Let’s face it everyone encounters money problems in some shape or form at some time. It must be the single most stressful thing managers and operators have to deal with, but there are ways to ease the stress from financial matters arising in your business.
Can you get a better deal from a different bank?
Are interest rates more beneficial or do the business services offer you more choice with a new account? Have a look around, some banks are very good for business accounts.
Can you increase your turnover by lowering your prices?
If you charge £20 for a meal and get 10 customers you’ve made £200 turnover – right! If you charge £15 for the same meal more customers are likely to come because it is a better deal for them, so let us say you double the number of customers you get through your deal, that would generate £300 turnover. Obviously your profit margins will be reduced but if you are in need of a boost and want people through the door then this is a good option to choose.
Can you decrease restaurant overheads?
If you find that restaurant sales are not covering your expenses, now is a good time to start trimming fat from stock take, payroll and other areas. Analyse your menu usage and see if there are items that simply aren’t selling. By decreasing your menu you can limit the amount of stock you need to order each week.
Cross utilisation of menu items keeps food spoilage down and allows you to use ingredients in more than one dish. For example, if you offer a homemade spinach and artichoke dip, try and offer other menu items that feature both spinach and artichokes.
If certain days of the week are slow, like Monday dinner or Tuesday lunches, reduce the number of staff working – both on the floor and in the kitchen. Now is a good time for the restaurant manager or owner to work some overtime (that’s why they’re on a salary and not paid hourly!).
Can you get a better deal from your suppliers?
Shop around, compare the prices of the products you buy from other suppliers. Say you spend £1000 on meat each week, you are a good customer as your account would make the supplier £52,000 a year. Contact different suppliers and tell them what you require each week and what deals they can offer you, or if you prefer to stick with your present supplier inform them that you can get a better deal elsewhere and see if they are prepared to match it. Let’s say you managed to reduce your weekly meat bill to £900, you would save £5,200 a year! If you could save £100 off 5 of your suppliers each week it would save you a massive £26,500 a year!