How hotel managers can cut costs without cutting cornersPosted on May 16th, 2018 in Blog, News
From building overheads to labour costs, operating a hotel, restaurant or other hospitality business is an expensive venture.
You don’t want to make sacrifices or look cheap in front of your eagle-eyed guests, but fortunately there are more subtle ways to save. Follow these 5 tips to reduce your losses and increase your profits while improving the customer experience at the same time.
- Know your customers
The better you know your guests’ preferences and habits, the more you can personalise their experience and keep them satisfied. Keep detailed records of what food and drinks are popular in your restaurant or bar and which ones aren’t selling so well, so you you know which ones to order again.
You should also take note of peak and quiet periods so you can organise your staff rosters efficiently, avoiding paying for excess employees when business is likely to be slow, but still having people on hand if a bus of tourists suddenly appears.
- Reduce waste
Another good reason to learn your guests’ dining habits is to avoid over-purchasing and over-portioning, which leads to spoilage, waste and wasted money. It can also help to portion out ingredients for your popular menu items, so they’ll be ready to prepare at a moment’s notice and you’ll get an early warning if you need to re-stock.
When you streamline your inventory so you only have what you need, your kitchen and bar staff are also more likely to be cautious and to avoid wasting ingredients in limited supply. New staff members should be properly trained and observed to make sure they’re chopping and pouring efficiently and not wasting usable food and drinks
- Cross-train your staff
You never want to be in the position where only one member of your team knows how to do a certain job, because what happens when they take a day off?
Cross-training your team to perform multiple roles not only covers you, it can also equip your staff with valuable skills and experience and make them bigger assets to your business.
- Consolidate your purchases
Where do you buy your food and drink, bed linen and toiletries? The more inventory you can source through a single supplier, the more you can save, with prices being marked up more affordably than through standard retailers.
A good relationship with a vendor can be a boon to an independent hotel or restaurant, especially if you’re just starting out.
- Go green
Finding ways to save energy and water in your business isn’t just good for the environment, but for your overheads too.
Air-conditioning and lighting are two of the biggest power drains in the average hotel, so you need to make sure you’re using the most energy-efficient products on the market. Air conditioning units need to be maintained regularly to keep the filters free from dust and the system operating efficiently.
Installing solar panels to generate your own free energy will pay off in the long term by making you less dependent on power companies, though it’s a big investment up-front.
Get more advice
Pick up more tips and insights straight from the experts at The Drinks Industry Show, Australia’s biggest annual trade-only gathering. This year’s event is at Darling Harbour in Sydney from 18-19 June 2018.