On the ground with the future leaders of the restaurant worldis an accountant who crunches numbers for some of the most successful chef-restaurateurs and food entrepreneurs in the country; she’s a partner in the Hospitality Practice division at the professional services firm CohnReznick. I heard her talk about how to run a business on a panel conversation at Haven’s Kitchen in New York City, declared her the Suze Orman of food, and told her to write a book.
Whether you’re selling frozen dessert or running a full-service restaurant, fast-casual concept, or bakery, you are dealing with a retail operation, and are all subject to the same overall metrics. Revenue, which generates cash flow, is king, and no matter how well you think you can cut and manage costs and margin percentages, that’s what pays the rent, keeps the lights on, and reimburses your investors.
Know when to launch and do it on time. The seasonality of your business is going to determine the most optimal window for you to open your concept. Let’s say you’re expected to open your New York restaurant in November. A negative outlier comes to fruition, causing you to delay your launch until January. Your financial model has just dramatically changed. The fourth quarter in the majority of cities can be a prime time to launch most types of concepts.
Intellectual capital is just as important as financial capital. You don’t know what you don’t know, but youknow what you know, and you understand there are a lot of missing pieces to account for. Figure out who those experienced people are who can advise you on how to optimize your skills and knowledge and fill in those deal-breaking information gaps. The experienced operator or trusted adviser who has been there and done that can be one of the most valuable assets in your organization.