RMS releases its tips for reducing hospitality costs

RMS chief operating officer, Mark Kuperman
04/08/2017 - 10:40
Revenue Management Solutions (RMS) has come up with a list of tips for the hospitality industry to reduce its costs as food inflation hit a three-year high in June.

The analytics company has advised hospitality operators to rethink its menus in a way which uses fewer ingredients ‘more creatively’ and wisely.

Other reccomendations included ‘don’t try to be everything to everyone’, ‘do the maths on operational efficency’ and ‘leverage loyal customers.’

RMS has also advised companys that cutting staff does not work as it impacts the overall dining experience and instead says that changing hours of operation and being unique are more sensible methods to improving finances.

“If an operator offers burgers or a pasta dish served with chicken in a cream sauce, diners are going to have an idea in their minds about what that should cost. However, if operators get creative with menu items, using lesser-known ingredients, customers are less likely to have a frame of reference for price, which in turn means they will be less likely to balk at any price increases,” said Mark Kuperman, RMS chief operating officer.

'Combating rising costs with greater efficiency', 'keeping price changes small and more frequent', and 'understanding pricing barriers and which ones your customers are reluctant to cross', were the company’s other suggestions.

Copyright 2017 Cost Sector Catering
Dewberry Redpoint Limited is a company Registered in England and Wales No : 03129594 Registered Office:
John Carpenter House, John Carpenter Street, London EC4Y 0AN, UK, VAT registered, number 586 7988 48.

Design & Development by Eton Digital