Pro CFO

How to increase restaurant revenue

Sean — Mon, 07 Apr 2008 23:08:19 +0000

This is the most important question most restauant owners ask - how can I increase revenue? The answer is to market and not advertise… we know how to do that. It’s very difficult to do but we at ProCFO do it all the time.

However, interestingly it is not the most important aspect of a restaurant business. Most companies (including restaurants) fail NOT because of the amount of revenue they have, but rather from the FINANCIAL DECISIONS the owners make.

Think of it this way…if you have twice the revenue as you do today and you make financial decisions that create twice the cost to the business, do you really think you are getting anywhere?

You’re not.

It’s usually not revenue that causes problems. It’s financial management.

ShareThis

Turnaround, Turn Around or Turn-Around

Sean — Fri, 28 Mar 2008 17:29:05 +0000

Which spelling is right?

Does it really matter? No. What’s important is that if your small business isn’t (or hasn’t) been doing as well as you would have liked, then you need to interject. Usually that means you need to do something that you haven’t done inhe past to make your company more profitable.

But what should you do? The best thing to do normally is to bring in a different set of eyes with a different brain. Becasue if you had a solution for the problem, it should already be solved…and it’s not.

ShareThis

Restaurant profits

Sean — Fri, 21 Mar 2008 22:13:22 +0000

If you have a restaurant, your profits are either sagging now or will be lower soon. Americans are spending less and that is/will affect your business.

What to do? What are you doing today to fix your restaurant now?

Do you have a gameplan in case your restaurant starts failing?

ShareThis

Economic Predictions for the New President

Sean — Tue, 18 Mar 2008 22:44:53 +0000

Right now we have a slowing economy and we are advising that neither Republican nor Democrat running for president will quickly help the economic turmoil that we are in. However, with a Democratic controlled House and Senate AND a Democrat as president, we should have a worse economy that with Republicans in the House, Senate and/or Presidency. In short, the worst situation politically that we could possible be in.

We also are advising that the odds of an Obama presidency are about 2:1 against McCain. Which means that there is about a 67% chance that the economy will be even worse than now vs a 33% chance that we stay flat.

You have a business. You need to be prepared for the oming economic problems that we are and will be facing. What are you doing?

ShareThis

Restaurants Profits Will Drop in 2008-2010

Sean — Tue, 18 Mar 2008 22:36:48 +0000

Restaurants will be one of the biggest loser small businesses in the next 3 years. There will be less customers and those customers will be buying less during their visit…a double whammy. The biggest losers in the restaurant market will be the family and full service and upscale segments along with weekend vacation spots in this segment, while the cheaper and most expensive places will do OK. That means that if your restaurant caters to the middle class, you will get the brunt of the pain in the next 3 years.

Extremely Upscale will likely grow, and fast food will also. Everyone else, plan on 1-2 years of a 5% - 30% drop in sales.

How will your restaurant cope?

ShareThis

Mortgage Meltdown Predicted

Sean — Tue, 18 Mar 2008 22:25:40 +0000

We’ve been predicting this mortgage meltdown since 2004. That’s right, since 2004. One of my clients had almost 50% of his corporation’s revenue coming from sub prime lenders. Did he go broke? No. In fact, he’s one of the largest businesses in his field currently. We advised him at the start of the engagement in 2005 that he needed to pull away from those types of customers. He then proceeded to push the healthcare space, replacing bad revenue with good.

We are advising our clients that there will be more of the same and we are forecasting that the economy will go 1 of 2 directions in the next 3 years. 1. Essentially zero growth or 2. Negative growth.

Knowing this, what are you doing TODAY to fix the issues that you WILL be facing in the next 3-5 years?

ShareThis

Bad Revenue - Is there such a thing?

Sean — Tue, 22 Jan 2008 17:40:31 +0000

Sasquatch.

Dracula.

Bad Revenue.

Which of these things exist? Well, I’m not sure about the other two, but Bad Revenue DOES ABSOLUTELY exist.

Bad revenue is revenue that is difficult to collect, OR costs alot to obtain.

Revenue is the EASIEST thing in the world to get but good revenue is one of the most difficult. Many small businesses focus on getting revenue, not getting good revenue, and it can lead to their demise.

Do you know what revenue is good and what revenue is bad in your business? Do you know how to tell and what analysis needs to be done to figure it out?

ShareThis