Small and large bar owners experience a significant decline in profits and sales in an economic crisis. During this time, bar owners must save money to keep their businesses alive.
But saving money during an economic crisis is easier said than done. Not every entrepreneur knows the tricks of the trade, and some end up losing more money instead of saving.
Save yourself from this situation by adopting these money-saving tips used by many bar owners.
1.) Maximize The Power Of Internet
You can do so many things on the Internet, including buying cheaper yet high-quality ingredients for your bar.
Established supermarkets, such as Morrisons, Aldi, and Makro offers discounts on products for catering, so be sure to check when you’re about to restock your inventory, and take advantage of these deals to save your business money.
It’s also beneficial to sign up for your favourite brand’s newsletter to receive promos in your email.
You can also join loyalty programs online to qualify for exclusive discounts, promos, rewards, and even freebies!
2.) Automate Accounting
Bar owners can cut down costs during a recession by embracing automation. According to Forbes, automation can help businesses save up to $4 million every year.
It also boosts employee efficiency, productivity, and the quality of their work.
Bar owners can take advantage of automation by improving some of the most time consuming task such as the generation of invoices.
By using a free Google Sheet invoice template you can easily create invoices in bulk by dynamically generating data for different customers and start sending them out in a matter of minutes
Automating solutions saves employees time, they can now take on more significant, profit-generating tasks during the day.
3.) Offer Seasonal Menus
Your bar probably has items on the menu that cost more during the off-season. For example, certain fruits and vegetables tend to get more expensive during specific times of the year.
To save money, offer seasonal menus to your customers. This is a smart business move as it helps you save money and make your menu more interesting to customers.
The most popular and signature dishes on your menu should stay but look for replacements for ingredients that fluctuate in price throughout the year.
Once you’ve figured that out, add dishes that use ingredients that are in season. For instance, you can serve dishes that use blueberries and peaches during spring and broccoli and pears for winter.
4.) Use Social Media For Recruitment
Hiring an employee entails additional costs. On average, companies in the U.S. have to spend $4,000 to hire a new employee and spend about 42 days to fill one vacant position.
Thanks to social media, you can recruit top talent without spending the same amount of money and time.
It also gives you access to a broader assortment of candidates, allows you to learn more about the candidates, and makes it easier for candidates to reach out to your business.
To use social media for recruitment, begin by choosing relevant social media platforms based on the position you’re looking for.
For instance, if you’re looking for a graphic designer, use visual social media platforms like Pinterest, Instagram, or Imgur. If you want to add a programmer to the team, use online discussion boards.
5.) Revamp Your Marketing
Traditional advertising, such as newspaper ads and radio advertisements, have been around for decades, but that doesn’t mean they’re cost-effective.
Improve your strategy by concentrating more on digital marketing over traditional advertising, as the former is more effective and cheaper.
Start screen recording videos of yourself by opening up a presentation on your desktop and talking about the next improvements that your bar will undergo such as adding charging outlets into each sitting space, implementing QR codes into tables so that your customers can order right away without having to wait, etc.
This marketing strategy helps retain customers, and increase the chances for getting new customers by constantly improving aspects of your business.
Another way is to use social media to advertise your bar, including upcoming events and new items on the menu.
You can also optimize your Google my Business profile based on local SEO practices to improve your site’s ranking on Google maps. This helps you get more foot traffic and turn visitors into customers.
Instead of giving out flyers for daily offers, install a glass whiteboard at the entrance of your bar and have an employee update the writings.
This is not only a stylish and unique marketing strategy, but it’s also cheaper in the long run.
6.) Value Employees
As mentioned, hiring employees is expensive. With this in mind, prioritize taking care of your employees.
They are your most important assets that can help your bar survive any economic crisis.
Plus, all of the above-mentioned tips will be useless if you don’t have dedicated employees to help you.
Provide your employees with the tools they need to be productive, work safely, and comfortably. Listen to their feedback and give them a certain level of creative freedom.
Be open to their suggestions. Happy and satisfied employees are sure to perform at their best and stay with their employers for years.
Saving money requires time and effort. Even if you implement all of the tips mentioned here, don’t expect to see changes overnight.
You’ll need to incorporate these strategies into your business model and practice them daily to see results.
Consistency is key to developing better financial habits to ensure your business’s longevity and success.