At the heart of a successful hotel F&B operation is an efficient EPoS system that provides smart solutions to reduce waste, boost your profit margins and improve food and beverage processes. So, how can smart EPoS systems help to improve your profitability and reduce costs?
At Guestline, we work closely with hotel businesses to provide them with could-based smart solutions that help streamline their operations, optimise profit margins and decrease unnecessary spending. With a smart system that collates all your hotel’s data, you can track your financial performances, manage supplier relationships and reduce unnecessary spending.
In this article, we will explore where you can spot hidden costs that could impact your profit margins and how smart EPoS systems can help streamline your food and beverage processes.
What’s the average profit margin in the hotel industry—and why does it matter?
With costs and demand constantly rising in the hospitality industry, hotel businesses need to stay in control of their workforce management to boost their profit margins. On average, the hotel industry is looking at a 10% profit margin each year, but why does it matter?
Your profit margin is a key indicator of your hotel business’s financial health and highlights how you have performed in the last financial year. Use this formula below to work out yours:
Profit Margin = (Net Profit / Total Revenue) x 100
Put simply, this percentage is the remains of your revenue after taking away excess expenses such as staff costs, maintenance and food waste management. However, this number is not something to calculate and then file into a draw to be forgotten. For example, if the percentage falls around the 5% mark, then you might need to think about ways to reduce costs to boost your profitability and improve your overall financial health. Your profit margin calculation will bring to light any improvements that need to be made in your hotel workforce management to ensure you are running a streamlined and efficient operation.
The hidden costs that lower profit margins in F&B operations
Finding ways to reduce costs and boost your hotel workforce management is a great start for improving your profit margins. But you might be wondering where unnecessary costs are hiding, so let’s explore the main areas which could be impacting your profitability:
Food waste management: Spoiled stock and poorly managed inventories can be costing you more than you may realise. Wasted ingredients and increasing disposal fees are costly over time and eats into your profit margins.
Unorganised ordering processes: Manual ordering can be time consuming and causes more stress than its worth. If orders are not inputted correctly, purchases made too quickly without looking at the prices or the wrong quality of stock arrives, this can severely impact your budget and lead to more admin work that may slow down service.
Poor supplier management: Poor relationships and management with your suppliers can lead to unnecessary costs, increased risks of fraud and creates challenging ordering processes. Without a robust supplier management system, you will likely fall victim to higher costs and strained relationships which will affect your overall profitability.
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Why reducing waste is critical to improving restaurant industry profit margins
One of the smart ways to boost your hotel profit margins is by reducing the amount of waste you accumulate. It may seem like an obvious and avoidable cost however it could be one of the main reasons why your profit margins are decreasing. With an affective EPoS smart system, you can gain insights into how much waste you are producing by tracking your inventory, optimising stock levels and improving menu creations. Take a look at how your smart EPoS system can make your hotel profits soar:
Real-time inventory reporting: Smart EPoS systems can generate real-time reports to show your ingredients usage and helps you make informed decisions about food production quantities.
Optimise sales: Develop and enhance your menus by seeing which dishes are popular with customers and where others are underperforming.
Improve menu management: See where you can modify your menus with insights into portion sizes, removing unpopular dishes and identifying your best-selling items.
How smart EPoS solutions improve food and beverage processing
Implementing smart EPoS solutions not only helps you save on rising costs but also creates a more streamlined operation that boosts your hotel profit margins. By simplifying mundane and time-consuming tasks with real-time insights into your inventory, CRM and payment processes, you are in a strong place to stay in control and keep costs low.
Smart EPoS solutions will help you:
Make more accurate and better business decisions by providing visible insights on profitability data.
Reduce manual errors, improve operational efficiency and provide real-time data to see where your hotel business can improve.
Keep costs under control by connecting your inventory management system, CRM, payment processing system and online ordering system.
Confidently manage suppliers and contractors to avoid unnecessary costs.
Using better data to improve your hotel’s profit margin
Using the right data and insights reported by your smart EPoS system is one of the best ways to make better cost decisions to help boost your hotel’s profit margins. Having full access anywhere at any time to real-time data allows you to keep control of costs, stock inventories and suppliers to improve your hotel’s operational efficiency. Not only does this give you a full picture of how your business is performing, but also helps you recognise areas for improvement, hidden hotel trends and inspire creative ideas to boost your profit margins.
Start saving with smart EPoS solutions to boost your profit margins
Evidently, boosting your profit margins will not happen overnight; it takes time to recognise areas for improvement, where to implement smart solutions and then see the results unfold. The rise of technology can be a daunting prospect however, it provides a great opportunity for hotel businesses to streamline operations, reduce waste and decrease spending.
In this article, we have discussed how important profit margins really are in determining your financial health, where there might be hidden costs in your business and how smart EPoS systems can help streamline your hotel operation.
At Guestline, we provide hoteliers with a smart cloud-based suite of solutions such as EPoS, Procure Wizard, ResDiary and Rotaready, where you can:
Create streamlined processes with real-time reporting tools.
Reduce waste to save on costs and improve menu and inventory management.
Efficiently manage suppliers and contractors to minimise increased costs.
Improve your overall operational visibility by connecting your management systems in one place
Start streamlining your operation with Guestline’s and the Access Group’s smart family of solutions to help boost your profit margins and create an unforgettable customer experience.
About Guestline
Guestline (an Access Company) provides the hospitality industry with innovative property management, guest engagement, payment and distribution software.
Founded on cloud technology, Guestline’s solutions can equip independent hotels with everything they need to successfully run the business and generate more revenue – from intuitive PMS and booking software to fully unified channel management and payment solutions, ideal for any sized hotel or group.
Guestline provides thousands of hoteliers with the most feature-rich, best-in-breed and award-winning technology platform that includes PMS, CRS, Conference & Banqueting, Channel Manager, EPoS, Internet Booking Engine, GuestPay Payments and GuestStay Guest Experience solutions. With over 500 third-party integrations, Guestline can offer its clients a flexible, cost-effective, multi-functional system that allows them to stand out in an increasingly competitive marketplace.
Discover more at guestline.com
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