These are the brutal times that generally come after natural disasters such as; Covid 19, The Beast From The East and every year, January. Sadly, if you're a PLC and you're not hitting targets for whatever reason, these can just occur because somebody up top said so.
This is when you get ripped back to basics and bare minimums with costs and staffing while still being expected to Maximise Revenue. Usually at the cost of sanity.
Now this however is something I strongly advocate and understand when it must be done, it must be done. The issue is once again, the basic mindset and lack of detailed thought. Even though they usually claim to be watching every penny. There also seems to be this belief that they give you the freedom to just throw money up the wall for the rest of the year because it has never been a "You've nailed your budget for the last 9months so don't worry too much about these next 3, just don't overspend". Chances are they've already overspent the excess money you've accumulated through blood sweat and tears or you're site is just being used as a syphon to prop up other failing venues that have been neglected for atleast 9 months and your area isn't hitting budget. Now this is just exactly the same on a larger scale because if your region is still hitting budget then that doesn't matter. The area manager will still have to scramble for his higher ups to get some kudos.
S**t still rolls downhill
The cost cutting exercises from the Beast for from the East were probably where I began to run out of F***s to give. I was running a site that had been failing for years and was sadly far beyond salvation without some real attention and investment.
Many higher ups believe that they can throw on a lick of paint and some nice display shelves and then rip out your advertising and staffing budget and send you on your way.
Many, many sites I've seen over the years have had cupboards and rooms of storage of failed idea that they didn't execute and excess chemicals and tools and things that were invested in and forgotten. This should be where chains had an opportunity to thrive, to collate this inventory of wasted expenses and redistribute them through out the area. Instead of cutting all future expenses, just spend one month going through everything you've ignored for the last 9 and let everyone else know what is laying idol in your Venue. Even Stock that has been sitting in your Cellar for three years and has to be counted every single week. Things like this are just some of the things that get lost in the Corporate system.
Anyway, rant aside. For now. You should have looked at money the same way, what everybody wants is for you to make money, while spending less: This is theoretically the trajectory of any business, especially in the short term. But this is not a perfect world, and once that trail starts its hard to justify it stopping, even with inflation.
My key frustration with "cost-cutting exercises", is that I will 100% buy in and I will back it to the team to help get them to buy in too. Provided it applies to everyone and everything.
- Double checking all orders across the board as to alleviate extra spend through petty cash on panic buying items at a 100% mark up.
- Sort through any and all storage rooms to see if anything can be used for content to keep things interesting or make improvements.
- Reduce advertising spend and increase time spent on actual customer engagement through replying to feedback and re-engaging with all platforms; Instagram, Facebook, Facebook Reviews, TripAdvisor, Twitter, Google My Business and get a more organic reach while reminding your core customers that have taken their own time to engage with you and remind them that you're grateful. Produce more organic content
- If your payroll is set up correctly then all Holiday should have been accrued for already so push for staff to take holiday instead of just ruthlessly cutting back and potentially losing a strong team
- If you have ran your business well and have treated your staff as well as you could then this is your time to make that clear and if you have to make cuts to benefits such as discounted food or drinks then have that discussion but do not stop rewarding outstanding work and behavior.
- The most important part of all is that you need to be a team player, no more chill time in the office, no unnecessary paperwork, spend every minute you can, on the floor, supporting your team and engaging with your customers. In times of hardship you need to step up and show your team that it effects all of you.
- If you have previously agreed an absolute bare minimum standard of service, do not drop below that
Let me know what you think in the comments or if you have any other cost cutting ideas.
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