Cost Monitor Your Business

Posted by Webmaster on Friday 20th January 2012

Cost management is crucial for any business, however at a time when hotel and leisure insolvencies are up by 30.65% on last year, it is time for the hospitality industry to take control of their cost management strategies. To do this you must-

Manage Your Waste- We visit too many business that have no idea what is being purchased, used and disposed. You have to teach all employees to implement waste monitoring, especially within the kitchen and housekeeping. Also keep track of your waste contractor contracts; many waste contractors operate 12 month rolling contracts which require 3 months’ notice prior to renewal. If you miss this notice period you could be tied into another year’s contract for a company who is charging you a fortune.

Know Your Suppliers- Do you know who is supplying to your business and at what price? Many establishments we visit use so many different companies they struggle to keep control of invoices and expenditure. By creating a preferred suppliers list you can stick to a small number of suppliers for larger volumes of produce, which can then help you to form a closer relationship with your supplier, ultimately receiving better deals and value for money. Also, remember to research and shop around; it is important you do not sacrifice standard for cheaper costs, but it is also crucial to find the best produce for the best price - are the expensive vegetables you are currently purchasing really any better than the vegetables sold cheaper from a different company?

Get Energy Efficient- In such a unstable market it is important that you really search hard for the best utility suppliers and try to approach the market at the right time not when it is at its peak. Check that energy-using facilities such as the kitchen, laundry or leisure facilities are managed in a way that minimises energy use and train your employees to use more efficient measures of work, for example maintaining freezer efficiency by defrosting them regularly and keeping doors closed as much as possible.

Research Market Competitors- Are you sure that your telephone tariffs and internet charges are the best on offer? Are you on an unreasonable contract that you can actually get out of even if you are told otherwise? When you have researched and approached competitors, take note of everything, including auto-renewal clauses and contract ending options, you need to be able to get out of a contract if you are unhappy.

Be Sensible- It is always nice to treat your guests but as long as they are receiving reasonable value for money and high standards of care, that extra chocolate on their pillow isn’t going to matter. A polite welcome and smile is priceless so charm your guests in the cheapest way possible. Many hotels no longer offer a complimentary newspaper or vanity kit unless requested, this way you will reduce your costs and wastage, whilst keeping guests happy.

It has been a difficult few years for the hospitality industry but sometimes a little awareness, responsibility and training can go as far as saving your business.