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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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.


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


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.


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


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


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.


HANZ partners


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

AVAILABLE NOW


HANZ partners

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Call 0800 44 44 88 or visit http://www.noelleeminggroup.co.nz/commercial/index.htmlto find a Commercial Business Manager nearest to you.


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