Partners of the
HOSPITALITY ASSOCIATION
OF NEW ZEALAND (HOSPITALITY MAGAZINE FEATURE – MAY 2011)
Insurance Solutions Administered by Marsh Ltd
Working for the hospitality industry 24/7
It's 8.30 on a Friday night, most people have knocked off for the day, your restaurant is full, and you have just had an issue with a staff member and you need some expert advice...
The Hospitality Association can help you!
TO JOIN US CALL 0800 500 503 For more information visit www.hanz.org.nz or email nsc@hanz.org.nz
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HANZ partners
Something for everyone By Kathy Ombler COSTS, compliances and contracts – it’s a minefield out there running a hospitality business especially for the smaller guys and in these economic times. The good news is that help is here, for Hospitality Association of New Zealand members, that is. HANZ business partnerships offer significant cost savings, service and support and better still, there’s even more to come, promises national president Adam Cunningham. Remember the confusion over Easter, Anzac Day and public holidays? Throughout Easter, Hospitality Association regional manager Susan Bliss was fielding calls from members all over the country. Bliss was ‘on duty’ for the 24/7 HANZ advisory service, and as such was able to help and advise concerned members about Easter trading laws and staff entitlements.
However the association offers much more than a reassuring voice on the phone – legal advice, employee relations, contract templates, industry lobbying and more. Of all the many membership benefits, access to the organisation’s business partnerships is one of the most significant. Combine the annual turnover of all our members and it makes us a serious contender for partnership opportunities, says Cunningham. “With our membership numbers growing, even in recession times, there are opportunities for us to get pricing and supply deals that no individual operator would be able to achieve by themselves.” Certainly the organisation has grown significantly, confirms chief executive Bruce Robertson. In the last 15 years membership numbers have trebled to 2400 and over the last ten years numbers have expanded into the restaurant, cafe and accommodation sectors. “There’s
such a huge variety of partners there’s something for everyone, particularly small to medium enterprises who wouldn’t normally have access to these deals. Most members will find the means to save at least the value of their subscription, and that’s just for starters,” he says. Reg Hennessy, HANZ vice-president and owner of Hennessy’s Irish Bar in Rotorua, says the association puts in a lot of work to ensure the best deals are out there. “The different membership deals suit different businesses within the industry. It’s up to operators to pick the best out of them.” “I pick my needs and for me Sky network TV is probably the gem of them all, it’s such a necessity for our business. Our relationship is very close, especially with the current situation. We’re all finding it tough going and, unlike some others, Sky is being more considerate and trying to keep a lid on costs to help everyone get through these tough times.”
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Roster Timesheet Payroll
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Hospitality May 2011
My Sky is a tool I wouldn’t be without, as an Irish bar in the middle of Rotorua, he adds. “We record all games played overseas through the night and replay them at lunch next day for tourists and we do huge business throughout that, then we replay them again at night for the backpackers.” At Wellington’s Four Kings sports bar, Hosé Ubiaga also enjoys the Sky partnership. “We get quite a few pay to view events and get a really good deal through HANZ, probably saving up to $80 a month as well as saving on our monthly rental. Being a bar, city rents are generally quite high so it’s fantastic to get a saving on that.” Ubiaga is also impressed with HANZ partner Viaduct, a point of sale and Eftpos machine supplier. “Through Viaduct we’ve been able to replace our old Eftpos machines and the savings we get through our HANZ membership is fantastic. Plus the machines are faster and we’re saving on phone lines – the old machines went through the phone so we’ve been able to halve the number of lines and that’s saved us about $100 per month. Viaduct didn’t even charge us until our old contracts ran out.” Taranaki bar owner Doc Van Praagh has previously lauded the Marsh Insurance deals he gets through his HANZ membership, quoting savings of thousands of dollars in premiums for the four bars he owns. After Easter storms lashed his Butlers Reef cafe/ bar, at Oakura, he’s even happier. “We had a marquee destroyed, roofing torn and branches fallen on the bar. Marsh had an assessor out straight away and they’re covering everything, the damage, loss of income, no questions.” Still in Taranaki, Bertie Berleigh at Peggie Gordon’s Celtic Bar, in New Plymouth, enjoys the relationship he has with HANZ partner Bevinco. “I find Bevinco extremely useful. It enables me to monitor margins and how they are tracking, and detect unaccounted waste when it becomes an issue with staff, and then becomes theft. The HANZ partnerships are a great help.” Two years ago Bush Inn Tavern, in Riccarton, had an independent ATM machine installed through HANZ partner NZATM Services. Proprietor Garry Keast says the machine has increased foot traffic and benefited his business enormously. As well as freeing up staff time, he says carrying less cash in the till is an added bonus. Wibo Bosa, general manager sales and marketing for NZATM Services, says HANZ members receive a special rebate structure for the ATMs installed in their premises as well as other benefits. “Bar and restaurant clients have seen an average 14 per cent increase in business since installing independent ATMs. The patron can stay on site to get more cash, and can make a private transaction instead of over the bar, which also frees up the staff. “We are very pleased with the HANZ partnership, the feedback we get from HANZ members is very encouraging and looking ahead we only see an even more positive relationship.” President Cunningham is also looking ahead. “HANZ is currently going through some strategy planning and our focus into the future is that we need to ensure our partnership deals reflect the broader range of members we now have in the Association. “One of the key aspects we will concentrate on – as a result of membership feedback – is to develop a much broader range of partners. Historically our focus has been on bigger business deals. Over the next three years we are going to look at a vast range of partners across a range of accommodation and food and beverage suppliers.”
HANZ partners
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HANZ partners
How to decrease bar queues and increase sales.
Contact NZATM to find out how you can: · Increase sales by putting more cash into your patrons’ hands · Cut bar queues and increase staff productivity by reducing EFTPOS and credit card use · Earn attractive rebates on ATM transactions · Attract more patrons and ensure a longer stay
Call your HANZ ATM partner. Talk to us first. t. Phone: 0800 4NZATM (0800 469 286) info@nzatm.co.nz www.nzatm.co.nz
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HANZ partners
VIADUCT Offer For Hospitality Viaduct is HANZ's preferred EFTPOS supplier. We understand the hospitality market and therefore have come up with great deals. Additionally HANZ members save over $600 per year! ONE: Upgrade to a Hypercom T4230 that offers GPRS connectivity, which means no phone lines. This also includes a wet cover to protect your terminal from dirt, dust and spillages vital in any hospitality situation. This terminal is $53.95 per month, but for HANZ members it's only $43.95 per month* a saving of $10 per month. TWO: HotSwap is a spare terminal onsite should anything happen to your existing terminals or phone line. This offer is valued at $24.95 per month, however the more terminals you have with us, the cheaper the HotSwap terminal will be. For HANZ members this offer is absolutely free! THREE: Get your brand out there by adding your logo onto your receipts** for $4.95 per month. For HANZ members you get this free and as an added bonus, change this image as many times as you like!
Why Viaduct? New Zealandâ&#x20AC;&#x2122;s leading independent eftpos company. Access to every compliant eftpos solution at New Zealandâ&#x20AC;&#x2122;s Best Price Guaranteed! No finance company, which provides flexibility for terminal choice and contract length. Direct relationship with us for servicing.
*Terms and conditions apply **Only for customers who lease new Hypercom equipment
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Email hospo@viaductnz.co.nz to take up this offer
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Upgrade NOW by calling 0800 484 238 | www.viaductnz.co.nz Hospitality May 2011
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HANZ partners
Are you paying too much for bag in box syrups? 45 provides an easy, cost-effective postmix alternative, offering you a choice of 14 postmix flavours (8 at each gun) plus soda and chilled, filtered water. Quality mixes, with maximum fizz and tastes equal to big brands. Customers canâ&#x20AC;&#x2122;t tell the difference. Increase your bottom line profits at the bar, improve efficiency and customer satisfaction. Hook up to 45. 45 will free you from your current postmix supplier and the problems associated with storing bottled mixes, keeping them cool and keeping them fizzed. Not to mention getting rid of the empties. Switch to convenient, best priced 45 and Postmix for Profit. Mixes at prices to increase your margins without increasing your prices.
FOR SUREFIRE SAVINGS ON YOUR MIXES, CONTACT US TODAY. FOUNTAIN DRINKS PHONE 0800 44 44 03 F OUNT AINDR INKS.CO.NZ
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HANZ partners
How much money are you really making? WHAT is your beverage GP? Is it as high as it should be? Most bar and restaurant owners would answer yes to this question, but how do you know? Increasingly this question is now usually answered only with a puzzled look as many owners realise that they really don’t have any accurate idea. Most are realising that the traditional way of evaluating beverage operations is inadequate in today’s world. For most of the past century, restaurant and bar owners have evaluated their operations based on their Gross Profit (GP). Unfortunately, this traditional method has serious defects that limit its effectiveness. The main problem with GP is deciding what to compare it against. How do you know if your percentages are in-line? Most operators simply look at the average GP in the industry or at their own historical costs. On that basis, most are happy if their GP is around 70 per cent, but even if your costs match these arbitrary targets they are still probably much too low. The reality is that almost every bar and restaurant has problems with shrinkage. Bar owners have perennial problems with bartender sloppiness, unauthorized giveaways, over-pouring and outright theft. At Bevinco if we had a $1 for each time an owner told us that they were right on top of his business and that they didn’t have any problems. DO NOT KID YOURSELF! When we start to work with a new client we generally find anywhere between 20% and 30 per cent shrinkage. GP is adequate for budgeting: it is simple to figure out and easy to understand. but, it is not the correct method for evaluating your business and is almost useless for determining or preventing product loss. Here are 2 reasons why; 1. The mark-up on all your products is not the same. For example, a bar will usually mark up their well products and premium
products quite differently. Markups on different wines on a winelist is another example. 2. Your product mix changes from dayto-day, month to month and season to season throughout the year. You cannot control what your customers will order
or which customers will come into the restaurant. Thus, if you sales mix in a given month was higher in well drinks or draught beer, your cost percentages would have to be higher - regardless of any other factors. The result is that your target GP will also vary continuously and not be the consistent. Our industry has been slow to recognize this. Most operators will still tell you that their bar is doing well because their GP is over 70 per cent. Many operators have however realised that that they need a better method of analysis and that there must be a better way. Here, then is the correct way to measure your operations. It is based on the following principles: 1. First, the person conducting the analysis should be independent of the operations.
Every Drop Counts. . .
money do you think
How much you’re losing? Do you know your true
pour costs?
Bevinco are a Preferred Partner of HANZ
A lot of venues entrust their bar managers to take inventory, but they are not objective and unbiased. Owners or independent companies are the best choices. 2. Precision is critical in determining on-hand inventories. Tenthing bottles visually, shaking product you can’t see – e.g. Baileys, Kahlua, Opel Nera – is not acceptable. Similarly kegs of beer should be weighed for total accuracy– not simply shaken. 3. The amount of product used should be converted to units. For example;2789 mils of Jim Beam used. 4. This usage should be compared directly to the number of units sold. If this bar used 2789 mils of Jim Beam but only sold 2400 mils then the bar is missing 389 mils. The best part about this method is that missing product is easily identified. You then have the tools to hold your staff accountable for shortages. If you can tell your bartenders that there were 35 bottles of beer missing last week, you will soon have this problem solved. Your profits will quickly increase – and you can ensure they stay that way by performing these procedures on a regular basis. How much are operators losing if they just look at their Beverage GP percentages? It can be an awful lot. For example, a venue had recorded sales of $10,000 for one week and a GP of 69 per cent, but, based on product usage, their theoretical or ideal cost was really 71 per cent. This difference of only two points cost the owner over $635 each week or $33,000 per year. Sadly, the truth is that most operators are satisfied that everything is fine because Gross Profit numbers look good. They should ask themselves two more questions: Am I really sure I don’t have hidden shortages? Can I afford to rely on antiquated measures like GP alone?
We specialise in: • Bar auditing and assessments • Profitability analysis and improvement • Stock control policies and processes For more information contact Peter Nelson Bevinco New Zealand, Ph 0800 238 462 Email peter.nelson@bevinco.co.nz
The name in hospitality that means maximised profits. Hospitality May 2011
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r u o y e g a le n p a o M e p e h t d n h t a i t s w r risks ally unde u . t c e r a a o y h w he t t a h w on w o n Call 26 946 4 0800
Identifying hospitality risk takes a thorough knowledge of the industry. With HANZ Insurance Solutions youâ&#x20AC;&#x2122;ll never get caught out. Talk to us about cover for your business and youâ&#x20AC;&#x2122;ll discover how easy it can be.
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HANZ partners
A REFRESHING SELECTION WITH SKY
PROVIDING HANZ BARS WITH A 25% DISCOUNT ON THEIR SKY SUBSCRIPTION.
To find out how SKY can help your business call us on 0800 759 333 *Conditions apply
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www.skybusiness.co.nz
HANZ partners
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HANZ partners
Red Cross offers Comprehensive First Aid courses. Red Cross can organise courses to be run at your workplace. Red Cross have full time professional tutors delivering consistent training nationwide. Red Cross can tailor courses to suit you. Red Cross have the most up-to-date training techniques and training aids. Red Cross provide a variety of courses and are happy to discuss your needs. SPECIAL NATIONAL CONTRACT PRICES FOR HANZ MEMBERS
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HANZ partners
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