Hospitality revenue management: Turning excess stock into profits

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Hospitality revenue management: Turning excess stock into profits

Unaccounted for inventory is not uncommon in the food and beverage sector. It generally occurs when there are no formal procedures in place to accurately record stock levels in cellars or warehouses, leaving the business sitting with often significant potential, but nothing on the books.

Capitalising on the opportunities for sale by turning potential numbers into accurate numbers will enable you to successfully forecast and budget in accordance with the assets you have at your disposal.

It will also safeguard against the risk, as what may be deemed to be ‘excess’ or ‘forgotten’ stock can often be taken advantage of by employees or other parties with access to the facility.

To know the full quantities of your stock will not only safeguard against security risks, but it will also enable the business to forecast sales, and ultimately accurately fulfil all orders that come in, thereby improving customer satisfaction.

Adding to this, by conducting regular stock takes – often best done by an independent auditor to ensure accuracy and highlight opportunities – you will be able to more accurately monitor inventory to ensure that all items that leave the storage units are fully recorded and accounted for. And, where an investigation is deemed necessary, you’ll have better insight into the movement that is occurring – what, how, when and to where. This includes any movement of stock into different stages of their development, for example differentiating between discorged, on-lees and labelled stock.

Effective stock control impacts everything from customer satisfaction to efficiency and profit margins.

Capcon operates in the hospitality sector across the UK, helping pubs, restaurants, hotels, wine estates, theatres, casinos and major venues manage and improve stock controls within their business, and gain information and valuable insights on a range of key performance indicators, including gross margin by product, purchase details and cost prices, adherence to stocking policy and more.

Experience has taught us that not only are no two businesses alike, but also no two sites within those businesses are alike. That’s why we offer a variety of stock taking services which can be tailored to your specific requirements.

Find out more about our Stock Taking services and get in touch to discuss how we can help you and your business.


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