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Full financials will be available on request

PUB MANAGEMENT

 

Like any other business, the diligence with which you manage your O’Hagan’s Irish Pub and Grill will have a direct and immediate impact on your success.

 

Having a good insight into how your pub operates and performs is all about putting systems and processes in place that provide you with accurate qualitative, quantitative and anecdotal information. The questions you should be asking yourself each day are:

 

  • Are we making as much money as we should be?

  • Are we providing as good and consistent a product as is possible?

  • Do our guests think we could improve their experience?

 

UNDERSTANDING THE COMPONENTS OF PRIME COST MANAGEMENT

Poor performance in Cost Management rarely has a single cause and therefore any solution has to examine and address all possible causes. After understanding where you should be on your Prime Costs, these are the questions you need to address to begin to resolve any issues:

 

FOOD & BEVERAGE COST

LABOUR COST

  • Is my retail pricing correct?

  • Is my menu sales mix causing an issue?

  • Am I paying too much to my vendors for certain items?

  • Are my portions too large?

  • Is there a lot of waste?

  • Is theft happening?

  • Are employee food and beverages being accounted for?

  • Is there too much shrinkage on certain items?

  • Am I carrying items on my menu that are too expensive to stock?

  • What category of my employees is causing the issue?

  • Is there overtime being paid?

  • Are employees clocking in and out as they are supposed to?

  • Am I scheduling the right number of people for the pattern of business?

  • What is the split between my hourly labour cost and my management cost?

  • Are my pay rates in line with industry practices?

  • Are my payroll taxes abnormally affecting labour cost in some way?

FINANCIAL ESTIMATE

A series of spreadsheets and financial data which describe the estimated financial performance of the business over the first five years, will be provided. The data will include an accurate estimate of the initial capital cost of building/renovating your pub, accurate estimates of food, beverage, labor, rent and other operational costs, estimated income statements and cash flow projections that demonstrate the business can pay its bills/repay debt.

 

After opening your pub, these documents will also serve as a good framework to budget your pub’s performance.

 

In this document you should identify the following key financial data that you estimate will occur in the business over its first five years of operation:

  • Estimated net revenues (revenues net of relevant sales taxes) by category – food, beverage, banquet, merchandise etc.

  • Seasonal adjustments to revenues

  • Growth factors affecting revenues

  • Logical basis for estimating revenues – day by day sales estimate

  • Capital budget of project broken down by category – design, build-out, equipment, soft costs, small wares, pre-opening payroll, pre-opening marketing etc.Estimate of all operational costs incurred by the business – payroll, food cost, beverage cost, utility cost, operating supplies, entertainment, marketing etc.

  • Income statement showing the P&L of the business on a month by month basis and identifying all operational costs, debt and interest repayment.

  • Cash flow statement showing availability of cash on a month by month basis and the ability of the business to service debt.

  • Summary of equity investment and anticipated borrowings, including anticipated interest rates and amortisation

  • Depreciation schedule showing depreciation of fixtures, fittings and equipment

  • Balance sheet showing liabilities, debt, equity, accounts payable and accounts receivable

  • One-page executive summary of financial performance to include total revenues, total costs, borrowings and equity, capital cost, break-even and pre-tax profits.