How Stock Processes Affect The Bottom Line & How To Manage Them

This is a guest article written by a friend and new partners of Hospitality Rewards, growyze.

With increasing business and insurance rates, rising utility bills, employee wages and supplier costs, hospitality businesses are facing extreme challenges when it comes to maintaining profitability.

Many of the hospitality owners we speak to at growyze are feeling forced into fighting inflation with actions such as reduced operating hours or cutting back on staffing. Both of which can have a detrimental effect on staff and customers!

Here, we wanted to suggest some other measures that can be an option in such trying times, to cut costs using better stock management processes.

Using stock management software to provide better cost control

growyze is stock management software that creates a closed loop between which stock is ordered, delivered, used, wasted and sold. growyze is intuitive and easy-to-use, meaning staff can be trained on the system pain-free, with straightforward reporting and insights that can be used to make better daily decisions - across venues. 

Know which suppliers are providing the best prices

growyze stores a list of products and pulls in the latest pricing information based on the most recent invoice from each supplier. This means that rather than having to hunt down how much a product costs you can instantly see it - before you order! When our customers start using this feature they often realise they’re selling products based on what they cost last month, or even last year, and oftentimes are making very little profit as a result. When you have live product prices, with a breakdown of profit margin, you can easily tweak your menu pricing based on the actual COGS.

Keep better cost control over product ordering

Most venues have a few different suppliers they can order from at any one time, and when Chefs and other staff members are making orders they often (and understandably) order from the first one they see. Yet using growyze you can easily see which supplier is providing the best price, and enable teams to only order from that supplier on either a temporary or permanent basis. This keeps costs low and ensures you have closer scrutiny on supplier pricing. 

Get daily visibility on the day-to-day activity within your business 

Hospitality managers and owners have so many plates to spin across HR, staff management, finance, marketing and day-to-day processes that it can be difficult to find time to deep-dive on data. growyze provides at-a-glance dashboards and reports on key information such as COGS, supplier price changes and gross profit so that better daily decisions can be made in the moment. This information can also be distributed by venue, allowing individual managers to access information on their own venue and use it to see where costs need to be reduced, or sales increased!

If you’d like to employ these practices to gain better clarity and control over your stock management process, book a free demo with growyze by clicking here

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