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Transcript of Partners of HANZ
Insurance SolutionsAdministered by Marsh Ltd
HOSPITALITYASSOCIATIONO F N E W Z E A L A N D
Partners of the
(HOSPITALITY MAGAZINE FEATURE – MAY 2011)
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!
Working for the hospitality industry 24/7
TO JOIN US CALL 0800 500 503For more information visit www.hanz.org.nz or email [email protected]
Join us on Facebook & follow us on Twitter
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.”
Something for everyone
Hospitality May 2011 3
HANZ partners
RosterTimesheetPayroll
Done.
www.flexitime.co.nz
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.”
4 Hospitality May 2011
HANZ partners
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Hospitality May 2011 5
HANZ partners
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
Phone: 0800 4NZATM (0800 469 286) [email protected] www.nzatm.co.nz
Call your HANZ ATM partner. Talk to us first.t.
How to decrease bar queues and increase sales.
6 Hospitality May 2011
HANZ partners
Upgrade NOW by calling 0800 484 238 | www.viaductnz.co.nz
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 off ers 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 off er 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 off er 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 Zealand’s leading independent eftpos company.
Access to every compliant eftpos solution at New Zealand’s Best Price Guaranteed!
No fi nance company, which provides fl exibility for terminal choice and contract length.
Direct relationship with us for servicing.
Email [email protected] to take up this off er
*Terms and conditions apply**Only for customers who lease new Hypercom equipment
VIADUCT Offer For Hospitality
Pay
at ta
ble
Hospitality May 2011 7
HANZ partners
Are you paying too much for bag in box syrups?
FOR SUREFIRE SAVINGS ON YOUR MIXES, CONTACT US TODAY. FOUNTAIN DRINKS PHONE 0800 44 44 03
FOUNTAINDRINKS.CO.NZ
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 can’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.
8 Hospitality May 2011
HANZ partners
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 day-
to-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.
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?
How much money are you really making?
We specialise in:• Bar auditing and assessments • Profi tability analysis and
improvement • Stock control policies and processes
The name in hospitality that means maximised profi ts.
For more information contact Peter NelsonBevinco New Zealand, Ph 0800 238 462
Email [email protected]
Every Drop Counts. . .
How much money do you think you’re losing?
Do you know your true pour costs?
23 FS alcohol audit 1207.indd Sec1:23 11/26/07 10:57:46 AM
Bevinco are a Preferred Partner of HANZHospitality May 2011 9
HANZ partners
10 Hospitality May 2011
HANZ partners
Identifying hospitality risk takes a
thorough knowledge of the industry.
With HANZ Insurance Solutions you’ll never get caught out. Talk to us about cover for your business and you’ll discover how
easy it can be.
Manage your
risks with the people
who actually understand
what they are.
Call now on
0800 426 946
Hospitality May 2011 11
HANZ partners
A REFRESHINGSELECTION
WITH SKY
*Conditions apply www.skybusiness.co.nz
To find out how SKY can help your business call us on 0800 759 333
PROVIDING HANZ BARS WITH A 25%
DISCOUNT ON THEIR SKY SUBSCRIPTION.
12 Hospitality May 2011
HANZ partners
Hospitality May 2011 13
HANZ partners
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� 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
AVAILABLE NOW
14 Hospitality May 2011
HANZ partners
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Hospitality May 2011 15
HANZ partners