Profitability
A few percentage points are all the difference between
profit and loss!
We use our experience to ensure that your business retains as much of your hard earned revenue as possible. We analyse your operation and your figures and then help you reduce food and liquor costs and control your overheads, the largest of which is usually wages.
Our activities with you will involve looking at some or all of the following issues:
- Full ‘Profit & Loss’ Analysis and Corrective Measures
- Liquor Management & Liquor Gross Profit %s
- Food Management & Food Gross Profit %s
- Payroll Controls - analysis of ideal expenditure
- Food & Beverage Management
- Internal Stock Controls
- Menu Management
- Stock Management and Stocktaking Interpretation
- Purchasing
- Financial Business Management
- Budgeting & Forecasting
- Control of Variable Costs
Case Studies
Here are some examples of how we have helped others who might be in a similar position to yourself:
Country House Hotel
Family owned and run hotel with14 bedrooms, conference and banqueting facility and a 1-rosette Restaurant.
Key issue: Owner having to keep injecting funds to make up operational losses.
Main work done and achievements:
- Food GP% investigated, benchmarked and improved substantially.
- Wine pricing and purchasing both improved to optimise margins.
- Wages investigated, monitored and reduced through effective staff management.
- House Manager managed and motivated with specific objectives given.
- Profit & Loss accounts format redesigned to deliver meaningful figures.
- Budgeting, forecasting and monthly projections put in place.
- New General Manager sought, employed and managed to deliver results.
- New staff contracts and handbooks implemented.
“David Hunter is an external consultant to my family's hotel business in Hertfordshire. He has advised us for the past year. He is quite excellent and indeed has become a mentor and a friend to the business. He has transformed profitability. He is a very tactful operator. I cannot really recommend him highly enough. For us he continues to be superb.”
Restaurants & Hotels
A group of six rosette-level restaurants with bars, some with rooms and one full service hotel, most in a small town/village/rural setting.
Key issue: group not profitable.
Main work done and achievements:
- Market positioning established and new menu format discussed and implemented.
- Food GP% benchmarked, targets given, chefs' performance challenged and monitored weekly with flash food GP%s.
- Liquor GP% improved from 50% to 68% through list redesign and better purchasing.
- Overall GP% improved by 8% of total sales.
- Manpower planning exercise reduced payroll by £2,000 per unit per week.
- Introduced new format for management accounts.
- Introduced budgeting and forecasting for tighter financial management.
- Interviewed, helped appoint and inducted a new Operations Director.
- New staff contracts and handbook implemented.
“The first point to mention is really just to confirm how grateful we are for the work you have done, and the commitment you have shown to the business. There is no doubt that the work you have undertaken with us has shown material benefits and the improvements are continuing to flow through the business…
…Finally, and once again, very many thanks for all you have done for us and for our business, it really is much appreciated.”
Brewery Leased Pub
City-centre pub with tied lease, off a main shopping street, operated by the lease-holder, who was previously the manager of the pub.
Key issue: whilst the lease-holder had practical experience running a pub and a restaurant, he had not been self-employed before and knew little about business management.
Main work done and achievements:
- Cost Reduction. Advised on valid business expenses and helped set up systems and procedures, avoiding all unnecessary commitments.
- Legal Issues. Sourced relevant legal assistance before the lease was signed and advised on liabilities and legal commitments.
- Food GP% benchmarked controlled and improved by 8% of sales.
- Liquor GP% increased by 5% of total sales despite brewery tie.
- Wages analysed and reduced.
- Monthly P&Ls analysed, explained and corrective action advised.
- New staff contracts and handbooks implemented.
“I knew I needed a Mentor when I took on the business, and I knew that I would pay for that, but what I didn't realise was just how money you might save me - very many times what you cost. So, it was an excellent investment - and probably my best…”
Two Rural Hotels
Each 3 star hotel had 20 rooms. Restaurant and bar were managed by an employed General Manager – the owners spending much time abroad and in their other businesses.
Key issue: the owner felt that ‘something was wrong’ but wasn't sure what.
Main work done and achievements:
- Analysed figures to establish true trading position - it became apparent that the owner wasn't getting ‘the full story’ reported to him
- Improved food GP% considerably – from low 50%s to 68.0%.
- Improved liquor GP% considerably – from low 60%s to 68.0%.
- Reduced payroll % significantly.
- New management structure improved management performance and reduced costs.
- Revitalised marketing activity, creating hugely positive ‘internal competition’.
- Developed individual managers into a team.
- Regularly set objectives and held appraisals.
- Launched a performance-driven bonus scheme for senior employees.
“The best decision I ever made in my business life was getting you in to help us.”
Contact
For an informal and FREE initial discussion, call me on 01628 487613 or 07831 407984, email me at davidhunter@bowdengroup.co.uk
or complete this short form and we will call you back to discuss your needs.
If you are just starting out on a new venture maybe you would like to visit:
www. Hospitality Start Up .co.uk