It can be very heartbreaking when your business isn’t working. It may be you opened your business in the wrong location or your product just isn’t up to standard.
There are many reasons why a business can fail. However, there are two elements in particular that can cause a business to fail or cause serious financial difficulties.
Tip #1 - Food Cost
On your daily menu the cost of each dish must be taken into account. What does each item cost that goes into making the dish and the dish is then given a selling price that is going to make the correct amount of profit to cover all other business cost. Many issues can arise when chefs start producing the dishes without considering cost of the raw ingredients. Restaurants will find that chefs are over portioning, throwing food away, food going bad due to over ordering, pilfering.
As restaurant consultants we work very closely with the owners, chefs and front of house teams to ensure that all the different areas of food cost are controlled.
Simply getting your food cost under control can turn your business around and begin to make profit..
Tip #2 - Wages
As with food cost, wage cost need to be managed. It is so important to have the correct level of staff to run an efficient business. Overstaffing can cause the business to lose money or in some cases overpaying your staff more than you need to will definitely make a dint in your profit. With high PAYE cost, pension cost and taxes you need to consider those points earlier rather than wait until management accounts are produced.
We would help you with a forecast of your sales for a period and it would clearly show how much you should be spending on wages per day. We would help you define pay structures, and constantly review any changes.
"I’m pleased to say that we now have a clearer picture of what we want to achieve and find it much easier to understand thanks to John" – La Belle Époque, London (3 AA Rosette)
Let us help you
John McClements Restaurant Consultancy benefits from a wealth of industry knowledge and years of combined experience.
I’ve been cooking in some of the UK’s top restaurants and hotels for over 40 years. Having started my professional career training in the iconic kitchens of the Glen Eagles Hotel in Scotland, I then went on to open several restaurants across London, one of which gained the much coveted Michelin Star and 3 AA rosettes, plus a successful chain of restaurants winning many awards including a Michelin Bib Gourmand and the ITV Evening Standard French Restaurant of The Year award.
I have built up a wealth of experience within the industry first hand and my in-depth knowledge of the restaurant world and exceptional operational expertise can benefit your business greatly.
I would be more than happy to assist you with your issues and guide your business back to profitability.
Contact me now at john@mcclementsconsultancy.com