Accommodation and Food is a service sector, with a high degree of person-to-person engagement, supported by a wide variety of software and technology tools.

Stock management systems are useful in controlling waste, tracking menu choices and margins. And social media is an important engagement tool for customer engagement and finding staff.

Threats to the sector are largely challenges to different aspects of business operations – in online search, booking, ordering and delivery. 

External online booking systems have largely replaced in-house booking systems, and airbnb has used ease of search and booking to expand the whole concept of accommodation to include personal homes, increasing the size of the accommodation market, and driving down cost and profit.

In a similar way, food home delivery has moved into the open market with Uber Eats, Deliveroo and other outsourced delivery services increasing market reach for restaurants, takeaway food services and caterers. 

McDonalds has announced it will introduce digital self serve ordering in all its restaurants.

COVID 19

The coronavirus has impacted the accommodation and food industry with over 80% of businesses severely affected.

Domestic tourism has been constrained by recurring COVID outbreaks. And overseas tourism is unlikely to rebound fully for some years or until a vaccine is widely available.

COVID social distancing restrictions have inspired a shift to food ordering and delivery systems, encouraging food services to expand their online options.