With safety and cleanliness at the forefront of everyone’s mind, and recent researching suggesting that enhanced cleaning standards will cost the hotel industry around £7 Billion, it is having a significant impact on everyone’s operational and labour costs. This is of course exacerbated by the reduction in room rate and occupancy levels for hotels and a decrease in the number of covers for restaurants, pubs and bars.
So what can we do to mitigate these increased costs?
1. Ensure you are Using the Correct Chemical for the Task
The increased demand for chemicals and PPE has had a direct impact on both availability and cost, so here are a few points that you may need to consider:
- Check the measures when making up the spray bottles.
- Use the correct volume of chemical for the task.
- Use the best chemical for the job at hand. When deciding on the chemical to use check that it is suitable for the surface that it is cleaning. A public area cleaner needs to be less abrasive than a kitchen cleaner and using the wrong chemical could damage equipment and surfaces leading to additional costs in the long run.
2. Time to Review the Chemical Deal?
The chemicals you used prior to the pandemic may not be the best option now, so a review of these with the chemical provider would be a good idea. It is also an opportune time to ensure that your rebate or pricing deal is as competitive as possible.
3. Increased Payroll Costs
The additional time that it takes to clean a departure room, or a recently vacated table will have a direct impact on your labour ratio and EBITDA. Unfortunately, this is unavoidable, but these costs can be mitigated by having the right team working at the right time. To help you manage this you could:
- Time how long it takes to complete the new standard to clean rooms/public areas and adjust the daily number of rooms allocated per housekeeping team member.
- Review your traditional rota shifts to explore if these patterns fit with your new business levels.
4. Reporting on the Increased Costs
While it is expected that cleaning costs will increase in the present climate, it is important to understand what those costs are so that the impact can be offset in other areas of the business, where possible. Inventory management and productivity tools will really assist in this. A key statistic that will highlight the increase in costs is the cost per occupied room and the cost per cover. These should be compared year on year.
Metrics matter. Understanding which ones you need to care about can have a big effect on your bottom line. It’s up to operational leadership to measure them, monitor them, and make them not only the focus of their annual initiatives – but to make those metrics important for restaurant managers too.
Using spreadsheets for hospitality inventory management is inaccurate, inefficient, and unwise. Learn how poor inventory management could be making operators crazy and hurting your business.
Technology alone can’t affect the causes of cost price inflation. Hospitality systems can’t undo labour legislation, failed harvests or political turmoil, and with hotels in urban markets still seeing revenues dip as much as 52 percent compared to 2019, operators need to utilise every possible method to cut costs.