The Culinary Industry
Bakeries & Restaurants

This article is for bakers and chefs who have taken the challenge
and have turned their vision and passion into a business.

Barry’s Accounting Services is a household name among top chefs. The firm has been in business for over 25 years. It caters to business-savvy people like you who are passionate about becoming or remaining successful and who understand the importance/benefit of professional services. Some of the tips that are listed below may not be new to you, but they are essential to your success in business. They will keep you inspired and focused. Please take a few minutes out of your busy schedule to read them.

Restaurant (average cost & payoff):

Chefs are celebrities in their own right, and name recognition and star power are magnets that attract customers and propel them to patronize the business in droves. Instant name recognition and rave reviews mean the restaurant/bakery can spend less on marketing and more on quality merchandise. A typical high-end restaurant, a chic hangout where celebrity sightings are a draw, can cost upwards of $1.5 million to start and it can earn upwards of $3 million in annual revenue in the first year. L.A. restaurant, "Dolce," was started in 2003 by a slate of young investors. It has grown to ten restaurants with gross income of $35 million in 2007.

Your Daily Concerns:

	Ensure the ovens are completely shut off and check for gas leaks before turning them on. Gas explosions have caused severe injuries and death to workers and significant damage to premises. This does not happen frequently, but prevention is better than the cure.
	Receiving Just-In-Time inventory from reliable suppliers to prepare the daily menu and avoid waste and spoilage.
	Beverages are also fashion statements, as are music and clothing. Catering for special occasions and serving an inventory of fine wines and beverages will make you competitive, boost your profits, and help you meet future increases in operating costs. A recent Nielsen study has shown that liquor store sales of celebrity-driven spirits, ultra-premium lines, were up 21% in 2007.
	Word of mouth advertising by satisfied customers is important, but word of mouth alone cannot build a profitable business in this competitive environment. A continuous marketing program is essential to establish your identity and create customer retention.
	The timing of events is everything. Pay close attention to economic trends and changes in consumers’ tastes/preferences. These are warning signs that will indicate what adjustments you will have to make to thrive in business. Managing successfully in good times will prepare you for survival during economic downturns. This is a challenging but necessary part of every business success.

Long Term Concerns:

	Business expansion, monthly food costs as a percentage of sales, increases in overhead expenses, staff turnover, taxation (tax write-offs), sanitation, and licensing authorities.
	Use this simple formula to quickly and accurately calculate your actual monthly food cost as a percentage of your monthly sales: (Beg mth inv. + monthly purchases - end of mth inv)/mthly sales = % food cost

Good luck! If you need consultation, please call (718) 677-4006 for an appointment.

 

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