Expense Reduction Hospitality and Leisure Solutions

Gain a Competitive Advantage for your organisation with our Hospitality and Leisure Solutions

Overview

H&LI organisations deal with a wide array of expenditure, typically managed via complex supply chains. There are huge opportunities for businesses to find considerable cost reductions and service improvements, providing you have the expert resource to do so effectively. ERA has 100+ category experts at your disposal to help your team realise these opportunities, using a tried and tested methodology that works.

Hospitality & Leisure Industry organisations have always needed to focus on operational costs to ensure every penny is being spent as effectively as possible. Given the margins many organisations are working to, this focus isn’t just good stewardship of funds by conscientious operators; it is critical to help ensure survival.

Although the recovering global economy has generally helped Hospitality & Leisure operators, any increase in profit margins is expected to be offset to some degree by rising wages. Now more than ever, a holistic view of indirect costs is crucial to identifying where inefficiencies exist and can be improved. This is where external experts can greatly benefit your business.

Learn more about Hospitality & Leisure Solutions

Insights.
Case Studies.

Download our Hospitality and Leisure Solutions Guide

Effective purchasing of operational goods and services is not a ‘nice to have’. It is essential if operators are to minimise overheads and remain competitive. Download our essential Hospitality and Leisure Solutions guide today to explore how you can protect the future success of your business.

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An Introduction to Expense Reduction Hospitality and Leisure Solutions

One of the many industry solutions offered by Expense Reduction Analysts is focused on Hospitality and Leisure. The expert team behind Expense Reduction Hospitality and Leisure Solutions has decades of experience to help you overcome common and not-so-common purchasing problems. Here Chris Wardle, the Chair of ERA Hospitality and Leisure Solutions, provides a simple introduction to how our team of dedicated industry experts can help your business. Download our Hospitality and Leisure Solutions white paper today to find out exactly how we can help your organisation.

"There are significant opportunities to enhance service and quality whilst simultaneously reducing spend, through better buying."

Industry Outlook

The current state of the Hospitality & Leisure Industry is characterised by several key themes affecting profitability, such as attracting and retaining talented people and rising costs with respect to food, labour and property. Although the recovering global economy has generally helped Hospitality & Leisure operators, any increase in profit margins is expected to be offset to some degree by rising wages. Now more than ever, a holistic view of indirect costs is crucial to identifying where inefficiencies exist and can be improved.

Given the small margins many organisations in our industry are working to, this focus isn’t just good stewardship of funds by conscientious operators; it is critical to help ensure survival. Because rising costs bite and bite hard, the last 18 months have seen a huge number of well-known and not so well-known H&LI businesses go into administration, enter into CVAs or restructure and reduce their operations significantly.

Seize the Opportunity

There are few industries that consume the breadth of goods and services as the Hospitality & Leisure Industry. From F&B to Print; Business Rates to Payment Solutions; Laundry to Agency Staff, purchasing teams are expected to be subject matter experts in a variety of disciplines. And this is all set in the context of greater regulation and Corporate Social Responsibility.

The diagram to the right suggests operational spend areas that should be a focus for your organisation, along with characteristics of each.

"Obvious spend areas such as volatile Food & Beverages, Utilities, Business Rates, Cleaning and Waste are on most people’s cost radar. But what about other, less obvious areas of the purchase ledger?"

Hospitality & Leisure Solutions Case Studies

Away Resorts Case Study

Away Resorts is a UK holiday park operator, with six parks in Lincolnshire, Isle of Wight, North Wales, Hampshire, Hayling Island and Essex. Theirs was a simple yet important need. They needed expert resource to find better value for money across a host of cost areas due to a lack of in-house resource. ERA reviewed five spend areas including; laundry, food, LPG, waste and janitorial supplies. Savings ranged from 8-29%, equating to 6 figure sums in some individual reviews. These are impressive results. But savings aren’t everything. In addition, the non-financial benefits included improved board level reporting and oversight, greater visibility and control over spend and improved supplier relationship management. These benefits are wholly due to ERA’s expert approach of knowing how to tender complex spend to suppliers to obtain the best results, based on industry norms, typical category tips and hints and better matching suppliers with Away’s requirements. Away Resorts have been a client of ERA for over 7 years.

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Donnington Valley Case Study

Daniel Buck, Finance Manager for the Donnington Valley Group recognised the need to focus on reducing operational costs to generate profit improvement. Without a specific purchasing function, he acknowledged a more structured approach was needed. He chose to engage ERA. “The cost savings achieved have had a significant impact on our bottom line, and importantly, we have demonstrated best business practice and not just cost cutting. Lots of hard work has gone into the expenditure reduction programme, and we’re now much more aware of the many different solutions to our requirements than before.” Daniel Buck, Finance Manager The initial strategic review identified £2m of non-core costs, such as utilities, laundry services, print and stationery for independent analysis, which led to an overall a profit improvement in excess of £105,000. The initial project was so successful that it is now part of an ongoing programme of business expenditure reduction, which is proving more critical than ever given the current economic climate.

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"Although the recovering global economy has generally helped Hospitality & Leisure operators, any increase in profit margins is expected to be offset to some degree by rising wages. Now more than ever, a holistic view of indirect costs is crucial to identifying where inefficiencies exist and can be improved."

Our process is simple. Our sector specialists, all with extensive knowledge of their expert areas, use the skills acquired over impressive professional lifetimes to help you negotiate a better deal in overhead spend. Explore who we are and discover more details about how we work.

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