If you are a restaurant or bar owner, you know how volatile cash flow can be in the hospitality business.
One month you’re fully booked, the next you’re having to dig into savings to cover costs. This has only intensified over the past few years.
We’ve identified 7 strategies to optimise cash flow management in your hospitality business in 2024:
Analyse historical sales data to create an accurate annual budget based on past performance across seasonal peaks and dips. This enables smarter financial planning.
Build an emergency reserve fund equivalent to 2-3 months of operating costs to tap when cash gets tight.
Regularly review and negotiate with suppliers to negotiate discounts and cut unnecessary costs.
Explore discounts for high-cost utilities to reduce seasonal electricity and gas spikes by 15-20%.
Run promotions during typically slow months to generate cash infusions when you need them most. For example, Valentine’s Day, and Mother’s Day are opportunities.
Reschedule staff rotas depending on demand. Consider cross-training staff to maximise flexibility.
Actively seek feedback from customers, address concerns promptly, and use insights to enhance your offerings. Satisfied customers are not just repeat business; they're a steady stream of revenue.
A steady cash flow means you can cover costs, compensate staff, and continue growing your business without uncertainty.
We help bars and restaurants across London manage their cash flow and maximise opportunities.
Contact us to talk about your hospitality business.