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Small Business Restaurant - Complete Controller

The small business restaurant is one of the more challenging businesses to own. Chain restaurants have the advantage of national or global ad campaigns that benefit franchise owners, but the small business restaurant must use creative strategies to get enough business to succeed. These strategies also need to be low to no-cost to help the business while not eating away profits. Here are marketing strategies that will get people ordering, eating, sharing, and returning, that won’t break the bank. Check out America's Best Bookkeepers

Promotions and Coupons

While the taste and quality of the food served will be the biggest draw for a restaurant, customers will be equally concerned with cost. Offering coupons on the next meal or running specials and promotions will keep them returning as much as the excellent food. Even higher-end restaurants can benefit from promotions and coupons. While exclusivity can take a restaurant far, there are certain points in a restaurant’s life when the business takes a dip. All restaurants can be creative in how they make offers to their clients while keeping with the brand’s reputation.

Website

Having a business website featuring your menu and information is a must for a restaurant. The website should be inviting and include pictures of mouth-watering food, and the warm atmosphere customers can expect when they visit. An added attraction that could bring your restaurant more business through the website is to have an online ordering feature. This feature will allow take-out customers to peruse your menu longer, often resulting in added items they may not add if ordering over the phone. Check out America's Best Bookkeepers

Social Media

The most effective social media platforms for small business restaurants are Facebook, Instagram, and Twitter. All of these platforms allow the restaurant to interact directly with both regular and potential customers. Posts on social media should focus on the restaurant, the food, information, and engagement. The goal is to increase your online presence to help potential customers find your restaurant.
 

Reviews

Don’t be afraid to ask customers to review your restaurant. Many potential customers use search engines to find new restaurants to try in their area. When deciding to try something new, online reviews play a significant role in driving your restaurant’s traffic. Giving special offers, discounts, or free food or drinks in exchange for a review is a low-cost way to drive significant traffic to your restaurant.
 

Blogging

Adding a blog to your already engaging website can bring more traffic to discovering your restaurant. The content needs to be keyword-heavy, simple, and engaging. Use your website analytics to discover what search words bring traffic to your site and make sure every blog includes those words. Using humor and including community interests, and featuring food and restaurant staff will have people want to try you out. Check out America's Best Bookkeepers

 

Recipes and Cooking Classes

Believe it or not, though many people love eating out, so they don’t have to cook when they cook at home, they like to duplicate some of their restaurant favorites. A way to get more customers in the door is to offer your top chefs cooking demos while not giving away all your secrets. Even sharing recipes online for favorites will get people coming to your site and either ordering food or bringing them to your restaurant. The bottom line is, people love to learn something and interact with the chefs. This could be an easy way to draw in new and returning customers.

 

Interaction

Outside of digital marketing strategies, you should employ other tried and true marketing approaches. Run ads in local publications as can be afforded, attend community events, hand out free samples, and use flyers and signage.  Interacting with potential customers will get them in, and your food and atmosphere will keep them coming back.

 

Conclusion

When running a small business restaurant, marketing is the most important element in your business’s success outside of the food quality. Everyone knows most restaurants fail within the first three years, but your restaurant doesn’t have to be part of that statistic. Implementing these simple marketing strategies will make your small business restaurant the hottest game in town in no time!

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

1. Be organized and keep a calendar

Compared to other approaches to run a methodical move, change is to keep an agenda and composing process. Make sure each part from the earliest starting point to the end of the specific move is recorded. The director must watch that all nourishment orders have been conveyed, all cleaning undertakings have been completed, and all side work/prep has been finished effectively. Sometime chiefs may give servers authorization to leave early, yet it is imperative to ensure regardless, they comprehend that there are closing obligations to finish before they take off.

You Should Know: some “profound cleaning” work must be done occasionally, as once per week or consistently. This can incorporate sterilizing the dividers, cleaning and refilling the salt and pepper shakers, and tidying roof fans. With regards to profound cleaning, it’s as yet critical to set aside a few minutes in the calendar for those assignments as opposed to expecting they’ll complete in the end. Check out America's Best Bookkeepers

2. Lead more meetings

They must be five to ten minutes yet influencing meetings to pre-plan for the shift, so this guarantees that everybody working agrees. This is an opportunity to tell representatives about any procedure changes, report organization news, examine upselling and short stock things, or point out a staff individual’s great work. Move gatherings likewise enable servers to make any inquiries previously benefit starts; this stays away from these inquiries backing off your lounge area or kitchen amid the center of the move when all chiefs are occupied.

3. Consider every representative responsible. Check out America's Best Bookkeepers

Every worker ought to be considered in charge of their particular obligations in the eatery. On the off chance that a finish of-the-night errand is not finished, the morning movement should get a move on. This is out of line to the later staff (who have their particular pre-move obligations to complete) and can cause intensity towards both the prior staff and you as a pioneer. Ensure everybody finishes their begin and end move obligations.

Similarly, as significantly, you ought to be associated with these errands. While doling out errands is an imperative piece of the activity, don’t merely give orders – demonstrate your representatives you’re willing to get your hands grimy and work with them to complete the work. That is the ideal approach to keep your staff inspired, even toward the finish of a taxing night.

4. Reliably prepare for move changes.

Move changes ought to completely be a piece of your preparation when expediting another worker. From the first day of their work with you, servers ought to be instructed the correct system for beginning and completing a move, regardless of whether that implies opening the eatery or shutting it. Periodical retraining is likewise a key factor in having shift changes run easily. Invigorating everybody on these techniques guarantees any deception from past preparing (or from their previous businesses) is rectified and enables servers to feel more certain about what they’re doing.Check out America's Best Bookkeepers

5. Abstain from closing early.

It can be enticing for servers and administrators alike to complete all the end of day tasks towards the finish of administration so the staff would all be able to go home right when you close. Be that as it may, this can be an issue when you have late night clients that come in just before closing.

On the off chance that your lounge area isn’t excessively occupied, a few representatives can deal with certain end undertakings — outside of the clients’ view — however, you should keep a similar level of administration to the last moment of your working hours. That implies you do not set up seats or start end-of-the-night cleaning until the point when those last clients have left.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

The process of restaurant monitoring involves the gathering of data about the performance of the entire restaurant. This includes the individual performance of employees and other factors. The system collects the data necessary to find the causes of the failures of the restaurant. This helps with planning for further development of the information base of your restaurant.

All the collected indicators of the restaurant are saved and available for further analysis. For each of the indicators, relevant analytical tools are provided: diagrams, alarms, and reports. Bookkeeping is a valuable tool that can also be used in this process. Check out America's Best Bookkeepers

If the reviews of your restaurant are not more than 100 per week, you do not need a monitoring system. If the feedback is much larger, or important for you to know, you need a monitoring system.

Monitoring the key performances of a restaurant can be difficult. Also, monitoring the trends and preferences of your target audience is important.

Monitoring and Key Performance Indicators for Restaurants

  1. Staff management

Salary expenses (%) – expenses for wages, as a percentage of sales.

Total labor cost (%) – the amount of salary costs and other costs that cover insurance, retirement, pension, and other taxes included in your payments as a percentage of sales.

Labor time (hour) – This indicator is especially useful for comparing sales with the productivity of staff. Check out America's Best Bookkeepers

The function of labor load (for the time-based form of payment for personnel)-Executives usually charge a surcharge to the service staff for the amount of wages.

The average duration of employment- A way to test your progress in retaining staff is to add the total number of weeks that all your people worked for you and divide it by the total number of staff.

Average hourly rate – Divide the total wage by the total number of hours worked by your staff.

  1. Production management

The cost of food (%) – The cost of food, expressed as a percentage of sales of dishes at a price in the menu. This indicator can be used both for specific dishes and for all products in a public catering establishment. This indicator (28-35%) helps to properly form and control the price of the dish.

Total cost of products – Shows how big your total cost of products was. Equal to the average prime cost multiplied by the number of units of measure. Check out America's Best Bookkeepers

  1. Cost price per customer

The cost of production of dishes (%) – This figure is calculated as the cost of production of dishes to the sales of these dishes. Bar products (alcohol, drinks, etc.) are not considered.

Labor costs for the production of meals menu (hour) are the number of hours worked compared with sales to measure performance.

  1. Office of the restaurant (Front of House & Restaurant Management)

Total sales per person is the ratio of sales to the number of customers compared with the previous week or month. Analysis of fluctuations are at different times of the day.

The number of customers is a simple indicator and a good measure of your popularity.

Analysis of the cost of uniforms, aprons, tablecloths, etc. These costs can easily shock you! The productivity of personnel determines the labor costs of the staff of the hall (waiters). The ratio of sales (the amount of closed accounts) of the waiter to his labor costs. Customer satisfaction is a general characteristic, based on the analysis of feedback information, complaints, and other methods.

  1. Sales and management functions

The effectiveness of marketing and advertising costs are basically your marketing and advertising costs that are comparable to your income from them. It is a difficult indicator to measure, but definitely worth it.

The number of pre-orders, one should be attentive and active enough to get the orders in the week and a month, and so on. Especially at peak times, for example, for the New Year.

 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Business growth is an organic process that is a response to the effort of the business owner. An excellent promotional strategy is based on limiting the ideas that may devalue the restaurant. Do not create an unsustainable customer expectation like getting 50% off. This article will give guidelines to promote the restaurant and will help in building a customer base.

  1. Sign-up for Success

Signs and logos help in generating a lot of business. The placement of in-house signs and menu boards is important. The restaurant can also advertise through their ad printed on receipts and printed versions of the menu that the customer can take home. These techniques will help in building a customer recall about the brand, so in-house signage, ads on receipts, and menu distribution can produce repeat business. Check out America's Best Bookkeepers

  1. Get the Website Ready

A responsive website is essential to get the greatest reach. It should be a priority because all marketing will be based on an effective, functional website. The site is as important as the physical location of the restaurant.

  1. Define Goals

Create a business map that lays out the plans to reach customers. Knowing the demands of customers can help the restaurant to build customer loyalty. Once the owner identifies his target customer, it will become easy to plan an effective marketing strategy. Check out America's Best Bookkeepers

  1. Optimizing Online Presence

Optimizing online presence is essential to target the restaurant’s market. For effective marketing and customer retention, get the menu online. Nowadays, customers often make online reservations or orders via a computer or smartphone, so it needs to be easy for them to access the menu.

  1. Use Multiple Promotional Channels

Assessment of effective marketing channels helps the restaurateur to achieve short-term as well as long-term goals. It requires a proper action plan to market the business successfully. The restaurant owner should break down his marketing budget. The suggestion is that 80% of the budget should be for digital marketing and 20% for traditional marketing such as TV commercials, newspaper ads, and hoardings. Always refer to the website to get the greatest promotional advantages. Check out America's Best Bookkeepers

  1. Use of Social Media Platforms

Social media is one of the most effective and efficient promotional tools to get maximum reach. If a restaurant is lacking in social media presence, it can lose touch with the essential market. To find out what is best for the customers and cuisine, restaurateurs must get involved with all the social media platforms. The owner must post related content and keywords to get the most customer engagement. 

  1. Cinema-graphs

Everyone spends a lot of time looking through social media feeds. We all are looking for the next big and exciting thing to catch our eye. This is where cinema-graphs shine. Cinema-graphs are creative yet sophisticated gifs that look like an HD image. By looking closely, a person can see that the photo is continuously moving. Creative cinema-graphs are a great way to grab potential customer’s attention.

  1. Communicate, Interact and Engage

Digital tools such as smartphones, along with other social media related platforms, can help a person directly get in touch with potential targeted customers. Use these platforms to solve queries, concerns, and answer relevant questions to show devotion and commitment towards your product and clients.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

According to the American Restaurant Association, and as you may have noticed in your country, the prices of raw materials have increased by 25% in the last five years. What unfortunately translates into increasingly lower profit margins.

Faced with this situation, controlling your spending on food is not an option; it is a necessity. Because if you do not, you not only lose money, but your business is in danger of having to close.

 

The control of costs, your biggest ally

In the School of Online Catering Gastronomic Marketing, we want to help you to make your restaurant profitable. With these five essential tactics, you can save yourself from losing money in the purchases of your restaurant. These tips will help you not only to stop losing money but to be competitive and get more benefits.

 

 

  1. Control the weekly spending on food and pay attention to your suppliers

There is no better way to control the costs of the ingredients you use than by checking their price.

It may seem logical. But you cannot imagine the number of restaurants that do not know how much they spend or even the price of what they are buying. Check out America's Best Bookkeepers

 

  1. Know the cost of each recipe, put a profitable price on your menu, and review it every month

Knowing what it costs to make each of your dishes allows you to not only be useful in terms of taste but also for your pocket. For this, you must use the scandal.

The scanner helps you to know the cost of a plate before doing it and to determine the total cost (per person) according to the raw material you use.

 

 

  1. Buy in bulk

When it comes to controlling costs in food, whenever possible, buying in bulk will help you save. This means that you take inventory regularly, so you know how much you use for each product, for example, in a week. And thus be able to place orders in large quantities when necessary.

Many restaurants only take advantage of this tactic for large items such as chips, condiments, and paper supplies.

What they do not realize is that when you buy other items in bulk, you can save even more. Thanks to a good forecast in the management of the restaurant.

 

 

  1. Meet with your suppliers quarterly

Suppliers do not offer restaurants, as a rule, a list of rigid and untouchable prices, which means that you have a margin to negotiate.

This is why it is so essential to meet periodically with your suppliers and not only to obtain a discount on your most important products but also to check prices and prevent them from increasing. That’s where you’ll find a good tactic to save.

In fact, by implementing this simple tactic, you can save thousands of dollars per quarter on your food expenses and dramatically increase your profit margins.

 

Be up to date on what suppliers provide you with what product, their prices, pros, and cons when it comes to getting supplies, etc., will allow you to have a global vision and consider at any given time, change directly to the provider for another more beneficial.

 

 

  1. Search for waste and kill them

We have already mentioned that food represents a third of your budget, but on average, restaurants waste around 70,000 tons of food in the US.

An absolute barbarity against the environment! But, also, this reduces your benefits by a very high percentage.

Indeed, you cannot do anything with the food that comes back from the table of your customers. But you can (and must) act before the food reaches the plate. The best way to reduce and stop waste is to conduct inventories correctly.

If you know how much of each product you need each week, you will also know if someone is placing an excessive order, that three bottles of wine are missing from the store, or which products are less popular with your customers, and therefore they should stop asking for it. Change for others Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Nine out of every ten individuals appreciate eating out at a restaurant or food spot according to research conducted by the National Restaurant Association. On the other hand, more than half of the people who prefer to eat out say that restaurants are an essential way to enjoy food and have a good time.

If you are an owner of a restaurant or plan to be one, you may have noticed that it is often to stick to a specific cash control plan because of the rapidly changing food prices. Therefore, we have gathered seven rules for you that you can utilize to manage all your food costs, increase revenue and maintain bookkeeping records without hassle so that you can make money do wonders for your eatery.

1-Track Food Prices

When you own a restaurant, regardless of the type of food you serve, you have to buy new food items daily. It is therefore wise to keep a keen check on the food prices daily. Secondly, shop in large quantities on the days the food prices are lower. This way, you will save money and time simultaneously as you will not have to buy and update bookkeeping records daily of the items that you have purchased. 

By following the food costs, you can patch up your menu, so your formulas incorporate more reasonable choices. You should seriously think about more affordable options that will be readily available to you in the market like, for example, go for chicken thighs when buying meat as they prove to be comparatively cheaper. Check out America's Best Bookkeepers

2- Check and update bookkeeping Inventory daily

Do you know where your food is going? If not, we urge you to check your bookkeeping records frequently and reliably, so you remain aware of the food that is coming in and being sold daily.  

Keep check of the food, refreshments, and other supplies at least once every week. This habit will enable you to keep control of your expenses. When you maintain a constant check on the bookkeeping records, you have a superior thought of what’s being utilized, lost, or maybe even stolen. You can use your consumption rate to choose menu items that cost too much and figure out a plan according to what is beneficial to you and the development of your restaurant.  

3- Join a Buying Group

Purchasing groups prove to be beneficial for saving and cutting down on extra expenses to improve cash control. It is a collaboration of two or more organizations, not limited to restaurants, that purchased items required for the business collaboratively.

Join a buying group to bring down food costs. Another benefit is that because of the total volume of the acquiring power, providers regularly offer lower prices.

4- Try to do more Preparation Work

Sustenance that comes arranged is more costly than nourishment that isn’t. For instance, rather than acquiring cleaved lettuce, purchase lettuce, and cut it yourself. Or then again, rather than buying pre-influenced ground sirloin sandwich patties, make your own.

You can likewise work to lessen costs by cutting your chicken in-house. Slice your chicken bosoms to a similar size, and utilize the remaining bits in different dishes.

When choosing to do this, make sure that you record it in bookkeeping records to ensure it indeed is sparing you cash.

5- Review the Product related Specifications

Always keep a rough idea in your mind of what you pay for. Know what you’re paying for. For example, if you’re making pasta. Do you need marinara sauce, or can you use homemade tomato sauce?

Marinara Sauce is more expensive and saves the time needed for preparing tomato sauce.  Does this matter with pasta? No. So, go ahead, make the tomato sauce, and save a good amount of money! Just know what you are paying for because the grade does matter.

6- Manage waste

Keep a record of all the waste your eatery produces.

Utilize a waste graph and record any of the accompanyings:

Food returned because it was made inaccurately or unsuitable for a customer(s).
Food that was spilled within the kitchen premises or on the floor.
Food that was scorched in the kitchen.

By monitoring this, you can track your stock and deal with your food cost rate. Also, at that point, you can do what you can to diminish wasting anything, hence saving you the right amount of cash.

7- Portion Food Appropriately

Wastage of food can gobble up your primary concern rapidly. Your objective must be to serve only the perfect quality of the food you would prefer not to over or underfill plates. Continuously work to improve your menu and refine your fixings’ rundown, so you aren’t stuffing plates and losing cash.

Consider leaving costs the same yet cut back some on the size part to help oversee nourishment costs. It additionally pays to work with your cooks to ensure they measure everything accurately and make sure you maintain your bookkeeping records. Consider them responsible for estimating parcels equitably.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Restaurants, unlike other business models, have to adapt to the competition of concepts in a fluid and exhaustive way. Opening a restaurant or expanding a concept requires thinking something out of the ordinary, having extensive experience in the business and or getting a redistribution or capital increase. Restaurant owners can get money for the initial investment, for working capital or to expand capital from three primary sources: loans for small businesses or ventures, banks or credit unions, and investment groups.

 

What kind of restaurant financing is out there?

For a person who wants to start a new business, there are many different types of business loans obtainable for people who wants to finance a restaurant. In addition, when it comes down to it, the kind of restaurant financing a person gets actually will depend on the type of business lenders they are working or choose to work with. Keeping that in mind, here are the four basic types of restaurant financing options that a person can use for their business:

 

 

Loans for small businesses

The Small Business Office has programs for businesses that seek capital through approved “micro-lenders”. This US office, for example, provides financial support through micro-credits ranging from $2,500 to a maximum of $35,000, and an average of $13,000. These micro-credits generally have competitive interest rates and provide restaurants and other businesses with not only financial assistance, but also planning and marketing strategies, along with other resources for business management and training. The requirements to obtain one of these loans include a business profile (business history, operations plans, and managers), curricula of current owners and managers.

Private loans

Private loans can be obtained through banks or credit unions. By federal law, banks can grant larger loans than credit unions, which are restricted in the amounts to be lent. To secure these loans you will need guarantees, which vary from 10 percent to 25 percent of the value of the loan.

Analyze the figures

Whether you are just starting your business or you are already generating some profit, quantify the performance of your business and set performance goals is a good idea. Make sure you identify how much cash your company needs during the next 12 months. Finally, make sure you have software systems to track the performance of your business.

Investment group

Restaurants are the perfect investment for investment groups. The level of service, cuisine and the subject (called concept) have to demonstrate the capacity of the business to generate profits and endure over time. Some investment groups only provide financing if certain directives are followed in the administration of the business, and may even require that a member of the group work or be a manager in the restaurant, to ensure the proper use of funds and growth of the business.

Make plans for the future

For a person who wants to start a new business, there are many different types of business loans obtainable for people who wants to finance a restaurant. Make sure you prepare properly before asking for a loan from your bank. This will make it cheaper for you. CHEAPER! The future of your company may depend on your ability to access cheaper sources of capital. Therefore, you must be well prepared and informed: the last thing you want is for your competitors to be before you!

 

Working Capital Loans

An operational capital loan is one of the most feasible options for a restaurant owner who want to shelter their owed business expenditures. Such loans are not expected to buy long-term possessions, but it is just a short-term option to cover temporary needs.


 

 

 

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

We often receive messages from restaurant owners who are desperate. If they do not find a solution soon, they will have to close. They tell us how every month, the red numbers do not stop showing up.

And it is that for more hours that they dedicate to the business, for more money that they invest and for more promotions that they try to put in March, the thing does not improve.

 

Different problems, the same solution

Cost control is nothing more than a series of techniques that help you avoid leakage and loss of money in your restaurant.

And the raw materials and products that you use to create your letter, is an area that must be watched carefully. Mainly for three reasons:

  • To know what is the cost of making each of your dishes
  • To be able to calculate the sale price and evaluate what is the profitability of the dishes that you will offer

And so you can make smart decisions when buying or creating your menu.

In the following case study you can see how a restaurant should apply cost control correctly so as not to lose money. Let’s analyze in what the approach has failed.

 

  1. They have not calculated the cost of making the dishes.

Imagine that the cost of the sirloin dish for the restaurant is $5 and that the El Mirador menu will cost $16.

If we take into account that at most, the cost of the dishes in relation to the price of the menu, should be between 30 and 35% to be profitable, only with this dish and we would be exceeding it. And we would still need, at least, to add the first course and the dessert.

In these cases it is essential to have the scandal, a tool that helps determine the total cost of the plate, including the raw material we use in the preparation of it.

 

  1. More options, higher costs.

Although it is necessary that you have some alternatives in your menu, the excess of dishes will be a headache for your client and your team.

To need many products translates into more purchases, more control of stock and more labor to create the elaborations. What supposes extra work in kitchen and greater lack of control.

In addition, so much variety of dishes and products will cause more waste and without proper planning, you run the risk that prepared dishes are left unsold. All the above will mean the same thing to you: money that goes to waste.

 

  1. Lack of control in the portions.

The amount of food your dishes have is directly related to the cost. If you control the first, you control the second.

As the menu consists of several dishes, it is unthinkable that the same portions are maintained as when these dishes are sold separately on the menu.

No customer wants to waste food and receive impossible amounts to eat. And of course, it is not logical or profitable for you to offer for $3, what you are offering on the menu for $9.

 

  1. Profitability

When setting the menu price, profitability should never be set aside. Design a menu cheaper than your competition, can attract customers, but without profit the strategy will not work.

It is important to establish the price we want to offer for a menu, but first analyze the cost of each dish and assess its viability. And if we exceed the profit margin, it is best to look for another alternative.

Do not forget that the price is important, but so is the quality. If being too cheap makes your menu does not follow the quality standards of the restaurant, your customers will notice.

As you have seen in this case study, something that might seem as simple for a restaurant as creating a menu, if not done following proper cost control, can lead to loss of money.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Controlling the stock of your restaurant today is a must if you do not want to lose money. Can you imagine a textile business that does not know how many garments it has sold? Or what is worse, that not knowing how much it cost them to make them, do they sell them too cheap?

It is unthinkable that these companies work without knowing the manufacturing cost and the value of the products; however, in a restaurant quite often the control of food and beverages does not follow any order.

If you invest too much money but this is not reflected in your profits, you have customers but the accounts still do not leave, you spend more and more time but it seems to be not enough … it’s time to think if you are managing correctly.

I invite you to ask yourself these questions:

  • Do you know exactly what products are in your restaurant?
  • Is there someone in charge of making and reviewing the inventory?
  • Do you control the costs of your restaurant?
  • Are there specific dates assigned to take inventory?
  • Do you check one by one the products you receive from your suppliers?
  • Do you know what your best selling products are? And the least sold?
  • Do you know the system “first in first out” (the first to enter is the first to leave)?
  • Do you always have the necessary products, preventing them from running out?

If in any of these questions your answer has been NO, you have to know that you must improve in the control of food and beverages.

 

What is stock control and why is it going to help you not lose money in your restaurant? Stock control consists of knowing what foods and beverages we have in our restaurant at a certain time.

To carry out a correct management, we will do what is known as inventory; a detailed list where we will write:

  • Items that we have in stock.
  • Quantity of each of them.
  • Provider
  • Detailed description.

The purchase of food and beverages is one of the most important expenses for restaurants, so you must have inventory control policies: specific dates to do so, periodic reviews and why not, surprise inventories to avoid theft.

  • How stock control will reduce your expenses in your restaurant.
  • You can make smarter decisions to reduce costs .
  • Your profitability will increase , since you will avoid losing money.
  • You will know what your sales have been and you can create strategies to increase them.
  • You will save time that you can invest in other aspects of your restaurant.
  • You will decide what and how much to order without accumulating and losing money.
  • You will know which are the most profitable items to design the menu that includes them.
  • You will know which genre is going to expire soon and you should use it.
  • You will see the evolution of prices of products and you can decide on your suppliers.
  • You will improve the way you order products.
  • You will avoid theft or loss of raw materials due to lack of control.
  • You will always have a minimum and a maximum so that nothing runs out.

You can reduce the level of waste.

And of course, you will save a large amount of money.

As you see, just a tool like inventory can save you money and resources, which are sure to be welcome to favor other areas of your business.

If you have decided to improve the management of your restaurant and want to continue increasing your profits. I invite you to review our Restaurant Management Course, because we teach you everything you need to know to make your business profitable, through videos and success stories.

 

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Two of asian baristas taking an order by digital tablet. Cafe restaurant service, food and drink industry concept.
Every business owner that is new to the restaurant industry needs to be familiar with it’s fundamentals. If you are in the business of food servicing or a restaurant owner, you must track and evaluate certain performance metrics over a period of time to understand the status of your business. Restaurant owners who regularly calculate their business performance metrics can easily identify areas for improvement and catch negative trends.

Where do you get the information to calculate your business performance metrics? Bookkeeping will help you in providing all of the necessary and relevant information from which all of your accounts are formulated. The process of bookkeeping is a recognized and well-defined process in the field of business and accounting. Each and every transaction, whatever nature (purchase or sale) may be, has to be recorded. The process of bookkeeping helps ensure accurate and timely records.

Increasing a business’s profitability and efficiency does not happen overnight. Operating a restaurant involves many moving parts – so many different revenue channels, costs and factors that eventually influence the net loss or profit. One simply cannot expect to make a change in one area and expect to see all margins and operations improve. In fact, running a profitable enterprise entails constant testing and tinkering until the best practices are found for the business.

Important Performance Metrics You Must Use in Order to Run a Restaurant

 

  1. Break-Even Point

One of the first performance metrics you should calculate is your break-even point. This calculated figure will identify exactly how much you need in your sales to earn and get back your investment. The break-even point figure can also be used in forecasting the time it will take you to receive and earn back that money. Break-even is one must-have performance metric you need to look into if you wish to invest in a new restaurant.

Break-even can also be used for justifying any new large purchases such as launching a brand new marketing campaign or a commercial kitchen remodel. Saying it will cost $30,000 is one thing, but considering the recovery will take 4 months is a much better way.

How to Calculate the Break-Even Point

Sales of one month = $10,000

Variable costs = $3,000

Fixed costs = $4,000

Break-even point = $5,714.29 for the month

This means that you will start earning your profit after you have sold $5,714.29 worth of drinks and food.

The equation for break-even point is:

Total Fixed Costs ÷ ( (Total Sales – Total Variable Costs) / Total Sales) = Break Even Point

In this case, $10,000 – $3,000 = $7,000.

$7,000 / $10,000 = 0.7, and

$4,000 divided by 0.7 gives you $5,714.29.

 

  1. Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS) denotes the cost needed to produce the beverage and food items that you will sell to your guests. This way, the COGS is just a depiction and sign of the restaurant’s inventory for a definite time period.

It is important for you to keep track of your COGS because it is one of the major expenses a restaurant has to sustain. Certain ways are identified to minimalize these costs (such as picking in-season ingredients or trying to reach an agreement with the food distributor on better rates). Every dollar saved on COGS is a dollar towards the gross profit for the restaurant.

How to Calculate the Cost of Goods Sold (COGS)

Inventory at the starting of the month = $5,000

Purchase of another inventory = $2,000 in the month

Ending month of inventory worth left over = $4,000

Cost of goods sold for the month will be:

$5,000 + $2,000 – $4,000 = $3,000

The equation for Cost of Goods Sold (COGS) will be:

Beginning Inventory + Purchased Inventory – Final Inventory = Cost of Goods Sold (COGS)

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.