Covid-19 - Where we can save money

Many restaurants, hotels and inns are now shut due to Covid-19, and although there is government help to assist these businesses surviving throughout, there are other pro-active things that we can be doing to cut costs throughout this time.

Take your P&L and go through the costs with great detail cutting every cost you can. There are many supplies that will not be needed for sometime, which may just be set up on a repeat order so it is important to ensure these are cancelled. This is also a great opportunity to look at some price comparisons and contract renewals for some costs. (blog on cutting costs to make profit coming soon).

Before looking through the P&L, make sure that any food or beverage that is going to go out of date has been either donated to local charities or you sell it to the local community to gain some of the cash back. Stock sat on the shelves isn't going to make you money and is only going to loose you money with it sitting there going out of date, even if you sell at cost price. (When doing this however, please ensure you keep yourself and customers safe - remember the 2 meter rule).

There are some costs that you will be in a contract with, but it is worth asking if they can pause it for you, or if there is a way to decrease this cost. Costs to look at cutting are:

• Flowers & Candles

• Newspapers

• Till Roll & Stationary Supplies (this is a good example of what you may not plan to order, but they could be set up to be automatically re-ordered)

• Bin Collections - if tied into a contract, reduce to a minimum or ask for a pause in the billing

• Systems such as Reputation Management Tools and Table Reservation systems - ask for a pause in the billing for these

• Support Contracts such as for your EPOS - is this required whilst your shut? 

• Oil deliveries for heating, and logs - it will be a lot warmer when we re-open. 

• Food & Beverage supplies - things like CO2 and cooking oil that may be on a repeat order

• Sky/TV Licences - Sky are apparently currently giving out refunds on the sports channels as there is no sport being shown 

• Internet - in many cases you won't be in an internet contract anymore - good opportunity to sign up to a better one when you re-open

• Electric usage - do the bar fridges need to be powered at this time?

• Heating of water

• Heating - keeping it off

• Marketing Agency fees - if they currently aren't doing anything for you, then ask for a pause in the contract. Remember the power of social media at this time, are you able to do this yourself? Can you pause your other marketing requirements?

This is just some of the things to look at. If you need a hand, please don't hesitate to get in touch. 

Blogs coming up next are about what to do whilst you are shut throughout Covid-19 and one about revenue management and marketing throughout this.

Lets see this as an opportunity to analyse and make changes to the business to ensure it is more profitable and successful than ever before once this is all over. Use this time to train yourself in new areas. - stay safe, stay positive.