10 Money Savings Tips Every Hospo Venue Owner Needs to Know

The old adage time is money has never been so prevalent in the hospitality industry post-pandemic. Staff shortages have forced venues to work harder and smarter with the common goal of finding ways to save across every element of your business. They key is to find cost savings without interfering with the quality of your food, or the level of service. Here we provide 10 valuable tips that will keep your venue profitable without diminishing the guest experience.

Reduce Staff Churn

The hospitality industry is one of the worst for employee turnover. If you take the time to keep your team happy, you reduce staff churn, which in turn improves your service and reduces costs associated with recruitment and training. Simple things such as having a respectful culture, where harassment and mistreatment of the workers isn’t tolerated, helps build a team that is happy to come to work. If possible, having some form of benefits, improved training to help people meet their career goals, and simply acknowledging the effort and hard work your team puts into every shift all go a long way in building a stable, trusted staff. As well, a happy team is less likely to steal or cause issues with customers due to bad attitudes.

Train Your Staff

Staff training has become more crucial than ever with employees having more choice than pre-Covid days. Make sure that you train staff on the procedures you introduce, share your ideas with them, and see if they can add some cost-saving ideas into the mix. Make sure they are aware of how their actions impact overheads and make them feel invested in the business.

Have the correct tools in place to provide ongoing training in staff in a uniformed way for your business. One of the most valuable training platforms we have seen is Ananas Academy created solely for the fast-paced hospitality industry, an online platform rich with industry content and specialised training. Point of sale providers Impos have recognised the need for more in-depth staff training post-pandemic for venues and in partnership with Ananas provide this valuable platform free for venues when signing up to Impos.

Keep things simple so it reduces the risk for staff making mistakes due to unclear or overly involved procedures and policies. Use friendly signs to remind staff to follow the rules, such as turning off the lights, proper handwashing, or instructions on how to operate equipment. Train each staff member in the same way, preferably using an online training system that goes through every step so that everyone is on the same page. The more formal the training, the more likely staff will follow the rules.

Re-evaluate All of Your Partners

This is a big one and can be a painful process for a venue owner working tirelessly, but in all honesty, it is one of the most crucial factors to continuously look for ways to save time and money and streamline your hospo business.

Gone are the days of set and forget with new 3rd party applications popping up seemingly overnight. When was the last time you researched the best point of sale system (POS) for your venue, or looked into competitive rates for your payments provider? These two partners alone can provide huge savings to your business. The downtime in traditional payments costs hospo business owners tens of thousands dollars a year and is one of the reasons driving venues to move away from clunky-based bank issued EFTPOS terminals to new digital payment platforms like the recently launched ImposPay. Impos will provide an all-in-one POS and payments bundle package with a bespoke rate suited to your venue.

Buy Energy-efficient Appliances

Although you might think you are saving money by holding onto that aging restaurant freezer, fridge, and dishwasher, those old appliances tend to cost you more money in the long run. Putting aside the fact that you will spend more and more money on repairs to keep them running, you are also wasting energy for your restaurant freezer and fridge, which have to run 24/7. Keep in mind that although you need to invest in new energy-efficient appliances, they usually pay for themselves in as little as a year or two thanks to the energy savings. Your appliances will also be under warranty, thus saving you on all those repair costs, and you will reduce risk for wastage due to food spoilage.

Revisit Your Menu

Long, involved menus cost more money. Look at the items that sell well and cost less to produce and focus on doing those items really well. Having a short and sweet menu reduces the risk of food spoilage for ingredients you buy for less popular items, so you can have more control over your food costs. A menu where you consider how to use ingredients more often in a variety of dishes also helps improve waste efficiencies.

Have a Lights Out Policy

Introduce a lights out policy where staff are trained to turn off lights in any room or area not in use. Consider having a friendly sign for your guest bathrooms, asking them to switch off the lights as well.

Reduce Marketing Costs

Create a buzz online using a website and social media. Expensive ads for transit signs, radio, and print can really eat into your overhead. Using free digital marketing tools is also the best way to reach people, as this is how many find restaurants today. Local marketing using your town or neighbourhood helps people doing “near me” searches find you as well. Consider starting an e-newsletter that you can share with regulars via email to keep people up to date on new menu items, events, live music, etc.

Reduce Waste at the Bar

There are some sneaky areas of your business that could be contributing to costly waste. For example, is your bartender a little too generous with the shots? Are they maybe cutting way too many lemons and limes for garnish, and dumping them out at the end of the night? Are they doubling up on straws for every drink they serve? All of these bad habits cost money and are things your bar staff don’t even realize they are doing. Lay down rules to prevent waste, starting with drinks being properly measured, and addressing other issues such as garnish and straw wastage. You might even consider eliminating straws and single-use plastics altogether to reduce costs at your restaurants. Your guests will appreciate your efforts and might not even miss them.

Get Rid of Plastic

Taking a green approach to your business is an excellent way to save money. If you are currently using plastic, an investment in reusable glasses, plates, and utensils can make a world of difference.

Conserve Dishwashing Water

A big expense on your business is your dishwasher. You want to have efficient procedures in place that keeps dishes clean and available for guests, but without running the dishwasher when it’s not completely full. You’ll save money in a few areas, including soap, energy, and water usage. Using a three-basin sink can make a big difference, as you can choose to soak dishes as opposed to constantly running hot water over them.