Written by Craig Simpson Hospitality Coach

 

It’s a great feeling when there are people enjoying our product. We see them having fun. They are socialising and enjoying themselves in our business. We are creating an environment that they want to be in. Money is flowing across the bar just like the alcohol. Food is leaving the kitchen and replaced by more orders. Its a hive of activity. Its a whole new world inside your establishment.

 

Then at the end of the month reality hits. Where did all the profit go you ask yourself? How could such a busy place, a place where everyone wants to be, a place everyone is talking about, be making no money? My costs are all in line – they are as tight as can be – or are they? There are obviously some holes in your ship and unless you fix them you are going to sink very fast. In the hospitality industry we are 24 hours a day – 7 days a week. There is no time to relax – you need to realise that unless you change things and change them fast, next month is going to be no different. And by now next month has already started! This is the reality of the hospitality industry.

 

You have to have a very close look at where the money is going. Where can you cut back? Where can you make some real savings? Remember that a lot of small savings can add up to a ‘big difference’.

 

I am reminded of the time I walked through a clients restaurant before they opened. This restaurant opened for lunch and dinner and here we were walking through at 10.30am and the place was spotless. No dust or dirt anywhere. The tables all set, the smell of coffee coming from the coffee machine. I could smell the lamb shanks cooking away and the chatter of voices coming from the kitchen. As we walked through the kitchen I could see the salamander was on, the hotplate heated ready to go and the dishwasher cleaning away. What I also saw was nothing under the grill, nothing on the hotplate and only a couple of dishes coming out of the dishwasher. On top of this there were 2 chefs and a kitchen hand as well as two front of house staff. The restaurant didn’t open until midday and everything was ready to go. I asked the manager what the staff were going to do now that everything was all set up. ‘Cleaning’ was his reply. OK I will give credit where credit is due and I must say it was one of the cleanest restaurants and kitchens I have ever been in, but this was obviously coming at a price. A big price!

 

I consequently found out the staff all started at 8.30am. It didn’t take long to see that staffing hours needed to be cut back and the wasted energy with the grill up to heat and the hot plate on full was also saved.

 

It might not sound like a lot by cutting back a few hours here and there and turning the grill on a little later but over 12 months this saved my client $31000.00. These cost savings did not affect the service standards in any way; but the savings did go straight to the bottom line profit of the restaurant.

 

Sometimes the costs are staring you right in the face but you’ve just got to open your eyes wide to see them. I will admit that others are harder to bring in line but there are certainly controls you can put in place to run a tight ship.

 

Just by turning the lights down or some of them off when all the guests have left while you finish cleaning up the restaurant can save a lot over time.

 

Other areas to look into are rubbish removal, telephone calls, internet usage, advertising and marketing and laundry to name a few. Analysing these and really working out how they are working for you can dramatically change your bottom line.

 Where did the profit go?

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