Hard times in HoReCa: new opportunities? Variant of answer from Mikhail Varanitsa General Manager of the Ramada lviv hotel http://www.ramadalviv.com.ua/

Based on the results of the financial diagnostics General Director of InBridge Consulting Pakulets Games interviewed the General Manager of the Ramada Lviv hotel Varanitsy Michael

What is it for you: difficult times in the hotel and restaurant business?

Simple times have never been and never will be. The systematic increase in the cost of energy resources, with a constant decrease in the purchasing power of the guest, with the imposition of anti-epidemic restrictions on this, sends very serious challenges and threats. However, this is the time to work on the Mission and Vision of the company, revise the financial model, diversify sales channels, consolidate financial statements and others, which ultimately will allow using the freed up resources to improve the   quality of services.And whoever copes with this will remain on the market, and others will join the ranks of losers.

What measures are you taking to improve the quality of services?

We are working to speed up the check-in and check-out process (check in / -out)
We take care of the healthy nutrition of the guest
We implement loyalty programs
We are improving the transfer service
Introducing special rates and anti-stress packages
We use different booking channels
Expanding the segment of additional services
We introduce a forecasting system
We take anti-epidemic measures

Where do you get the resources to provide high quality services?

The introduction of financial management systems, such as profitability and working capital management, allows freeing up both monetary and human resources, which can be directed to high-quality service.

What types of analysis do you use to make management decisions in Ramada Lviv?

The main types of analysis for making management decisions used by Ramada Lviv hotels are: break-even analysis, calculations of marginal income, margin of safety, operating leverage are made. In addition, we use the analysis of the effect on profit of changes in one of the elements of the operating leverage (prices, variable or fixed costs) and investigate the effect of the interaction of operational and financial leverage.

What are the main directions of working capital management, in your opinion, should be used in HoReCa?

This is primarily the management of working capital, namely: the operating cycle and the financial cycle (cash cycle), short-term and long-term financing of current assets. In addition, you need to pay attention to stocks, their turnover and optimal demand and the point of renewal.

What is the simple and practical use of profitability and working capital management systems?

Considering all the confidentiality of information, I can name one of the simplest results of using these systems, namely: the choice of a business process that needs to be outsourced

What are the prerequisites for using outsourcing in HoReCa?

The main prerequisites for attracting outsourcing in the hotel and restaurant business are:
improving the efficiency of resource use;
cost reduction;
increasing innovation opportunities;
optimization of states;
increased flexibility in management;
lowering risks, etc.

What are the main reasons for outsourcing certain business processes?

The main reasons, today, are economic - a decrease in break-even points in certain areas, which in turn allows achieving the ideal price-quality ratio, clearly calculating the boundaries of discounts, the main parameters of loyalty programs, etc.

What are the disadvantages of outsourcing in HoReCa?

Outsourcing is inherently a complex system with many benefits and risks.
Among the obvious shortcomings are the loss of control over certain processes and the leakage of confidential information.

What competitive advantages are obtained by transferring certain functions to external partners?

Concentration of business on key areas, saving resources on auxiliary operations in order to avoid most operational risks.

What are the main professions whose functions are in demand in the HoReCa sector on outsourcing terms?

Housemaid
Ancillary employee of the department of hospitality (Houseman)
Public area cleaner
Street cleaner
Florist
Dishwasher
Kitchen Utility (Stewart)
Laundry operator
Ironer
Waiter

The main problems when using outsourcing in the hotel and restaurant business are:

Lack of market, competition, which gives rise to low quality of services

Your suggestions for improving the quality of services, for example in the field of Housekeeping

The simplest: the creation of an association of housekeepers for the exchange of experience, solving issues related to the regulatory activities of state bodies

Hard times in HoReCa: new opportunities?

Definitely yes COVID-19 SARS-CoV-2 Hotel