Why I encourage restaurants to write budgets every 4 weeks and the 3 metrics I recommend they really focus on.

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The restaurant industry isn't necessarily known to be the best when it comes to budgeting.

Annual budgets are typically the norm, with targets set based on last year, last quarter, or a "meet or beat" type of thing.

Find out how we support restaurants differently in their budget process here

In fact, most of the time the budgets for the year aren't complete until part way through Q1, and then become more of a "guideline" than anything formal for the rest of the year.

I would even go as far as to say that Christmas gets in the way of finalizing Q4 targets for too many companies that choose to approach the task 4 times per year.

(Yes, I said Christmas gets in the way of Q4... even though the year is all but over.)

Based on all of this, you can imagine the reaction when I recommend writing a budget for every restaurant, every 4 weeks.

"What? That is 12 times more than the norm..."

• It is 4 times more than the really good companies
• And something that only the top 1% actually do.

DM at Jim Taylor if you would to see how we do this quickly, easily, and painlessly.

So now you are likely wondering WHY I would recommend that a restaurant management team go to all this work, every 4 weeks. Right?

Well it doesn't have to be so difficult.

Email me at jim@benchmarksixty.com and I will tell you how.

First... I am not suggesting you write your entire budget every 4 weeks. That would be crazy.

Second... There are actually only 3 drivers that I encourage restaurants to look at in order to set achievable targets every 4 weeks.

Third... This process can literally take as little as 10 minutes once you know how to do it.

(I would love to show you how... so text me at 6047898991 if you want some help)

As for the 3 drivers that I encourage operators to look at in order to set their targets... Here they are.

1. Average wage.
2. Average guest spend
3. Cover count

The reason I look almost entirely at these 3 categories is because they give you critical information in terms of how your guest is acting, along with how the market is affecting the labor cost, along with what your revenue is going to look like.

Of course COGS are also important, however these 3 categories tell us more about the business model than most others.

(and if you have read any of my other content, you will know that they also help us understand how productive the business is, as well as what the employee workload is like.)

So as we come to the summer months, and the beginning of June, I would like to challenge you to at the very least, write a 4 week budget for your sales, and labor cost based on those 3 categories.

If you need some help, send me an email and I will definitely get back to you.

Ps. I mentioned employee workload a second ago... So if you are looking for ways to improve the task portion of workload for your team, and to improve process at the same time, I would encourage you to have a look at Notch . They are literally shaving multiple hours a week off of management routines, allowing them to better focus on the most important things in the business more. They are changing the industry through improved invoicing, ordering and accounts payable processes.

Until next week,

Jim

👊

Oh and one last thought...

Whenever you are ready here are a few other ways I help restaurateurs every day.

• If you are a restaurant operator or owner who realizes that increased productivity, improved employee workload, and lower turnover are the only responsible ways to succeed in our industry these days... I've got you covered. Let's connect for a discussion. DM me at Jim Taylor , email me at jim@benchmarksixty.com or you can click here to join hundreds of other restaurants in their journey.

• If you are a consultant, or service provider to the restaurant industry and you are wondering how to create opportunity, looking to build your business in 2024, or find it to be lonely as a solo-preneur, I have been in your shoes, I know what it is like, and I would love to meet you. Who knows, maybe I can even help you get some momentum.
• Listen to our podcast Tableside Podcast . If you are a restaurant operator that is looking for new ideas, exciting trends or ways to improve... this podcast is for you.