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 email@example.com.
but don't let it impact profit
Don't let your fear of theft hold you back
from generating more revenue and meeting
by JaNINE ROBERTS
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
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.
Table of Contents for the Digital Edition of Today's Hotelier - June 2016
Letter From the Chairman
Letter from the President & CEO
Captive Insurance: Turning an expense into an asset
Compliance & Legal
Women Rising: Knocking down barriers
Sales & Marketing
The Magic 11: Essential qualities of successful hotel owners
Behind the Scenes
AAHOA Founding Members
Today's Hotelier - June 2016