After adding up the the costs of advertising, marketing, and sales people used to attract new customers, it is easy to see that obtaining new customers costs much more than keeping your current guests loyal to your hotel. Surveys have proven that the top reason customers stop returning to a hotel is because they feel unappreciated. To reduce costs hotel operators should prioritize hotel brand loyalty and keeping current guests happy.

 

1. Leave a lasting impression. Show your guests how much you appreciate their business with a parting gift or even a sincere “thank you.” A few ideas to impress hotel guests: give them a small box of truffles or a jar of jam with your logo as a memorable personalized thank you. To take the hospitality one step further, handwrite a thank you note that is custom-made especially to your guest.
2. Keep in touch. Make sure your guests remember who you are and remember their stay, even if they only visit once. Throughout the year, send a letter or email that keeps them updated on the latest activities and news at your establishment and tell them how much you look forward to their next stay with you. Create a social media presence for your hotel by making updates, running contests, and posting pictures on various social media platforms, such as Facebook, Twitter, or LinkedIn.
3. Reward their loyalty with exclusive deals. Design special packages or deals just for your guests that are a part of your loyalty program. This displays your appreciation for their loyalty, encouraging them to choose to stay with you rather than your competitors in the future.
4. Ask for feedback. Don’t take your guests for granted just because they stay with your hotel regularly – more than likely, they have feedback to give you. When you receive feedback from your guests, be sure to fix any issues they have observed as quickly as possible. Negative feedback creates an opportunity for you to exceed expectations, show your dedication to your guests, and let them know that you do care about their opinion. Promote face-to-face interaction – start a casual conversation with a guest, and then ask if they enjoyed their stay and what they would like to see improved for their next visit. When there is an issue, keep your guest updated and inform them when it has been resolved. Be sure to check websites like TripAdvisor.com as well for reviews, good or bad.
5. Train your staff. Your staff should have the appropriate training and tools in order to provide the level of service that your guests expect and deserve. Your staff should be able to recognize loyal guests and handle any complaints that may come their way. By having confidence and authority, your staff will appear more professional, leading to more trust from your guests. If your staff is able to resolve a negative situation without your assistance, that’s even better.

The hospitality industry revolves around hotel guest loyalty, so when you see an opportunity to wow your guest, take advantage – it could make the difference between that guest returning or choosing to stay somewhere else. Source1 Purchasing is a leading strategic supply chain management group focused operational efficiencies for the hospitality industry in order to keep your business running smoothly and helping you keep guests coming back time and time again.

A recent article by USA Today discusses an alternative to hotel room service: groceries. The popularity of grocery delivery services is increasing significantly among extended-stay hotels, but even other types of hotel properties are embracing the concept rather than continuing the use of traditional room service. Moreover, as the demand for healthier food options rises, more hoteliers are offering delivery services that include healthy meals or snacks for sale.

“It’s not the home kitchen, but gets guests closer to a home-like experience, which is what road-weary travelers crave,” says Maryam Wehe, senior vice president of Applied Predictive Technologies, which does consulting for hotels. “While travelers are just as time-starved as ever, they are increasingly health-conscious while on the go. Through healthy food delivery options, hotels are taking another step to bring the comforts and lifestyle of home to guests.” 

The article also includes this more specific example of this new hotel trend:

“Affinia Hotels, a boutique hotel chain with properties in New York, recently announced a partnership with FreshDirect, a New York City-based grocery delivery service, to deliver ready-to-make meals to guests. There’s a Business Kit and a Healthy Kit, each with such items as fruit, vegetables, Greek yogurt, chips, salsa and cookies. The kits also have four-minute meals such as lemon-dill salmon, which can be heated in a microwave in each room’s kitchenette. The kits can be ordered in advance through Affinia’s online e-concierge service.”

Senior Vice President of brand management for Affinia Hotels Lisa Zandee states that guests enjoy the hotel grocery delivery service because it allows more variety that otherwise wouldn’t be available through room service and a hotel room mini bar.

In addition to convenience for guests, phasing out room service can benefit hotels due to their costliness to run versus the low revenue they generate.

The article states “room service revenue has dropped 9.5% from 2007 to 2012, according to PKF Hospitality Research,” showing that the service is becoming less significant and more costly over time.

As you move to a new food and beverage trend for your hotel, it’s essential to explore your supplier options to ensure low food and beverage costs. As a top supply chain management group, Source1 Purchasing is focused on cost management, savings and operational efficiencies for the hospitality industry, offering hotel operators with the best purchasing options to fit their needs.

The most consistent factor that goes into continuous guest loyalty is perceived quality. According to recent studies, guest perception of the value provided by hotel management is down in the United States. Here we’ve provided you with a list of what guests value most in order to help you better understand what drives value, how guest preferences have changed over the past year, and how to improve hotel guest satisfaction.

Adequate Room Lighting: It is fairly simple to get hotel room lighting right – or wrong. Lights that don’t work correctly are obvious, disappointing, and even more aggravating, which in turn drops value perceptions. When a guest complains about lighting, it should be fixed immediately, not ignored.

Internet Access: In 2012, a USA Today survey revealed that the favorite hotel amenity of guests was Wi-Fi over everything else. Now more than ever, guests still place a high value on Internet access making it an important part of a brand’s value proposition. When determining if your Internet offering will meet guest expectations, consider the following:

• Does it work?
• What is the bandwidth like?
• How does a guest access the Internet?
• Is it free?

According to a June 2013 survey by Hotels.com, 67 percent of travelers felt that in-room Wi-Fi was the most important hotel service they look for when booking. Many guests are able and want to be able to access the Internet through their tablets and smartphones, however, one-third of U.S. hotels do not have free Wi-Fi available to them.

Comfortable Furniture: Guest comfort establishes a standard for guest value. As competition among hotel operators increases, guests have more opportunities to travel and compare services and offerings. Hoteliers who decided to put off renovations a few year back should now consider making those changes in order to keep up with competitors. Even today with what all guests expect as far as complimentary amenities, this fact remains the same, the focal point of guest satisfaction is consistently a comfortable place to sleep for a reasonable price.

Top-Notch Service: Exceptional service is always a necessity in the hospitality industry. This aspect not only accounts for a 10-15 percent improvement in loyalty, but that outstanding service also stimulates a guest’s emotional experience, positively affecting their perceived value.

When it comes to improving value for price, you should focus on delivering the things that improve value perceptions. From this, we have learned that guests value Internet and lighting that works correctly, a comfortable place to rest, and excellent service. However, it is also important to remember that guest preferences change regularly and you should continue to communicate with your guests, and research hotel Industry trends to ensure you’re adapting to these changes.

Rather than having to cut rates to improve hotel guest satisfaction, hotel operators may consider adopting better purchasing practices to reduce operational costs. Source1 Purchasing is a leading strategic supply chain management group focused on cost management, savings and operational efficiencies for the hospitality industry.

Besides just the hiring and training of new waitstaff and dealing with the stress of bills and permits, opening a new restaurant comes with a large amount of decisions that need to be made. One of which is the creation and maintenance of your business’s website and online presence. Here we have provided you with a list of proactive tips to help you through the process of planning your new restaurant’s new website.

Get control of your domain name. Your domain name is an integral part of your business identity. You need to be sure that it is purchased in your name, and that you are the administrative contact for the domain name. You must also make sure that the username and password are selected by you and are filed away safely. If  in the future you decide to redesign your website or change web hosts you will need access to your domain name, so it would be more convenient to have the domain name registered to you rather than what could become a former employee.

Hire a professional. In an effort to save a few bucks, many new restaurant operators may turn to a friend or acquaintance to help get their website up and running. However, once your website has launched this could leave you in a difficult position.  More often than not once your website launches, you’ll likely be on your own to keep the page running and updated. If this is the case, make sure you have been properly trained, and have plenty of time to manage your website. Consider hiring a professional webpage designer from the start who can respond to support issues in a timely manner, and possibly save you time and money in the long run. If you  do decide to allow an employee to manage the website updates for you, be sure to remain involved as well. Restaurants tend to have high turnover, and you’ll want to be sure that someone is able to manage the restaurant website at all times. A dedicated restaurant website is essential for providing important information to potential customers such as conveying that a restaurant is in fact established, and the proper branding  for your business. Cut432 of Delray Beach, Florida, for example, not only provides their story, hours, and a dinner and cocktail menu on their website, but also a page to make online reservations and take a virtual tour of their modern steakhouse on their sleek, minimalistic webpage.

Utilize Facebook. Facebook is usually the first step for growing an Internet presence for new restaurants. It’s free and it’s where the people are, so naturally, it’s a great tool for getting your name out to potential customers. After opening day however, much like the website, restaurant operators usually find themselves too busy managing the daily operations to manage both a virtual and a real world reputation and what was intended to be one facet of their online presence, turns into their sole online presence. As a marketing tool, Facebook is too important to be looked over, but it certainly should not be your only marketing tool.

Don’t overdo it. While it can be tempting to create an account for every social media outlet when launching a new restaurant, over-committing yourself to so many sites can be a bad thing. Prior to getting started, make sure you have an associate who is capable of managing these accounts. Otherwise, you could inadvertently ignore questions from customers, overlook valuable feedback, or end up with an inactive blog. Neglected social channels can turn off new patrons, alienate fans, and convey an inability to manage your business. You should consider creating one social page at a time, building a routine and then adding new channels as you become accustomed to handling them. Moreover, you want to be sure that the social media platforms you use are appropriate for your business.

Remember mobile. According to Venturebeat.com, mobile visitors now account for about 50% of all restaurant website traffic. If you are working with a professional webpage designer, be sure to ask how they plan to approach your mobile website and ask to see samples. Once you hear the words “responsive design” in the explanation, you know you are good to go.

A properly created and managed online presence can lead to a significant boost in profit. For more tips on how to build an online presence for your restaurant, please read the following Source1 posts:

https://source1purchasing.com/restaurant-operators-can-gain-sales-by-boosting-their-online-presence/

https://source1purchasing.com/skills-required-maintain-online-reputation/

Every restaurant owner battles with rising food and beverage costs. According to a recent article by Drew Sandholm on CNBC.com, “From beef, chicken and pork to coffee, it seems food prices across the board are rising,” so it is time to prepare for these changes and create a plan of action for menu or even supplier changes. Here are five tips to aid you in the fight to lower costs and increase your overall profits.

1. Craft a consistent and profitable menu.

Create a menu that compliments your kitchen equipment, layout and your staff’s experience level. Your food must appeal to your target audience, taste delectable, as well as contribute to the necessary amount of gross profit. Be sure to create a manageable menu that won’t overwhelm your kitchen staff. In response to the discussion of future rising food and beverage costs, Starbucks CEO Howard Schultz stated in an interview with CNBC’s Jim Cramer, “The truth of the matter is that dairy is probably a bigger issue for us going forward than coffee, but we will be able to maintain our guidance, our EPS and absolutely manage through and negotiate through any rise in coffee costs.”

2. Create recipe spreadsheets for all menu items.

Creating recipes in spreadsheets allows you to link individual ingredients to your inventory spreadsheet so that your recipe costs automatically update when you update your inventory prices. This recipe spreadsheet can also be used for batch recipes on items such as sauces or mashed potatoes that are made in large quantities. Updated recipe costs can then be used to calculate your ideal food cost per menu item.

3. Evaluate your food and beverage suppliers.

Go over your supplier invoices and your current inventory to determine if you are getting good pricing compared to your competitors. Consider meeting with local business owners and comparing prices. You can compare your own pricing history and bid suppliers against each other,  or you can work with the assistance of a GPO (Group Purchasing Organization) and you will be able to lower your food & beverage costs while accessing the highest quality products and staying ahead of consumer trends without the hassle of the bidding wars.

4. Monitor your inventory.

Review your inventory values to confirm they are up to date and conduct an inventory check weekly so you can ensure a proper level and make some cash flow available. Avoid waiting until the end of the month to find out if there were any issues.

5. Conduct a menu analysis.

Create a menu analysis spreadsheet that assists you in evaluating your best selling items and categorize all your menu items by their popularity and gross profit contribution.

As a restaurant operator, it is essential to run your restaurant efficiently through proper control of food and beverage costs. Source1 Purchasing is a supply chain management group focused on cost management, savings and operational efficiencies for the restaurant and food service industries and gives you the opportunity to create your own buying group.

As a restaurant operator, when you have loyal customers, it’s essential to do all that you can to ensure that those guests continue to return. In order to accomplish this, you must understand what leads guests to stop returning, and what preventative measures can be taken to keep it from happening again. The following are common reasons that lead loyal guests to turn their backs on your business:

1. The competition has a lower price.

If you and your competition offer similar amenities and products ,yet  they are able to offer it a lower price, you can offer products and services that are customized, making it difficult for competitors to imitate

2. Customer service was less than satisfactory.

A huge factor that goes into once loyal guests going to your competition is poor customer service. Be sure to train your restaurant staff to treat guests appropriately and to exceed expectations. If guests are consistently happy with the customer service at your establishment, they will continue to be loyal to your brand.

3. Your product quality diminished.

If the products you offer are always successful and result in profits, then there is no need to cut corners and compromise that exceptional quality. If you’re using a specific brand of bread for your burgers and sandwiches, don’t opt for a lower quality brand just to save pennies. Customer loyalty lies in consistency.

4. The customer’s needs changed.

It’s important to adapt to the trends of the food and beverage industry, always expanding your offerings before the customer even realizes that their tastes have changed. To accomplish this, communicate with your customers, learn your market, so that you can anticipate their needs, giving you the ability to adjust your menu far in advance. If you find that you are caught off guard by changing needs of guests, then you may need to pay more attention to your guests and interact with them more regularly.

 

While these may seem to be obvious mistakes  that you don’t want to make, the often chaotic nature of restaurant operations can bring unexpected outcomes. Though it may not help with your customer service issues, working with a food & beverage purchasing service can help you lower operational costs while accessing the highest quality products and staying ahead of consumer trends. As an expert in the food and beverage industry, Source1 Purchasing is able to provide you with the most up-to-date tips and trends to keep restaurant operators running as efficiently and successfully as possible.

Many qualities factor into making a sales person exceptional at their job. Some of these qualities include, but are not limited to, a high energy level, personal motivation, and a pleasing personality, but even if someone doesn’t naturally embody all these traits, there are opportunities for a person to become better at selling. The following are just a few skills that are essential to improving a person’s ability to become great at the business of selling for hotels and resorts. Encouraging and teaching your staff to intentionally focus on each of these customer service skills can significantly increase their ability to make a sale:

1. Listen. Listening more and talking less radiates intelligence. Be sure your staff asks a few key questions, and then allows the guest to speak and complete his or her thought; try not to oversell and let the customer do the talking.
2. Features. As long as the features of your property can be seen as valuable to your prospective customer, then it’s okay to discuss them with your prospects. It would be pointless for a sales person to go on about your vast parking lot if a guest will be flying in. Make sure they take the time to learn the needs of your prospects, decide what features would be most important to them, and then continue to discuss the benefits and advantages of those features.
3. Image. Your hotel’s image is formed by not only the building and its decor, but by your staff and the atmosphere created by them as hosts; by their looks, voice and ability to communicate effectively as well. An enthusiastic tone of voice is a vital attribute of outstanding sales people. It is also helpful to know the right thing to say and how to say it. As well, all staff should be clean and look professional.
4. Motivation. Another trait of great sales people is the ability to successfully motivate others. In the business of selling, it is important to motivate the prospective buyer to make the purchase. Be sure to inform your hotel sales staff of the appropriate way to encourage the prospective buyer to make the purchase.
5. Get Noticed. Sales people must be visible in the business community. As a hotel operator, you should encourage your sales staff to be active in the community and join groups, give talks to groups, be quoted in the newspapers and make an appearance at important and relative business events. People are more likely to do business with someone who is reputable.
6. Improve Communication Skills. Hotel sales staff should learn to articulate properly, and use correct grammar. Slang expressions and filler words, such as “umm”, “like”, and “ya know” should be avoided. By speaking correctly, not only will your staff be seen as intelligent, but their sales strategies will improve.
7. Be Knowledgeable. Sales people should be knowledgeable of the hotel property, your competition, and the needs of the prospective buyers.
8. Emit Confidence. The sales person’s confidence will translate into  the buyers’ confidence. If your staff shows a lack of confidence in themselves or your hotel it can lead to a reduction in sales.

How do you train your sales staff to interact with hotel guests and prospects? Do you have any tips on how to improve hotel sales?

In today’s digital age, most consumers search the Internet using Bing or Google to check out restaurant reviews, menus, and prices before they head out for dinner. Because of this, it is essential for restaurant owners to optimize their online presence in order to get those “would-be” patrons through their door. Here are five crucial tips for operators who are looking to increase restaurant sales in their establishment.

Get Listed in Local Directories

If you wish to appear in the results for someone searching, for example, “local restaurants” you must get listed with several reputable or authoritative business directories to improve your SEO ranking. Getting listed in local directories is important because the search engines, especially Google, rely on reputable and respectable local business directories for their information. This means that if your website link is on one (or preferably more) of those authoritative directories, Google will list your restaurant in the top search results for local restaurants.

Optimize Your Google Places Profile

To increase your business’s standing in Google, you must sign up for a Google Places profile. This is how Google classifies and highlights local businesses. However, you must do more than just sign up for the profile – you also need to optimize it by completing all of the information fields and using some relative keywords in your profile.

Encourage Facebook Check-Ins

Facebook check-ins are what power restaurant listings to success in Facebook Graph Search. If somebody uses Facebook to seek out a local restaurant, and your restaurant has a large number of check-ins from local consumers, your restaurant will be seen as “a place to be.” So, don’t be afraid to encourage your guests to check-in to your restaurant on Facebook. In fact, some restaurants even offer free appetizers or small discounts for the first check-ins of the day. Sometimes a little incentive doesn’t hurt!

Encourage Good Reviews

Online review sites give important sources of information about your restaurant, as more and more consumers are using these sites to research local establishments. Not much can be done to prevent bad reviews other than offering superior service and quality food, but you can actively build up your positive reviews. Encourage, but don’t solicit, your customers to provide you with positive feedback on sites like UrbanSpoon.com and Yelp.com . And if you do happen to get some negative feedback be sure to respond online and correct what you can. This will show potential diners that you listened, the problem has been addressed, and that they can expect to enjoy their experience at your facility. Read more about Getting Reviews The Right Way.

Nurture Leads

Lead nurturing is a sales-boosting technique that works especially great for small businesses, even in the restaurant industry. Create a “Loyalty Program,” ask your guests for their e-mail addresses and then use that information to nurture your relationship with your current patrons. Let them know you will be sending information about discounts, special offers, and news about upcoming events.  Be sure to mention social media in all communications such as invitations to “Like” you on Facebook or follow you on Twitter, etc.

Source1 Purchasing is your source for the latest tips, trends, and news of the restaurant industry. To learn more about the Source1 Program and how it can benefit your business, visit our website at www.Source1Purchasing.com.

Restaurant operators are looking for more ways to save money these days to adjust for  the rising costs of beef and produce. To help your establishment cut back on costs, here are some tips to reduce energy, water usage and waste management costs.

1. Use energy efficient light bulbs. Switching to an energy efficient light bulb can save up to $22 per bulb per year, which can over time add up to significant savings. You should also remember to turn the lights off when they aren’t in use – motion sensor lights can help with this.

2. Run the dishwasher when it’s full. By waiting to wash the dishes until the dishwasher is full, you are able to cut down on water usage, soap and energy costs.

4. Install low flow faucets and toilets. By doing so you will save between 20 to 40 percent of water usage.

5. Turn down the thermostat. You’ll be surprised at the cost difference between keeping the temperature at 68 degrees rather than 72 degrees.

6. Use porcelain instead of paper or plastic. Rather than using disposable plates and cups, you may want to consider a one time investment for china, glass and silver – you will save on disposal costs, and as an added bonus reduce wastes in today’s landfills

7. Invest in energy efficient appliances. With energy efficient appliances, not only will you save on energy usage, but some states even offer restaurants tax credits and other incentives for switching to energy efficient appliances.

8. Trim down your menu. If there are certain items on your menu that just aren’t selling, then remove those items. This will help reduce food waste and keep food costs under control.

9. Take advantage of e-marketing. In today’s society, more people are opting to receive their information online rather than the yellow pages. From creating your own website to online advertising, there are many inexpensive ways to spread the word about your business.

10. Train your staff. Teach your staff to sort recyclables, turn off lights, and inform you of any issues that could be costing you money, such as a leaky faucet.

What steps are you taking to reduce restaurant costs?

Source1 Purchasing is a leading strategic supply chain management group focused on cost management, savings and operational efficiencies for the lodging, restaurant and food service industries. To learn more about the Source1 Program and how it can benefit your business, visit our website at www.Source1Purchasing.com.

Starting with a smart design plan can lead to cost reduction and maximum return on investment for hoteliers now and in the future. By implementing the following tips during the construction phase of your business, you will find a positive impact in the bottom line of your hotel operations.

Water Management Lowers Costs

Hotel designs that start with a consistent plumbing location minimizes the chances for future problems. Depending on the size of your establishment, low flow faucets can potentially save your hotel 1,000 gallons of water a day on average. Low flow faucets are specifically designed to mix air and water in a way that minimizes consumption while providing the guest the feeling of high volume flow. Installing these will allow you to reduce water costs while still keeping your guests happy.

Geographic Design Methods

A smart design is flexible to account for various locations. For example, winter is cold in North Dakota, so if you modified your building materials at your North Dakota hotel site to use 2” x 6” studs for exterior walls to provide more room for insulation to keep the Northern winter cold at bay, the quality of the thicker insulation will result in a slightly higher build cost but a 2.8 percent reduction in energy that is required to heat the property. Considering regional requirements and factors within the context of smart design and operational efficiency can result in beneficial changes in just one place or for all locations.

LED Lighting Saves on Energy

LEDs represent a smart design choice that saves hoteliers during construction and make up about 20 percent of the electricity costs that come with traditional lighting. LED lights use 80 percent less energy than incandescent bulbs, last five times as long as fluorescents, do not require special disposal due to hazardous chemicals (like neon, lead powder, mercury, etc.), and without glass coverings, there are no trapped insects to clean.

Smart design results in savings that go directly to the bottom line. However, to achieve the benefits, you must take some chances, plan for changes before construction and properly execute those plans during the build. Source1 can help you keep your operations efficient by providing you with suppliers to meet all of your purchasing and procurement needs.