The path to Profitability

The blog is basically a summarized version of my understanding of my work. 

A Restaurant is an EXPERIENCE; a 'third place' away from home and work, where your customer is not just for food or drinks.

My understanding of Profit

Profit is the result of solid planning, sound management, and careful decision making.

As a Restaurant business operator, I want you to make informed decisions with regard to managing your operation’s revenue and expenses. And with the correct tools that I use and support your business with, the potential for achieving profits you desire could be greatly enhanced. In fact, careful planning is a necessary basic to earn a respectable profit from the business.

I believe that profit is a reward for providing service, not a leftover.

Revenue (-) Desired Profit (=) Ideal Expense

It is my belief at that every Restaurant should work with the following profit-oriented formula:

Revenue (-) Expenses (=) Profit

Profit should not be viewed as what is left over after the bills are paid.

The primary responsibility of a Restaurant business is to deliver a quality product or service to the guest, at a price where the customer agrees that he has received Value for his money spent.

My understanding of the Cost

I believe that if management focuses on controlling costs more than servicing its guests, problems will certainly surface. It is also important to remember that guests cause businesses to incur costs. You do not want to get yourself in the mind-set of reducing costs to the point where it is thought that “low” costs are good and “high” costs are bad.

Remember, if there are fewer guests, there are likely to be fewer costs, but fewer profits as well!

And because that is true, when management attempts to reduce costs, with no regard for the impact on the balance between managing costs and guest satisfaction, the business suffers and collapses. In addition, efforts to reduce costs that result in unsafe conditions for guests or employees are never wise.

My belief on Restaurant success

For me, a successful Restaurant business is the one which earns enough money to command a decent return over the capital invested - VALUE, has a loyal customer base; customers who return not just for the food alone but for you - LOYALTY, a business with a willing inclusion of technology, just enough to ease operations and customer delight - TECHNOLOGY, and a place where team members display ownership and enthusiasm - TEAM. 

This is the age of identity. All three factors, (for Technology is an enabler), combine to build ‘the Brand’, whether at a local or at a broader level. 

But without a brand, a business is technically non-existent. There is just too much crowd of the mediocre in the field. Be aware of that.