hey guys today I'm gonna be sharing with you three tips that you need to know
before opening up a restaurant or if you already have a restaurant these three
tips will bring your restaurant to the next level my name is Wilson and today
we're gonna be going over three steps and three tips that you would need to
know before opening up a restaurant these are the tips that you would want
to avoid and these are things that you would want to know beforehand or let's
say if you're opening and operating on a restaurant already it is nice to review
these steps ensure that you have act actually optimize and capitalize on
every chance for you to bring your restaurant to the next level make sure
you guys stay till the end to receive your special gift these are the
documents that I've personally used to grow my icecream chain into an
international brand yeah so make sure you gotta stay till the end that's a
special gift for you if you guys have any questions comments make sure you
guys drop them below and I'll make sure that I reply to them the three things
you need to know before opening up your restaurant number one know your numbers
now I know math is not your forte nor is it my forte but did you know that more
than 80 percent of the restaurant owners fail to succeed because they do not know
their numbers the way to tell whether your business is healthy is by the
numbers a simple tweak here and there would determine whether you have the
opportunity to bring your family to Bora Bora on the beach or will you need to be
working through the holidays because you can't find anyone to help you out it is
all in the numbers personal story of mine is not four years ago I was audited
by this CRA the tax revenue agency and they were accusing me of owing them more
than two hundred thousand dollars we fought back and forth because I didn't
have the proper bookkeeping I didn't have the proper receipts and every
single moment that they had a chance to ding me they'd hang me on so at the end
of the day I hundreds of thousands of dollars back to
the Revenue Agency's for something that I've not committed of and it's just it
sucks hey you make all these money and you want to keep in your pocket but
because of these poor practices of mine I have to pay a really hefty fee so
please please please do not make this mistake don't make them any richer than
they already are now on a positive note because of me spending a lot more time
understanding my numbers now I was able to go from $200,000 in debt with with
the tax agencies to now we've grown our brand internationally all because of me
spending a little bit more time on the dry stuff knowing my numbers now for the
sake of simplicity I'm gonna go over three main categories of expenses that
you need to keep an eye out for and their average percentage that it should
be taking from your business I know there's gonna be a lot of subcategories
I know there's gonna be a lot of different expenses for you accounting
nerds out there please don't call me out and ambush me in the comments I'm just
going over there's really really big picture so for the people like us that
that we don't really know about these things this is like the best and perfect
place to start the three numbers to aim for okay one the rental costs make sure
that you keep your rental costs as low as possible okay so many people fail to
do this because they enter into a lease agreement that is not in their favor
they are overly optimistic about what they can perform and as a result of that
the rental cost is much higher than they can afford so it doesn't matter how much
money they bring in they're still gonna be at a loss so make sure you pay
attention to your rental cost as an example one exercise that you can do is
go to your competitor's restaurant look at what people are ordering on average
okay if people are ordering a $15.00 meal and they order a drink average
ticket price around $20 now you're gonna click and you're gonna
calculate how many people are actually consuming on a daily basis go there for
three days sit there trying to try to adjust in
forecast how many people are actually ordering by the end of the day and end
of the three days you would have a rough estimate of how many people are walking
through the doors an average ticket price of let's say $20
some people be ordering wine other would be watering pop others would be
authoring ordering appetizer but at the end of the day we're looking for the
average ticket price and with that average ticket price of let's say $20 a
hundred people go through the doors that is gonna be $2,000 that you're looking
at in terms of revenue now times that by let's say twenty five operating days
then that comes out to be 550 thousand dollars what that means and that
translates into is you should account for no more than 15% of rent which is
$7,500 as rent for this specific location once again aim for 15% for
rental cost now this is only a forecaster they have Fridays Saturdays
Sundays doesn't matter average it out there are good months bad
months average it out use your best discretion okay so this is something
just to aim for it's not something that's gonna it's not a Todai thing but
at the end of the day and I want to give you a reference number so you know
whether you are on the right track or not 15 percent is what you should be
aiming for the second cost that you should be looking into is the food cost
this cost is basically everything that goes into producing the meal that you're
making whether it be the ingredient cost whether it be the person that is the
cooks that are preparing the food to the utensils to let's say if it's a takeout
box then the takeout boxes well anything that it goes into producing the food is
supposingly and calculated as a food cost and as a rule of thumb we do not
want to go and exceed 35% okay so you should be aiming for 30% for your food
cost the third costs look into is labor
costs this should include anywhere from your servers to your managers to the
operators so many businesses that are I've mentored they make the mistake of
not including their own labor costs into the math and at the end of the day
they're looking at them there are P&L they're like wow I'm making like so much
money because at the end of the day they're not putting in the time that
they have been spent operating the restaurant so make sure that you as an
operator you put your costs into the calculations as well so with labor costs
you try your very best to aim for 30% as well so all in all if you put all these
three big costs together you should be aiming for no more than 75% which leaves
you around 25% that goes into utilities that goes into management that goes into
your own profit margins okay so the better you can control your food costs
and the better that you can control your labor cost the better margins you have
and the more money you can take home from that if you can run these numbers
and to hit these goals then you are golden you can afford to bring your
family to bora-bora be on the beach drinking pina coladas with them because
these numbers would allow you to have a very healthy margins if you were to hire
a manager or an operator to be in place of you then give these as your own kpi's
for them these are the key metrics where you're managing their performance okay
the food cost and the labor cost is something that you can use as a
parameter for them to manage their performance there's so many ways where
they can aim and they can utilize strategies to lower these different
percentages whether it be stop spoilage whether it be theft staggering schedules
bonuses there's a lot of different ways in Santa Fe
there their staff to bring up the sales while decreasing the labor
and the food costs as well okay so if you guys have any more questions make
sure you guys drop in the comments below whether it be lowering your spoilage
--is or different ways to schedule your staff you can leave them in the comments
below number two know yourself imagine this close your eyes you're lying on the
beach of Bora Bora you're embracing all the sun rays embracing the quality time
spent with your loved ones and you're filled with gratitude and love and the
best part is not you knowing on the other side of the country you there's
someone that is confident that is good that has common sense that really cares
about your business taking care of your business for you and delivering the
results and the great customer service and quality products that you you set
out that you've envisioned and empowered them to do so the best thing is that
this whole trip is paid for by this automated cash cow that you have built
yourself how amazing does that sound this is all possible when you know
yourself now let me explain you see the experience that you want to deliver to
your customers you see the vision and you see the kind of smiles of them
enjoying your meal you see how this whole restaurant or cafe should look
like and the feeling when someone walks in to your joint you'll be like oh this
is freaking amazing you see this and you have a vision to deliver for your
customers and this is your gift if you want people who are great that have
common sense that are competent that is passionate to care about your business
to be able to handle this and execute on your behalf then you've got to
communicate this vision of yours in to them give them the parameters and the
tools to execute on your behalf this is what sets people who are working in
their business 9:00 to 9:00 every single day with no holidays apart from the
people who actually can travel and to spend quality time with their loved ones
and their family this is the biggest differentiator
by knowing yourself and being able to translate that to your team
so many people I know and clients on I have are complaining about the fact that
they cannot hire great help and that is something that I feel totally against
because I feel like it's your responsibility to be able to translate
your vision with a purpose to the people that are out there to help you this is
what creates good culture it is the ability to translate this vision to them
let them see what you see and when you can do that that's when they can deliver
on your vision that's when they're rolling all in sync that's when you can
go travel and have someone else take care of your business and that's when
what real business is about you know the perks of having a business is the fact
that you can control your time not having your business control you so many
business owners out there especially people in restaurant business have are
falling into the curse of this is that they need to be in their business 24/7
because whether it be people stealing from them whether it be quality control
whether it be customer service whether it be machine malfunctioning so many
things happening all at once and it's so difficult to find great help great
talent great chef great managers all these types of things is because of the
fact that they're not well informed the number one thing that you can do is to
know yourself know your visions know your values and communicate that with
your team when you're able to successfully do that that's what becomes
super super powerful if you want to know more about this or if this is of any
interest to you make sure you drop a comment below and I can explain further
about how do you create this culture how do you create this movement and to
communicate this with your team number three know your customers so many
restaurant owners and cafe owners are falling into the top of this the biggest
blind spot is the inability to connect with their customer
as restaurant owners and cafe owners we all have a specific vision in mind that
we want to deliver yet we fail to hear what our customers are wanting we fail
to connect with them we fail to show them hey this is my world this is the
picture that I want to draw and we fail to connect with a customer on a personal
level your customers are coming through the doors for a very very specific
reason whether your restaurant being in a high-end restaurant which is a place
to wine and dine your other loved ones or is it a fast-food joint which people
are coming in to grabbing go for their lunch rushes you need to very very much
understand what and who you're catering your services to it doesn't make sense
to have a two-goal product and a to-go menu something that's grabbing a quick
and go if you are trying to cater to people who are wanting to have a dining
experience a dining experience where they can come
and celebrate their mouth stones or to bring their loved ones to impress them
to wine and dine them if your product and what you're serving does not align
with the people that you attract then there's a misalignment and it is this
misalignment that causes people not to come back and to be a repeat customer so
your number one thing that you need to do when connecting with your customers
is to know your customers to know your customer demographic why are they coming
in through the doors what is it that they value what is it that they don't
value what is it doctor hate when is it that they come in the most often when
are the peak hours know your customers so well that when you're talking to them
they feel like that there's a connection with them that's when you know that you
have a successful business is the ability to connect with your customers
give them what they need and give them what they value and they'll always come
back for more it's the experience that they're looking for and if you can do
that then you don't need no you don't need no marketing tactics
that's gonna pull in people just one time you're gonna have a loyal customer
for life okay it's as simple as this just give them what they want okay guys
we've identified three simple things to know to increase your chances of running
a successful restaurant or to tweak your restaurant so then it's even more
successful and those three steps are to know your numbers know yourself and to
know your customers please please please do not make the mistakes of ignoring
these three basic principles I mean as simple as it sounds
these are the things that's gonna determine whether you are on the beach
in Bora Bora or you're gonna be hustling 9:00 to 9:00 every single day being a
slave of the restaurant okay I've been sharing these things with you because I
do not want you to be like so many 90% of the cuts or the restaurant owners out
there who are suffering and being in the rat race okay I really want you to be on
that beach in Bora Bora with your loved ones okay
and as promised my gift for you is that I've prepared for you in the link below
all the documents on I personally use to grow my ice cream business and that
allows me to travel the world when some amazing talent to take care of my
business for for me so these are the templates that I've used make sure you
guys click on the link below to download it
there's no gimmicks no nothing it's my gift for you okay make sure that these
tools are for you and it's only powerful if you utilize it if you use it to your
advantage so make sure you guys spend the time to execute and to actually go
through the training and the modules because it has definitely given me a lot
of results once again if you do not put in the work it would never work for you
this is going to be a crazy journey there's gonna be ups there's gonna be
downs I know it's gonna be very very difficult but I'm committed
being in this journey with you I'm gonna be shooting a lot more videos to show
you basically what I've done in order for me to be able to see the success I'm
seeing right now and hopefully it would help one or two of you guys to achieve
your own results so you can bring your family to Bora Bora it's something that
I'm committed in doing all we have to do is take action make sure you download
the documents the templates and use it to your own advantage okay if you
appreciate this video please show me some love hit the like button make sure
you guys subscribe for more videos on how we can actually make your restaurant
much more profitable much more successful follow along the journey
leave me a comment of anything or any questions that you have in the future