When you own more than one restaurant
…or more than one Pub or coffee shop, then managing the business takes a new dimension and the size of your turnover or bank balance no longer cuts it. A part time bookkeeper will not help. Just looking after your VAT returns and having semi complete records to pass to your year end accountant will leave your business vulnerable.
The good news is, with more than one venue, you get an excellent opportunity to benchmark, particularly if they both operate on the same model. In Baxterworld’s 20 years’ experience providing hospitality accounting, using this technique has improved our client’s profits by over £1m during this period. Obviously, you need properly produced monthly accounts. As the saying goes, you can’t manage what you don’t measure.
As an example, let’s look at the KPI of Gross Profit/sales %age for beverages and your 3 restaurants or pubs are showing 67%, 71% and 72% respectively. On first sight, outlet 1 seems to have a problem, particularly if your stock system or stocktake provider suggests it should be 73% for that product mix.
As the manager or owner, you are now guided to review the following:
- Possible stocktake error
- Excessive loss cleaning pipes
- Inefficient product mix
- Supplier fraud
- Purchasing cost too high
- Customer pricing too low
- Employee fraud
You can see how, having your monthly P&L accounts for each site sitting side be side and reviewing the results monthly or quarterly, will make more money.
For more information email Ray Baxter at firstname.lastname@example.org