Once Bitten Twice Shy

Started by illdecide, October 06, 2011, 01:30:30 PM

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thebigfella

#30
October 07, 2011, 03:56:32 PM
Can some of the so called experts provide details in the good margins on food? I'd argue the other way but it would be interesting to see what sort of margins your forecasting ;)

muppet

#31
October 07, 2011, 04:09:49 PM
Give a significant discount for GaaBoard members.

Obviously we don't carry a membership card but we could make ourselves known in an agreed manner, e.g. shouting 'this Swordfish is the dog's bollix' at the top of our voices.
MWWSI 2017

Bingo

#32
October 07, 2011, 04:10:24 PM
It depends on type of food. We'd do accounts for a chinese and their GP% is crazy, near 80% and thats before their cash cut that we never see - they sell something for a 5, costs them 1 in terms of food stuffs and ingredients. I reckon it be better as a few quid goes to the pocket.

Other cafe/restaurant we do, it can be lower but if it doing well and run well it can maintained at 70-80%, higher if all going through the books.  ;)

If its owner managed and staff costs can be kept down it is a good wee business but compeition is fierce.

Gaoth Dobhair Abu

#33
October 07, 2011, 04:52:43 PM
Quote from: thebigfella on October 07, 2011, 03:56:32 PM
Can some of the so called experts provide details in the good margins on food? I'd argue the other way but it would be interesting to see what sort of margins your forecasting ;)

Can't get figures atm but have family and friends in cafe/restaurant/ hotel businesses and the margins are there.

Simple example, 5 stone bag of spuds costs a couple of quid think how many chips that makes?  ;)
Restaurant side order of handcut chips (one or two big spuds) - £3.00
Cafe bag of chips (three or four spuds) - £2.00- £2.50 in fairness frozen precut chips for a takeaway could workout cheaper, but then the quality goes out the window. Even after costs (staff, oil etc...) is taken out the margins are massive.
Tbc....

illdecide

#34
October 07, 2011, 05:34:31 PM
Plenty of good advice there lads...appreciated. Quality is def the priority if this adventure goes ahead, the main worry would be getting the numbers in thru the door. Talking to everyone about it there's no doubt that it'll be hard work especially during these tough times in a town that's struggling, i would def slash the menu and take of all the crap that none goes for and keep it simple.

As for profit margins, there are some items like Cod that may take a hammering in your profits but i believe I'd only get away with one item like that on the menu. Everything else must be at least 50-60%, as for the name change it can't happen as it's a well known place over more than just the town it's in but a big add in paper stating change of manager etc should do the trick along with a few good specials etc. The Establishment is well famous for it's home made Ice Cream so this would be a used too to get them in thru the doors.
I can swim a little but i can't fly an inch

Bingo

#35
October 07, 2011, 05:36:59 PM
Quote from: illdecide on October 07, 2011, 05:34:31 PM
Plenty of good advice there lads...appreciated. Quality is def the priority if this adventure goes ahead, the main worry would be getting the numbers in thru the door. Talking to everyone about it there's no doubt that it'll be hard work especially during these tough times in a town that's struggling, i would def slash the menu and take of all the crap that none goes for and keep it simple.

As for profit margins, there are some items like Cod that may take a hammering in your profits but i believe I'd only get away with one item like that on the menu. Everything else must be at least 50-60%, as for the name change it can't happen as it's a well known place over more than just the town it's in but a big add in paper stating change of manager etc should do the trick along with a few good specials etc. The Establishment is well famous for it's home made Ice Cream so this would be a used too to get them in thru the doors.

Thought it was a family member  ;)  ;D

JUst retired

#36
October 07, 2011, 05:53:06 PM
without naming names, is it in a town that was recently done up? ;)

Ulick

#37
October 07, 2011, 06:17:30 PM
If its the place I'm thinking off then it has the possibility of being a gold mine as it was in my childhood/teenage years. A tasteful revamp, good hygiene standards and a review of how the food is prepared and the word will get around pound town in no time. Probably doesn't even need much change to the menu (though I haven't been in a long time) as you are trading on the name and tradition of the place - people know what to expect from the place you just need to ensure they get it at a consistently high standard. 

illdecide

#38
October 07, 2011, 06:31:03 PM
Bingo u guys don't miss much FFS...lol. Yes i'll be involved but not the main man (as they'd say).

Ulick it is the place u'r thinking off alright...still a risk though.

Just Retired...calm yourself down
I can swim a little but i can't fly an inch

Tony Baloney

#39
October 07, 2011, 06:50:27 PM
A lot of talk about food margins. Now I'm no expert but aren't there other overheads in the restaurant/cafe trade? Wages, electricity, heating, rates, insurance, water etc. etc.

Puckoon

#40
October 07, 2011, 07:15:59 PM
Hard work, and a continued focus on the customer with value and good service - and you should do well.

Get people in the door, make sure they are happy going out the door, and ensure repeat business.If people have a good meal they will tell people - and if people have a bad meal - they will tell even more people. Don't be afraid to try things like early bird specials, kids eating free one night a week (on a typically slow night like a tuesday, 1 per paying adult, few sausages/burgers/chicken strips and chips etc), free dessert on your birthday, or a cocktail on your birthday if you bring in a table of 5 or more etc... and mix it up, buy one starter get one free (on another slow weekday night) and so on. Put competition to the competition.  These arent desperate measures, and many food and alcohol proprietors back home can't see the woods for the $ signs. There is good money to be made keeping a good food joint busy and popular.

Assuming the food is going to be good, giving the consumer value for money will be your next best friend. Try to make a killing vs try to make a living and all that.

Good luck, hopefully stop in when I'm home. On me birthday  ;)

thebigfella

#41
October 08, 2011, 04:27:48 AM
Quote from: Bingo on October 07, 2011, 04:10:24 PM
It depends on type of food. We'd do accounts for a chinese and their GP% is crazy, near 80% and thats before their cash cut that we never see - they sell something for a 5, costs them 1 in terms of food stuffs and ingredients. I reckon it be better as a few quid goes to the pocket.

Other cafe/restaurant we do, it can be lower but if it doing well and run well it can maintained at 70-80%, higher if all going through the books.  ;)

If its owner managed and staff costs can be kept down it is a good wee business but compeition is fierce.

After that I switched off. Chinese food/takeaways are muck with shitty food a cheap labour which drunks (or people with no taste buds) buy.

In fairness I like the caveat, if through the books ;)

thebigfella

#42
October 08, 2011, 04:32:33 AM
Quote from: Tony Baloney on October 07, 2011, 06:50:27 PM
A lot of talk about food margins. Now I'm no expert but aren't there other overheads in the restaurant/cafe trade? Wages, electricity, heating, rates, insurance, water etc. etc.

Yep, margins in food is a myth. How many pubs do you know that has quit serving food? They are paying the majority of overheads anyway so why can't they make a profit from a half hundred of spuds?

Glad to see someone not falling on the usual gaa board bandwagon of misinformation

thebigfella

#43
October 08, 2011, 04:41:08 AM
Quote from: Gaoth Dobhair Abu on October 07, 2011, 04:52:43 PM
Quote from: thebigfella on October 07, 2011, 03:56:32 PM
Can some of the so called experts provide details in the good margins on food? I'd argue the other way but it would be interesting to see what sort of margins your forecasting ;)

Can't get figures atm but have family and friends in cafe/restaurant/ hotel businesses and the margins are there.

Simple example, 5 stone bag of spuds costs a couple of quid think how many chips that makes?  ;)
Restaurant side order of handcut chips (one or two big spuds) - £3.00
Cafe bag of chips (three or four spuds) - £2.00- £2.50 in fairness frozen precut chips for a takeaway could workout cheaper, but then the quality goes out the window. Even after costs (staff, oil etc...) is taken out the margins are massive.

Don't listen to this idiot. I'm unsure what clientelle you are aiming for but in fairness we have all moved on from being seduced (and can tell too) by home made chips over frozen chips  ::)

There used to be time you could serve up any shit and no one knew better in this country. Unfortunately the tv food programs have educated us (well make us think we are) in what is quality food.

Bingo

#44
October 08, 2011, 06:55:28 AM
Bigfella, it's not rocket science, if you can't get your margin right you are goosed. Everyone knows it's before overheads. As has been said, u need the volume in food. Pubs just can't mix both. How many pubs have closed ie stopped serving drink never mind food? Pubs core business is drink, they have far more overheads than a restaurant and need a bigger capital investment.

Pub/restaurant, restaurant, cafe or pub is like another business - do it right and consistently and you'll make money. 
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