13 Feb 2019 How to make decisions efficiently at your restaurant
For me, the consistency and quality of the food, drinks and the service is key at a restaurant, but when we talk about restaurant management we need parameters to measure the performance.
Why is it so important to track them weekly?:
It is important to set a sales goal (realistic) for your team and design your rotas and expenses based on that forecast. Tracking the weekly sales and see if you are reaching target will enable your team to adapt on the rest of your expenses.
– Food and drinks Gross Profit Margins. It is necessary to know them weekly. Some businesses get this with their P&L on the following month, but this doesn’t allow you to react in time if something doesn’t go as planned.
In any other business, imagine a bookstore, you know perfectly the margin of each book and the margin that is obtained at the end of a sale. To think that in hospitality should not have this control is crazy. We work in a business in which every penny counts to get profits, if we don’t track weekly, so many pennies will be gone by the end of the year…
– Staff Costs. This is the percentage of salaries paid divided by sales. It is one of your most important costs and it should adapt to the sales of your restaurant at all times.
Prime Cost is the most important cost of our restaurant. It is said that a healthy prime cost would be 60% but it really varies depending on the concept, location, etc.
– Staff turnover. This indicator gives us an idea of whether our employees are happy and motivated to work with us, important to know if someone decides to leave the boat the reasons to do so. Your team is your main resource, if you take care of them, they will take care of your customers.