How to reduce your hospitality costs without affecting your profits

Running any hospitality business well is an expensive business. With the price rises in food and beverages, hoteliers must consider drastic measures to cut their running costs without sacrificing the quality of customer service. You might think your business is already streamlined. But here are a few tips to shave off more expenses without compromising guest comfort.

 

  • Revamp your menu

Take a good look at the dishes you have on offer. You don’t have to scale it right down, but there could be ways of making your ingredients bill work more efficiently. Remove any dishes that are unpopular. Offer fewer items but keep the standards high. Cutting down on an excessively full menu will make your overall kitchen management simpler too. Too many dishes on a menu often result in kitchen inefficiency, especially if you experience staff shortages on some days.

 

  • Offer incentives for repeat visits

One of the best ways to keep those doors moving with guest arrivals is to make that experience work for them. Offer them a discount on their next meal. Collect their data and their feedback. Both these forms of information can help you to improve your service, and maintain a customer relationship.  For example, if you have an offer on wines, or news of an event upcoming, adding them to your mailing list is a good idea.

 

  • Rethink restaurant opening hours

If there are times in the day when the restaurant doesn’t need to be open, make use of this. If you serve breakfast, then lunch and dinner, close the restaurant between 3 pm and 5 pm. That will save, daily, two hours of staffing costs. It’s a simple change but the benefits are accumulative over time – and over the course of a year, significant savings can be made.

 

  • Reduce your laundry bill

While some guests will always request fresh towels and sheets, others will be willing to save on water and energy usage by re-using their bed linen, etc, during their stay. Put a notice in each room explaining that as an energy-saving measure, you give a guest the option to forgo a complete laundry change. Many people these days have a strong social conscience, and this is a win-win situation. Not only will you be reducing the carbon footprint, but you’ll also reduce costs too.

 

  • Don’t reduce your staff level

It might seem as though it’s the obvious answer, but operating on a skeleton crew to reduce costs, can be disastrous for hospitality businesses. And ultimately, good service is what keeps hotels in the black. If you reduce staff, you’ll have shortages on days when you really need them. Morale among your workers will also be lower if they are working harder but are doing so under fear they might lose their jobs. It goes without saying that standards will fall. The staff your maintain will have to work harder to ensure the standards are maintained. If you already have a good team, it’s best to maintain that, and reduce costs elsewhere.

 

  • Look at your marketing strategies

With social media marketing providing excellent data and feedback on which campaigns are successful, maybe a good way to save on costs is to cut out older forms of marketing and use online methods instead. Print media and ads in magazines are not the best way to target your audience anymore. And they are costly. Equally, investigate exactly where your marketing cash is going and look at revamping online ad demographics. You could increase your spend on online advertising, as well as cutting costs on below the line strategies.

 

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