Research by NIG, who are a leading commercial insurer, has shown that in the UK, 30% of catering firms and hotels are actively trying to cut back on their costs because of the mounting costs of raw materials. This is a key concern and a major factor impacting business performance.
Risks
The NIG research also reported that 1 in 20 catering firms and hotels in the UK have said that changing products and processes may be necessary, in order to offset rising materials costs that their businesses were facing. Around 8% of businesses surveyed are also concerned that as a result of these rising costs, they were now under-insured. 14,000 companies said that office equipment, materials and even stock had been stolen from their premises at some point during the previous two years.
Negotiation
Catering Insight points out that businesses may specifically see rising costs when it comes to those products made of stainless steel. Negotiating with suppliers can result in longer fixed price periods for companies, which will ease pressure on those all-important profit margins.
Long-term fixed prices
Commercial warewashers are an important part of any hotel or catering business and are an area where rising costs can be felt intensely. Looking for suppliers such as https://www.247cateringsupplies.co.uk/bar-supplies/commercial-warewashers that have an extensive range and offer special prices or long-term leases, can be particularly helpful.
Martin Hall from NIG has said that it is vitally important that businesses fully assess the risks they face individually, especially as the industry as a whole currently faces challenges. Contacting insurance brokers and informing them of any changes means that they are able to help alleviate risks and offer personalised advice.
Rising costs in many areas are hitting businesses. Adapting to these changes is important to ensure that a business not only survives, but is able to thrive. Having a thorough and up-to-date risk assessment is an important safeguarding tool. These assessments will be able to identify any measures that need to be undertaken, in order to ensure the wellbeing and safety of everyone involved in the business. Any adaptations in processes or business practices will require an updated assessment and advice from a professional regarding proper insurance, which will help to avoid exposure to unnecessary risks.