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RESTAURANT TURNAROUNDS
We Can Help
Don’t Let Your Restaurant Become a Statistic
Two out of three restaurants fail during the first two years
of operation. Why? Because the owners failed to ask for
the help...the help that could turn your operation around
to become profitable.
Seldom is the problem with a failing restaurant as simple
as poor quality and service. When we analyze failing operations,
most often we find the owner/manager has failed to install
and operate cost control, management reporting, and accurate,
timely accounting systems.
Faced with mounting payables, owner/managers make poor
decisions like:
“Borrowing” the IRS Withholding taxes.
“Borrowing” the sales taxes.
Becoming involved in food giveaway marketing programs
Falling for expensive marketing schemes that often do
not work
Opening for additional meal periods.
Here are two truths that you must learn from reading this:
1) “Borrowing” from the IRS and the state comptroller
is one of the quickest and most painful ways to close your
restaurant.
2) If your costs are not in line, it is very difficult to
“market” your way to profitability.
Why? Let’s run the numbers:
Food costs = 35%
Labor costs = 35%
Marketing costs = 10%
Total variable costs= 80%
Every $1.00 of sales increase by marketing = $0.20 on the
bottom line.
With effective cost control and reporting:
Every $1.00 of cost savings = $1.00 on the bottom line.
Many failing
operations could be profitable at their current revenue
if they controlled their costs.
Bill Stephens Associates has packaged all the step-by-step
procedures necessary to turn your restaurant around to profitability
in a program that you can afford.
Don’t Wait – We Can Help
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