5 things you need to know about reducing business costs in 2023
Last year, UKHospitality outlined the reality of the rising operating costs facing businesses, with those surveyed reporting average rises of 41% in energy bills, 19% labour costs and 17% in food prices. And customers are feeling the pinch too and are being more selective about where they choose to spend their leisure time and money.
Businesses that are able to optimise their processes to reduce running costs and optimise sales opportunities in 2023 are the ones that will secure business profitability over the course of the year.
In this article you’ll discover the six top things you need to know about reducing business costs in 2023 from the hospitality tech experts at Access Hospitality that will help you in gathering information as you start to make those all important business decisions that will impact your business performance.
- Take control of your menu
Leaving menu management and recipe control in the sole hands of the kitchen can result in loss of control and visibility of spend. By involving the purchasing team you can keep some key considerations in mind, such as identifying and replacing unusual ingredients to reduce waste and considering the hidden cost of preparation time.
- Tackle food waste
In 2019, The Guardian reported that in the UK, restaurants and cafes throw away around 900,000 freshly prepared edible meals a day. But there are many simple ways operators can reduce wastage and save money. For example, rather than sending peels, seeds, skin and bones straight to the bin, they can be used to make soup stocks.
- Manage energy consumption
There might not be much we can do about rising energy costs, but we can control our usage and find ways to reduce energy consumption. Small changes such as; lessening utilities usage when not required (e.g., switching off lights in unused areas); ensuring your assets are running to optimum efficiency (e.g., a broken seal on a fridge will use more energy) can make a big difference.
- Think sustainability
Customers have been increasingly demanding sustainability in pubs and restaurants with more than 40% stating that they would pay a premium for ethically sourced food. And businesses should consider the cost benefits of adopting sustainable practices, such as using more plant-based products which are often cheaper than meat products.
- Retarget your existing customers
It costs five times as much to attract a new customer than to keep an existing one, so repeat customers is one of the most cost-effective strategies for operators. Many operators find as much as 70% of their existing customer base have only visited their venue once. Marketing email automation is often the key to unlocking significant engagement from existing customers – from targeted lapsed visitors after a specified period of time, surveying customers post-visit to setting up multi-channel marketing campaigns to retarget customers.
To discover more insights across tech trends, consumer behaviour and tackling costs from some of the biggest names in hospitality, check out the full Everything Guide for Hospitality 2023 from Access Hospitality.
