Perfect percentages in hospitality

KPI’s(Key Performance Indicators) are variables which help determine if the business is doing good relative to their market in which they operate. More basically: Is your business making revenue?
These variables have an percentage of total cost, depending on your company these might vary but should be around the following percentages:

• Staffing cost 30%

• Brick & mortar  12%

• Cost of buying 30%

• Marketing 8%

Total cost:           80%

• Profit 20%

Knowing these numbers can help you identify problems and adjust them accordingly. By lowering some of these costs, it saves money which you can invest to raise your potential profit.

Some good wins which might seem difficult, can really add up:

• Be aware of your sales per employer per hour, perhaps lose some full-timers or maybe you need more?

• Have you thought about buying your brick & mortar instead of rent? Or re-negotiate your rent, you might be surprised at the possibilities!

• Buy smarter and in bulk. Perhaps another bar or restaurant can help you created a joined buying system with bigger discounts…

• Spend your marketing budget wisely and where you can measure results.

All things added might help you get out of trouble or make it possible to finally invest in the renovation you were so looking forward to.

Personal note:

Since administration and statistics is not the sexiest part of running a business, lots is to be gained. Be sure to know your numbers, your percentages will tell you which way the business is heading and is actually quite easy to calculate.
I have helped many bars and restaurants such as yours. A fresh look can make the difference. Creative minds being together aspires to wonderful outcomes and you want to be on that boat.
Feel free to contact me any time to see where I can help you save money.

Sincerely,

Den The Man