Restaurants operate on thin margins, with increasing threats of higher minimum wages and rising commodity food prices. As a restaurant owner or operator you are dealing with these variables, while determining how to compete by managing prime cost (food and labor) without compromising quality. For ongoing success, you must also have a clear picture of your financial results and future outlook to create positive cash flow to reinvest in technology, facilities and grow the business.
The growth prospects for the industry remain very positive, as the demands of day-to-day living impact family schedules and parents spend more time eating together and less time buying and cooking food. Off-premise restaurant sales – purchases made from restaurants but consumed elsewhere (home or office), were 37 percent of sales in 2018. Millennial spending also fuels industry growth, as they favor enjoying experiences over material purchases and seek to enjoy the latest food trends with friends.
Restaurants also face competition from convenience stores, food delivery, and home meal kits. Understanding this environment is not just finance and accounting and is why a CFO is crucial to the strategic direction of each entity.
A Florida CFO Group partner will work with you and your management team for as little as a few days per month to full-time, helping you meet your challenges with the minimum of investment and without a long-term commitment.
Although your business faces unique challenges, our partners have dealt with most of them during their years of experience. Depending on your immediate needs, you may need a partner’s help with one or more of many areas, including: