Franchising : Advantages and Disadvantages

Advantages of Franchising

1. The franchisee’s lack of basic or specialised knowledge is overcome by the training program of the franchisor. 
2. The franchisee has the incentive of owning their own business with the additional benefit of continuing assistance from the franchisor. The franchisee is an independent business person operating within the framework of the franchise system. This provides the opportunity through hard work and effort to maximise the return from their business and the value of their investment. In all franchise networks there are three basic levels of performance, despite the fact that all franchisees are provided with the same raw material. There are the high flyers who do extremely well, having the right attitude and approach, as well as some entrepreneurial skill which enables them to make the most of their opportunities. Then there are the average performers, who operate the system and basically achieve the anticipated performance levels and in line with their expectations earn a decent living. Their attitude and approach is sound, but they lack the flair of the high flyers. Finally there are those whose performance levels are low. These are people who joined the franchise with best of intentions, but they now lack the will or the aptitude, or have changed their mind and want to get out of the franchise. They clearly made a mistake in the first place by going into self-employment, and they perhaps deluded themselves into believing that their franchisor would remove all the risk for them. 
3. In most cases, the franchisee’s business benefits from operating under a name and reputation (brand image) which is already well established in the mind and eye of the public. Of course, there will be new franchise schemes which are in the process of being established and in which the name will not yet be well known. This is a factor to recognise and to make allowance for. Picking up a sound, newer franchise in its early stages can be a good proposition but the risks are higher. 
4. The franchisee will usually need less capital than for setting up a business independently because the franchisor, through their pilot operations, will have eliminated unnecessary expense. 
5. The franchisor provides the franchisee with a range of services which are calculated to ensure, that the franchisee will enjoy the same or a greater degree of success as the franchisor has achieved. These services will include:

How to Gain Competitive Advantage in the Restaurant Business

by Stan Mack

Te you will have trouble standing out from the crowd. Gaining a competitive edge requires a detailed analysis of the demographics of the surrounding area and the nature of existing competitors. And even if you are successful at first, new competitors could enter your market at any time to steal your clients. Don’t hesitate to adopt successful strategies from your competitors, but understand that directly competing with an entrenched rival is a bad idea for a beginning restaurateur.

Step 1

Find an area with few competitors that serve food similar to yours. Pizza places, for example, face enough competition from other types of restaurants without having to fight each other.

Step 2

Che restaurant industry is highly competitive. Unless you have a star chef or a novel cuisine, chances arhoose a highly visible location that has a suitable consumer base nearby. For example, don’t open a family restaurant in an area full of office complexes. A residential area with a high percentage of families with young children would offer more potential clients, especially if there are relatively few local restaurants currently serving that demographic.

Step 3

Analyze the local competition after you’ve chosen a location. Chances are any region you choose will have at least a few competitors who target the same consumers. Other restaurants are obvious rivals, but supermarkets, convenience stores and any other businesses that sell prepared food are also competitors.

Step 4

Identify the strengths of each competitor. For example, a supermarket’s ready-to-eat meals are

An Overview of Different Restaurant Types

author: Monica Parpal 

There are many different restaurant types out there. New restaurants open all the time, and concepts vary from pizza chains to fine sushi restaurants to breakfast cafes and even restaurants that specialize in peanut butter and jelly sandwiches. Despite the broad range of restaurant concepts, most are classified by one of three major restaurant types, including full-service, fast-casual and quick-service. This article details the challenges and opportunities operators face within each restaurant type.

Full-Service Restaurants

Full-service restaurants encapsulate the old-fashioned idea of going out to eat. These restaurants invite guests to be seated at tables, while servers take their full order and serve food and drink. Full-service restaurants are typically either fine dining establishments or casual eateries, and in addition to kitchen staff, they almost always employ hosts or hostesses, servers and bartenders. Two standard types of full-service operations include fine dining and casual dining restaurants, discussed below.

Fine Dining

Fine dining restaurants top the ladder when it comes to service and quality. Fine dining restaurants usually gain perceived value with unique and beautiful décor, renowned chefs and special dishes. Listed below are some of the features, challenges and advantages of running a fine dining restaurant.

• Prices. Prices for entrées are often $20 or more.
• Service style. Service style for fine dining restaurants is top-notch. Well-trained and experienced servers and sommeliers attend guests, providing excellent knowledge of food and wines.
• Atmosphere. The atmosphere in a fine dining establishment is one of the keys to its perceived value. The lights need to soften the mood, the music should reflect the concept yet not overpower the guests' conversations, and the décor should add an elegant and unique perspective. Fine dining establishments strive to create an overall exceptional dining experience for guests.

Top 25 - Indonesia's Best Hotels 2014

according to Travellers’ Choice Award 2014

1. The Legian Bali – a GHM hotel, Seminyak, Bali 
2. Komaneka at Bisma, Ubud, Indonesia, Bali 
3. The Samaya Bali, Seminyak, Bali 
4. The Magani Hotel and Spa, Legian, Bali 
5. Jeeva Klui Resort, Mangsit, Bali 
6. Mulia Villas, Nusa Dua, Bali 
7. Mandarin Oriental, Jakarta 
8. The Oberoi Bali, Seminyak, Bali 
9. Alila Villas Uluwatu, Pecatu, Bali 
10. Four Seasons Resort Bali at Sayan, Ubud, Bali

Manfaat Franchise / Waralaba

Sebagai salah satu alternatif model bisnis, pengembangan usaha  dengan pola ini menawarkan berbagai manfaat yang menarik baik bagi franchisor mau pun franchisee.

Manfaat bagi franchisor:

• pengembangan usaha dengan biaya yang relatif murah
• potensi passive income yang cukup besar
• efek bola salju dalam hal brand awareness dan brand equity usaha anda
• terhindar dari undang-undang anti monopoli.

Manfaat bagi franchisee:

• memperkecil resiko kegagalan usaha
• menghemat waktu, tenaga dan dana untuk proses trial & error
• member kemudahan dalam operasional usaha
• penggunaan nama merek yang sudah lebih dikenal masyarakat.

Penggerakan

Dalam proses manajemen, penggerakkan merupakan bagian yang fundamental, tindak lanjut dari fungsi perencanaan dan pengorganisasian. Fungsi ini berkaitan erat dengan manusia dan merupakan masalah yang paling kompleks serta tersulit dilakukan di antara fungsi-fungsi manajemen. Ia akan bersinggungan dengan perasaan, harga diri, dan tujuan yang berbeda-beda.

Penggerakan merupakan fungsi pembimbingan, pengarahan, pemberian motivasi, menggerakan orang-orang yang menjadi bawahannya agar dengan rela, suka dan mau bekerja secara sadar dan bertanggung jawab terhadap tugas yang harus diselesaikannya tanpa menunggu perintah dari atasannya.

Disesuaikan dengan kondisi yang berlangsung, terdapat beberapa istilah bermakna sama dengan fungsi penggerakan, di antaranya:

• Actuating.  Tindakan untuk mengusahakan agar seluruh anggota kelompok berusaha mencapai sasaran-sasaran sesuai dengan perencanaan dan usaha-usaha organisasi
• Motivating.  Pemberian daya rangsang agar muncul gairah kerja untuk mencapai tujuan
• Staffing.  Pemberian bantuan dalam penyusunan upaya pengurusan, pengaturan dan penempatan sumber daya manusia beserta fasilitasnya
• Directing.  Bagaimana cara memberikan pengarahan, petunjuk, dan perintah yang perlu dilakukan
• Coordinating.  Usaha menyatukan kerja sama sehingga terdapat keselarasdan pekerjaan yang sedang berlangsung
• Leading.  Menggerakkan orang lain dengan memberikan teladan baik kepada para bawahan sehingga mereka mau bekerja mengikutinya
• Disiplin.  Tindak perbuatan atau peraturan untuk menjamin ketepatan, keseragaman, kepatuhan dan ketaatan dalam menjalankan pekerjaan. 

Restaurant Training Checklists Are Important Tool

quoted from John Foley

Training tools and aids make the difference between education and knowledge. Education, the act of imparting information, isn't difficult for those who are familiar with the subject. Yet, learning the subject may take more than a quick training session.  Knowledge comes from learning and retaining what was taught and is expected to be clutched. Simply, training tools make the difference between learning and forgetting.

Every restaurant staff deserves a variety of tools to help make them successful and to perfect their professionalism. These tools need to be strategically posted throughout the restaurant for the staff to reference, throughout their shift when they are not sure about a certain procedure.

I couldn't help notice the recipe card for one of the company's drinks. The well defined card (pictured, right) outlined the steps to drink perfection. I have always wondered how the baristas can create drinks that are being called out faster than a Gatling gun without missing a beat, pump, or steam wand. The refresher recipe card explains a lot.

Now to create these cards once the game has begun is not an easy task. In the perfect world they would have been developed and filed on your computer for ease of editing. But that most likely was only a dream that ended just after the doors opened.

And, if you do have them placed throughout the restaurant, now is the perfect time to check and edit the cards.

Here are 10 tips on training tools.

1. Plating consistency is imperative. Plating pictures help.  Photos of each plate, including salad, appetizer, entree, or dessert should be placed on a board and labeled near the plating station. Styling the food on the plate exactly the way the chef created it makes this an efficient way to achieve consistency. 
2. Coffee recipes and tea service. Recipes for coffee drinks and the procedure for serving tea – (one bag or a selection; a pot of hot water or just a cup) are all steps that need to b defined. 
3. Dessert plating. use a picture, especially for daily dessert specials. Also define the amount of ice cream and whipped cream to be served. 
4. Opening checklists. Even the smallest restaurant is too large to run without an opening checklist. Laminate them and have the assigned server initial each task. You can divide up the checklist. 
5. Closing checklists. If you are so slow you don't need a closing checklist to close, find a real estate agent. Closing procedures save you money. Turn down the air conditioning, turn off the kitchen fan, turn off the stereo are all music to the accountant's ear. 
6. Server station setups. New servers forget to set up the server station with pens, water pitchers, coffee cups, saucers and other items that break the rhythm of the dining room if they are not around. 
7. Bar setup. Bar customers hate to wait. Describe how many limes, lemons, olives need to be cut diced, sliced, and kept under the bar. Explain fruit and juice rotation. It may sound elementary today, but wait until the bartender doesn't show up, and Steve the server has to stand in for Johnny the bartender. 
8. Cooler map. If nothing else this will alleviate any violations from the health department when the inspector realizes the raw chicken does go on the bottom shelf. With today's computer programs, designing and designating cooler shelf space is a breeze. Define rotation on the sheet and don't forget to post an inventory checklist in the cooler. 
9. Glass stacking. Make sure the bussers and the dish know how many, where they go and ho to check for spots. 
10. Batch and deposit checklist. Your manager is sick. You're on vacation. And the deposits have stopped going into the bank from American Express. Nobody had the batching instructions. Go over the deposit procedures with one or two trusted employees, and leave the instructions in a drawer, just in case. It will make that vacation a lot more enjoyable. But then, what restaurant owner can take a vacation? 

The World's Best Hotel 2013 – Top 50

Which hotels deliver the most extraordinary experiences?

The results of Travel + Leisure’s 18th Annual World’s Best Award :

1. Mombo Camp and Little Mombo Camp, Moremi Game Reserve, Botswana

2. Castello di Casole—A Timbers Resort, Casole d’Elsa, Italy

3. Singita Kruger National Park, South Africa

4. Nayara Hotel, Spa & Gardens, La Fortuna, Costa Rica

5. Four Seasons Resort Bora-Bora, French Polynesia

6. The Lodge at Kauri Cliffs, Matauri Bay, New Zealand

7. Ritz-Carlton, Berlin

8. Oberoi Udaivilas, Udaipur, India

9. Sabi Sabi Private Game Reserve, Kruger National Park Area, South Africa

10. Singita Sabi Sand, Kruger National Park Area, South Africa

The World's Best Airline Awards 2013

Ranking 1 to 20

The World Airline Awards are a primary benchmarking tool for Passenger Satisfaction levels of airlines throughout the world, delivering a unique survey format based on analysis of business and leisure travellers, across all cabin travel types (First Class, Business Class, Premium Economy Class and Economy class passengers).

Air travellers completed an online survey questionnaire about their experience with airlines on the ground and onboard, during a 10-month period. The survey measures passenger satisfaction across more than 40 key performance indicators of airline front-line product and service - including check-in, boarding, onboard seat comfort, cabin cleanliness, food, beverages, inflight entertainment and staff service. The Survey covered over 200 airlines, from the largest international airlines to smaller domestic carriers.

1	Emirates
2	Qatar Airways
3	Singapore Airlines
4	ANA All Nippon Airways
5	Asiana Airlines
6	Cathay Pacific Airways
7	Etihad Airways
8	Garuda Indonesia
9	Turkish Airlines
10	Qantas Airways
11	Lufthansa
12	EVA Air
13	Virgin Australia
14	Malaysia Airlines
15	Thai Airways
16	Swiss Int'l Air Lines
17	Korean Air
18	Air New Zealand
19	Hainan Airlines
20	Air Canada

The World's 50 Best Restaurants Award 2013

list from San Pellegrino

The World's 50 Best Restaurants list has been announced, and the big news is of course that Noma's three year reign as the number one restaurant in the world has come to an end. That title now goes to El Celler de Can Roca in Girona, Spain. Noma holds tight at second, while third goes to Massimo Bottura's Osteria Francescana.

World's 50 Best also announced they'll be doing Latin America's 50 Best Restaurants in September in Lima; more details on that can be found in a press release below.

1. El Celler de Can Roca, Girona, Catalonia, Spain 
2. Noma, Copenhagen 
3. Osteria Francescana, Modena, Italy 
4. Mugaritz, San Sebastián, Spain 
5. Eleven Madison Park, New York City 
6. D.O.M, Sao Paulo, Brazil 
7. Dinner by Heston Blumenthal, London 
8. Arzak, San Sebastián, Spain 
9. Steirereck Restaurant, Vienna, Austria 
10. Vendôme, Bergisch Gladbach, Germany

How to Do a Breakeven Analysis

Breakeven analysis helps determine when your business revenues equal your costs

By Daniel Richards

If you can accurately forecast your costs and sales, conducting a breakeven analysis is a matter of simple math. A company has broken even when its total sales or revenues equal its total expenses. At the breakeven point, no profit has been made, nor have any losses been incurred. This calculation is critical for any business owner, because the breakeven point is the lower limit of profit when determining margins.

There are several types of costs to consider when conducting a breakeven analysis, so here's a refresher on the most relevant.

• Fixed costs: These are costs that are the same regardless of how many items you sell. All start-up costs, such as rent, insurance and computers, are considered fixed costs since you have to make these outlays before you sell your first item.

• Variable costs: These are recurring costs that you absorb with each unit you sell. For example, if you were operating a greeting card store where you had to buy greeting cards from a stationary company for $1 each, then that dollar represents a variable cost. As your business and sales grow, you can begin appropriating labor and other items as variable costs if it makes sense for your industry.

Setting a Price

This is critical to your breakeven analysis; you can't calculate likely revenues if you don't know what the unit price will be. Unit price refers to the amount you plan to charge customers to buy a single unit of your product.

• Psychology of Pricing: Pricing can involve a complicated decision-making process on the part of the consumer, and there is plenty of research on the marketing and psychology of how consumers perceive price. Take the time to review articles on pricing strategy and the psychology of pricing before choosing how to price your product or service.

• Pricing Methods: There are several different schools of thought on how to treat price when conducting a breakeven analysis. It is a mix of quantitative and qualitative factors. If you've created a brand new, unique product, you should be able to charge a premium price, but if you're entering a competitive industry, you'll have to keep the price in line with the going rate or perhaps even offer a discount to get customers to switch to your company.

The World's 50 Best Restaurant Award 2011

quoted from William Reed Business Media Ltd

The much-anticipated S. Pellegrino World's 50 Best Restaurants Awards 2011 was held on Monday 18th April at the historic Guildhall in the City of London, in the company of the world's finest chefs, international media and the world's most influential restaurateurs.

The S. Pellegrino World's 50 Best Restaurants Awards and List is organised and compiled by Restaurant magazine, and sponsored by S.Pellegrino. The Awards are now in their tenth year.

Marketing Strategy

Approach and Concept

Marketing is far more than just selling, although higher sales are obviously the ultimate aim. Rather, marketing is a whole collection of activities including advertising, selling and sales promotion, marketing research, introduction of new products, pricing, packaging, distribution and after sales service.

Approaches to Marketing

One approach to marketing is to regard it as the process of finding customers for goods which the firm has already decided to supply. In this case there is much emphasis on face to face customer contact, price cutting, heavy advertising and sales promotions. It might be assumed that customers will always want to purchase well-constructed items that are made available to them at low cost: that all a firm needs to do is offer for sale high quality, sound value product with many attractive features, provide effective after-sales service, and then the goods will ‘sell themselves’.

The Marketing Concept

Alternatively, the firm might seek to evaluate market opportunities before production, assess potential demand for the good, determine the product characteristics desired by consumers, predict the prices consumers are willing to play, and then supply goods corresponding to the needs and wants of target markets more effectively than competitors, business adopting the latter approach are said to apply the marketing concept.

Adherence to the marketing concept means the firm conceives and develops product that satisfy consumer wants. Note however that:

• consumers demand can be and frequently is created and manipulated through advertising campaigns

• unquestioning adoption of the concept could lead to the productions of items that are highly attractive to consumers but which nevertheless are expensive to supply and thus generate negligible profit.

Practical application of the marketing concept implies the full integration of marketing with other business activities (design, production, costing, transport, and distribution, corporate strategy and planning) so that the marketing department assumes extraordinary importance within the firm. Numerous conflicts with other functions arise from situation.

The Marketing Mix

In 1965 Professor N. H. Borden coined the phrase ‘marketing mix’ to describe the combination of marketing element used in given set of circumstances. Appropriate mixes vary depending on the firm and industry, and over time. Professor E. J. McCarty subsequently summarized the

Human Resources Strategy

Human resources management concerns the human side of the management of enterprises and employees’ relations with their firms. Its purpose is to ensure that the employees of a company, i.e. its human resources, are used in such a way that the employer obtains the greatest possible benefit from their abilities and the employees obtain both material and psychological rewards from their work.

Human resources management has strategic dimensions and involves the total deployment of human resources within the firm. Thus, for example, human resources management will consider such matters as:

• the aggregate size of the organization’s labor force in the context of an overall corporate plane (how many divisions and subsidiaries the company is to have, design of the organization, etc.)

• how much to spend on training the workforce, given strategic decisions on target quality levels, product prices, volume of production, and so on

• the desirability of establishing relations with trade unions from the view-point of the effective management control of the entire organization

• the wider implications for employees of the management of change (not just the consequences of alterations in working practices).

The strategic approach to human resources management involves the integration of personnel and other human resources management considerations into the firm’s overall corporate planning and strategy formulation procedures. It is proactive, seeking constantly to discover

Financial Strategy

Effective strategies are crucial to the well-being of the firm, and need to address the following issues:

• How, where and when the business will obtain funds, plus (for public companies) the timing of share issues and the determination of share issue prices
• The best use of financial resources
• Gearing
• How to maximize the market valuation of the firm
• What to do with accumulated cash
• Long term financial planning for business expansion
• The capital structure of the business
• The extent to which internally generated profits are reinvested within the company
• Choice of financial criteria for selecting major capital investments.

Also companies operating in several countries need to formulate

10 Ways to Save Money at Your Restaurant

Everyone is looking for ways to save money these days. Restaurants are no exception. The good news is that there are a lot of quick steps you can take to save you money, either through cutting energy use or reducing spoilage. A lot of these tips are the same things your mom told you growing up.

1. Switch to energy efficient light bulbs. Subway recently switched all their light bulbs to energy efficient bulbs in all of their 2000 US franchise locations. Switching to an energy efficient light bulb can save up to $22 per bulb per year. This can add up to quite a savings over time. Also keep lights off when you don’t need them. If you don’t start serving lunch until 11 o’clock there is no reason to turn the dining room lights on until then. 
2. Only run the dishwasher when it is completely full. This cuts down on water usage, soap and energy costs.
3. Soak the dishes. Rather than running hot water over them to loosen dried food, fill a sink and let them soak.
4. Install low flow faucets and toilets. This will save between 20 to 40 percent of water usage.
5. Turn down the thermostat. You can still be comfortable at 68 degrees rather than 72 degrees.
6. Switch from plastic to glass. Green restaurants have been following this tip for years. If restaurant uses disposable plates, flatware or cups, considering a one time investment for china, glass and silver. You will save on garbage (good for the environment as well as the restaurant budget) and save money over time.
7. Invest in energy efficient appliances. This is a lot easier said than done, especially in a sluggish economy. But consider that many states offer restaurants tax credits and other incentives for switching to energy efficient appliances. Plus, the savings on an energy efficient appliance can often pay for itself within a year or two.
8. Trim down your menu. Track sales of every menu item and remove menu items that aren’t selling. Also look for ways to cross utilize menu items, using one item for multiple dishes. This will help reduce food spoilage as well as keep food cost under control.
9. Take advantage of e-marketing. More and more people turn to Google to look for restaurants than the yellow pages. Take advantage of all the internet has to offer, from your own website to online advertising. Many companies offer inexpensive e-newsletters you can send to customers for a fraction of traditional prints ads.
10. Train your staff. Teach your staff to sort recyclables, turn off lights, let you know if there is a leaky faucet in the wait station. Ask them to bring in their own take-home containers instead of using the restaurant take-outs.

Market Segmentation

The term ‘market segmentation’ describes the breaking down of a market into self-contained and relatively homogeneous sub-groups of customers, each with its own special requirements and characteristics. Products and advertising message can then be altered to make them appeal to particular segments.

Markets may be segmented with respect to customers’ location, ages, incomes, social class, or other demographic variables, or according to consumer lifestyle, attitudes, interests and opinions as they affect purchasing behavior.

It does seem that many consumers buy goods that fit in with a chosen lifestyle (healthy, sophisticated, rugged, etc.) and with their perceptions of what they ought to purchase in order to pursue that lifestyle. Once the lifestyle to which potential consumers aspire is identified, advertising message can be modified in appropriate ways.

Differentiated versus undifferentiated marketing strategies

A differentiated marketing strategy requires the firm to modify its products for various market segments and to operate in all sectors. Production and promotion costs are normally higher when this approach is followed.

Marketing Mix

In 1965 Professor N. H. Borden coined the phrase ‘marketing mix’ to describe the combination of marketing element used in given set of circumstances. Appropriate mixes vary depending on the firm and industry, and over time.

Professor E. J. McCarty subsequently summarized the notion under four headings (known as the ‘four Ps’ of marketing), as follows:

• Promotion – including advertising, merchandising, public relations, and the utilization of sales people.
• Product – design and quality of output, assessment of consumer needs choice of which products to offer for sale, after sale service.
• Price – choice of pricing strategy, prediction of competitors’ responses to changes in the supplying firm’s prices.
• Place – selection of distribution channels, transport arrangements.

Marketing is the primary interface between the firm and its customers, guiding resources towards appropriate product offers and facilitating the satisfaction of customer requirements. Selection of the particular mix to be used forms the basis of the firm’s marketing strategy.

Examples of marketing strategy are:

• developing new product for existing markets
• deeper penetration of existing markets
• entering new markets for existing product
• attacking competitors head-on (rather than following competitors’ norms and behavior)
• serving particular market niches

Marketing Myopia

In 1960 Theodore Levitt published in the Harvard Business Review an article entitled ‘Marketing Myopia’ in which he argued that firms should adopt broad industry orientations rather than focusing their attentions on

10 Ways to Stay Ahead of Your Restaurant Competition

quoted from Ian Macdonald - founder and owner of Macdonald's Gourmet Burgers

Every restaurant owner should constantly be taking an objective look at how well your restaurant is doing. Staying ahead of the competition will keep you on your toes. Here are some ways you can get a good report card.

1. Know who your competition is!

I have encountered situations where a restaurant owner has identified the competition. Or at least what they think is their competition, but they're not. If I am selling Gourmet Burgers with the finest of ingredients, including trimmed premium Scotch Fillet Steak for the beef patties, (like I do), in a licensed restaurant with full service and extras, I am not really in Competition with the greasy burger joint down the road, or a group like Burger King am I?

So make sure your competition is truly your competition in the first place.

2. Get Employees to Sample the Competition.

You should always know what your competition is doing, it is essential to your success. It may be difficult to go yourself though as you would no doubt be known. So send one of your employees instead. Brief them what to look for. It will also give you the opportunity to treat a staff member to something different. How about showing up for work to be told you have to go out to dinner or lunch...all expenses paid!!!

3. Employ the services of a mystery shopper.

This is the reverse of what we have just spoken about. Here you get someone to come to your restaurant and report back to you. So none of you staff know what's going on. I organise this by going to our local business or community college and speaking to someone from the food and beverage school. They always suggest a student that would excel at the project. They earn some money, have some fun, and get a free meal. I often donate something to the college or I might even go and speak to there for them.
Everybody wins.

'10' Restaurant Financial Red Flag

quoted from John Nessel - Restaurant Resource Group

• Absence of a well organized and implemented accounting system
• Key operating expenses too high relative to gross sales
• Menu items not accurately documented, costed and updated
• Food & beverage inventory levels not counted and costed at the end of each accounting period or recorded in your accounting software
• Food and beverage inventory levels too high relative to corresponding sales
• Daily & weekly financial operating data not collected, reviewed or acted upon
• Inaccurate posting of financial information to your accounting system
• Current liabilities sufficiently greater than current assets as to impair future ability to pay bills
• Owner relying on online bank balance to determine available cash to pay bills
• Overall lack of understanding as to how to read and interpret period ending Financial Statements