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brandStrategy.co.za
brandStrategy.co.za




How to get your Restaurant OUT of
  the dip and BACK on the road
      again… RIGHT NOW!
Mike & The Mechanics




                       Michael Said
                       brandStrategy




brandStrategy.co.za
Mike & The Mechanics




                       Michael Said
                       brandStrategy




brandStrategy.co.za
Michael Said
brandStrategy
Michael Said
brandStrategy
twitter.com/mike_said_what
                           #RhapsodyLegends




brandStrategy.co.za
twitter.com/mike_said_what
                           #RhapsodyLegends




    slideshare.com/mikesaidwhat
          RestaurantAction!


brandStrategy.co.za
The sorry state of the restaurant industry
                in South Africa!




brandStrategy.co.za
The sorry state of the restaurant industry
                in South Africa!



                      Are in deep, deep trouble and not getting a
                      whole lot of help (or sympathy) right now!




brandStrategy.co.za
It gets harder and harder!
It gets harder and harder!
It gets harder and harder!
It gets harder and harder!
It gets harder and harder!




        2/3
brandStrategy.co.za

Help, It Feels Like I Am
       Drowning!
brandStrategy.co.za

Help, It Feels Like I Am
       Drowning!
brandStrategy.co.za

Help, It Feels Like I Am
       Drowning!
brandStrategy.co.za

Help, It Feels Like I Am
       Drowning!
brandStrategy.co.za

Help, It Feels Like I Am
       Drowning!
brandStrategy.co.za

Help, It Feels Like I Am
       Drowning!
brandStrategy.co.za

Help, It Feels Like I Am
       Drowning!
brandStrategy.co.za

Help, It Feels Like I Am
       Drowning!
brandStrategy.co.za

Help, It Feels Like I Am
       Drowning!
brandStrategy.co.za

Help, It Feels Like I Am
       Drowning!


                7 Mistakes All
               Restaurants Make
brandStrategy.co.za

Mistakes That All Small
  Restaurants Make

                1   “I am not very good at marketing”
brandStrategy.co.za

Mistakes That All Small
  Restaurants Make

                1   “I am not very good at marketing”

                2 Going in without a business plan
brandStrategy.co.za

Mistakes That All Small
  Restaurants Make

                1   “I am not very good at marketing”

                2 Going in without a business plan

                3 Doing things the wrong way round
brandStrategy.co.za

Mistakes That All Small
  Restaurants Make

                1   “I am not very good at marketing”

                2 Going in without a business plan

                3 Doing things the wrong way round

                4 Thinking it’s all about you
brandStrategy.co.za

Mistakes That All Small
  Restaurants Make

                1   “I am not very good at marketing”

                2 Going in without a business plan

                3 Doing things the wrong way round

                4 Thinking it’s all about you

                5 The worst number in the world
brandStrategy.co.za

Mistakes That All Small
  Restaurants Make

                1   “I am not very good at marketing”

                2 Going in without a business plan

                3 Doing things the wrong way round

                4 Thinking it’s all about you

                5 The worst number in the world

                6 Ingratitude
brandStrategy.co.za

Mistakes That All Small
  Restaurants Make

                1   “I am not very good at marketing”

                2 Going in without a business plan

                3 Doing things the wrong way round

                4 Thinking it’s all about you

                5 The worst number in the world

                6 Ingratitude

                7 Following the herd
brandStrategy.co.za

Let’s Get This Thing Back On
      The Road Already!
                          “Start treating it like the
                               business it is.”

                         “If you do not respect the
                        business, neither will your
                         staff, your suppliers, your
                        landlord or your partners!”
brandStrategy.co.za


STEP #1
Item                               2m - 6m PA                   6m - 8m PA                 8m - 12m PA
                           Targeted        Achieved     Targeted        Achieved   Targeted        Achieved
Net Revenue                 100%                100%     100%            100%       100%             100%
Cost of Sales                38%                42%       37%                40%     36%             38%
Gross Profit                 62%                58%       63%                60%     64%             62%


Occupancy Costs              11%                16%       11%                14%     11%             12%
All Salaries and Wages       19%                21%       19%                20%     19%             19%
Marnagement Services Fee     6%                  6%       6%                 6%      6%                  6%
Marketing                    2%                  2%       2%                 2%      2%                  2%
Administration              0.50%               0.50%    0.50%           0.50%      0.50%           0.50%
Bank charges                1.20%               1.20%    1.20%           1.20%      1.20%           1.20%
Cleaning Materials           1%                  1%       1%                 1%      1%                  1%
Repairs and Maintenance     1.30%               1.30%    1.30%           1.30%      1.30%           1.30%
Replacements                1.20%               1.20%    1.20%           1.20%      1.20%           1.20%
General                      1%                 1.50%     1%             1.50%       1%             1.50%
Insurance                   0.70%               0.70%    0.70%           0.70%      0.70%           0.70%
Utilities                   3.80%                5%      3.80%           4.50%      3.80%                4%


Operating Expenditure        49%                57%       49%                54%     49%             50%


Retention                    13%                 1%       14%                6%      15%             12%
Item                               2m - 6m PA                   6m - 8m PA                 8m - 12m PA
                           Targeted        Achieved     Targeted        Achieved   Targeted        Achieved
Net Revenue                 100%                100%     100%            100%       100%             100%
Cost of Sales                38%                42%       37%                40%     36%             38%
Gross Profit                 62%                58%       63%                60%     64%             62%


Occupancy Costs              11%                16%       11%                14%     11%             12%
All Salaries and Wages       19%                21%       19%                20%     19%             19%
Marnagement Services Fee     6%                  6%       6%                 6%      6%                  6%
Marketing                    2%                  2%       2%                 2%      2%                  2%
Administration              0.50%               0.50%    0.50%           0.50%      0.50%           0.50%
Bank charges                1.20%               1.20%    1.20%           1.20%      1.20%           1.20%
Cleaning Materials           1%                  1%       1%                 1%      1%                  1%
Repairs and Maintenance     1.30%               1.30%    1.30%           1.30%      1.30%           1.30%
Replacements                1.20%               1.20%    1.20%           1.20%      1.20%           1.20%
General                      1%                 1.50%     1%             1.50%       1%             1.50%
Insurance                   0.70%               0.70%    0.70%           0.70%      0.70%           0.70%
Utilities                   3.80%                5%      3.80%           4.50%      3.80%                4%


Operating Expenditure        49%                57%       49%                54%     49%             50%


Retention                    13%                 1%       14%                6%      15%             12%
brandStrategy.co.za

Let’s Get This Thing Back On
      The Road Already!
                          “Anyone who does not
                         make money selling food,
                          should be locked up!”

                            “Food Cost, the last
                           controllable expense!”
Where It All Goes
    Wrong!
It is easy to have a problem
• Too many products in the inventory
It is easy to have a problem
• Too many products in the inventory
• Perishable products
It is easy to have a problem
• Too many products in the inventory
• Perishable products
• Too many people involved in the process
It is easy to have a problem
•   Too many products in the inventory
•   Perishable products
•   Too many people involved in the process
•   Difficult to assess losses
It is easy to have a problem
•   Too many products in the inventory
•   Perishable products
•   Too many people involved in the process
•   Difficult to assess losses
•   Where is it lost?
         –   Purchasing
         –   Receiving
         –   Storage
         –   Preparation
         –   Serving & Settlement
Where is it all lost
• Purchasing
Where is it all lost
• Purchasing
  – Over purchasing
Where is it all lost
• Purchasing
  – Over purchasing
  – Under purchasing
Where is it all lost
• Purchasing
  – Over purchasing
  – Under purchasing
  – Inferior yields
Where is it all lost
• Purchasing
  – Over purchasing
  – Under purchasing
  – Inferior yields
  – Kickbacks
Where is it all lost
• Receiving
Where is it all lost
• Receiving
  – Padded orders
Where is it all lost
• Receiving
  – Padded orders
  – Pricing “errors”
Where is it all lost
• Receiving
  – Padded orders
  – Pricing “errors”
  – Off spec products
Where is it all lost
• Receiving
  – Padded orders
  – Pricing “errors”
  – Off spec products
  – Damaged goods
Where is it all lost
• Receiving
  – Padded orders
  – Pricing “errors”
  – Off spec products
  – Damaged goods
  – Short weights
Where is it all lost
• Storage
Where is it all lost
• Storage
  – Spoilage
Where is it all lost
• Storage
  – Spoilage
  – Spills & breakage
Where is it all lost
• Storage
  – Spoilage
  – Spills & breakage
  – Theft
Where is it all lost
• Preparation
Where is it all lost
• Preparation
  – Cooking errors
Where is it all lost
• Preparation
  – Cooking errors
  – Over production
Where is it all lost
• Preparation
  – Cooking errors
  – Over production
  – Over portioning
Where is it all lost
• Preparation
  – Cooking errors
  – Over production
  – Over portioning
  – “Grazing” (do the math!)
Where is it all lost
• Serving & Settlement
Where is it all lost
• Serving & Settlement
  – Wrong orders
Where is it all lost
• Serving & Settlement
  – Wrong orders
  – Customer returns
Where is it all lost
• Serving & Settlement
  – Wrong orders
  – Customer returns
  – Unrecorded sales
What effects food cost
• Menu prices
       – Increase prices
• Recipes
       – Change recipes
• Sales mix
       – Alter the sales mix
• Product cost
       – Reduce cost of raw goods
• Product utilization
       – Improve product utilization (waste, spoilage, theft)
Remember
• Restaurants bank RANDS not
  PERCENTAGES!
• Restaurant owners are simply too
  busy to be chasing phantom food cost
  problems BUT if a problem exists you
  want to know about it because
  chances are it’s costing them PLENTY!
brandStrategy.co.za

Let’s Get This Thing Back On
      The Road Already!
                         “It’s about YOUR people”

                         “But what if I go to all that
                          trouble and expense and
                          they decide to leave me?”
If you can’t change
your people… change
     your people!
If you can’t change
your people… change
     your people!



                         It’s All About
                       Valuing Your Staff!
brandStrategy.co.za

                  7 Rules Of Work
STEP #3
          Be On Time
brandStrategy.co.za

                   7 Rules Of Work
STEP #3
          Be On Time
          Don’t Steal
brandStrategy.co.za

                  7 Rules Of Work
STEP #3
          Be On Time
          Don’t Steal
          Don’t Screw The Crew
brandStrategy.co.za

                  7 Rules Of Work
STEP #3
          Be On Time
          Don’t Steal
          Don’t Screw The Crew
          Don’t Swear
brandStrategy.co.za

                  7 Rules Of Work
STEP #3
          Be On Time
          Don’t Steal
          Don’t Screw The Crew
          Don’t Swear
          Have Respect For All
brandStrategy.co.za

                  7 Rules Of Work
STEP #3
          Be On Time
          Don’t Steal
          Don’t Screw The Crew
          Don’t Swear
          Have Respect For All
          Make Money
brandStrategy.co.za

                  7 Rules Of Work
STEP #3
          Be On Time
          Don’t Steal
          Don’t Screw The Crew
          Don’t Swear
          Have Respect For All
          Make Money
          Have Fun
brandStrategy.co.za

Let’s Get This Thing Back On
      The Road Already!
                           “Owning a business
                         without marketing is like
                          winking at a girl in the
                                 dark…”

                          “You know exactly what
                         you are doing BUT nobody
                                 else does.”
brandStrategy.co.za

Let’s Get This Thing Back On
      The Road Already!
                               “Killing Time & The
                                NOT-To-Do List”

                          “How to prevent yourself
                         from doing the things you
                           know you shouldn’t be
                                  doing!”
brandStrategy.co.za

Let’s Get This Thing Back On
      The Road Already!
                         “Your Moments Of Truth”

                         “There are thousands of
                          TOUCH POINTS within
                        your restaurant every day,
                        are you delivering on all of
                                  them?”
brandStrategy.co.za

Let’s Get This Thing Back On
      The Road Already!
                               “Ask For Help!”

                           “The best time to start
                           doing things right was
                            always last year, the
                              second best time
                                  is NOW!”
brandStrategy.co.za

   Actions Steps
You Can Start Today!

               1   Treat It Like A Business

               2 Control Your Expenses

               3 Look After Your People

               4 Market Market Market & Market

               5 The Not To Do List

               6 Moments Of Truth

               7 Ask For Help!
brandStrategy.co.za

Yes You Can!
Wishing You Every Success




brandStrategy.co.za
Twitter: mike_said_what
                            Facebook: Michael Said
                Facebook Personal: mikesaidwhat
                            LinkedIn: mikesaidwhat
                            YouTube: mikesaidwhat
                          Website: www.strtgy.co.za
                      Email Me: info@mikesaid.co.za

brandStrategy.co.za
                              Call Me: 082 449 7367

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Action Now For Restaurants Long Version

  • 2. brandStrategy.co.za How to get your Restaurant OUT of the dip and BACK on the road again… RIGHT NOW!
  • 3. Mike & The Mechanics Michael Said brandStrategy brandStrategy.co.za
  • 4. Mike & The Mechanics Michael Said brandStrategy brandStrategy.co.za
  • 7. twitter.com/mike_said_what #RhapsodyLegends brandStrategy.co.za
  • 8. twitter.com/mike_said_what #RhapsodyLegends slideshare.com/mikesaidwhat RestaurantAction! brandStrategy.co.za
  • 9. The sorry state of the restaurant industry in South Africa! brandStrategy.co.za
  • 10. The sorry state of the restaurant industry in South Africa! Are in deep, deep trouble and not getting a whole lot of help (or sympathy) right now! brandStrategy.co.za
  • 11. It gets harder and harder!
  • 12. It gets harder and harder!
  • 13. It gets harder and harder!
  • 14. It gets harder and harder!
  • 15. It gets harder and harder! 2/3
  • 16. brandStrategy.co.za Help, It Feels Like I Am Drowning!
  • 17. brandStrategy.co.za Help, It Feels Like I Am Drowning!
  • 18. brandStrategy.co.za Help, It Feels Like I Am Drowning!
  • 19. brandStrategy.co.za Help, It Feels Like I Am Drowning!
  • 20. brandStrategy.co.za Help, It Feels Like I Am Drowning!
  • 21. brandStrategy.co.za Help, It Feels Like I Am Drowning!
  • 22. brandStrategy.co.za Help, It Feels Like I Am Drowning!
  • 23. brandStrategy.co.za Help, It Feels Like I Am Drowning!
  • 24. brandStrategy.co.za Help, It Feels Like I Am Drowning!
  • 25. brandStrategy.co.za Help, It Feels Like I Am Drowning! 7 Mistakes All Restaurants Make
  • 26. brandStrategy.co.za Mistakes That All Small Restaurants Make 1 “I am not very good at marketing”
  • 27. brandStrategy.co.za Mistakes That All Small Restaurants Make 1 “I am not very good at marketing” 2 Going in without a business plan
  • 28. brandStrategy.co.za Mistakes That All Small Restaurants Make 1 “I am not very good at marketing” 2 Going in without a business plan 3 Doing things the wrong way round
  • 29. brandStrategy.co.za Mistakes That All Small Restaurants Make 1 “I am not very good at marketing” 2 Going in without a business plan 3 Doing things the wrong way round 4 Thinking it’s all about you
  • 30. brandStrategy.co.za Mistakes That All Small Restaurants Make 1 “I am not very good at marketing” 2 Going in without a business plan 3 Doing things the wrong way round 4 Thinking it’s all about you 5 The worst number in the world
  • 31. brandStrategy.co.za Mistakes That All Small Restaurants Make 1 “I am not very good at marketing” 2 Going in without a business plan 3 Doing things the wrong way round 4 Thinking it’s all about you 5 The worst number in the world 6 Ingratitude
  • 32. brandStrategy.co.za Mistakes That All Small Restaurants Make 1 “I am not very good at marketing” 2 Going in without a business plan 3 Doing things the wrong way round 4 Thinking it’s all about you 5 The worst number in the world 6 Ingratitude 7 Following the herd
  • 33. brandStrategy.co.za Let’s Get This Thing Back On The Road Already! “Start treating it like the business it is.” “If you do not respect the business, neither will your staff, your suppliers, your landlord or your partners!”
  • 35. Item 2m - 6m PA 6m - 8m PA 8m - 12m PA Targeted Achieved Targeted Achieved Targeted Achieved Net Revenue 100% 100% 100% 100% 100% 100% Cost of Sales 38% 42% 37% 40% 36% 38% Gross Profit 62% 58% 63% 60% 64% 62% Occupancy Costs 11% 16% 11% 14% 11% 12% All Salaries and Wages 19% 21% 19% 20% 19% 19% Marnagement Services Fee 6% 6% 6% 6% 6% 6% Marketing 2% 2% 2% 2% 2% 2% Administration 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Bank charges 1.20% 1.20% 1.20% 1.20% 1.20% 1.20% Cleaning Materials 1% 1% 1% 1% 1% 1% Repairs and Maintenance 1.30% 1.30% 1.30% 1.30% 1.30% 1.30% Replacements 1.20% 1.20% 1.20% 1.20% 1.20% 1.20% General 1% 1.50% 1% 1.50% 1% 1.50% Insurance 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% Utilities 3.80% 5% 3.80% 4.50% 3.80% 4% Operating Expenditure 49% 57% 49% 54% 49% 50% Retention 13% 1% 14% 6% 15% 12%
  • 36. Item 2m - 6m PA 6m - 8m PA 8m - 12m PA Targeted Achieved Targeted Achieved Targeted Achieved Net Revenue 100% 100% 100% 100% 100% 100% Cost of Sales 38% 42% 37% 40% 36% 38% Gross Profit 62% 58% 63% 60% 64% 62% Occupancy Costs 11% 16% 11% 14% 11% 12% All Salaries and Wages 19% 21% 19% 20% 19% 19% Marnagement Services Fee 6% 6% 6% 6% 6% 6% Marketing 2% 2% 2% 2% 2% 2% Administration 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Bank charges 1.20% 1.20% 1.20% 1.20% 1.20% 1.20% Cleaning Materials 1% 1% 1% 1% 1% 1% Repairs and Maintenance 1.30% 1.30% 1.30% 1.30% 1.30% 1.30% Replacements 1.20% 1.20% 1.20% 1.20% 1.20% 1.20% General 1% 1.50% 1% 1.50% 1% 1.50% Insurance 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% Utilities 3.80% 5% 3.80% 4.50% 3.80% 4% Operating Expenditure 49% 57% 49% 54% 49% 50% Retention 13% 1% 14% 6% 15% 12%
  • 37. brandStrategy.co.za Let’s Get This Thing Back On The Road Already! “Anyone who does not make money selling food, should be locked up!” “Food Cost, the last controllable expense!”
  • 38. Where It All Goes Wrong!
  • 39. It is easy to have a problem • Too many products in the inventory
  • 40. It is easy to have a problem • Too many products in the inventory • Perishable products
  • 41. It is easy to have a problem • Too many products in the inventory • Perishable products • Too many people involved in the process
  • 42. It is easy to have a problem • Too many products in the inventory • Perishable products • Too many people involved in the process • Difficult to assess losses
  • 43. It is easy to have a problem • Too many products in the inventory • Perishable products • Too many people involved in the process • Difficult to assess losses • Where is it lost? – Purchasing – Receiving – Storage – Preparation – Serving & Settlement
  • 44. Where is it all lost • Purchasing
  • 45. Where is it all lost • Purchasing – Over purchasing
  • 46. Where is it all lost • Purchasing – Over purchasing – Under purchasing
  • 47. Where is it all lost • Purchasing – Over purchasing – Under purchasing – Inferior yields
  • 48. Where is it all lost • Purchasing – Over purchasing – Under purchasing – Inferior yields – Kickbacks
  • 49. Where is it all lost • Receiving
  • 50. Where is it all lost • Receiving – Padded orders
  • 51. Where is it all lost • Receiving – Padded orders – Pricing “errors”
  • 52. Where is it all lost • Receiving – Padded orders – Pricing “errors” – Off spec products
  • 53. Where is it all lost • Receiving – Padded orders – Pricing “errors” – Off spec products – Damaged goods
  • 54. Where is it all lost • Receiving – Padded orders – Pricing “errors” – Off spec products – Damaged goods – Short weights
  • 55. Where is it all lost • Storage
  • 56. Where is it all lost • Storage – Spoilage
  • 57. Where is it all lost • Storage – Spoilage – Spills & breakage
  • 58. Where is it all lost • Storage – Spoilage – Spills & breakage – Theft
  • 59. Where is it all lost • Preparation
  • 60. Where is it all lost • Preparation – Cooking errors
  • 61. Where is it all lost • Preparation – Cooking errors – Over production
  • 62. Where is it all lost • Preparation – Cooking errors – Over production – Over portioning
  • 63. Where is it all lost • Preparation – Cooking errors – Over production – Over portioning – “Grazing” (do the math!)
  • 64. Where is it all lost • Serving & Settlement
  • 65. Where is it all lost • Serving & Settlement – Wrong orders
  • 66. Where is it all lost • Serving & Settlement – Wrong orders – Customer returns
  • 67. Where is it all lost • Serving & Settlement – Wrong orders – Customer returns – Unrecorded sales
  • 68. What effects food cost • Menu prices – Increase prices • Recipes – Change recipes • Sales mix – Alter the sales mix • Product cost – Reduce cost of raw goods • Product utilization – Improve product utilization (waste, spoilage, theft)
  • 69. Remember • Restaurants bank RANDS not PERCENTAGES! • Restaurant owners are simply too busy to be chasing phantom food cost problems BUT if a problem exists you want to know about it because chances are it’s costing them PLENTY!
  • 70. brandStrategy.co.za Let’s Get This Thing Back On The Road Already! “It’s about YOUR people” “But what if I go to all that trouble and expense and they decide to leave me?”
  • 71.
  • 72.
  • 73. If you can’t change your people… change your people!
  • 74. If you can’t change your people… change your people! It’s All About Valuing Your Staff!
  • 75. brandStrategy.co.za 7 Rules Of Work STEP #3 Be On Time
  • 76. brandStrategy.co.za 7 Rules Of Work STEP #3 Be On Time Don’t Steal
  • 77. brandStrategy.co.za 7 Rules Of Work STEP #3 Be On Time Don’t Steal Don’t Screw The Crew
  • 78. brandStrategy.co.za 7 Rules Of Work STEP #3 Be On Time Don’t Steal Don’t Screw The Crew Don’t Swear
  • 79. brandStrategy.co.za 7 Rules Of Work STEP #3 Be On Time Don’t Steal Don’t Screw The Crew Don’t Swear Have Respect For All
  • 80. brandStrategy.co.za 7 Rules Of Work STEP #3 Be On Time Don’t Steal Don’t Screw The Crew Don’t Swear Have Respect For All Make Money
  • 81. brandStrategy.co.za 7 Rules Of Work STEP #3 Be On Time Don’t Steal Don’t Screw The Crew Don’t Swear Have Respect For All Make Money Have Fun
  • 82. brandStrategy.co.za Let’s Get This Thing Back On The Road Already! “Owning a business without marketing is like winking at a girl in the dark…” “You know exactly what you are doing BUT nobody else does.”
  • 83.
  • 84.
  • 85.
  • 86.
  • 87.
  • 88.
  • 89.
  • 90.
  • 91.
  • 92.
  • 93.
  • 94.
  • 95. brandStrategy.co.za Let’s Get This Thing Back On The Road Already! “Killing Time & The NOT-To-Do List” “How to prevent yourself from doing the things you know you shouldn’t be doing!”
  • 96. brandStrategy.co.za Let’s Get This Thing Back On The Road Already! “Your Moments Of Truth” “There are thousands of TOUCH POINTS within your restaurant every day, are you delivering on all of them?”
  • 97. brandStrategy.co.za Let’s Get This Thing Back On The Road Already! “Ask For Help!” “The best time to start doing things right was always last year, the second best time is NOW!”
  • 98. brandStrategy.co.za Actions Steps You Can Start Today! 1 Treat It Like A Business 2 Control Your Expenses 3 Look After Your People 4 Market Market Market & Market 5 The Not To Do List 6 Moments Of Truth 7 Ask For Help!
  • 100. Wishing You Every Success brandStrategy.co.za
  • 101. Twitter: mike_said_what Facebook: Michael Said Facebook Personal: mikesaidwhat LinkedIn: mikesaidwhat YouTube: mikesaidwhat Website: www.strtgy.co.za Email Me: info@mikesaid.co.za brandStrategy.co.za Call Me: 082 449 7367