Amid rising inflation and energy price increases, pubs, bars and restaurants are bracing for a winter worse than the one during the COVID-19 pandemic. Consumers will be much more careful in considering where to spend their money – indicating a significant drop in guests’ visits.
But it’s not all doom and gloom. In fact, recent data from hotel intelligence company STR shows that the UK is continuing to lead the post-COVID hospitality recovery in Europe – with six UK regions making the European top 10 for the highest average daily rate growth in 2021.
Stats like these give the UK hospitality industry every reason to be optimistic about the coming months. And in the spirit of such optimism, we’re sharing some top tips on how you can help your business combat the cost of living crisis.
Make the most of summer tourism
The summer season may have just come to a close, but it doesn’t hurt to plan ahead. It’s likely that consumers feeling the pinch will be in the market for a staycation – indicating a tourism boom. We recommend checking your local town or city’s calendar so you can capitalise on local events. Study previous trends too – is there a particular wine or dish that proved popular last year? Make sure it’s on the menu.
Get creative with summer offers and campaigns
You should also consider summer offers or campaigns that will give your business a competitive edge. There are many forms this could take – including teaming up with another local business to boost your brand awareness and expand your reach. This could be as simple as a cake-and-coffee collaboration. Social media giveaways are another great way to increase foot traffic – each entry could require a Facebook or Instagram share, for instance.
Ensure invoices are paid on time
Keeping track of cash flow is crucial to the success of your business – and this means making sure you get paid the right amount at the right time. So, don’t let large invoices fall by the wayside. Make sure that these have been received and approved prior to the due date to eliminate the risk of any unexpected delays. One way you can maintain control is by implementing an interest fee for delayed payments.
Manage cash flow effectively
This one might seem straightforward – however, effective budgeting isn’t just about calculating your spending and automating your bills. By regularly reviewing your expenses and shopping around for suppliers, you can be certain that you’re always receiving the very best rate – plus, you might even realise that your business has evolved and you’re paying for something you no longer need.
Invest in an accountant
One of the biggest mistakes you can make as a business owner is dismissing accounting services as an unnecessary expense. Much the opposite, investing in the advice of experienced professionals – particularly if they specialise in the hospitality sector – can actually make your budget travel further. They’ll guarantee you’re spending money in all the right areas, while freeing up time for you to focus on other elements of your business.
For further advice on how we can support you throughout the cost of living crisis, get in touch with a member of our team today.
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