Hospitality businesses falling behind online as eCommerce boom continues

- February 17, 2022 2 MIN READ

Research by SavvySME has revealed hospitality businesses are lagging behind those in other industries when it comes to online activity.

The SavvySME Industry Report 2022 analysed how active each industry was on the business community marketplace in the past 12 months.

Pandemic pushes businesses online

Based on the study, retailers were the most active industry online in 2021, accounting for 29.63 per cent of activity. Yet surprisingly, only two in a hundred hospitality businesses were active online. However, those that did make the leap were reaping the benefits.

When the pandemic forced Phillip Kuoch, founder of Goldelucks Doughnuts, to restrict his trading hours at his three retail stores, he pivoted to online to fill the gap.

“There has been increased hours for our staff as we have re-purposed their positions to help pack, handle and deliver our gift boxes for online orders and delivery.

“With everything that’s happening now with the COVID-19 outbreak, it has forced us to really focus and grow on our online channels and so far, we’ve been having great success Our staff have been driving up to 1,000km around Melbourne, delivering our doughnut gift boxes to our happily satisfied consumers,” Kuoch said.

Smart businesses switch to online

Savvy reports the hospitality businesses that withstood the impact of lockdowns and decreased customer sentiment were found to have migrated to online retail.

Rob Tamburro, owner of two eCommerce businesses, one in the beauty industry and the other in hospitality, said online sales for his restaurant chain took off through COVID-19.

“We now also manufacture our own pastas and sauces, frozen and delivered to your doorstep. As supermarket shelves remained empty, our online sales for our frozen pastas have gone through the roof. It has taken off a lot faster than anything we have seen before.”

According to SavvySME’s findings, the construction and healthcare industries were the next most active online in the past 12 months, accounting for 14.89 per cent and 11.15 per cent respectively of online activity.

SavvySME eCommerce influencer, Andrew Spring, suggests the businesses that will survive the pandemic are the ones that tackle the changing landscape head on, and continue to evolve.

“eCommerce is a necessity now, not a point of difference,” Andrew insists. 

Most active industries online (Last 12 months)

Industry % Online Activity
Retail 29.63%
Home, building and construction 14.89%
Healthcare 11.15%
Consulting and strategy 9.94%
Personal services 9.84%
Professional services 6.79%
Education and training 5.67%
Finance, insurance and banking 5.24%
Domestic and household services 4.70%
Hospitality 2.13%

Source: SavvySME Industry Report 2022

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