How the Pareto principle can transform your business

The Pareto principle, also known as the 80/20 rule, works in both life and business. Here’s how it can positively influence aspects of the hospitality industry.

What is the Pareto principle?

The Pareto principle suggests that roughly 80% of effects come from 20% of causes. In other words, 80% of your results from 20% of your actions. The Pareto principle is named after the Italian economist, Vilfredo Pareto. He discovered that 80% of the land in Italy was owned by just 20% of the population. This idea of 80/20 can be applied to a range of situations in life and also in business.

How can the Pareto principle positively impact business?

There are several ways you can take advantage of this principle to impact your business. The first is by understanding that around 80% of your business comes from 20% of your customers. This insight highlights the importance of customers as raving fans.

It’s also vital to note that roughly 20% of your time and effort equates to 80% of your results. It may be worth considering outsourcing or delegating trivial tasks that make up 80% of your time. By doing this, you can then focus on the 20% that could impact your business growth.

How does the 80/20 rule work for hospitality?

The idea that 20% of actions are responsible for 80% of results provides crucial insights for leaders in the hospitality industry.

Find smarter staffing solutions

If you’re in a senior role within your organisation, it's important to be smart about allocating your time, energy and resources. You should ideally aim to spend 80% of your energy on the things that you do well and 20% of your energy on everything else.

Ask yourself the following questions:

  • Which tasks can I delegate to other people in my team?
  • Am I spending too much time working on my weaknesses instead of leveraging my strengths?
  • What are my strengths that will help to grow the brand and business?


When it comes to your team, 80% of your sales will come from around 20% of your staff. It’s time to check in with your team:

  • How could this information affect your roster?
  • Do you know the staff responsible for 80% of productivity in your business?
  • How could these outstanding staff help lift others to the next level?

Grow food menu profits

One of the best ways to use the 80/20 rule in hospitality is on a menu. Rather than trying to be all things to all people, think of the adage ‘less is more’ to create a menu that is narrow and deep. Spend 80% of your energy identifying and developing the strengths of your menu and eliminate everything else to focus purely on your iconic dishes.

Ask yourself these questions:

  • What are our iconic dishes?
  • What are the 20% of items accounting for 80% of our food sales?
  • Which non-performing items could we remove?

80/20 is the answer for hospitality uniforms

Did you know that you wear only 20% of the clothes you own 80% of the time? The same goes for hospitality uniforms. It’s a given that you and your staff will always reach for the most comfortable uniforms in the wardrobe. Your favourite 20% of pieces are probably premium quality, long-lasting Cream Collection PRO pieces.

Imagine instead if 80% of these items were Cream - the most comfortable organic cotton aprons and chef uniforms. Think about the huge impact this change could have on your happiness at work and that of your staff!

How will you use the Pareto principle? 

Our long-lasting chef apparel is also available in custom designs to proudly show off your brand. Visit Cream Collection today to take advantage of the Pareto principle, improving staff morale, happiness and productivity.


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