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Fighting the cost, a murderer restaurants

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When a purchasing manager of a restaurant chain accesses your new position, many times, nos llama para comunicarnos que asume este puesto con el objetivo de bajar al máximo los costes de compra de la empresa. Later we learned that it must have done very well, because today the cost of purchases is zero, todos los restaurantes han cerrado. What you may not know is that he has a lot to do with this sad outcome.

If your goal was to spend less, nobody can say that I have done wrong, and therefore we must draw a first important conclusion:

In a company, la suma de los óptimos individuales no da como resultado el óptimo global

The second conclusion, also always I remember the members of my teams and, especially, financial and accounting departments, siempre preocupados por la reducción de costes es:

"Zero Cost, closed company "

This seems a no-brainer, it is not so much when we spoke with most buyers of the restaurants sector,, whether family businesses, franchises, small chain restaurants or large industry groups.

Archimedes said: "Give me a fulcrum and I will move the world". This is what you should do a restorer, find a foothold to project a lever to profitability.

Business restaurateurs are full of great chefs, waiters and sommeliers, Nevertheless, shortage of good managers, los buenos planes, los buenos análisis y la formación empresarial. Few know its fulcrum and excitement that transmit their local. They do not have a marketing plan, They do not know how to maximize your income, They have never calculated what their breakeven or lack a digital communication policy.

That is to say, fail in business part, with an obvious lack of resources to analyze, design and develop business. A) Yes, we end up in the wrong and suicidal idea that business viability passes cost savings. This erroneous conclusion is the beginning of the end.

Restaurants struggle for cost reduction has always been a constant, but it is from the sector crisis in August 2008 when it acquires its best.

Since then, All business areas have been subjected to a review, giving priority to the partial objectives above the goal of the company. Y como ya he dicho antes, compliance with the partial objectives contradicts the aim of the company, which it is none other than making money today and in the future.

Thus, the first intelligent questions before saving or lowering the cost would be: Where should we save? ¿qué impacto va a tener en la empresa cada euro que deje de gastar o invertir?

Clearly you not have the same impact on a game saving in another. Neither it will be just as easy and quick cut spending in one category than another. The employer usually try to adjust cost item faster and easier to apply, even if it means significantly lower future income.

To make such adjustments in the various areas in which we distribute a restaurant we take into account the following considerations:

  • Personal. Reducing the resources allocated to staff is a complex negotiation, perhaps costly if you have to lay off, and it is always a complicated issue that can greatly affect business development.
  • Marketing, advertising and digitization. Delete a marketing contract, digitization and advertising can be quick and immediate savings, just a phone call. But how does that affect our future revenues? You will surely have a negative impact, an impact that will be greater with the passage of time.
  • goods. The temptation to reduce costs in purchasing the merchandise is nonsense that almost always ends with the viability of the business for the most important variant, loss of income. It may seem that reducing the monthly shopping bill is significant, pero la incidencia en el coste de un plato realizado con buenos productos a otro hecho con malos es insignificante. And the impact on quality and income generation in the medium term is brutal.
  • Rentals and supplies. Cut the rent can be a long and difficult negotiation, but once achieved it has no negative impact on our income.

It is difficult to measure what the lost profits of customers who no longer come to be dissatisfied. Although customers do not complain, I assure you stop going to restaurants if low quality of products.

Definitely, it is lawful to seek a lower breakeven, provided that no afectemos the quality of what we offer. But much more effective and intelligent is working on income, but this challenge requires lifelong learning and knowledge in managing our business.

Therefore, we must ask the right questions before you make our implementation plan. The important thing is to guide the effort towards actions of greater impact on earnings, never forgetting, que la calidad es la mejor apuesta para conseguirlos a largo plazo.

Fighting the cost, a murderer restaurants
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About the Author

Oscar Pirrone

Benetti creator and Pecoraro, leader in Spain in the sale and distribution of Italian-Argentine products for restaurants and Director of Galiffi & Giacomo, business advisory and business consulting.

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