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How to cut costs without comprising quality
Getting funding to improve your business is not easy in a downturn but help is at hand from the Carbon Trust as they explain below.
In the current economic climate, most hospitality businesses are looking for ways to reduce their outgoings without compromising the quality of service to their customers. With so many overheads -such as rent - at a fixed cost, managers often feel they have no option but to cut staff. But this can be counterproductive, negatively impacting the customer experience and, in turn, the business's revenue and profits.
Our advice is to take a good look at your energy spend first. Many managers and business owners don't realise that energy bills are a controllable cost and that by implementing a few simple measures, significant savings can be made quickly. What's more, new interest-free funding is available to help small and medium businesses get rid of old power-hungry equipment that is inflating their energy bills and replace it with new energy-efficient technology that cuts costs.
An excellent example of a hospitality business that has reduced costs by using energy more wisely is the Lowry Hotel in Manchester. The hotel wanted to reduce both its costs and its environmental impact without compromising its five-star customer experience, so it asked the Carbon Trust to help it find the right solutions. We identified a range of initiatives for the hotel; as a result, it has cut over £37,000 from its annual energy bill as well as reducing its carbon emissions by more than 360 tonnes a year.
The Carbon Trust recommendations implemented by The Lowry include many of the latest technologies that are delivering excellent performance at a reasonable cost. The Lowry installed a building management system, which turns off lights and air conditioning in areas of the hotel that are not in use, and changed its lighting to high-performing energy efficient systems. It also fitted new control systems on its existing boilers and improved its air conditioning system. We also encouraged The Lowry to review its recycling systems and to involve its staff in the programme, seeking recommendations and ideas from everyone on how to change old habits and work in a more energy-efficient and environmentally-friendly way.
Savings of between 20% and 40% on energy bills are typical among the pubs, restaurants and hotels that the Carbon Trust works with, but not everyone has the cash at hand to implement the recommendations we make. And, in the current climate, low-interest bank loans are not easy to come by. That's why the Carbon Trust is stepping in with zero-interest funding for small and medium businesses, helping them upgrade their equipment to new energy-efficient models that can slash their energy bills.
The loans are repayable over up to four years and, in most cases, the savings made on energy bills. More than cover the cost of loan repayments Hospitality businesses can use an interest-free Carbon Trust loan to purchase around 80 different types of equipment, from kitchen equipment like fryers, induction hobs and fridges through to building insulation, boilers and lighting systems.
To find out more about Carbon Trust surveys and loans please visit carbontrust.co.uk/surveys or carbontrust.co.uk/loans or call 0800 085 2005.
Login to the member's area of the BHA website at www.bha.org.uk for The Carbon Trusts top tips for energy efficiency.
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