By Christopher Schiavello
The hospitality sector is rapidly changing and 2016 promises to be a year of increased demand, growth and acquisitions.
The key driver of change in the coming years for the hospitality and hotel sector will be the expected generational shift. Millennials (or Gen Y) aged between 21 and 35, are beginning to enter their prime earning years and will have a definitive impact on how disposable income is spent. According to research recently released by Deloitte’s, Millennials will represent up to three quarters of the global workforce within the decade; the good news is they’re not afraid to spend. The organisations that successfully adapt to this change will invariably win the millennial consumer dollar.
So what is it Millennials are looking for?
A customised experience
Customisation is king. Establishments that provide a unique, tailored experience will prevail. This involves the right combination of location, design, ambience and technology. It’s no longer just about the food – but the entire experience – which begins the moment they type your name into Google.
Value for Money
Value for money doesn’t necessarily mean paying less, but rather providing a perceived value. A perfect example of success in this space is Melbourne’s Chin Chin. It’s the type of cool and casual restaurant that understands the Millennial market. It offers fresh, locally sourced ingredients, open plan communal design and a tech-friendly space (for the all-important Facebook check-in). This award winning recipe has resulted in a veritable gold mine, with a waiting list virtually every day of the week. Yet rather than dissuade patrons by making them wait outside or in line, the restaurant has capitalised on the opportunity by creating a separate bar to entertain them while they wait. This not only provides an additional source of revenue, but negates the negative associations typical of long queues and hungry customers – and it works. It seems Millennials are less fussed about waiting and more concerned with the overall experience (and they’re willing to pay a premium for it too).
The Schiavello Advantage
We understand the evolving trends and unique demands of this sector. We’ve completed hundreds of landmark hospitality projects and we’re an active participant in the space. The Schiavello Group is the majority owner of The Atlantic Group – a premier hospitality provider that has successfully catered for a variety of local, world class events, including Formula 1 Australian Grand Prix, Spring Racing Carnival and Fashion Week to name a few. In addition, we manage and operate multiple venues across Melbourne, such as the iconic Atlantic Restaurant (Crown Casino), Woolshed Pub, the Mill & Bakery (Docklands) and the Central Pier function spaces.
Not many companies can say they offer an insight from both sides of the pass (client and service provider), but at Schiavello when we say we understand hospitality we actually deliver. Before your next investment don’t hesitate to contact Schiavello for insights on the industry, consultative advice or hospitality design and construction trends.