Category: Hospitality

Hotel and hospitality businesses face a raft of challenges and, while issues such as reducing costs and increasing footfall may seem like the priority, it’s important to keep cash flow at the forefront of your business operations.

Cash is king in any business. So, it’s vital that you keep on top of your cash flow if you want to ensure that you are in a financially sound position, now and in the future.

And, if you take your eye off your cash flow, you can quickly run into problems.

We’ve taken a look at why staying on top of your cash flow is so important.

Make better plans and decisions

If you stay on top of your cash flow, you will always know where you stand financially, meaning you will be able to make better plans and decisions, and avoid putting your business at any sort of risk.

Understanding your income and outgoings will help you to plan ahead, avoid risk, and gain an accurate insight into your current situation.

Expand at the right time

If you’re hoping to grow and expand your business, it’s important that you can establish whether you are in a sound position to do so. After all, expansion can pose a huge threat to a business if it’s not carefully planned.

Whether you’re taking on new members of staff or looking for bigger premises, any form of growth requires you to have cash behind you and it’s important to be sure that you will be able to afford the additional costs.

Understand what’s coming in and going out

Managing your cash flow effectively will instantly give you a better idea of what is coming into and going out of your bank. This insight will not only show you where you stand but will also help you identify areas of the business where you can cut costs if needed.

This is important as cash flow problems will impact your relationships with your employees, partners, suppliers and investors.

How can you manage your cash flow through challenging times?

Cash flow forecast​

A cash flow forecast is vital for any hotel and hospitality business as it outlines how your business is going to perform and grow at different milestones.

This will not only help you to ensure that you have enough money in the business to cover your operational costs but it will also help you to make realistic revenue projections and manage your inflows and outflows, which is critical to establishing a healthy cash flow.

Cash flow support apps

Cash flow support apps are expertly designed to give businesses of all shapes and sizes a real-time view of their cash flow. Using one of these apps will help you optimise your monitoring and gain accurate, up-to-date insights into where your business stands financially.

Review your cashflow forecast

There’s no denying that the last few years have been challenging. We have not only had to manoeuvre a global pandemic, but we are now in the midst of a cost of living crisis which is also taking its toll on all UK businesses.

With this in mind, it certainly pays to regularly review your cash flow forecast, as well as your profit and loss reports, and adapt your business strategy accordingly.

Why choose Stewart Hindley?

If you’re considering becoming a bed and breakfast host, get in touch with a member of our skilled and experienced team who are on hand to help you discover your dream B&B property.

As pubs face high costs due to increased energy prices and global supply chain issues, it’s only natural that landlords and bar managers are looking at ways to save costs when running their pub.

It is estimated that some pubs have seen their bills increase by 500% and with it not being a viable option to pass the huge price hikes onto consumers, pub managers and pub owners are exploring how they can cut back on operational outgoings.

As energy bills continue to rise, we have put together some money-saving tips. Here are three ways to reduce the running costs of your pub.

Research energy providers and explore your options

Energy bills and overheads are large outgoings that should be managed closely and after an expensive year, it may be beneficial to research your provider to explore your options.

Fixed-term contracts may seem more expensive, but they provide pubs with a stable price over the contract period. However, energy provider EDF advises checking the terms and conditions to avoid any unexpected changes or charges.

If your pub is already committed to an energy contract, you should receive an energy renewal letter from your supplier around three months before the contract end date. This is when you should begin research to drive down costs and lock in a lower energy price.

Aim to use less

Energy

Heating, lighting, and electricity are costly necessities when running a pub, but managers and landlords should look to use less energy and pay less for it.

Around 18 per cent of heat is lost through open doors and windows so keeping doors and windows closed when the heating is on can help to reduce energy costs. Draught-proofing windows and doors can also help to stop cold air from entering as well as stopping heat from escaping.

According to the energy giant EDF, energy is priced based on 48 half-hour time slots throughout the day with the price of energy varying for each 30-minute period. The most expensive time of day is between 4 pm and 7 pm so by reducing energy consumption during these hours of the day, you could save money.

Being energy conscious is a great energy-saving tactic that helps you understand where costs can be cut and where your money can be clawed back.

Wastage

Using less doesn’t just refer to energy though, you can minimise wastage in food and drink through ongoing training of your staff, ensuring they are cooking food and pouring drinks with fewer mistakes. Instilling processes where stock is regularly checked for expiry dates, and adjusting how much you or your team are ordering, also helps reduce the amount of product lost to wastage.

Review what drinks and meals are often not being sold and consider removing these from your offering. In terms of food, keeping these extra ingredients in stock can reduce inefficiencies and increase wastage, and for drinks, they take up space in your fridges or make little use of taps that could be used by more popular beverages.

Staff

Speaking of staff, it’s important to take care of your employees so they don’t leave. Recruiting and training new staff are costs you’ll want to avoid, so check in regularly with your teams to make sure they are happy at work and not thinking about leaving.

Listen to their feedback and keep them feeling satisfied and fulfilled. While it may seem counter-intuitive, incentivising your employees can go a long way to boosting team morale, raising productivity and efficiency, and retaining your staff longer.

Make sustainable swaps

Installing smart switches, using low-watt LED lightbulbs, and being aware of what appliances are being used and for how long can significantly reduce costs.

LED lightbulbs are energy-efficient and conserve up to 80 per cent more energy than traditional lighting. With 95 per cent of energy converted into light, only five per cent is wasted as heat compared to a traditional lightbulb that only converts 10 per cent of energy into light.

Smart switches act as any traditional switch but can be controlled via an app on your phone to create a schedule. This means you can programme the lights to turn on and off automatically throughout the day.

For more information, get in touch to discuss how pub finance could benefit your business venture.

It’s important not to underestimate the power of strong hotel branding. Creating a memorable brand identity helps gain trust and forge lasting impressions with your target audience.

When customers encounter your brand, whether it’s through an advert, directly on your hotel website or in person, they must remember you for all the right reasons.

This article will explain the importance of hotel branding, what it means in hospitality, and how you can create your unique hotel brand.

What is hotel branding?

Hotel branding is everything that your hotel is and represents. The branding of your hotel should capture personality, values, notions, and experiences.

Branding helps to create lasting impressions on your target audience and gain a trustworthy reputation. Consumers should understand your hotel’s identity through purposeful branding and be able to recognise your brand from competitors.

A hotel’s brand focuses on what makes your hotel unique and can be portrayed through brand philosophy, personality, design, name, and target audience.

Why is hotel branding important?

Hotel branding is important to establish your hotel’s identity, build trust and loyalty with customers, and influence your target audience to connect positively with the brand.

Branding across the hotel, physically and virtually, should be consistent for consumers to understand what to expect from your hotel. Consistency allows consumers to feel safe, trust your brand, and feel a positive connection.

In hospitality, branding is about much more than fonts, logos, and colour palettes; it should focus on promoting a positive brand image and perception in the mind of its customers.

What does branding mean in hospitality?

Hotel branding in the hospitality industry aims to build a credible, reliable and consistent reputation that encourages your target audience to engage with the brand.

Hospitality branding considers many elements that together portray and encompass the hotel brand’s values, personality, and experience.
Strong hotel branding is an important part of attracting and retaining guest relationships and providing guests with a valid reason to consider your brand over competitors.

How do I make my own hotel brand?

Whether you’re launching a brand new hotel or reconsidering your current marketing strategy, hotel branding is a powerful tool that can help your brand stand out online.

Here are three components to consider when creating your hotel brand:

Layout your brand values

Brand values give the consumer a simple understanding of who your brand is and what your brand represents. Consumers love to engage with brands who share their personal values creating a powerful advantage over competitors.

Your hotel values should represent the brand’s identity and personality, highlighting to the target audience the unique experiences they can share when visiting your hotel.

Values help consumers to distinguish your brand from the competition and gain customer trust. Values could include going the extra mile for your guests, embracing diversity or offering unique experiences.

Target your audience

The target audience is the niche group of customers you wish to attract to your hotel and the market of people who are most likely to be interested in your services.

Common target markets include tourists, business travellers, conference groups, and workers.

Each target market category will be attracted to hotels that offer a service catered to their individual needs.

For example, tourists are more likely to be interested in hotels with central locations where they can see the sights and shop for souvenirs, whereas business people making trips for work will have a higher need for a quiet stay and additional help with transport services and maybe conference rooms.

You can determine your target audience by considering your hotel location, competitors, restrictions and plans for the future.

Once you have decided on your target audience, be sure to market your brand toward their needs to appeal.

Analyse competitors

In areas surrounded by competition, hotel branding is an increasingly important marketing strategy.

Analyse the competition to see what other hotels offer to customers and use hotel branding to highlight what makes your brand unique and different to other hotels nearby.

Explain to the customer how your hotel experience is incomparable to any other stay and gain their trust via powerful branding.

If you are a hotel in an area with a high amount of competition, where similar hotels are offering similar services, identifying the niche of your brand is a great way to gain a competitive edge and appeal to your audience.

If you are considering buying your own hotel, get in touch with our team who are always on hand to answer any questions about your mortgage for a bed and breakfast business.

So, you’re interested in becoming a pub landlord? Running a pub is unlikely to come without its challenges but it carries the potential to be a great career for those who embark on the journey.

But what do you need to run a pub? If you’re joining the industry and unsure about what you need to run a successful pub, keep reading. This article will outline five things you need to set up and run a pub.

1. A location and premises

The first step up in running a public house is deciding on a location and what type of pub you wish to operate. Whether you dream of a traditional, urban, or country pub, the location you choose should reflect your decision.

Your pub’s location will heavily dictate your clientele, menu and rental costs. Choosing a location for your pub is the most important decision you will need to make throughout your landlord journey.

Once a location has been finalised, you will need to secure a tenancy, leasehold or freehold premises.

2. Staff

Although you may expect to be able to manage operations alone for the first quarter, a successful pub relies on a talented workforce.

The duties of running a pub include more than just pulling pints and collecting glasses. You will need a dedicated workforce to help greet customers, clean equipment, restock fridges, manage inventory and market your business.

Advertise in your area for experienced hospitality workers that can support the running of your pub.

3. Legal compliance

As a landlord, you must ensure that your pub is legally compliant. This means ensuring you have insurance, health and safety training, food safety training, valid gas certificates and fire safety risk assessments.

You must also register your business and acquire a premise license which allows your pub’s physical location to sell and supply alcohol. You can obtain this license from your local council by applying online.

By registering and operating as a pub with an official license, you become obligated to follow an age verification policy and promote responsible drinking.

4. Stock

Stock is a key ingredient for the smooth running of any pub. There are many ways to acquire stock whether that be through negotiating with suppliers, buying from a variety of brewers or becoming a tied house.

Remember that the quality and price of the stock you will be serving in your pub will need to reflect the demands of your clientele. Remember not to neglect non-alcoholic drinkers and provide a balanced range of options.

5. Bar equipment

So, you’ve got the stock but how will you serve it to your customers? You may need to install a draught beer system and an industrial glass washer depending on the scale of your operation.

Installing and keeping up with new industry advancements can be a costly process so ensure that the equipment you purchase is suitable for the needs of your pub.

Don’t underestimate the amount of glassware the running of your pub will require. Account for breakages and shrinkage and consider the volume of customers you are likely to welcome.

The equipment behind the bar is a big expense so it’s important to get it right.

If you’re a first-time public house operator who is looking for financial, operational or general support, at Stewart Hindley we are on hand to help.

For information about pub finance for time operators and how this could benefit your business venture, get in touch with us today!