Action Now For Restaurants Long Version

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How to get your Restaurant OUT of the dip and BACK on the road again… RIGHT NOW!

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Mike & The Mechanics

Michael Said

brandStrategy

brandStrategy.co.za

Mike & The Mechanics

Michael Said

brandStrategy

brandStrategy.co.za

Michael Said

brandStrategy

Michael Said

brandStrategy

twitter.com/mike_said_what#RhapsodyLegends

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twitter.com/mike_said_what#RhapsodyLegends

slideshare.com/mikesaidwhatRestaurantAction!

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The sorry state of the restaurant industryin South Africa!

brandStrategy.co.za

The sorry state of the restaurant industryin South Africa!

Are in deep, deep trouble and not getting a whole lot of help (or sympathy) right now!

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It gets harder and harder!





2/3

Help, It Feels Like I Am Drowning!

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brandStrategy.co.za


brandStrategy.co.za


brandStrategy.co.za


brandStrategy.co.za


brandStrategy.co.za


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7 Mistakes All Restaurants Make

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Mistakes That All Small Restaurants Make

1 “I am not very good at marketing”

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2 Going in without a business plan

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3 Doing things the wrong way round

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4 Thinking it’s all about you

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5 The worst number in the world

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6 Ingratitude

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6 Ingratitude

7 Following the herd

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Let’s Get This Thing Back OnThe Road Already!

“Start treating it like the business it is.”

“If you do not respect the business, neither will your staff, your suppliers, your landlord or your partners!”

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STEP #1

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Item 2m - 6m PA 6m - 8m PA 8m - 12m PA

Targeted Achieved Targeted Achieved Targeted Achieved

Net Revenue 100% 100% 100% 100% 100% 100%

Cost of Sales 38% 42% 37% 40% 36% 38%

Gross Profit 62% 58% 63% 60% 64% 62%

Occupancy Costs 11% 16% 11% 14% 11% 12%

All Salaries and Wages 19% 21% 19% 20% 19% 19%

Marnagement Services Fee 6% 6% 6% 6% 6% 6%

Marketing 2% 2% 2% 2% 2% 2%

Administration 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%

Bank charges 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%

Cleaning Materials 1% 1% 1% 1% 1% 1%

Repairs and Maintenance 1.30% 1.30% 1.30% 1.30% 1.30% 1.30%

Replacements 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%

General 1% 1.50% 1% 1.50% 1% 1.50%

Insurance 0.70% 0.70% 0.70% 0.70% 0.70% 0.70%

Utilities 3.80% 5% 3.80% 4.50% 3.80% 4%

Operating Expenditure 49% 57% 49% 54% 49% 50%

Retention 13% 1% 14% 6% 15% 12%

Item 2m - 6m PA 6m - 8m PA 8m - 12m PA

Targeted Achieved Targeted Achieved Targeted Achieved

Net Revenue 100% 100% 100% 100% 100% 100%

Cost of Sales 38% 42% 37% 40% 36% 38%

Gross Profit 62% 58% 63% 60% 64% 62%

Occupancy Costs 11% 16% 11% 14% 11% 12%

All Salaries and Wages 19% 21% 19% 20% 19% 19%

Marnagement Services Fee 6% 6% 6% 6% 6% 6%

Marketing 2% 2% 2% 2% 2% 2%

Administration 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%

Bank charges 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%

Cleaning Materials 1% 1% 1% 1% 1% 1%

Repairs and Maintenance 1.30% 1.30% 1.30% 1.30% 1.30% 1.30%

Replacements 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%

General 1% 1.50% 1% 1.50% 1% 1.50%

Insurance 0.70% 0.70% 0.70% 0.70% 0.70% 0.70%

Utilities 3.80% 5% 3.80% 4.50% 3.80% 4%

Operating Expenditure 49% 57% 49% 54% 49% 50%

Retention 13% 1% 14% 6% 15% 12%


“Anyone who does not make money selling food, should be locked up!”

“Food Cost, the last controllable expense!”

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Where It All Goes Wrong!

It is easy to have a problem

• Too many products in the inventory



• Perishable products




• Too many people involved in the process





• Difficult to assess losses





• Difficult to assess losses

• Where is it lost?– Purchasing

– Receiving

– Storage

– Preparation

– Serving & Settlement

Where is it all lost

• Purchasing


• Purchasing– Over purchasing



– Under purchasing




– Inferior yields




– Inferior yields

– Kickbacks


• Receiving


• Receiving– Padded orders



– Pricing “errors”




– Off spec products





– Damaged goods





– Damaged goods

– Short weights


• Storage


• Storage– Spoilage



– Spills & breakage



– Spills & breakage

– Theft


• Preparation


• Preparation– Cooking errors



– Over production



– Over production

– Over portioning



– Over production

– Over portioning

– “Grazing” (do the math!)


• Serving & Settlement


• Serving & Settlement–Wrong orders



– Customer returns



– Customer returns

– Unrecorded sales

What effects food cost

• Menu prices– Increase prices

• Recipes– Change recipes

• Sales mix– Alter the sales mix

• Product cost– Reduce cost of raw goods

• Product utilization– Improve product utilization (waste, spoilage, theft)

Remember

• Restaurants bank RANDS not PERCENTAGES!

• Restaurant owners are simply too busy to be chasing phantom food cost problems BUT if a problem exists you want to know about it because chances are it’s costing them PLENTY!


“It’s about YOUR people”

“But what if I go to all that trouble and expense and they decide to leave me?”

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If you can’t change your people… change

your people!

If you can’t change your people… change

your people!

It’s All About Valuing Your Staff!

7 Rules Of Work

Be On Time

STEP #3

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7 Rules Of Work

Be On Time

Don’t Steal

STEP #3

brandStrategy.co.za

7 Rules Of Work

Be On Time

Don’t Steal

Don’t Screw The Crew

STEP #3

brandStrategy.co.za

7 Rules Of Work

Be On Time

Don’t Steal


Don’t Swear

STEP #3

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7 Rules Of Work

Be On Time

Don’t Steal


Don’t Swear

Have Respect For All

STEP #3

brandStrategy.co.za

7 Rules Of Work

Be On Time

Don’t Steal


Don’t Swear


Make Money

STEP #3

brandStrategy.co.za

7 Rules Of Work

Be On Time

Don’t Steal


Don’t Swear


Make Money

Have Fun

STEP #3

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“Owning a business without marketing is like winking at a girl in the

dark…”

“You know exactly what you are doing BUT nobody

else does.”

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“Killing Time & The NOT-To-Do List”

“How to prevent yourself from doing the things you know you shouldn’t be

doing!”

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“Your Moments Of Truth”

“There are thousands of TOUCH POINTS within your restaurant every day, are you delivering on all of

them?”

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“Ask For Help!”

“The best time to start doing things right was always last year, the second best timeis NOW!”

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Actions StepsYou Can Start Today!

1 Treat It Like A Business

2 Control Your Expenses

3 Look After Your People

4 Market Market Market & Market

5 The Not To Do List

6 Moments Of Truth

7 Ask For Help!

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Yes You Can!

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Wishing You Every Success

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Twitter: mike_said_what

Facebook: Michael Said

Facebook Personal: mikesaidwhat

LinkedIn: mikesaidwhat

YouTube: mikesaidwhat

Website: www.strtgy.co.za

Email Me: [email protected]

Call Me: 082 449 7367brandStrategy.co.za