Hospitality sector revenue management: Strategies to boost your topline

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Hospitality sector revenue management: Strategies to boost your topline

Article first published by UK Hospitality, June 2022

For businesses operating in the Hospitality & Leisure sector, the landscape has been transformed dramatically in the past few years, with the pandemic forcing owners and managers alike to step back, revamp their strategies and adjust their operations.

Now, more than ever, profitability analysis is key for both large and small hospitality businesses, enabling decision-makers see a more accurate picture of the company as a whole, helping to make informed decisions and, in turn, facilitating the creation of the right growth strategy. 

An independent operations and service delivery assessment will give the transparency, in-depth analysis and real-time reporting needed to maximise the opportunities a business can take advantage of to keep itself successful in a dynamic and competitive market.

Conducted by an external consultancy business which specialises in the sector, a thorough review of systems, operations and processes will provide essential insights into how a business is performing, where the biggest cost savings are, the largest wins, service levels, efficiency, wastage, theft, possible fraud, as well as highlighting revenue enhancing opportunities for profit margin growth – and highlighting effective ways to outperform the competition.

Here are ten important consultancy checks every hospitality business should consider undertaking, whether large or small, single premises or multiple sites, food and beverage, accommodation and lodging, or travel and tourism:

  • Stock Management / Control Training

This will ensure that those who are using the stock management system have the knowledge required to both process and analyse the data produced. Skilled trainers will educate teams on the full suite of applications available to them, so they can get the most out of the information they put in.

  • Training

It’s not always the knowing of what your KPI’s and systems are telling you, but the understanding and what to do with that data that is key. Training is useful way to teach your teams about the methods to best control certain areas of the business to maximise profits.

  • Inventory Counts

An extensive inventory often carries the risk of theft, shifts in demand, damage, and spoilage. An external auditor will validate your stock holding value as either part of a sale of a business, or even for your P&L, so accurate data is applied. This will help to increase management efficiency, reduce risk, enhance customer satisfaction, and minimise costs whilst maximising profits.

  • Internal Stocktaking Result Verification / Remote Stocks

Here, a consultancy service will support and analyse the data that the business processes, to give extra validity to those companies that complete internal stocks and want help to reduce the possibility of errors.

  • SOP Writing

Standard Operating Procedures (SOPs) are vital in hospitality as they help to keep operations running smoothly, safely, consistently, and efficiently. An independent consultant will help you write and revise policies and procedures to protect your business from internal and external risks that threaten profitability.

  • Cash Handling

An unannounced audit to combat cash handling scams, or simply improve due diligence of cash and revenue management by introducing reliable cash handling and revenue protection procedures. Also banking checks to ensure banking is not being rolled, and balances to WRBD. 

  • Investigating Fraud

A comprehensive risk management investigation with help to uncover the evidence you need to confirm suspicions of fraud or theft by your workforce, customers or suppliers, and to develop and implement security plans and effective risk mitigation strategies to future-proof your business. 

  • Product Range Review 

Data such as sales vs consumption (yielding) is collated on individual sites and across a group, and used to analyse regional trends, volume of products purchased (useful for negotiating price on future purposes), a review of products that aren’t selling, seasonal trends, and investigate if a product isn’t producing the return in terms of yielding, meaning the cost of every pint might not be as clear as dividing the total cost by the size of the barrel, for example. 

  • Mystery Guest

Mystery guest reviews provide an independent assessment by an external individual or team who will be anonymously on site to check that staff are adequately trained, the facility equipment is of a sufficiently high standard, cleanliness is maintained in private and public areas and rooms, the food is of a high quality, as is the range of menu options and availability of beverages. The reviews also provide insight into whether there are appropriate controls and procedures in place and if these are being adopted consistently by all employees.

  • Bar Surveillance 

Monitoring cash handling, service standards and discipline of bar and waiting staff is essential. Surveillance activities are designed to gather evidence of potential staff theft and other risks, helping to increase profit enhancement in a hospitality business’ bar areas.

Capcon Reality, a Capcon Limited business and a member of UK Hospitality, specialises in compliance related services to the Hospitality & Leisure sector. All our consultancy services are tailored to each individual business requirement and unique risk profile, always ensuring that you receive the perspective and expert advice needed to enhance operational efficiency, protect profit, and boost performance and margin growth. 

Talk to us about how we can help you and your business. Contact Capcon on Tel. 01372 237 050 or Email. enquiries@capcon.co.uk. Alternatively, please visit our website: https://www.capcon.co.uk/revenue-management-lp/ 

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