Latest AMP News


Reduce Temptation to Increase Profitability

Q: My business is busier than ever, yet my cash balance isn’t growing as I would expect it to. I’m concerned I’m out of touch with what could be happening around controls. I trust everyone, but need to dig a little deeper. Where do I start?

A:
The hospitality business benefited from lower employee turnover during the Great Recession. Over the last two years, the labor pool has tightened, and turnover is getting closer to traditional levels of plus or minus 100 percent. With higher turnover, internal controls need to be tightening as the risk of fraud increases. This is an enormous topic, and I’ll touch on a slice of it – taking a fresh look at procedures and controls with your point-of-sale or POS system:

Click here to read more »

Use the five R’s to increase menu profitability

Q: This time of year we evaluate our menu for changes. In the past, we’ve done this on emotion rather than data. Where should we start our analysis?

A:
Menus are the secret love affair of restaurant owners. They often reflect the founder’s aspirations and ideas of what is missing in the market. Evaluating the menu several times per year creates good habits that keep the brand fresh. Tracking what sells and, just as importantly, what doesn’t sell is a weekly task to identify trends and assist in adjusting the menu. The top 20 percent of items sold typically represent 70 to 80 percent of sales. Every item deserves a stringent analysis of whether it belongs on the menu. If analytical behavior is slack or absent the number of menu items will increase, creating opportunity for performance issues. It’s natural to retain items because a vocal guest may be upset if it disappears from the menu, but facts are facts; if it doesn’t sell, take it off. Smaller menus are easier to train, use fewer ingredients, make problem solving easier, increase table turns by reducing the time spent with the menu and if engineered correctly, maximize margin.

Click here to read more »

Protect profits by shifting labor management practices

Q:With all the changes to minimum wage and the tightening labor market, what tactics can help us be more productive and remain profitable?

A:
Maintaining the status quo or hoping higher wages are going to slow down contradicts the increasing momentum of the progressive political movement. With voters, labor unions and politicians taking an increasing role of driving wages up, the labor model of the past is fading. To stay relevant and protect profits, start planning and changing behavior today. Many businesses are using this time to “grow up” as a business by offering more predictable earnings and insurance for employees. The following tactics will assist in transition to a new era in labor management:

Click here to read more »
Want the Latest AMP News? Join Our Mailing List!