We know that one of the oldest phrases in business is “turnover is vanity” and “profit is sanity”.
This is particularly relevant in London’s restaurant sector, where your margins have to be spot on in order to get your profits right.
Due to margin miscalculations many operators are losing out on profits, and it seems there are many ‘pregnant profit’ opportunities out there within many companies’ profit and loss sheets.
Examples of these include:
1. Looking for better terms on costs of food and drink.
2. Tackling key issues such as credit card charges as well as utilities, including rents and rates.
3. Effective ways to pay employees, ensuring that they are benefiting fairly from the service charges.
At CDG Leisure, what we are increasingly finding is that operators are becoming more interested in finding effective use of their spaces during “off peak” times. Whether it is introducing a breakfast menu (as experimented with by Wagamama), or filling up the early evening slot where tables are more available, the key to this area is marketing, PR and increasing interest in the concept and the location.
Maximising these different opportunities to grow a business will ultimately result in more profit for the business, nurturing the potential for sustainability and growth. We are often able to identify the businesses where the desired profits are not being achieved, either by the way that the business is being managed or the manner in which costs are approached.
In a highly competitive market it is imperative that all these factors are correctly placed, so that the results yield significant turnovers and returns.
The key, like within all businesses, is to 'stay focused'.