Quick Recipes and Easy

Catering Advice, People VS Turnover VS Profit

Having worked in the catering trade for many years, either as employed or self employed its always hard to stay on the profit ladder. Its simple to fall in to the trap of more people equals more turn over equals more profit. How incorrect we all are, yet nobody should be labeled for falling in to this hole we’ve all been there.

I find that a poster somewhere around that you will always see it, reminding you that Turnover is vanity and profit is sanity. I prime example is a friend of mine that was in the trap, and it took him a while to step back and see that he was even when I was telling him everyday.

My friend we’ll call him Adam, is the owner of a trendy style bar with a function room on the 1st floor. He would offer the function room for free to every event that came through his door. People would be there every week looking to book the room. Now don’t get me incorrect its nice to have some interest but lets just reckon what he was losing.

2 members of staff = £6 per hour for 8 hours = £96

Extra stock purchasing approx £300

So just to cover the stock we need to make on 50% £600 then there is the staffing and that would be £192 therefore you should take £792. How you would reckon this would be simple but the room holds approx 55 people standing room and the bar is very small. So lets work that out.

The party starts at 7pm people start to arrive at 8pm and the event stops at 12 midnight, thats 4 hours.

£792 divided by 4 = £198 divided by 55 (if the room is full for the whole event) works out at £3.60 per person per hour.

Now you may reckon that’s simple not a problem but is it. I’ve told you its a small bar, so its always running out of glasses a glass collector has problems collecting the glasses and the bar person can’t serve that quick. I will let you into a secret I know for a fact because of all these problems he has never taken over £600.

So we made some changes and place some structures in place. Questionnaires for all functions and a minium price for the function room of £150. Now when he has a function he has better knowledge of the customer therefore knowing what to order and he makes a profit. More and more people are having buffets with the event and a DJ. All of this because he makes peoples function professional right from the start and sells other products, he upsells.

He has also started talking to his long term customers about what they like about his bar and using that information as a marketing point. He just the other week took his £250 marketing budget for the new menu and spent the money on food and drink and invited 10 people with partners to a free new menu dinner in the function room. There was also the chance to try some of the new Cocktails. He thought very carefully about the people he invited a member of the council, local press etc etc. It worked very well the restaurant is extremely busy.

Sometimes we all need some help and to be pulled away from what we see every day and look outside the box. I hope that this has been some help.

John Stableforth

A top chef in the UK for some years, where he won many awards for his cooking. He then went to the management sector where he ran many outlets for large companies and also outlets of his own. John now likes to help others in and out of the catering trade to increase their profits and life style.

You can keep up to date with John’s news on completecateringadvice.co.uk completecateringadvice.co.uk and maybe see how he could help you.

You can also contact John at mailto:info@completecateringadvice.co.uk info@completecateringadvice.co.uk

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