Jones Harris are members of The Institute of Chartered Accountants in England and Wales (ICAEW), and they provide us with useful advice for clients in different sectors. The latest ICAEW blog features a useful article with advice about making your food business make more profit.
The Importance of Tables and Chairs
The article, by Ian Graham, encourages hospitality businesses to regard chairs and tables as their principal way of generating revenue. It shines a light on how these assets can be made to work for as long and hard as possible.
The blog is well worth reading as it includes useful ways to monitor performance. The author notes that “a key metric for best practice is Revenue per Available Seat Hour (RevPASH).
“RevPASH is calculated by getting the revenue for the hour and dividing it by the number of seats that you have.”
Three Simple ways to make your food business make more profit
His article starts by listing three simple ways to improve performance:
- decrease the amount of time each party spends at their table
- increase the average spend
- reduce the amount of time that a table stays empty after a party leaves.
Since these three steps might be easier said than done (short of ushering people out when they finish) the article goes on to explore specific practical examples.
It’s well worth a read because it shows how new procedures and management approaches can help to boost revenue without the need for substantial new investment.
How Can Your Food Business Make More Profit?
With well over 1000 clients on our books, here at Jones Harris we have a wide range of expertise and experience in the hotel and hospitality sector.
Hopefully this item has made you think about how you could implement profit-boosting techniques in your business. If you need any help or advice from us please get in touch for a no-obligation chat.
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