Prices are rising across the board, and now this is starting to show on your bottom line. Increased staffing costs, food costs, and all other costs are increasing. Margins are tight in hospitality, so we must have your fingers on the pulse and constantly be amending things as we go along. Continuous minor adjustments to maintain profitability is critical in an environment like this.
Here are eight things for you to do to help mitigate the rising costs, so you can continue to do more, be more, and share more.
- Don't be afraid to put your prices up - think it is all about service - 9 times out of 10, the only people concerned about putting prices up are your team, and you may have 1 out of 10 customers complain. In the environment we are in, you should be analyzing your pricing every three months.
- Sell more - train the team to be upselling and cross-selling. What a difference an additional side, dessert or drink sale can make if everyone is on board with upselling is incredible. Look at upselling as enhancing the customer experience. Create a competition on who can sell the most sides or desserts for your team. This can also work on the bar, upselling snacks, or larger pours.
- Implement a surcharge - our EFTPOS machines are changing. Talk to your provider about how you can implement a surcharge on credit / paywave transactions. Even a 1% surcharge will help and enable you to gauge the market reaction.
- Take time to analyze products, and make changes to get a better GP.
- Go through your expenses, are there other options? Be careful not to waste too much time on penny-pinching savings, but you may find some significant savings by looking over all your expenses.
- Analyze your team's working hours - is there much standing around? Longer breaks? Split shifts? Wage cost is the most significant expense. Are we running our teams efficiently as possible?
- Check your wastage! This is one of the biggest drains of our industry. How are your team pouring beers? Are the chefs using everything they can to maximize the return on products they purchase?
- Focus your time and money on internal customers and turn them into advocates. It costs a hell of a lot more to get new customers than it does to spend quality time on your current customers.
Time is what you need to have your finger on the pulse. Too many people get caught in the wheel and don't schedule a time to be working on the business. If you don't, opportunities are missed, and profit is lost.
A great start is to join me on the 10th of October for the RAISE YOUR STANDARDS, RAISE YOUR PROFIT workshop. Email me richie@thegrowthcoach.co.nz for further info.
RICHIE WALSHE
THE GROWTH COACH - HELPING DRIVEN AND PASSIONATE PEOPLE RUN BETTER BUSINESSES, BE MORE PROFITABLE AND LEAD BETTER LIVES
www.thegrowthcoach.co.nz
