A French restaurant business in the north of England contacted Venners for help with streamlining their operation. The restaurant’s owner was keen to resolve any deep-seated issues negatively affecting the restaurant’s profitability levels.
Cash flow checks and operational efficiency audits
Our consultants completed a comprehensive discovery visit. They tracked and traced cash flows and validated whether operational protocols were being adhered to throughout the business. This approach aimed to identify any underlying problems as well as determine any missed opportunities that were preventing optimum profitability.
Most businesses tend to tackle issues once they become too big to ignore. Thanks to this restaurant’s proactive approach, our consultants were able to find key areas to improve, without the need for colossal changes.
Detailed findings identified which operational processes required tighter controls
Looking at every aspect of the operation, from supply chain, to stocktaking, menu costing and cultural issues, it quickly became clear that the restaurant’s biggest downfall was their lack of record keeping and policy adherence.
On the supply chain side it was evident that there were no set cost prices on key products, no defined protocols about which suppliers to purchase products from, nor when to place these orders. The resulting fluctuation in costs, which also included unusually high delivery fees, was resulting in significant and unnecessary losses.
From a stocktaking perspective, there were significant variances between the till data and the manually kept staff records. Protocols surrounding corporate accounts and tab payments were non-existent with several of these payments being invoiced against incorrect reporting periods.
Delivery checking and the general lack of tracking of purchases was a big cause for concern. Wastage too was not tracked, nor was allowance made for any. Importantly, there was no differentiation made between wet & dry stock, nor were sales and discounts accurate or even reconciled to the reported figures.
Looking at the food offer, there seemed to be disparity between portion sizes and production sizes, with no best practices detailed or adhered to. The GP% achievements for the various dishes varied tremendously as the selected menu had not taken into consideration the top sales reports.
A collection of minor changes restore profitability levels on a much larger scale
An independent review can be helpful in identifying areas where your operational expectations are, in reality, not being met. In-depth auditing is the perfect way to uncover and manage change, allowing your F&B outlets to reach the standards needed to achieve a profitable and stable business.