We have supported dozens of restaurants in Hong Kong, and are witness to the fact that successful financial management in the food service industry goes hand-in-hand with success.
It’s not just about passion and creativity, a successful F&B business involves an incredible amount of dedication to cost control and management, F&B cost, budgeting and KPI setting.
At Monx we always advise restaurants to do the following for successful financial management.
Top 10 tips for successful F&B financial management
- Create a solid three-year (or rent-length) financial plan that is realistic with the current economic condition and break is at month-level.
- Do a monthly closing and analyse the gaps between expectations and actual results.
- Implement corrective actions and monitor monthly.
- Pivot if necessary. F&B owners need to respond to the market’s needs. We are not suggesting completely changing your business’ concept, but rather small incremental changes to fit the market at a particular moment.
- Track inventory using technology as well as using it for ordering supplies ahead of time.
- Reward your staff and track their performance. The staff are the face of the restaurant. Make them happy and your customers will be happy. Ultimately this is for the overall financial success of your F&B business.
- F&B cost. This is your north star. Calculate and recalculate monthly. Costs change constantly, don’t lower your guard. Ever.
- Marketing Costs. Spend wisely and assess what works and what doesn’t. Don’t get fooled by vanity metrics (i.e. how many people visit your website or just come for a non-profitable meal/drink).
- Cash is king. Determine a cash position that allows for a worst-case scenario of an economic downturn of 3 months at least i.e. a -40% turnover.
- Passion and Creativity is the Queen of the F&B industry. Financial management is the King. Makes sure that the two things go hand in hand.
Foodservice is one of the fastest-growing industries in Hong Kong but it is also one of the hardest to manage and control. Speak with one of our F&B experts today to strengthen your business’s financial health and accelerate its success.
Email us for a free consultation: email@example.com