If maintenance was viewed by more businesses in the retail and hospitality sectors as an investment, would they see a benefit? We take a look at how this approach has made a positive impact for some brands.
The proof of the pudding is in the eating, so they say. In business, there all kinds of theories and practices that can hold a certain appeal in different ways. But you can only see their impact, positive, or negative, when you look at how either you or another organisation actually turns those ideas into reality. So, let’s look at how some brands take a very different view of maintaining their properties – and how it benefits their business.
Managing costs for retail and hospitality sectors has never been more vital. Reduced footfall combined with higher overheads inevitably drive businesses to examine where they can streamline their outgoings. But this means property maintenance is viewed as a cost to the business. In reality, maintenance is an investment in the business.
‘Investment’ can have a wide interpretation, and at times it can of course be intangible. But in the case of property maintenance, when viewed as an investment, the benefits are very much accountable on a bottom line.
Supports The Brand
There are arguably two very strong cases for looking at maintenance as an investment. The first is how good maintenance protects your revenues. A location that customers see is not cared for is a major deterrent to them walking through the door. A survey by Roland DG of consumers in the UK and Europe found over a third would not enter a shop with a badly cared for frontage. That is a major, and completely avoidable, reason for ensuring your locations are properly maintained.
By contrast, where a store is maintained via a cost-effective planned approach, this not only helps protect revenues and loyalty, it can also make a difference during promotions and seasonal campaigns, helping to increase takings and develop customer acquisition.
Reduces operating costs
This perhaps sounds a little ironic; how can spending money save money? In this case it involves looking at how planned maintenance impacts other operating costs. For example, HVAC systems which are under planned maintenance work more efficiently, and can consume up to 25% less energy. Similarly, optimised lighting using modern LED technology can have a dramatic effect on your electricity bills.
Planned maintenance also helps reduce insurance premiums, with less claims for damage caused by problems with the premises and faulty fixtures and fittings. There is also the extended life you can enjoy from correctly maintained serviceable items such as heating and air conditioning systems. Finally, if a property is to be sold or returned to the landlord, dilapidation costs can be significantly cut.
Improves Staff Performance and Retention
Imagine a workplace where the environment is not cleaned regularly, has unsafe areas, the equipment struggles to work, and performing even basic tasks is a never-ending source of frustration. That’s sadly not an extreme case scenario; many retail and hospitality locations suffer from a myriad of issues which prevent staff from delivering the best service to customers. And where this does happen, it hurts employee satisfaction and ultimately increases staff turnover – increasing hiring costs. All avoidable if the location is instead subject to an effective planned maintenance strategy.
The Key to Transforming Maintenance into an Investment
Moving maintenance away from being a cost involves looking at this area in a more strategic way. Ultimately, it means avoiding a reactive culture, where maintenance is restricted to fixing issues that achieve a priority threshold. Instead, by looking at each location longer term, reviewing the constituent parts and understanding what care they need and when, a high standard of care is achieved, more cost effectively.
Reaching this point, where you have a comprehensive strategy, is not without significant hurdles. The process can take time, finding trades that work to the required standards, and monitoring and adhering to the continually moving goalposts in compliance, needs experienced resources. Which is where Protect Plus is your best option.
Protect Plus places your retail or hospitality venues in the care of a dedicated team of experienced maintenance professionals. They take that time to review each location, define the needs, enact a strategy that is results oriented, and ensure every aspect of care and compliance is met. The result is a maintenance plan for your locations that actively supports your marketing, finance, and people functions, improving performance that can be measured, and helps you enjoy a stronger brand presence for less.
To find out how Protect Plus could help you reduce reactive issues, protect your locations and turn maintenance into a more measurable business advantage, speak to our team today on 020 8514 2777.
