There is a restaurant near my office that is extremely well-run. It makes more money than any other restaurant of its size that I know. It was surprising to me when I learned how this is accomplished.
The owner declares all of the cash in the business.
This is counter intuitive. Especially in the restaurant industry. It is common for owners of small eateries to hide some of the cash by not depositing it in the bank. This allows them to declare less revenues on their tax returns and, supposedly, avoid paying some taxes. It is difficult to find a small restaurant that files a correct tax return.
But not this business. Every penny goes through the bank and is reported to the IRS at the end of the year.
Does it cost more money? Actually, no.
For this restaurant it helps them make money. The approach to running this business is that everything is done correctly. Not just accounting for the cash, but purchasing the food, preparing the dishes, serving the meals, clearing the plates, greeting the customers, cleaning the floors, etc. There is a discipline throughout this business. Nothing is left to chance.
It would seem as though an operation this tight might not be a good place to eat. That is not true. It is a friendly place. The staff is well-trained and personable. There is no coldness. The food is good and fairly priced. The dining experience is solid and you leave the restaurant believing that you had a good experience.
It's quite a contrast from the old-style, expensive, snooty (French!?!) restaurants where the waiters were snobby, the wine stewards were snobbier, and the atmosphere was so heavy that most customers actually felt intimidated. There was no value since the prices were outrageous -- "the most expensive in town!"
Here quality, service and value are in perfect balance. And the restaurant makes money. A lot of money.
It's not easy to accomplish this performance. The owner must know the best way to perform each function. And the owner must train and supervise the staff to ensure that each function is never performed in a way that is less than the best. Consistency of quality is king.
Part of this consistency is found in the handling of cash. As with everything else, there is no cutting corners. Each penny is counted and deposited. Why? Because if it were done any other way the employees (and maybe the customers) would sense that there were limits to the discipline of quality and consistency. And that little bit of a shortcut would send a signal that other little shortcuts were also acceptable. The staff would then start taking liberties.
Think of it in another way: the strength of this business is the lack of hypocrisy of the owner. It is all by the book Without exception.
We've all seen it the other way. In fact, many of us have worked in such businesses. Think of the time you had a job where management said that the customer was king ... but the employees were nothing more than the dirt underneath their feet. In these businesses morale was weak and it filtered down to the customer service. Eventually profits suffered.
Now consider your own business. What corners are being cut? How much does it really cost you?
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