Why You Should Be Managing Your Restaurant’s Costs on a Weekly Basis
Reviewing your Profit & Loss statement at month end is too late! Its’s the hospitality equivalent of closing the stable doors after the horse has bolted.
Why in hospitality are we taught to work on a monthly time scale in such a volatile environment? How can we hope to find the real issues inside 30 days worth of numbers and figures, and then try to forecast the next 30 days and bring about change? It’s painfully unrealistic.
By trying to rely on a monthly P&L to make these decisions, you are losing out on opportunities for making-time critical decisions with pin-point accuracy. Embracing weekly financial mapping in hospitality is a simple change anyone can make to improve the profitability of their business.
The Quick Win
The first step to sustainable profitability is to start tracking your operations by the week. We are taught at an early age to break problems into smaller, more manageable chunks. A week in hospitality is the perfect duration to create a time efficient plan for your business – it allows you to expose issues and make more effective changes.
- 52 weeks, 52 opportunities to instigate meaningful change
- Clear focus on the week at hand
- Easily review changes from the previous week and apply solutions into the next
- Respond to dynamic change within your environment
- Review your variable costs for opportunities
Beyond Profit & Loss
Don’t have time to create yourself a weekly profit and loss? Although the time spent is invaluable to your operation, the time and expertise aren’t always available. That’s why we created Viability — to provide you with the operational, financial assistant you need.
Viability arms you with the tools to track the mandatory tasks you perform on a daily and weekly basis. At the end of each week you get a simple analysis that you can review, so you can take informed action when it counts. The web-app also forecasts entire upcoming weeks, so you walk into a trading week with a map of where you’re likely to end up — like a GPS for your restaurant.
Don’t wait until the end of the month to find out what has happened. Embrace a weekly methodology with Viability and drive positive change in your business.
Find out more about the Viability software platform here.
Also published on Medium.