Ask the Experts: How can I profit from my World Cup food sales?
BigHospitality puts one reader's question about making a good return from food sales to Sharon Glancy, managing director of Stonebow, the training arm of People 1st.
Problem: “With the World Cup about to start I’m really keen to make the most of the opportunity but have been struggling to make a good return on food at my pub. What should I do?”
Solution: With the World Cup kicking off on 11 June, pubs, bars and restaurants up and down the country will be preparing to make the most from one of the greatest sporting events in the world. It is estimated by brewer Carlsberg that these businesses could add up to £125m in profits if they get their offer during the competition right.
One of the key areas that businesses fall down on when it comes to making money from food is making sure they clearly communicate the gross profit margins you expect your chef or kitchen team to hit.
Aim to make at least 50 per cent gross profit margins if you’re a small independent operator. Larger chains should aim for gross profit margins of around 70 per cent and if you are positioning yourself at the luxury end of the market aim for 75 per cent.
It sounds simplistic but communication is key as a surprising amount of business owners don’t sit down with their team and work out a strategy around margins and if you don’t do that you’ll struggle to turn a profit.
Key issues that Stonebow encounters are:
- First and foremost, business owners are not really sure what gross margins work best for their business.
- Some may not even know how to calculate gross profit percentages and the factors that affect it.
- Businesses sometimes struggle with managing stock control and reducing wastage as they are unfamiliar with the causes
- Not all businesses know how to plan a good menu
- Chefs and staff are sometimes unaware of the profit targets they should be achieving
- Businesses are unaware how they can reuse cuts from meat etc. for other food that can make supplementary profits for them
Do you have a problem you need solving? Send your questions for our panel of experts into us at news@BigHospitality.co.uk.
