Fixing hospitality staffing crisis
Pundits say the New Zealand hospitality sector’s staffing shortages are putting a drag on the economy. “We’re seeing hotels, cafes and restaurant owners desperate for suitable staff,” says Link Business broker Hamish Aitcheson.
“But where there is a crisis there is also a business opportunity — and filling this particular need will be a good thing for somebody out there.”
According to Aitcheson, a decision by the owner of one of Auckland’s established recruitment companies — specialising in the hospitality industry — could not be better timed.
Hospoworld, which operates from leased premises at Level 11, 19 Victoria St West, is now for sale at an asking price of $175,000, he says.
Normalised 2017 end-of-year accounts showed a surplus to a working owner of $115,000, while the 2018 results are expected to be similarly impressive.
“The experts say New Zealand’s tourist boom is still on a roll, but operators are desperate for suitable staff.
“Meanwhile my vendor honestly feels he has paid his dues by building up his business over the past six years.
“He has lost enthusiasm for his arduous two-hour commute, and is ready to pass on the baton to somebody who can take this business to even higher levels of success.”
Aitcheson says the Hospoworld team has an extensive background in hospitality and recruitment services with 16 recruitment agencies across New Zealand, Australia, and other countries.
It provides career advice, industry information benchmarking, and networking opportunities.
The business for sale — which operates from Taupo north — is an established recruitment company operating under a franchise umbrella.
It has shown consistent sales over
the past six years, and has good systems in place for the recruitment process from sourcing talent to marketing and placement of candidates.
“The business now operates from a smart office space on the Auckland CBD fringe,” says Aitcheson.
“The reason it does so well is that increasingly restauranteurs, cafe owners and hotels are turning to third party recruiters, such as Hospoworld, to find the right human resources.
“This can be evidenced by the company experiencing its busiest ever month just recently in May 2018.
“What this means for Hospoworld is there is a fantastic opportunity for growth in the business.”
Aitcheson points to a survey of more than 350 businesses for Tourism Industry Aotearoa found 62 per cent of businesses expect their results will improve during the next year in a sector that is the country’s top foreign exchange earner.
However the Wellington Institute of Technology survey also found 82 per cent of respondents strongly agreed or agreed labour shortages were becoming a significant issue.
Nearly 231,000 people are employed in tourism businesses, an increase of 9.3 per cent from the previous year and only 38 per cent of survey respondents agreed that they could find skilled staff for their business.
“The ideal purchaser would be someone who has recruitment experience although this is not essential.
“Strong people skills, a background in administration, some Human Resource exposure, a fundamental understanding of the hospitality industry and its challenges — all these qualities would certainly help get this already successful business to the next level.
“Here is an opportunity to acquire a franchise business which is exactly tailored meeting the need of the hour,” says Aitcheson.
“It’s extremely well regarded and the business has demonstrated strong, consistent sales for the past six years.
There are real prospects for growth as the hospitality industry is booming and competent staff are highly sought after, he says.
There is ongoing support from the group, well-proven systems in place and an exclusive territory from Taupo north so the potential is massive.
Aitcheson outlines the key assets of the Auckland business follows:
● A respected, well-known brand
● Growth opportunities
● Substantial income
● Ongoing support
● Excellent Return on Investment, with full financials available.