Tips for running a successful hospitality business
Hospitality is a tough industry and running a successful hospitality business is not easy.
Serving great food and beverages in desirable surroundings is the part most people see. But we know there’s a lot more that goes on in the background which is vital to your success.
So, we’ve compiled a few tips to help improve some of the important behind-the-scenes aspects and help your front of house run smoothly.
Train and trust your team
Regular team training is vital to running a successful hospitality business. You want your team to be well informed about everything that is happening in your establishment.
Having knowledgeable staff who can speak confidently about the dishes they are serving and offer quality service to your customers can be a key aspect in determining the growth of a hospitality business.
Staff who know what they are talking about and prioritise your customers’ needs will promote positive word-of-mouth as happy customers tell their friends how your team are on top of their game.
As employers, you want the absolute best staff employed within your business. Regular training within the team allows all staff to be well informed about your products and service and provides an opportunity for newer team members to be mentored by those who are more experienced.
When it comes to training, don’t be afraid to rely on technology for upskilling. There is a huge range of courses found online that can help you and your employees gain that extra bit of knowledge that will put you above your competitors.
Build customer advocacy
Returning customers are the best form of marketing! Happy patrons will share their positive experience at your bar, restaurant or café with friends and family – and online.
To build customer advocacy, you need to understand exactly what the customer wants and provide it. An example of this could be using a loyalty program which monitors customer’s behaviours; what they buy and when they buy it.
Gaining these kinds of insights allows your business to deliver tailored and personal services to the customer which, in turn, makes them feel special and keeps them coming back.
ChaTime is an example of a business whose loyalty program makes it easy for customers to keep coming back for more. The point system included in their loyalty card incentivises customers to return by offering a free drink.
While complaints from customers can sometimes be hard to avoid, try looking at them as an opportunity to improve your product or service.
If you’re smart about the way you handle a complaint and respond swiftly, you could turn an unhappy customer into an advocate!
Keep numbers in check
Conducting a full inventory every week and performing day-to-day checks can help keep your hospitality business running smoothly. It is important to know how much stock your business has to avoid over-ordering and wastage or an embarrassing mid-service run-out.
By collating this data, you can also identify patterns and gain insights into your customers’ behaviour which will help inform your decision making.
Keeping track of your data allows you to have a better idea of how your business operates, of what it costs, and ways you can save money.
Use the best accounting software
Using the appropriate accounting software can save you time and unnecessary hassle.
We recommend using Xero for our hospitality clients. Xero can be used on any device with an internet connection and allows your finances to be done in the one place. Xero also has a simple pricing system and is user friendly.
There are many cloud-based apps that connect directly with Xero, including apps for payroll, time tracking, point of sales and inventory reporting.
Learn more about what Xero can offer your business here.
Keep on top of your accounting
The hospitality industry is extremely fast-paced and can become overwhelming. Even though you know staying on top of your bookkeeping and financial statements is important, it can be hard to find the time to maintain them.
Keeping up to date with tax calculations and lodgements, cash flow, budgeting and reporting doesn’t have to be hard with a specialised hospitality accountant.
We believe in catering to the needs of each hospitality business to ensure its unique goals and financial concerns are met with smart solutions.
We understand the complexities of the hospitality industry, which gives us a unique advantage. We can assess current industry standards and align those with your personal goals to put together a strategic accounting plan that’s just right for you.
Let’s work together to help you achieve financial success.