This is a restaurant and bar that specializes in unique beer choices paired with an upscale menu. Different than other pub operators, this group has a commitment to also providing a high-level food experience.
Great location on a corner of the main street in a mid-sized town environment. Excellent occupancy costs ranging at roughly 4%.
Sales have increased over the last year at a rate of about 3.6%. Interest in the concept and great marketing through industry (beer) publications have identified the restaurant as an authority on small production draft company offerings. Beer tasting for new releases and participation in draft beer events across the southland have kept the product relevant in that market.
Cost of Sales
Food costs have lowered as a result of better controls in the kitchen- the amount of food prepped, portioning and orders were all areas that needed attention, and better systems implemented.
Bar costs have increased slightly due to increases in product costs but no increase to customers.
Comps are an issue as the operator needs to better define and track who and why comps are being used.
Payroll has improved by more than 5.6 percentage points. The operator still has too much overtime- blind scheduling and elimination of split shifts and over time have led to improvement.
A great improvement here by 4.1 percentage points. Review of credit cards, maintenance and repair issues, utility use, linen contract, and marketing coupon program discontinued. Most importantly the development of a budget for expense categories and adherence to that budget.
G&A expense still need some attention but are out of industry standards due to management fees.
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Author: Jean Hagan