As 2022 drew to a close, Australian venues experienced unprecedented success, fuelled by the 'COVID Bubble' of pent-up demand and deferred events.
However, the Australian venue landscape witnessed a stark contrast in 2023, as the 'COVID Bubble' burst, revealing challenges that shook the hospitality sector. Rising living costs compounded these difficulties, affecting venues and hospitality businesses nationwide. As we step into January, it's the opportune moment to set the stage for a prosperous and productive 2024 by crafting a strategic to-do list.
Prioritising Financial Health
Begin your new year by conducting a comprehensive analysis of your venue's Profit and Loss (P&L) statement and overall business. Generating both a cash flow report and a P&L report will provide valuable insights into expenditure and opportunities for increased profitability. With escalating food costs affecting market dynamics, understanding where profits are generated and losses incurred is crucial. Evaluate your pricing structure and ensure the financial sustainability of your business.
To navigate these challenging times successfully, venues need to take stock, review, and plan strategically. Focus on evaluating and securing future energy costs, consolidating and negotiating business loans, and fostering team awareness and upskilling. Consider recruiting a casual labor force to reduce reliance on costly agencies.
Revitalising Catering Contracts
Strategically collaborating with hospitality management consultants provides venue operators the tools to reclaim command over their financial performance. Refined tender management and meticulous reviews of catering contracts offer insights into potential cost-saving adjustments.
Catering Contract Reevaluation Tips:
Review and Audit your Commercial Catering Contract: Scrutinise the details of your commercial catering contract meticulously. Evaluate whether your catering partner is meeting the established Key Performance Indicators (KPIs) and delivering on agreed-upon expectations.
Determine Contract Renewal Dates and Negotiation Timings: Identify upcoming contract renewal dates and strategically plan negotiation timings. Being proactive in this regard allows for more favourable terms and ensures a seamless transition if needed.
Clearly Define Expectations, Goals, and Values: Establish a clear framework by articulating expectations, defining goals, and aligning on core values for the catering partnership.
Prioritise Essential Elements: Prioritise elements crucial to the success of your venue, whether it be capital investment or a commitment to exceptional customer service. Aligning values and priorities ensures that the catering contract contributes effectively to your overarching business goals.
Benchmarking for Better Business
Undertake benchmarking programs to assess your venue's performance against industry standards. Learn from the experiences of others, such as Perfectly Paired, who discovered alarming lapses in customer service among landmark venues in our recent work. Benchmark sales processes, address issues with the sales team, and ensure prompt responses to event enquiries for increased lead conversion rates.
Event Sales Management: A Numbers Game
Effective venue sales and marketing requires clever planning. Review sales midway through the financial year, aligning them with your strategy and making necessary adjustments for success in the upcoming year. Assess yield strategy through occupancy reporting, evaluate the sales pipeline's strength, analyse lost business reports to identify key themes and track sales against the budget. Conduct a thorough competitor analysis to prepare for potential pricing increases.
Maximise your venue's success in 2024 with the support of Perfectly Paired. Book your complimentary consultation today to kickstart meaningful changes and sustained growth for this year and beyond.
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