Growing sales and sales in cafes, takeaways, or restaurants are not the same as gains. Too often, as owners, we put so much emphasis on increasing our sales in the hope that our business becomes more profitable when unwanted truth is often not traffic but the efficiency of a business. An inefficient business, small traffic may be due to small overlaps with little loss. In contrast, a large, inefficient business venture with high sales and high turnover tends to make big losses. I call it the rule of relative ineffectiveness. Profit will only be relative to sales if the business works effectively. This is when wages, purchased goods and general expenses are relative to sales. I saw and owned such small, well-functioning cafés, which were more profitable than larger, less efficient cafes. Try the following principal to help pull the screws in the hospitality industry:
Examine Pareto's Principal, Rule 80/20, and how it works in your business. Pareto's law suggests that some 20 percent is vital to business, and 80 percent of the trivial or 20 percent of its efforts will result in 80 percent.
An example of Pareto's law in the cafe, takeaway and restaurant management requires 20 percent of its products to be more profitable than the other 80 percent of the inventory. I looked at my next day order and clearly identified the 80/20 rule. The vital 20 percent was the sale of black coke and water, which far exceeded the sales of all other coke species. Pareto's law was based on the gross profits of products that generate our products. If you believe that perhaps as an example of Coca-Coke sales, lower gross profits for 20 percent (Black Coke and Water) sales, but another 80 percent of the coke produces good gross profit. Overall, you can find that the price of goods sold as a percentage of traffic is not very good. If you see any adjustments at purchase, sales, or 20 percent, then it's likely to improve significantly across the entire bottom line.
If you think that some 20 percent of people are responsible for 80 percent of your results as a business owner or manager, spend some time, considering that you spend most of your time at 20 percent or 80 percent. Account should be taken of outsourcing or 80% assignment of tasks, which are fundamentally trivial and largely unrelated, and focus on 20 percent of your business growth.
Consider the following applications: 80 percent of your stock comes from vendors. Do you disagree with your suppliers? 80 percent of sales will reach 20 percent of its staff. How does this affect your post? 20 percent of its staff will account for 80 percent of your problems, but another 20 percent of staff will account for 80 percent of productivity. Can you help with these aids? Absolutely, but you have to learn to identify the corresponding 20 percent. What Pareto's boss ultimately seeks to teach us to focus on 20 percent is important and remember that often 20 percent of it is responsible for 80 percent of the result. Do this and your business can profit
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