Today's Hotelier - June 2016 - (Page 34)

SALES & MARKETING 5.5-MinutE rEading tiME Have a question about how to maximize profits in hotel retail? Write to our editor at HotEl rEtail Shrinkage happens, but don't let it impact profit Don't let your fear of theft hold you back from generating more revenue and meeting guests' expectations. by JaNINE ROBERTS T o bE CLEar, ThiS arTiCLE haS nothing to do with george Costanza's late night dip in the pool - and everything to do with a variety of ways fearful managers unknowingly cost their hotel pantry revenue and guest experience to avoid the inevitable cost of doing business. In hospitality, it is well-known that there are unavoidable maintenance and repair costs for removing chewing gum in the carpet and replacing broken lamps and stolen towels. Similarly, in retail, it is well-known that there are unavoidable shrinkage costs to operate a lobby store that occur from guest theft, employee abuse and product expiration. Far too many managers desperately try to eliminate shrinkage by locking down products, placing small orders when supplying the store or eliminating important product categories. MistakE no. 1 If I lock all the backstock cabInets, my guests can't steal stuff! rESuLT: The front desk can't replenish the shelves on their shift because they can't find the keys or they just don't have time to go grab them. They have a few minutes to restock shelves, and this just made it harder. PoTEnTiaL CoST: The average hotel pantry transaction is $5.25. Every time a product 3 4  | June 2016 | TODAYSHOTELIER.COM If you only order "enough retail to stock your shelves, you will always find yourself wiped out when that soccer team bounces through your front door. " is unavailable, stores forfeit all or part of that revenue. By preventing a hotel sale just twice a day caused by lack of product on the shelf, hotels potentially lose more than $300/month in retail sales. SmarT hoTEL rETaiL: Don't sacrifice simplified restocking processes out of fear that a guest is going to walk into your store, reach into your backstock cabinet and steal a case of what is sitting right there on the shelf. Make backstock supplies easy to access for your associates so that it is quick and simple to replenish guest favorites. However, studies do show that the majority of shrinkage due to theft occurs by employees, not guests. If your backstock is stored outside of the store in back office storage closets or on another floor, it is best to secure those items to deter employee theft. http://www.TODAYSHOTELIER.COM

Table of Contents for the Digital Edition of Today's Hotelier - June 2016

Letter From the Chairman
Letter from the President & CEO
Lobby Bytes
AAHOA Spotlight
Captive Insurance: Turning an expense into an asset
Compliance & Legal
Women Rising: Knocking down barriers
Finance Q&A
Sales & Marketing
The Magic 11: Essential qualities of successful hotel owners
Behind the Scenes
AAHOA Founding Members
Advertiser Index

Today's Hotelier - June 2016