5 Ways to Minimise the Impact of Inflation on Business in your Pub or Restaurant

Over the course of the last few months, hospitality managers have become more and more aware of the impact of inflation on business. From soaring energy costs to increases in food costs, more than a third of UK restaurants and pubs have made changes to their daily operations just to stay above water. In a time when maintaining a positive and optimistic outlook can be difficult, it is important to remember managers’ roles during times of inflation.

Despite the challenges and struggles the hospitality industry is continuing to face, there are some practical ways to help reduce the effects of inflation on business and customer satisfaction. Managers and employers can play a significant role in reducing inflation’s impact both in the short-term as well as the long term.

In this article, we will be discussing 5 ways managers can minimise the impact of inflation on business in pubs and restaurants. Learn how Shoes For Crews can help support the hospitality sector during this challenging time in business. 

1. Avoid understaffing and overordering

Restaurants and pubs by nature are known to be fast-paced environments. Servers, bartenders and hosts spend the majority of their shifts on their feet and moving quickly from place to place. One of the ways to promote a healthy workplace culture is to be conscious of staffing and scheduling. 

Reduced opening times were said to be a far more common occurrence in the hospitality sector than in other parts of the UK economy. Food waste is another major issue that restaurants face, especially in recent years. Being aware of scheduling issues and being careful to not to order excess supplies will help restaurants effectively reduce costs during tighter times.

2. Analyse trends and automate processes through automation software

In a world where technology develops rapidly and business is constantly evolving, more and more restaurants are adopting automation and forecasting software. Alleviating some of this day-to-day stress managers can encounter so they can focus on motivating staff and keeping them safe and protected at work.

By allowing processes like scheduling staff, forecasting profits and losses and seasonal sales trends to be automated, restaurants can predict anticipated costs and changes. Though purchasing automation software can seem expensive at first, the investment will pay off significantly in the long run. And it will in turn reduce uncertainty around the impact of inflation on business and cost of goods and shift focus to where it really matters: customer and employee satisfaction.

3. Observe good restaurant inventory practices 

Restaurants and bars have valuable food and drinks that are stored in stock rooms, fridges and freezers. It is key that, in order to reduce waste and minimise losses, stocks are counted regularly and good inventory practices are observed. 

Teach your staff to follow the FIFO (First in, First out) rule to help reduce food waste. Organizing and storing heavy boxes in a smart and practical way could also potentially reduce the risk of manual handling injuries, which can be common in the hospitality sector. Companies with good systems and processes in place for keeping track of inventory will not have as difficult a time adjusting to increasing pressures around inflation.

4. Monitor price fluctuations

Food and drink prices have fallen to an annual rate of 9.2% in 2023 after reaching a record high of over 16% the previous year. Hospitality venues must decide whether or not to pass on this expense to customers or absorb it themselves. Restaurants that have more resources and cash on hand would be able to cover these price increases, however, not every business is equipped to do that. And the temporary energy subsidies for companies that were proposed this past September have only resulted in minimal relief for restaurants and pubs,

Taking these price fluctuations into consideration is crucial when making future decisions. It is also acceptable to analyse some of your menu options and retire the less profitable ones for a season. Or substitute an ingredient whose price has skyrocketed in recent weeks. Switching to a higher performing menu can help increase customer turnover, which can also result in more waiters and bartenders being able to serve more patrons.

5. Invest in or upgrade to long-lasting slip-resistant footwear

To ensure your staff is prepared to handle both the seasonal highs and lows, they need to be equipped with high-quality uniforms and footwear. The better the quality of employee uniforms, the longer they will last. This can help reduce the need to replace them at a potentially higher price and sooner than expected.

This investment in good quality, long-lasting work shoes will pay off over the long term. With Shoes For Crews shoe styles, your employees can greatly benefit from wearing supportive, slip-resistant shoes. You want to keep your workplace and employees safe and our high-quality, protective footwear solutions can help you do just that — reducing accidents while saving money. From casual to athletic styles, we have a pair of work shoes that will fit every role at your pub or restaurant

It is important to acknowledge how the cost of living is affecting the hospitality industry in the UK. Managers play a key role in reducing the impact of inflation on business, supporting employees, and motivating them during difficult and uncertain times. At Shoes For Crews, we are committed to providing companies with comfortable and supportive work shoes for hospitality staff. Our passion is evident in the quality and durability of our footwear and its excellent slip-resistant technology. If you are looking for a specific shoe style for your staff, please do not hesitate to contact us. We would be delighted to help you find the right pair of durable work shoes for staff at your pub or restaurant.