By Chip McIntyre. Published on 10/18/2017 in Hotel Management.
In the hospitality industry, balancing priorities such as guest satisfaction with costs is constantly top-of-mind. Whether you’re responsible for the overall purchasing strategy of a large multiunit organization or the day-to-day buying decisions of a restaurant, you can continuously challenge yourself to do more to lower costs and increase the bottom line while still providing quality products your guests will love.
Here are seven secrets to managing costs in your supply chain. These methods are effective and straightforward. The key is checking in on each of them, staying current on market prices and following up with your teams to ensure implementation and coordination—that’s what will enable you to save money.
1. Stay Up-to-Date on Pricing Changes and Market Dynamics
To understand the factors influencing pricing, it’s important to follow trends in the global economy. Tracking price fluctuations is one way to start lowering your costs. Understanding supply and demand, as well as seasonality, is another; it’s essential for every product in your pipeline. It’s also worth tracking some specific ingredients even more closely.
For example, the price of meat can vary widely depending on the type of protein and the time of year. Take chicken wings, for example: the best pricing occurs in April and July, with moderate pricing in February and March. The rest of the year is when you’ll pay the most. So, while you may serve chicken wings year-round, knowing when those higher costs kick in should prompt you to place a large order, adjust your menu pricing or vary the portion size to maintain profitability.
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