To the rest of the world, talking about Christmas at this time of year is a taboo subject, met with steely glares and fingers pointing to the lovely summer sunshine. However, to you and me in our fast-moving hospitality world, planning for Christmas is well underway (or are you leaving it late again this year?)
Rising costs in the hospitality sector
When running my own Restaurants, we expected that there would be some seasonal price fluctuations as we gathered as a team to plan our delicious Christmas menus during the summer months. After all, a lot can happen between now and the chaos of the month of December. We were prepared for making changes to seasonal vegetable availability and having back up suppliers for meat and seafood. This year, however, the rising costs of produce present a real challenge to the hospitality sector. For instance, we’ve seen reports that predict that Turkeys will be at least 18% more expensive this year than for Christmas 2017. Ouch!
So, uncertainty in relation to rising prices is definitely going to challenge the sector this Christmas. This is a fact. How about the higher level of trade (a good thing) and the extra time demand that this puts on busy kitchens (a potentially bad thing)? We meet new clients every February who had record-breaking sales figures for December, but the management accounts have just arrived and this hasn’t translated into bottom line profit. The reason? Kitchen teams overordering during busy times to ensure they can meet the anticipated needs of the days ahead, which results in higher levels of waste and stock sat on shelves.
We’ve been there, and know that these challenges are avoidable by taking action now.
The benefits of our online purchasing software
Each year we enable businesses like yours to take control of live supplier pricing and ensure that you are in control of your purchasing against your agreed budgets so that Chef, supplier and your finance team are working with live accurate data with no surprises when reconciling invoices! What this means for our clients is that operators don’t overspend and the finance team have accurate data to analyse (rather than sorting out the mess throughout January), led by our online purchasing software. The outcome for our clients is a timely Management report in January with no surprises.
How does this sound?