a recipe for financial success - 3 steps to increase hospitality sector profits

15
validum Alan Kay FCA

Upload: neil-dockar

Post on 28-Jan-2018

436 views

Category:

Business


0 download

TRANSCRIPT

Page 1: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

Alan Kay FCA

Page 2: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

Introduction

Communication and Awareness

The Big 3

Why Financials?

Management Information

Conclusion

Page 3: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

Actually, there is no real recipe … but there are plenty of ingredients! ◦ Business plan and menu

◦ Good dining experience

◦ Value for money

◦ Returning customers

◦ Word of mouth and internet recommendations

◦ Solid and meaningful financial and management information!

Page 4: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

Communication is vital

What is your role?

How you impact on others

How will you measure performance?

Clarity about implications of choices made

Page 5: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

Staff

Food and Drink

Other

Page 6: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

Your largest single cost?

Ensure correct mix of full time vs part time

Correct balance of experience

Rota management

National Minimum Wage

Page 7: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

GP or GP%?

Menu costing, flash reports and theoretical GP

Basic checks (Delivery Notes)

Wastage reports

What sells well and what sells not so well

What are your competitors charging?

What can you charge?

Upselling

Page 8: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

Overheads

Software – EPOS, reservations etc.

Marketing including social media

The “Hidden Killers”

Page 9: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

Need to be : ◦ Sufficient

◦ Accurate

◦ Prompt

How much data and how often?

Who sees the financials?

Budget, break-even and cash flow

Questions, targets, “what if?”

Page 10: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

What has happened?

What does it tell us?

What are you going to do about it?

Be clear about your objectives

Compare to Budget and Prior Year

Page 11: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

There is NO magic recipe!

Information is POWER!

Remember to COMMUNICATE

Try and STEP BACK from your business

Page 12: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

Alan Kay FCA

Page 13: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

2014 2013 2014 2014 2013 2014

Actual Actual Budget Actual Actual Budget

Sales 128,545 104,554 115,450 1,563,688 1,422,012 1,488,000

Gross Profit 88,822 75,018 81,969 1,072,690 1,004,626 1,056,480

69.1% 71.8% 71.0% 68.6% 70.6% 71.0%

Staff Costs 32,207 27,545 28,355 402,119 386,220 384,530

25.1% 26.3% 24.6% 25.7% 27.2% 25.8%

GP After Staff Costs 56,615 47,473 53,614 670,571 618,406 671,950

44.0% 45.4% 46.4% 42.9% 43.5% 45.2%

Operating Costs 5,609 3,962 6,830 57,374 53,609 68,300

4.4% 3.8% 5.9% 3.7% 3.8% 4.6%

Promotional Costs 265 3,494 3,883 9,453 13,648 38,830

0.2% 3.3% 3.4% 0.6% 1.0% 2.6%

Premises Costs 22,473 10,586 13,600 154,327 148,982 149,600

17.5% 10.1% 11.8% 9.9% 10.5% 10.1%

Finance Charges 4,618 3,454 2,955 30,317 28,036 29,570

3.6% 3.3% 2.6% 1.9% 2.0% 2.0%

General Costs 2,214 2,769 3,553 29,391 24,771 35,550

1.7% 2.6% 3.1% 1.9% 1.7% 2.4%

Net Profit 21,436 23,208 22,793 389,709 349,360 350,100

16.7% 22.2% 19.7% 24.9% 24.6% 23.5%

Period (4 weeks) Year to Date (44 weeks)

Page 14: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

2014 2013 2014 2014 2013 2014

Actual Actual Budget Actual Actual Budget

Rent & Rates 3,256 2,994 3,250 35,816 32,934 35,750

Light & Heat 4,892 4,521 4,750 52,922 49,010 52,250

Repairs to Premises 14,325 3,071 5,600 65,589 67,038 61,600

22,473 10,586 13,600 154,327 148,982 149,600

17.5% 10.1% 11.8% 9.9% 10.5% 10.1%

Period (4 weeks) Year to Date (44 weeks)

Page 15: A Recipe for Financial Success  - 3 Steps to Increase Hospitality Sector Profits

validum

Last Year This Year Target

Sales Food 15,496 19,053 17,114

Drink 10,282 12,641 11,353

Other 360 442 400

Total £26,138 £32,136 £28,867

Restaurant covers 901 992 950

Spend per Head £23.30 £26.20 £25.00

Food GP% per flash report 71.10% 70.6% 71.50%

Unexplained food variance £366 £305 £200

Drink GP% per stock control report 69.40% 69.6% 70.00%

Selling price of comps. £488 £261 £200

Wastage @ cost £102 £74 £75

Accident book entries 0 1 0

Complaints received 5 3 0