location

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? 

What defines a successful multi-location business?

March, 2015

Multi location business successRemember that ol’ green eyed monster? Yeah. You know the one.

Full of envy.

We’ve all befriended him at some point within our careers. It’s only natural. To a degree it can be rather healthy.

Multi-location businesses when run effectively can be a fantastic ‘shooting star’ with regards to a typical growth-share matrix. But hold up a moment. There’s no need to envy them though. You just need to understand them.

Multi-location businesses today continue to dominate the hospitality sector with their increased efficiency and scintillating ways of eliminating time and space into a mere puff of smoke. Hospitality franchises employ over 80,000 workers, mostly full time (1) and 52% of all hospitality franchises within the New Zealand area are now multi-unit operations (2). A pretty enlightening and warming set of statistics.

For most of these businesses – they’ve found the right formula. But that’s not to say that it came without its hurdles. Everyone takes the wrong road before they find the right one.

When a business begins to experience significant growth, often they consider expanding their business into other areas. Sometimes it’s the opening of the same business in another location, or they diversify their current brand by opening a site completely different to that of which is already established within the market.

The key is to implement systems and processes into your business the standardize the way you run your all of your locations, and most importantly; how you communicate with them all.

Their strengths?

  • They learn – They learn the specific needs of each site, and cater to them. These needs should always be incorporated with your communication strategy.
  • They stay in touch – Irrespective of distance or time, head office is never far away – and they should always present in the running of your business.
  • They employ the right people – CEO’s and Directors employ strong and influential on-site managers and leaders.
  • They adopt new technology –  They keep pace with the upcoming technological trends in the sector. Whilst this can be considered disruptive, if you’re to remain competitive within your industry it’s important to implement these new technologies and iron out the creases as they appear.
  • They include all of their sites – There’s an active involvement of all site leaders in company decision making.
  • They ensure company values – They ensure top down company values and for consistency reasons, they check in that these are reiterated at each individual site.
  • They benchmark – They benchmark their performance against their other sites.

If you end up cutting corners, you compromise profitability.

And you certainly don’t want that if you’re looking at turning yourself into a multi-location business.

 

If you would like to try your hand at aligning all of your businesses sites and exploring the financial benefits that goRoster provides, feel free to give our 14 day free trial a go here.

(1) “Survey finds franchise sector resilient and growing”. http://www.franchise.co.nz/article/1167
(2) “How the digital future can impact franchisee performance”. http://www.franchise.co.nz/article/1659/
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