Top 5 Mistakes to Avoid in the Hospitality Industry in Ireland
The Irish hospitality industry includes clubs, pubs, bars, restaurants, cafes, hotels, lounges, and resorts. While each sector has its own ups and downs, challenges, workarounds, and opportunities, there are certain challenges common to all.
With over two decades in the industry, we at Hospitality Partners have identified the five most common mistakes made by hospitality businesses in Ireland that are the root cause of their failure.
In this blog, we will share the five most common mistakes in the hospitality industry in Ireland and how to overcome them.
No Stocktaking
Many hospitality businesses do not conduct regular stocktakes because they think it is a waste of time. While stocktaking is time-consuming and somewhat boring, it is also crucial.
In its essence, a stocktake will reveal your gross profit margin, help you with menu pricing, and minimise stock wastage. Without stocktaking, you will have no idea where the problem lies in your business.
Regardless of size, every hospitality business must track and manage its stock levels to have an intricate understanding of its gross profit margin.
Also, remember that simply investing in a POS system is not enough – you need professional stocktakers to measure variables missed by your POS system and ensure no mismatch by physically counting stocks.
High Staff Wages
The hospitality industry often struggles with balancing quality service with the cost of wages. After stock costs, staff wages are the second biggest cost factor that must be controlled. Without checking your wage structure, you can incur significant losses due to taxes, work covers, bonuses, etc.
To address this challenge, you must have the right wages to balance sales across different departments of your business, such as kitchen staff, serving staff, security, entertainment zones, etc.
One way to address this challenge is to calculate wages payable to staff and then compare them against your expected revenue during a period (month, quarterly, semi-annually). If the wages exceed expected revenues, it is time to rethink your wage structure.
In an industry where revenues are unpredictable, effective planning and wage management can help you achieve profitability.
Poor Customer Service
Excellent customer service is as important as taking control of your inventory. Poorly trained staff or bad practices can deter potential and actual customers and lead them to competitors. Bad customer service is also highly damaging to your business reputation.
Implement proper staff training modules to ensure seamless guest management, especially during peak hours. Properly serving customers will improve their experience and your brand equity.
As a hospitality business, you should also listen to customer concerns and their feedback. This will make your patrons feel valuable and help you identify consumer behaviour and areas of improvement.
Lack of Property Maintenance
This is the fourth mistake made by hospitality businesses. Not keeping their premises up-to-date can lead to immense customer dissatisfaction and sudden, unforeseen expenses.
As experienced hospitality consultants, we always advise our clients to invest in their property. It is best to keep a part of your budget aside for repairs, refurbishments, and maintenance.
Remember, businesses that invest in their establishment are more likely to sustain profits than those that do not.
Lack of Safety Checks
Finally, we arrive at one of the most basic yet overlooked loss-inducing aspects of the hospitality industry. Businesses that do not pay heed to safety checks on their premises are prone to risks like staff and guest accidents, property damage, and compliance issues.
Irish labour laws are stringent, and failure to address safety hazards can invite fines and penalties.
Apart from these, it will also amplify a bad reputation for your business, especially if a guest gets injured.
Need Hospitality Consulting Services? We are Here to Help.
So there you go. Avoid these 5 mistakes, and your business can improve profits and thrive. If you find it hard to refine your operations, train staff, manage inventory, or any other aspects of your business, call Hospitality Partners.
We offer full-service consultancy to hospitality businesses of all sizes. Our goal is to empower our clients become revenue-focused without sacrificing customer experience.
Get in touch with us today to learn how we can help your business achieve long-term profitability.