Whether you own a restaurant or a brewery, as a business owner you face unique challenges to ensure the success of your business. Those in the service industry know that their survival depends on carefully managing their finances and reducing unnecessary costs. At TP4 Advisors, we want to help you stay out of the red, and with these tips you can address these common financial problems and ensure the success of your restaurant or brewery.
High Operation Costs
For businesses in the service industry, it can take time before you start to turn a profit. Depending on the establishment and client base, it can take anywhere from six months to more than two years. Reducing high operating costs and streamlining your overhead costs, including money spent on supplies and utilities, can help you stay within your budget and produce good profit margin. Optimizing your scheduling process and cross-training employees to reduce unnecessary payroll expenses while cutting underselling items from your menu and sticking to strict portion sizes can also help reduce direct costs.
Inventory is a source of stress for many restaurant owners as unnecessary waste or theft can have a huge impact on their bottom line. Creating an inventory management plan that’s automatically incorporated into your point of sale tool is essential to avoid going over budget. This way you can easily make necessary adjustments with your suppliers and identify which items aren’t selling.
Cost Per Item
How your items are priced on your menu can also have a significant impact on your profit margin as well. Making sure that your item prices factor in hard costs, purchasing costs, as well as the operational costs of preparation, service and cleanup can make a significant difference between staying in the black and going in the red. One of the easiest ways to find out whether your prices accurately factor in these costs is by having a financial expert help you analyze each item on your food and drink menu to determine the correct costs to your customers.
Lack of Accurate Reporting
Between managing your staff and your inventory it may not seem like there’s much time left to focus on bookkeeping. Making sure invoices are correct and supplies are delivered accurately and on time are essential to the success of your restaurant or brewery. If you’re looking to stay focused on managing your business without worrying about your books, hiring an outside financial expert to oversee and manage your accounts will help make sure your business continues to grow.
At TP4 Advisors, we specialize in helping businesses optimize their finances and stay successful. From bookkeeping to CFO guidance we provide everything you need to build the foundations for sustainable growth. Our team of highly skilled financial experts works hard to understand your unique needs and will help you create a customized solution to reach your goals. For a free strategic consultation, contact us via our website or call us today at 513-489-4874. For more tips and our latest updates, check us out on Facebook, Twitter or LinkedIn!