Industry Insight: Manage Your Costs Better

… explains David Abbott, managing director of www.BoostCapital.co.uk

The recent news that nearly 80% of food and beverage managers struggle to manage supplies and costs came as little surprise to many in the industry. Most people have come to accept this challenge as just part of the job, however there are some steps that can be taken to reduce this issue.

1. Planning – It is vital that you think ahead and consider all realistic eventualities. Yes, most people will start ordering turkeys ahead of Christmas, but are there other events or issues you need to take into account?

2. Tis the season – It’s an age-old adage, but it is true that food is cheaper when in season. Not only will they be a better price, but they are usually better quality, giving you a better product for your customers.

3. Negotiate – If you can negotiate deals with your suppliers to buy in larger quantities or get a better rate if you pay on the day, then go for it. Many suppliers look favourably towards rapid payers, but if you can’t get a good deal from one supplier, don’t be afraid to look elsewhere. Try to secure trial periods with new suppliers to see if they can meet your requirements. Many will go above and beyond the call to win your business.

4. Special offers – If you do get to a point where you have lots of stock to use, why not launch ‘pop-up’ offers? With personal budgets being squeezed, more and more people are booking last-minute deals to make a saving. Don’t just restrict these offers to a standard meal deal. Work with other departments to create enhanced packages like a spa day with set lunch, or overnight stay with three-course meal – a great way to attract new guests.

5. Technology – If your reservations and event management colleagues have the latest technology, why cant you? Most people wouldn’t think of food and beverage as being a tech-savvy sector, but there are systems out there that can track, monitor stock or recipe costs. These will ultimately give you more time to focus on the job in hand, making your operations more efficient.

6. Cash-flow – Talk to your accountant, or financial manager, about different options for increasing your cash-flow to really capitalise on the opportunities presented above. A business cash advance, for example, could be a good option for you if you have a strong level of credit card payments and need extra cash flow to properly prepare.