In this current situation of constantly increasing costs its imperative that operators keep a strong hold of where their food and beverage costs are moving to and by how much, and now importantly, how quickly they are increasing.
Many years ago suppliers would warn their customers that prices would be increasing or would send price lists in advance of any future increase, however with their own input costs increasing so quickly and by such indecent levels that they do not even have an opportunity to do so at the moment.
Because of this its imperative that South East Qld hospitality operators of Clubs, Restaurants, Bars, Cafes and Hotels keep a close eye on these increases and in return manage their own menu costings as quickly and fairly as possible.
The discussions we have had with our existing Brisbane, Gold Coast and Sunshine Coast hospitality operators shows that a few are aware of these cost increases but not wanting to upset the customer apple cart by being seen to increase their own prices and willing to subsidize these input costs up to the point where they can no longer subsidize the costs.
We have had many personal discussions on these matters and to be honest some great discussions on both ends of the argument but we wanted to write about this issue as it is an important issue to highlight.
In our opinion, there is no point in subsidizing cost increases as the primary reason businesses exist is to make profit or to have a return on investment than to be working 100 hours a week for only to understand that the supplier cost increases have eaten so much into your businesses profit that there is no profit at the end of the week. What is the point of working so hard to be earning less money than your own employees, earn less money than you pay the ATO and earn less money than you have to pay your suppliers.
With BOSSII invoicing whereby you can see real time costings for recipes and products and even the opportunity to see costings in integrated apps such as Restoke or Lightyear it is essential that South East Queensland operators manage this process regularly.
Watching Supplier invoices and regularly monitoring your own menu pricings is essential to longevity. Being confident in increasing your prices to your customers by being positive that the quality of the product offered to the customer can justify any increase is essential to being able to increase your menu prices.
Consider not printing these expensive one time use menus, consider investing in in-house menu production so that you can review and print up new menus very quickly is essential.
An agile mindset right now is essential to surviving these very difficult times. Dont be the ship that takes weeks to change direction, its time to be agile enough to print new menus quickly and to monitor your costs using BOSSII invoicing and the integrated apps such as Lightyear or Restoke to ensure your survival in this SEQ hospitality environment.
Any questions about any of these issues please feel free to reach out to us on admin@bossii.com to discuss further or call us on 1300 805511.
