How to future-proof your food & drink business

From mailing lists to portion control, meet the cafe owner fighting back against the cost of living crisis by implementing future-proofing business strategies.

Lydia Papaphilippopoulos-Snape definitely isn’t shy about fighting the cause of small venues in today’s increasingly volatile hospitality environment. As the owner of three cafes and a cafe bakery in Warwickshire and the West Midlands, she’s rapidly becoming a compelling and outspoken online voice in hospitality. She has plenty to say on her Instagram @lpapznape so take a look… here’s a snapshot to whet your appetite.

How can careful portion control save you money?

A lot of venues buy cake in and portion it up, but if you only get eight slices instead of 10 you’ll lose thousands of pounds over a year. The cumulative effect of poor portion control is huge. For a cafe or bar using lots of milk, coffee, flour – you name it – you need to know the portion size that gives you the best margins… and be stringent in sticking to it.

What advice can you give on cash flow and card fees?

Businesses assume the fees they’re paying are a given, but they’re not. Your card merchant charges a standard fee per transaction, but once your revenue increases it’s time to use your new-found negotiating power. We work with trusted local suppliers, and I don’t want to negotiate their prices down – I’d much rather squeeze the big card companies that can stomach it. A 0.5% drop in card charges on £300,000 a year would go some way to hiring a part-time staff member or ensuring the best quality ingredients.

Are there any clever ways you can reduce waste?

Dropping food in the bin is like burning cash so we tread a line between not overmaking and underproducing. If we have croissants left, we cut and twice bake them with almond frangipani to make almond croissants. Any pains au chocolat become bread and butter pudding. We have a brilliant executive chef who is always coming up with new future proof business ideas.

What have you chosen not to cut costs on?

We won’t compromise on base level ingredients. The coffee must be single origin, ethically sourced to tie in with our fundamental business values of making good stuff and being nice to people. Venues must choose what’s important and stick to it. If an item becomes too expensive, we’d rather not use it than sell a cheaper, inferior version.

If you’ve had to increase prices, how has that gone down with customers?

My team is well equipped to answer questions about price by stressing our stance that we won’t compromise on quality – because it’s true. We know our products are good and stress that quality is non-negotiable. I sometimes answer online reviews by saying we are not expensive, we are high value and you get that certainty when you come to us.

How important is marketing and growing revenue during these times?

There’s a tipping point where you can’t keep saying ‘save, save, save’ and the conversation has to be about growing revenue.

We communicate our products’ ethical, locally sourced, fresh and high-quality attributes to customers via social media, because that is now the high street.

Never underestimate the power of mailing lists – they let you push perks and early access to exclusive events, as well as shining a spotlight on your suppliers. During the heatwave we offered a ‘buy one iced drink, get another free’ via email and had an extra 200 people in a week.

Tips for managing your hospitality team

Find people who share your values and they’ll represent your business every day. In interviews ask questions that try to see if people hold those values.
Be better at having tough conversations. Tell your team if they need to be better at certain things or your venue might not be the best place for them.
Give a damn about your people, have an open door to listen to them and signpost them to help if they have a problem.
I love my team to bits and they lift my mood when I’m having an off day. Praise them publicly and correct them privately.
Reward your people. We use the TiPJAR app and have regular ‘one on ones’.