Are you looking to save money in your hospitality business? First it was the pandemic – forcing restrictions and closures, staff shortages, and supply chain disruptions…
Now the hospitality industry is face rising inflation, bringing with it a range of new problems just as its finally getting back on its feet!
Australians are currently facing the highest annual increase in living expenses since 1987 its hitting hospitality hard. Hospitality businesses are facing;
- Higher operational costs – whether it’s buying fresh ingredients or paying your electricity bills, day-to-day expenses are on the rise.
- Fewer customers – with customers cutting down on non-essential costs, this means fewer nights out, and spending less when they do.
- Increasing supplier costs – suppliers are starting to pass on costs and raise their prices.
But here are 5 things you can do to combat inflation and save money in your hospitality business;
1 Conduct a financial health check
Pay close attention to your outgoings, like the cost of goods sold, rent, and wages. Negotiate cheaper rates where possible.
2. Evaluate pricing
Find ways to increase prices. People will pay more for unique and branded menu items, so name your suppliers and branded ingredients and upskill your staff in selling these.
3. Design a smaller menu
Remove your least ordered and most time-consuming menu items to save time and money. Instead focus on perfecting your best dishes and promoting them in-venue and via your marketing channels.
4. Save on ingredients
Swap expensive ingredients for more affordable substitutes and use cheaper seasonal produce where it works.
5. Embrace ‘local support’
Australians are willing and proud to support local businesses. Don’t forget to remind them how you contribute to your local community by employing, sponsoring, and buying local, this will create a stronger connection and build customer spend and loyalty.
While the current economic environment is likely to continue for a while, the hospitality industry has proved over and again that agile and proactive business owners, will always come out on top.
To find out more about how developing skills and knowledge through training can help your business, and discover what funding is available to help with training, get in touch.