Whether your business made 2% or 20% profit in 2018, running your business the exact same way in 2019 will not guarantee the same results. With continuously rising costs, high staff turn-over, and average product losses of 8-12% occurring behind the bar, understanding your cost of goods sold “target versus actual” can be the difference between your business thriving, or just surviving in the months ahead.
We have worked with 100’s of top operators, digging
Is your financial reporting frequency set up to provide you with the visibility and clarity you need to make quick, impactful business decisions?
- Frequency is crucial when it comes to understanding and taking advantage of your financial reporting. Are you currently running a weekly, bi weekly, or monthly P&L? When you receive those results, do you have enough information to act on the opportunities? Time can often work against you in this industry, so it is important to set up a frequency that allows you to course correct quickly if the results fall out of line.
Are your cost targets set to be achievable, based on your sales mix and retail pricing strategy?
- It is extremely difficult to achieve your target costs if your retail pricing strategy is not set up to hit those targets. Often times, beverage specials and promotions are offered without fully understanding how they affect the period end numbers. Reviewing and sometimes resetting the retail pricing on your top 10-20 selling brands can be a driving factor in achieving your targets.
Is there a strategy in place to take action if any of your category costs are out of line?
- The most important driver for success is taking action. Are you effectively tracking product losses through a weekly or bi-weekly inventory check-up? Is your retail pricing strategy set up to help you achieve your goals? Is your financial reporting set up properly, where all purchases and sales information
aretracking to the proper categories? There is a wide range of opportunities when it comes to taking action and improving your results, but it all begins with a clear strategy on WHO is responsible, WHAT actions are required, and by WHEN will those actions be accomplished.
Profitability does not come by fluke, it is driven by focused intention. All too often we get busy and don’t take the time to analyse our past successes and defeats. Creating a strategy that works for your business, on a frequency that your team can commit to will drive focus and attention towards profitability, and where there is