How to Sustain a Profitable Hospitality Business in 2019

More than two thousand hospitality businesses closed during 2017, so it’s no wonder that opening a sustainable hospitality business is daunting. But done correctly, you can ensure you run a profitable business, especially since national hospitality sales have recently exceeded $11 billion per annum.

Here are some useful tips to help you thrive in this competitive, but rewarding climate:

Customer service at the forefront

Quality customer service is paramount to ensure successful hospitality businesses. How often have you heard someone say that they will never return to a place because they were treated badly?

Exceptional customer service leads to people spending more with you. Customers are willing to pay a price premium up to sixteen per cent on coffee alone if they have received a positive customer service experience.

Customer service needs to be personal, consistent, professional and demonstrate that your customer is valued, time and time again.

The right equipment

Getting the right catering equipment from the start will make a significant difference when you start your own hospitality or catering business. Don’t put it off ‘until you make more sales’ or until later. You want to be known for producing great food from the get go, especially in those early stages of establishing your reputation.

Here are the most common items you may need to consider purchasing:

  • coffee machine, roaster and grinder
  • food processor
  • commercial fridge and freezers
  • bain marie
  • deep fryer
  • dishwasher
  • ice cream and/or waffle maker
  • the right waste management systems
  • cutlery, bakeware and crockery
  • and other much needed equipment.

All these items make a difference to the quality of consumables you provide. Furthermore, the better-quality equipment you purchase the more eco-friendly they are and the less maintenance and repairs they will require, saving you money in the long run.

Furthermore, having the right equipment will help make the most of the space and will be much easier to keep clean and functional, eliminating more occupational health and safety risks and leading to a more productive workspace. Look for well renowned catering supplies to get started on the right foot.

Hospitality business costs

Food costing is a crucial part of your business plan. Keep costs as low as possible and really get to know your margins as your revenue slowly grows.

It’s good practice to over assume cost of goods sold and underestimate the amount of sales and customers, particularly in the early stages of running your hospitality business. Once you have been operating for at least a year or so, then you can have a more accurate idea of outgoings and income.

Upsell, upsell, upsell

Try proven sales tactics to help increase revenue and get your customers to buy more. Things such as training your staff to upsell drink specials or menu items when someone places an order, offering free samples and taste tests, packaged items (such as a food and drink deal) have all been shown to regularly increase sales.

Studies have even proven that removing the zeros from your menu displays and presentation helps increase sales. For example, write $9 instead of $9.00 next time you offer that cocktail special and see what happens!

Discover your local reputable catering equipment supplier today.

By Paul Omerod.

Paul Ormerod is the managing director of Nisbets Australia & NZ and is passionate about helping hospitality businesses succeed by providing a one-stop shop that makes catering equipment simple.