North Lanarkshire Council to implement cost recovery measures for cafes at its various venues

North Lanarkshire Council is set to implement cost recovery measures for the cafes at its various venues following a review that revealed a significant financial shortfall. The review indicated that while income generated from sales amounted to approximately £2 million, operating costs totalled nearly £2.7 million. These figures encompassed Motherwell Concert Hall, which was shut down due to the presence of RAAC and is slated for demolition.

Councillors have approved annual price hikes of eight to ten per cent over the next three years at their venues. The staffing levels have remained unchanged since the transition of hospitality services in-house in 2021, with 34 full-time catering assistants and additional casual staff during peak periods. However, the council plans to review two upcoming vacancies in January.

To counteract the financial deficit, the council intends to explore leasing out catering operations at three parks – Colzium Cafe, Drumpellier Cafe, and the food and drink space at Strathclyde Country Park – to private operators. The rising expenses associated with in-house services, such as staffing and food price inflation, have prompted a shift towards inviting branded food chains to enhance footfall.

During discussions, Councillor Allan Stubbs raised concerns about pricing strategies, highlighting disparities such as soft drinks being cheaper than sparkling water. He questioned whether the price increases could potentially deter customers and impact revenue. The council reassured that pricing adjustments would be tailored to local benchmarks to ensure competitiveness in the market.

SNP group leader Tracy Carragher emphasised the origin of the review within the Labour administration’s 2024 budget, which was acknowledged by council leader Jim Logue. The council’s policy and strategy committee unanimously endorsed the implementation of the cost recovery measures, with a progress update scheduled for June.

These measures aim to address the financial challenges faced by the council’s cafes and ensure sustainable operations across its venues to deliver quality services to the community. North Lanarkshire Council remains committed to prudent financial management and strategic decision-making to enhance the overall visitor experience and financial sustainability of its catering services.

**Insights and Summary:**
This article reports on North Lanarkshire Council’s proactive approach to tackle financial deficits in its cafe operations at various venues. By implementing cost recovery measures, including price increases and exploring leasing options to private operators, the council aims to bridge the financial gap and enhance the sustainability of its catering services. The strategic decision-making and emphasis on local benchmarks to maintain competitiveness in the market demonstrate the council’s commitment to responsible financial management. As the council progresses with these measures, evaluating their effectiveness in the future will be crucial to ensuring the long-term viability and success of its cafe operations.