customer

What your turnover reveals about your hospitality business

April, 2015

What does your turnover reveal about your hospitality business?The hospitality sector is one of the most competitive industries in the world. Some businesses have greater financial backing, greater resources and more effective marketing – however, this sets the stage for an arena of new and exciting trends for the customer.

How much money you make is irrelevant if you aren’t comparing it to the size, locality and purpose of your business. You transpose your turnover against the environmental factors and resources that make up your business. Then, it becomes apparent what your turnover is really reflecting.

Your location

How you maximise and use the proximity of your location with respect to other places and buildings around you helps to shed some light on whether you’re making full use of your location’s potential. There’s an opportunity if you’re close to or surrounded by businesses similar to yours, that all venues can feed off each other: when ones busy, the other can pick up the overflow and vice versa. Maybe you’re situated within a business precinct where the amount of foot traffic is high, meaning people pop into your establishment based on your proximity to their place of work. On the other hand, it may not be buildings that work in your favour – but parks, arenas or sports fields. Your physical environment can help you maximise your profits by generating foot traffic past your place of business.

The size of your business
What does your turnover revel about your hospitality business?

Whether your business is big or small, you need to be spending money relevant to the size of your resources, and subsequently adjusting your desired turnover figures to an attainable goal. Don’t be caught over spending on wages and your variable costs. Keep stock and inventory levels to an appropriate amount. Doing this will help to ensure that your turnover figures aren’t going to be spent on costs that have been miscalculated due to lack of preparation and discipline in keeping these relative to the size of your business.

Your employee management

This is where our area of expertise comes in. Employee costs are quite simple – and too often we see people getting them wrong. It’s quite simple. Get these right and you allow yourself the freedom of not cutting into your turnover each week. Any sensible business owner or director wants to reap as many rewards as possible. Why sabotage them?  Employee costs are the easiest and most manageable of all your business budgets. Keep these tight and never again cut into your hard earned profit…..ever.

 So, what does your turnover reveal about your hospitality business? 

7 Reasons Why You Might Be Losing Customers

January, 2015

Your most unhappy customers are your greatest source of learning - customer loyalty

Take a moment to imagine you’ve been given the task of being a mystery shopper for one night. Your job is to go in and assess multiple aspects of a venue: its employees, its food and beverage, the decor, the atmosphere – the works. What is it you think that makes up a memorable experience? There’s a number of things that fit into the psychology of a customer and certain factors that make up their perception of you.

Let’s create a short list of things that may become apparent to you during your visit that could contribute to a bad experience, and how a business can contribute to a loss in customers.

  • Your customer can find the same quality for a lower price elsewhere
  • You potentially haven’t remedied any negative online reviews
  • You aren’t working on establishing an emotional attachment between the business and the customer
  • You’ve lost your ‘wow’ factor
  • You’re not listening to your customers
  • There’s a lack of atmosphere within the venue
  • Product knowledge – are your employees trained and knowledgeable on the products they are trying to sell?

Remember to constantly measure your results. There is always room for improvement, and those businesses that are able to quickly identify areas that may be lacking are the ones who are going to hold the top spot. With the nature of the industry changing so frequently, it’s imperative that you are always monitoring your progress and consistently working to develop a competitive advantage within your line of work.

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6 Hurdles Hospitality Managers Commonly Face (And How To Overcome Them) – Part Two

August, 2014

Hospitality employees have an important role in customer loyalty

HURDLE NUMBER TWO:  CUSTOMER LOYALTY

Last week was the first entry of a six part blog where we began to discuss six hurdles hospitality managers commonly face. This week we will be delving  into hurdle number two, customer loyalty.

Not only is hiring the right staff important, but those who you choose to employ play an integral part in customer loyalty. I’m sure all of us have had at least one memorable experience where a waiter/waitress has given us outstanding service and/or we have been delighted with the food and beverage put in front of us.

Today, a tremendous amount has to be offered to patrons in order to gain their loyalty. We live in a world where people always want something for free, and this is the case for most industries, not just hospitality. Whether you actually offer something for free, or you advertise a buy one get one free special, nothing beats this old line, “Well the bar down the road serves the same for a lot cheaper!” In such a highly competitive industry, hospitality managers constantly need to come up with new and innovative ways to delight customers in order to ensure they come back and keep spending money. Without loyalty, and without our money, the industry would cease to exist.

It’s the loyalty that is the key issue here. It’s all well and good to get in a big crowd on a Friday night, but what are you doing to make them come back? You can’t guarantee that the same exact crowd will be back next Friday. What is it that you are doing that really hooks them in? It could be a number of elements: the music, the mood, the quality of your food, how your staff strike up their opening conversation, the décor of the venue, or it could be a combination of these things.

The creativity it requires whilst trying to maintain optimal cost prices is a constant battle for managers. A point of difference must be found in order to give you the advantage over your competitors, and is essential in building and sustaining customer loyalty.

Solution:  It’s a common saying “treat your oldest customers like royalty”. Now it’s not the elderly I’m referring to here. I’m talking about those who have been coming to your establishment since the very beginning. It is this group that contributes to a significant proportion of your turnover. Customers also appreciate it when you take the time to talk to them. Better yet, the value of how you make that customer feel at the time, has a much higher return than any other tactic. Too often I see staff that would prefer to converse about the latest gossip rather than take an interest in their customers. If you can get employees to take an interest in the people they are serving, you may just hit the jackpot. 

Check back later this week where we discuss Hurdle Number Three – The Role of Team Motivator.

Want to take the next step towards becoming a manager that’s more in control of your business? Click here to start a free trial of goRoster, and see how rostering plays a crucial role in the success of your venue. 

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