Time for Owners to Start Taking Responsibility for Their Numbers

How do owners know if their businesses are doing well? Is it when people are flocking the venue everyday? Is it when the business gets recognition for food and services?

Well, it comes down to the numbers. Numbers don’t lie. Numbers don’t have emotions either. Owners only get the cold hard truth when they look at their businesses’ numbers.

There are a lot of venues out there that offer amazing locations, great food, and excellent customer service. But they are not making any money because they don’t know their important numbers and how to use them to get results. That is not acceptable.

There are three key steps on knowing numbers and taking responsibility so that goals can be achieved:
 

1. Break down the numbers.

Get clear on what the key KPIs are for the business. There are five areas in the food business that drive profit: (a) no. of customers, (b) average customer spend, (c) food costs, (d) labour cost, and (e) overheads.

Owners need to know how they are currently doing in each area. Whether it’s on a weekly, monthly, or yearly basis, regular accounting of the numbers in the five areas is a must for those who want to succeed.


2. Test and measure.

Once the owner has broken down the numbers, the next step is to determine how each of the areas affects the bottom line of the business. Will accepting more customers help increase revenue? Does cutting down on food and beverage expenses ensure a greater profit?

Test and measure to determine which areas of the business need work. Find out if making any changes in a particular area will give bigger rewards, more time, and better profit.

 

3. Prioritise and start working on changes.

Afterwards, owners now have to prioritize which one needs work first. It’s difficult to work on changing multiple areas at the same time. Know what areas to focus on in the business and in what order to get the best possible long-term result.

Owners should always start in an area where it’s going to make the most impact on the business. It should be the ones that would make the most amount of money or free up the most amount of time.

 

All owners have goals they want to reach for their business. The problem is that the journey isn’t always that smooth and straightforward.

Owners must make sure they have a clear path towards their goal to avoid wasting time, money, and other resources. The best way to do that is to arm themselves with as much information about their business as they possibly can.

It’s all about the numbers. When owners understand their businesses’ numbers, it becomes an advantage.

Foodie Coaches provides expert knowledge to business owners on how they can be responsible for their numbers. They offer an elite training program on budget and KPIs, plus other know-how to help business owners succeed in the industry.

Book a free session with Foodie Coaches at https://www.foodiecoaches.com/.