In the dynamic world of hospitality, sustainable success is founded on the ability to persistently prioritise operational optimisation. From Venners’ perspective all optimisation is reliant on the introduction of effective control strategies. In this article we explore the control strategies that are required to establish a continual process to revolutionise hospitality operations.
What is operational optimisation in hospitality?
Operational optimisation is about achieving excellence in efficiency. Within the hospitality industry, the term refers to the systematic process of enhancing the efficiency and effectiveness of hospitality operations.
Although Venners primarily focus on food and beverage operations, the optimisation process is relevant to all business areas within a hospitality venue.
The process encompasses a wide range of activities that leverage data and insight, including managing resources, improving standards, and streamlining workflows. It is not merely a one-time initiative; it is an ongoing commitment to continuous improvements in order to create a seamless business.
At its core, operational optimisation integrates various facets of hospitality management with relevant controls. This ranges from front-of-house services like check-in and dining experiences, to back-of-house functions such as inventory control and staff scheduling. The process requires a scientific approach to analysing performance metrics with the intention of identifying and resolving bottlenecks and other issues.
Why is operational optimisation important to hospitality operators?
Hospitality businesses rely on optimisations to reduce costs and boost revenue growth. It also helps operators drive excellence standards, which underpin their business’ reputation and customer satisfaction levels. In other words, mastering operational optimisation is not just about efficiency; it is about creating memorable experiences that resonate with guests long after their visit.
Reducing costs and finding new methods of boosting revenue growth has never been more important than today. In a highly competitive market that is plagued by external pressures such as rises in duties, taxes and business costs, the optimisation process is intrinsically linked with the survival of any hospitality business. By optimising controls businesses can effectively reduce costs and at the same time boost revenue growth.
Ensuring that operations run smoothly can significantly enhance the overall guest experience. A well-optimised operation means that guests can be satisfied with timely service, personalised attention, and a consistently high standard of quality. This not only fosters repeat business but also generates positive word-of-mouth referrals.
Key challenges in operational optimisation
One of the primary challenges to the operational optimisation process is the complexity of managing diverse operations across different departments. In a hotel, for example, the front desk, housekeeping, food and beverage, and maintenance teams must all work in harmony.
Miscommunication or lack of coordination can lead to control gaps, delays, errors, and ultimately, a diminished guest experience. This challenge is further exacerbated in larger establishments where multiple properties or brands are involved.
Another significant challenge is the rapid pace of technological advancement. While technology can greatly enhance operational efficiency, the constant evolution of tools and platforms can overwhelm staff and management alike. Not only that, the sheer volume of data that these technological tools and platforms output can be equally overwhelming.
Implementing new systems, or facing unexpected system changes, often requires a period of adjustment and sometimes extensive training. This can both temporarily disrupt and, in some cases, completely alter hospitality operations.
Additionally, not all technology solutions are created equal; choosing the right tools that align with specific operational goals is fundamental to the upward trend angle a business sees in its optimisation journey.
Moreover, the hospitality sector is particularly sensitive to external factors such as economic fluctuations and seasonal demand variations. These elements can drastically affect operational capacity, making it difficult for businesses to optimise consistently. A strategy that works well during peak season may not be effective during off-peak times.
The role of data in operational optimisation
They say that data is king when it comes to optimisation. Whilst this is technically true, the saying does not account for the fact that data simply cannot exist outside of effective control strategies. Controls ensure that accountability and transparency are central to a business’ procedures. The data just evidences that the right controls are in place or not.
Unless data is followed by insight, data is just noise. Expertise in combination with constructive analysis is the foundation to gaining valuable insight, whether this is driven by AI, external experts or internal data-driven decision makers. Insight is where controls stem from. It is where the relevant key performance indicators are identified for tracking. It is also where the relevant responses to the issues identified through KPI tracking are formed.
The operational optimisation process
The Venners optimisation process is designed to implement effective controls. Hospitality operators can develop a comprehensive understanding of their operational landscape by following this effective operational optimisation strategy. It is essential to establish a baseline from which improvements can be measured.
Following that, it is vital to set clear objectives for operational improvements by setting SMART goals. For example, a hotel might aim to reduce check-in times by 20% within three months, or improve restaurant service ratings on review platforms by 15% within six months. These targets provide a roadmap for the optimisation process and allows internal teams to focus their efforts on tangible outcomes.
Additionally, involving staff in this goal-setting phase can foster a sense of ownership and commitment to achieving the desired results. The implementation of operational optimisation strategies can include enhancing training programs for staff, investing in new technology, redefining policies or redesigning workflows.
Ultimately, the operational optimisation process is cyclical; continuous evaluation and adaptation are vital for maintaining efficiency and excellence. As somewhat of a paradox, the process is also linear and recurring. Achieving an upward trajectory in optimisation is infinite.
The distinguishing factor between the cyclical and linear process is the convergence between the level of complexity required for optimisation to occur and the return on investment. This is where expert insight takes its place as the critical driving force to achieving true operational optimisation. Without it, the data may be available but the associated analysis and understanding would be lacking.
Operational optimisation facilitators
Businesses that are able to make the most informed decisions and have the most agile operations rely on any combination of internal operational experts, AI driven operational advice programmes and real-life operational excellence coaches such as Venners.
Venners are the leading translators and facilitators of turning operational data for food and beverage operations into insight. We have the expertise to offer constructive analysis on implementing effective controls. Through our unique combination of stocktaking, compliance auditing and profit consultancy services, we are able to give practical recommendations and advice to help transform hospitality businesses and drive operational excellence.
The Venners network is made up of expert coaches who impart their in-depth knowledge to businesses regarding operational optimisation strategies across stock and revenue controls.