Cedar PTY
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Cedar PTYCedar PTY

Restaurant business based in South Africa

Steered a restaurant business into a profit making position. The business had a good model, good location but was loss making.

Findings:-

Restaurant business is low margin so it is critical to manage costs. We had to go to the smallest detail as many small units make up the costs of such a business including things like tomatoes, dishwasher, etc. We focused on two areas; Cost control and Sales growth.
  • Cost control was very weak as a result most losses were coming from wastage and pilferage
  • There were no systems in place to monitor stocks on a daily basis
  • Sales were growing but at a slower pace than customer attrition
  • There were no processes to check customer satisfaction
  • Customer care was poor so repeat business was limited
  • Marketing efforts were not targeted appropriately and tended to be haphazard

Recommendations:-

  • Set up customer retention facilities for retail businesses
  • Recommended a better sales strategy which proved to be more effective and has so far yielded results
  • A complete process overhaul and installation of an inventory management system which links stock use to sales. This provided detailed analysis on product profitability and material requirements. This means that any losses could be tracked to the sourced and therefore managed.
Cedar PTY
Cedar PTY
Cedar PTY

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info@cedarpty.co.za
+27 11 455 7226
0866 449 343
+27 61 885 7174
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