We are still slowly bleeding…
With my consultants, I have just completed a careful review of our operations. Specifically, I am trying to figure out two things:
(1) What amount do we need to hit for weekly sales such that I no longer see bank accounts going down? I pay myself a modest salary so at this point I will be happy to see break even. We had very strong sales in September. October was OK. November has been weak. This is probably an annual reality. We will do very well in the spring summer and fall and not as well in the cold and dark. Presently, we are between $2K and $4K below where we need to be breaking even. We are still well financed so there is no worry but, of course, it’s not fun to be losing money. We planned to lose money for three months. And… well… three months is up next week. The biggest area of growth for us in takeout. I should have been working on the takeout part of the business a long time ago but some rather remarkable life circumstances had me out of the game for a couple of months. I am back. And, I am focused on growing the take out business. Online takeout ordering is now available (link at the top of the page). Please help me out and pass the word. Place your order and it’s ready for you at the time you choose.
(2) Food costs. We have been aggressively working on getting more efficient with labour. We have made remarkable progress in this area and our labour cost is WAY down from where it was with no noticeable change in customer service. In fact, I think our service is better than it was because we are each getting better at what we do. But, we do not have a good handle on food cost. We need to know what everything on our menu costs so that we can ensure that it is properly priced for our customers. We started out with a pretty clear picture, lost our focus, and now must get it back.
I have great confidence in The Flying Banzini. Every day I delight is seeing customers in my restaurant enjoying the vibe and the food. I great almost every customer at the door and I ask, “Have you been in before?” I think at least 50% have someone in their party who has been. In the long term, we are going to be just fine. Word will continue to spread and I am confident that my little restaurant will continue to grow. In the short term, though, we need to stop the slow bleed.
Dave
I think November is a tough month for most businesses. I suspect you’ll see an increase in weekend traffic as the holiday shopping season picks up.
From what I have read a restaurant can expect to lose money for up to a year, which is why so many do not last. I am sure since you are working so hard and paying attention to money and have lots of people helping it will all work out in the end. I imagine November and January/February will be the slowest months since it is cold and people do not have as much money for themselves. Good luck! Following your blog has been very interesting.
Most new businesses can take up to 3 years to break even. You are being very proactive by watching your costs etc so I think it will take even less time than that for you
December should be BUSY - lots of Christmas parties and special events happening… if not, you need to target the gov’t and office workers around the area saying you are open for bookings!