Ep 204: Financial Tips for Restaurant Owners

In this episode of the podcast Jaime interviews Jonathan Rosa, president at Moura CFO. Jonathan shares his experience growing up in a restaurant family and working at Burger King headquarters. He discusses the financial challenges restaurant owners face and offers strategies to improve profitability, such as reviewing financial reports, managing costs, and calculating waste. He also emphasizes the importance of cash flow forecasting and exit planning. Other highlights include...

• Differences between big corporate operations and independent restaurants
• Slim profit margins in the restaurant industry
• Tips for increasing restaurant margins, including raising prices and managing costs
• Importance of regularly reviewing and analyzing financial reports
• Story of a client improving gross profit through changes and monitoring inventory
• The 80/20 principle and focusing on key systems and details
• Importance of cash flow forecasting and waste calculation
• Exit planning for restaurant owners and factors for a successful exit
• Importance of building processes, systems, and delegating tasks for a profitable exit

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Link: Moura CFO

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Jaime Oikle is the Owner & Founder of RunningRestaurants.com, a comprehensive web site for restaurant owners & managers filled with marketing, operations, service, people & tech tips to help restaurants profit and succeed.

TIMESTAMPS from Podcast...

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Understanding the Restaurant Industry [00:00:01]
Jonathan shares his background growing up in the restaurant business and his journey to starting Moura CFO, a company that helps restaurant owners with their finances.

The Contrast Between Small and Large Restaurants [00:02:06]
Jonathan discusses the differences between small independent restaurants and large corporate chains like Burger King, highlighting the importance of systems and understanding the fundamentals of the business.

Increasing Margins and Cost Savings [00:03:57]
Jonathan explains the importance of understanding profit margins in the restaurant business and suggests increasing prices on menu items as a quick way to improve margins. He also emphasizes the need for regular inventory and cost analysis to identify savings opportunities.

Unlocking insights through organized bookkeeping [00:08:46]
Understanding the importance of well-organized books and monthly reports to improve food and labor costs.

The impact of being attentive to numbers [00:09:14]
Examples of missed opportunities and mistakes that could have been avoided by being attentive to inventory, waste, and cost control.

The value of cash flow forecasting [00:15:04]
The speaker's personal experience with cash flow challenges during slow seasons and the importance of planning ahead with cash flow forecasts.

Exit Planning and Growing the Business [00:18:09]
Discussion about helping restaurant owners plan for a successful exit and grow their business to a point where it can be sold.

Building Process and Systems for an Exit [00:19:05]
Exploration of the importance of building processes and systems in a restaurant to separate the operations from the owner and increase the value of the business for a profitable exit.

Cash Flow Forecasting and Labor Budgeting [00:21:18]
Advice on understanding cash flow and forecasting in a restaurant business, as well as managing the impact of rising labor costs by improving processes and systems.