Often (unfortunately), when they’re asked to solve problems, too many management teams don’t have the information or education they need to solve them.
If your managers remain P&L illiterate, don’t defend their P&L in a meeting of their peers and then go right back to their stores to make the next one better, you’ve failed them.
If you don’t identify theoretical food cost, all you can do is imagine a food cost target like a kid imagines a best friend when stuck home and there’s no one to play with.
If you work on critical cost management issues today and you have anything that resembles a PDF or Excel spreadsheet, put them down and keep reading.
Matthew’s 5 Key Information Improvements
I continue to write to you about planning for 2023.
Next up? Improving information.
- Quality of information. If you have not added significant capability to compile and share information through current technology, replace those Excel spreadsheets, PDF files, and outdated software we used to use.
- Who can access the information? Simple answer: as many people as possible. In a company that does this right, people display natural information seeking behavior, anticipate new reporting, claim a win, or build one for next time. They crave information like your guests crave your top menu items.
- Add two points to the bottom line. At the forefront of sharing and acting on information, companies start to experience what my clients experience: a 2% boost to the bottom line. Typically, a 10-20% profit increase and a huge increase in terms of valuation.
- Don’t be afraid. Some people feel scared by the idea that, if they increase the circulation of information, everyone will know details of what’s going on in their company. They fear what is best for them.
- Trust and grow. The more you expose people to information, the more they feel trusted and bonded to your company. As a result, they stay longer, ask smart questions, innovate, and create. This is a proven way to increase unit level performance.
Operators who keep up with new ways to share information end up way ahead of the ones who don’t.
You deserve your fair share of revenue and profit – valuation and net worth. Find that through actionable information you share with your people.
Some companies stuck with the abacus after the calculator was invented. Don’t be their successor.
Next week I’ll write about your 2023 plan to define an aspirational culture for your company.
Over to you. How do you rate the quality of the information you share with your managers? What plans will you make to improve that? What results do you expect in 2023?
What’s the point of owning a successful restaurant business if you don’t have freedom?
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