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Knowledge Center

  • Are Variable Costs Really Variable?

    So, we have looked at why variable costs are not truly variable and why they will in fact change with changes in sales and not always be a flat percentage. Why is this important? Well, it’s good to understand that you might see some cost advantages to growth, but it is also important to see that you may have to make changes to your cost structure to support that growth. Will you need to increase the number of production employees you have and then, if so, will you be able to have the sales going forward to keep them busy all the time? Remember, they don’t just come in for your busy week and then stop working when you get slow again. If you are expecting a slow period coming up, should you assume that COGS might increase as well? It is important to truly understand your variable costs and therefore gross margin when planning for the future so that you know exactly how much you can expect to be leftover to cover fixed costs and to provide a profit for the business.
  • The Top Line is the Most Important

    Most people will look at a P&L and argue that profits (or losses) are the most important line. In fact, by name the statement is called the Profit & Loss statement so it must be the most important! It’s not. The bottom line is simply an output- it is not something that can be measured or changed without influencing the other items in the statement, so while it is important, it is not the most important. So which line is? The top line- revenues, and here’s why: the amount of money you bring in from sales determines the amount of money that can flow through the rest of the P&L (the business).
  • Guide to Financial Training for Food Businesses

    Once you understand your business from this perspective, every decision that you make is aimed at improving your overall financial position. In simpler terms, this understanding helps you make decisions that will increase profits and better your cash flow. It makes sense then, that the leadership team making decisions that impact the business on a daily basis should also understand the business from the financial perspective.
  • How to Set Expectations When Working With A Food Consultant

    I can't stress enough the importance of setting clear expectations for employees, vendors, and partners to: 1) avoid unnecessary problems and 2) lay the foundation for the potential to EXCEED expectations. The same principles apply when hiring a food service consultant.
  • Dine In is Dying

    My prediction is that we will see establishments that offer a blend of take-out, delivery, catering, grab-and-go options, wholesale products at other locations, and other forms of distribution that haven’t even arrived yet. These establishments may centralize kitchens, share locations with other businesses, or use other creative forms of production. The restaurant industry as we know it is will be turned upside down.
  • Sell Your Food Business: The Importance of Creating an Exitable Company

    The worst time to plan for an exit is when you want out, the economy tanks, or your growth stalls. I am confident that if I would have ran my business from DAY 1 as if I were exiting, the timeline to my ultimate exit would have been cut in half.
  • 3 Signs it's Time to Hire a Food Consultant

    Don’t expect consultants to give you all the answers, instead use them as a tool to expand your ability to create your own answers. You can maximize your success with a consultant by knowing when it’s the right time to bring them on board and when it’s not.