsius, based in Falcarragh, Co Donegal has signed a contract with Tesco Ireland to help the retailer ensure efficiencies across some of its cold storage.

Kelsius’ wireless temperature monitoring systems monitor the temperature of standalone fridges, freezers 24 hours a day. This allows Tesco to ensure that it only provides the finest quality foods to its customers by ensuring that fridges and freezers are maintained at the correct temperature.

The Kelsius system alerts the retailer to any temperature excursions, thus eliminating food waste that can occur due to fridge or freezer failure.

The agreement between Kelsius and Tesco will see the technology introduced across 112 Tesco stores.

Tesco has led the way amongst retailers in Ireland, in eliminating food waste and driving sustainable retailing. Kelsius’ technology ensures that no food is wasted and eliminates CO2 emissions from that waste.

Kelsius employs 82 people and manufactures specialist temperature monitoring equipment and software and provides global customer support from Falcarragh.

Kelsius CEO Karl Simmons said, “Our collaboration with Tesco is an excellent fit for the Kelsius system. An operation of Tesco’s size requires a robust, scalable, user-friendly system that suits the needs of the business, and Kelsius provides this. Kelsius’ environmental values are also aligned with those of Tesco. We are delighted that we can help Tesco achieve its food waste reduction target. We congratulate Tesco on their achievements in this regard to date, and we look forward to continuing to work with them.”

Commenting on the partnership, Tesco Central Compliance Manager John Byrne said, “The Kelsius system provides Tesco not only with the peace of mind to have constant and reliable temperature monitoring, but also with the ability to ensure food quality and further reduce food waste. We are delighted to partner with them in using their technology and in a way which helps us to play our part in the community and for the benefit of our customers and the environment.”

About Kelsius     

Kelsius is the leading supplier of automation technology for product safety and compliance to the food services and healthcare industries. Using its world-class wireless sensor technology and cloud-based data hosting and processing, Kelsius systems improve product safety, ensure regulatory compliance and optimise costs associated with these activities. Founded in 2003, Kelsius has offices in Ireland and the United Kingdom with a network of partners in Europe, Middle East, Australia and the USA that serve its global customer base. Visit www.kelsius.com

 

Food Safety – Protecting Your Bottom Line

Food safety has become increasingly important and over the last decade has become a sub-industry of the food service industry.

The importance of food safety does not just affect your immediate income. If a food safety outbreak occurred on your premises if would have a negative impact on the long term public perception of your brand. It can be very difficult to recover from an association of food poisoning. Each Food Service outlet has a responsibility, not only to their customers, but to their brand and employees to ensure the highest standards are maintained, as the consequences can impact a great number of people. People’s health, first and foremost is at risk, and needs to be protected. But employment and income can also be affected by the fallout from a food poisoning outbreak.

Today we outline the essential dos and don’ts for complete compliance.

Don’t

  • Keep it in your head – This is a recipe for disaster. It is impossible to properly communicate your plan to your staff without a documented plan.
  • Leave anything to chance – Fail to prepare. Prepare to fail. Ensuring the safety of the product you provide helps ensure the safety of your business.
  • Allow standards to drop – Avoid stepping on the slippery slope. Slacking on standards in one area will always lead slacking in other areas.
  • Make Excuses – The buck stops with you. Playing innocent will not work in this day and age. It’s your business, protect it.
  • Cut corners – The risk of closure and/or negative publicity far outweighs the short term gains to be made. Best practice must be followed by all staff.

Do

  • Have a Documented Plan – Ensure your HACCP plan is recorded and staff are fully trained according to the plan. Copies should be available to staff.
  • Keep Records – It is imperative that all daily, weekly and monthly actions and tasks are catalogued. This allows for transparent compliance.
  • Monitor Temperature – Temperatures should be checked regularly whether it be fridges, freezers, food being cooked or cooked food in hot holding.
  • Constant Vigilance – Staff need to be trained and fully aware of all food safety hazards and know how to prevent all types of cross contamination.
  • Wash Hands – It’s a simple activity but is vital in the fight to prevent the spread of food borne illnesses. The more the better!

Food Safety experts Kelsius, can help your business protect against some of the dangers and implement the essential actions as outlined above. FoodCheck, by Kelsius, is an automated HACCP Management system using tablet based technology, the first of its kind on the market anywhere in the world.

With your company’s reputation and more significantly your income at stake, can you really afford to take a risk?

Kelsius are delighted to announce that we have joined the Guaranteed Irish Network

The Guaranteed Irish symbol is awarded to companies that support local communities, provide quality jobs and are committed to Irish provenance. It is a national symbol of trust in Irish businesses and encourages the support of local businesses and communities.

About us

Kelsius was founded in 2003 and the concept was to digitally capture and store temperature records to allow customers to comply with new legislation that was being introduced. The network and sensors were designed to capture all this information, eliminating the need for paper records.

Since then, Kelsius have become experts in cold chain monitoring and the driving operational efficiencies in the food industry.

We are now an ISO 9001 & ISO 14001 Certified company.

The company has gone on to develop a fully automated, digital HACCP systems for food businesses and continue to reinvest in developing new technology. Employing over 60 people, Kelsius has been able to grow organically in Ireland and the UK but also internationally through its partner network.

The CoolCheck and FoodCheck 2.0 systems are operating live in Food and Life Sciences Industries in 45+ countries globally and we are proud to have our products and services originate here in Ireland.

During the pandemic, temperature sensors were particularly important for monitoring vaccines and the company has been proud to play its part in the effort to safely distribute these medicines. The CoolCheck system was installed in the HSE Covid Vaccination centres nationwide to support and assist with the management of the vaccine rollout.

Being Ireland’s only manufacturer and developer of Digital, Automated HACCP and Temperature monitoring systems, Kelsius are also the only company to offer full Traceability and Production Traceability to our customers with FoodCheck 2.0.
FoodCheck 2.0 removes all paper keeping and simplifies the audit process. Kelsius systems ensure compliance with legislation and provides the good corporate governance and risk mitigation that businesses need today.

Kelsius are digital food safety partners with some of Ireland’s leading and most recognisable brands including:

  • Musgrave- Supervalu, Centra, Daybreak
  • BWG- Spar, Londis, Eurospar, XL , Mace
  • Applegreen
  • Gala
  • Costcutter
  • Dalata Hotels- Maldron, Clayton
  • Apache Pizza

We are also proud to partner with some of Irelands most reputable and recognised hotels:

  • The Shelbourne Hotel
  • Ashford Castle
  • Cliff House Hotel
  • The Marker Hotel
  • The Merrion Hotel
  • and many, many more.

Kelsius are also proud to have supported the Ronald McDonald House, Safety Net and local GAA clubs and festivals. Kelsius will continue to work in the community and explore opportunities to offer further support and we once again are thrilled to be Guaranteed Irish approved.