Profit Tips On Tap
Running a successful hospitality business is as much about managing margins as it is about great food, drink, and service. Whether you operate a pub, restaurant, or café, profitability depends on strong systems, smart pricing, and consistent efficiency. Here are ten practical tips to help you increase profit and build a stronger business.
1. Systemise Everything
Put processes in place for every key activity. Document what works so your team can repeat it. Systems create consistency and free you to focus on improvements rather than firefighting.
2. Know Your Key Drivers
Identify the few numbers that truly matter. For hospitality, that may include gross profit margin, number of covers, and the ratio of sales to wages. Track these consistently and respond quickly when trends shift.
3. Review Your Prices
Your pricing strategy should reflect both cost and value. Review your menu regularly, ensure margins are healthy, and position high-margin items where customers notice them first.
4. Focus on Quality, Not Quantity
A narrow, well-performing menu often outshines a long, complicated one. Concentrate on dishes and drinks with the best margins and customer appeal.
5. Maintain Laser Focus
Have a broad vision but focus tightly on what drives your business. Use the 80:20 rule — identify the 20 percent of products or actions that deliver 80 percent of your profit.
6. Maximise Efficiency
Automation saves time and improves accuracy. Use systems to monitor productivity and eliminate repetitive manual tasks. As Peter Drucker said, efficiency is doing things right, while effectiveness is doing the right things.
7. Justify Every Cost
Scrutinise each expense and ask whether it truly delivers value. Challenge suppliers and contracts regularly to ensure you are spending wisely.
8. Reduce Wastage
Portion control, energy management, and inventory discipline all protect your bottom line. Small savings here can have a major cumulative effect on profit.
9. Use Your Best Energy Wisely
Identify the time of day when you are most focused and creative, and reserve it for key decisions and planning. Routine tasks can wait until later.
10. Train Your Team
Hire for attitude, train for skill. A well-trained, engaged team delivers better service and greater efficiency. Invest in their growth and you will see it reflected in your profits.
Profit improvement is about doing the basics brilliantly. With structure, focus, and consistent review, even small percentage gains can make a major difference to your bottom line.
