Restaurant bookings. Jean-Michel Jaguenaud
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1 Restaurant bookings Jean-Michel Jaguenaud
2 Agenda Part 1: Environment Sector evolution Tax and legal environment Part 2 : Managing a restaurant Sales Cost structure
3 Part 1 Environment
4 Out-of-home dining sector Turnover Out-of-home dining sector includes: Commercial catering Catering (companies and inter companies restaurants, schools, administration ) Alternative catering (food provider in addition to main services: eggazstations, shops ) Hotel catering
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6 Commercial catering Main trends Change in booking behaviour Decrease in time spent (From 90 minutes to 22 minutes in 20 years.in France) Change in alcohol drinking habits
7 Environment Tax and legal environment Tax Regulatory Workforce Hygiene and security Other hot topics
8 Tax environment VAT Counterpart for the VAT rate decrease from 19.6% to 5.5% in 2009: Decrease price by 11.8% on at least 7 items Creation of new jobs Increase of salaries work conditions (VAT premium until 2012) Investments Additional tax of 1.2% of sales overs 200 k (until mid 2013)
9 Tax environment VAT: «Le changement, c esttout le temps» For restaurants Alcohol drinks: 20% Food and alcohol free drinks: 10% since 1st January 2014 (Was 19.6% until 1st July 2009, 5.5% between 1st July 2009 and 31 December 2011, 7% in 2012 and 2013) Breakdown to be made for all included menus For fast food restaurant Alcohol drinks: 20% Food and alcohol free drinks: 10% if to be consumed immediately, 5.5% if consumed later (depending on packaging)
10 Tax environment Other taxes Usual taxes CFE Professional training CVAE Land tax Apprenticeship tax SACEM and SPRE
11 Regulatory Restaurant permit (Permis d exploitation) License (restaurant, alcohol) Public disclosure (prices, 14 allergens, beef meat origin) Soft drinks available and measurement tools Till and transactions tracking
12
13 Work force Usual obligations (employment declaration, contract, employee register, payroll) and legal disclosure Part time contracts Working week-ends Additional hours (39 hours in restaurants per work agreement) Healthcare insurance Risk assessment document (DUER) Training permit necessary to hire apprentices
14 Hygiene and security Smoking and drinking Smoking forbidden in public premises since 1st January 2007 Alcohol: Sale or deliver alcohol to minors is now forbidden(bachelot law 2009)
15 Hygiene and security External controls Mandatory external control of: Electricity and gas installations Air conditioning Smoke extractors Optional external audit
16 Hygiene and security Internal controls HACCP (Hazard Analysis Critical Control Point) for biological, chemical and physical dangers Internal follow up of: Fridges temperatures Freezing process Kitchen cleaning program
17 Other hot topics Access to disables Labels Home made («fait maison») Maître restaurateur Collège culinaire de France MOF Michelin star Internet bookings (Trip advisor, La Fourchette ) Payments (eg tickets restaurant)
18 Part 2 Managing a restaurant.considering the above-mentioned environment
19 Sales Building an menu Place (Region, local area) Type of restaurant Type of clients Staff: number, professional expertise Consistency Profitability Competition Rules and regulation
20 Sales Building an menu Omnes principles Not more than 10 items in each category 50% of the items should be in the middle price range The more expensive item should be 2.5 times the less expensive one Promotions should be in the middle price range The ratio AP offered /AP paid should be kept between 0.9 and 1.1
21 Sales The Au Vieux Pêcheur menu Large list of choices Balance between fish and meat Flexibility Simplicity Legal information
22 Sales -Key financial indicators Number of clients Total number of clients by month, week, day Breakdown between lunch and dinner Week days and weekends Average price by client before and after tax Breakdown between drinks and food Analysis by type of menu Groups vs individuals
23 Managing sales Increase number of clients Reputation (including e-reputation) Networking Advertising Special events Increase average revenue by client Menu organisation Extras on promotions Manage the gifts made Wine management (half bottles, glass, bags ) Goodies?
24 Cost -Key financial indicators Goods consumed ratio (variable cost) Physical stock take Wages Prime cost: Goods consumed + salaries Rent Energy and water cost EBITDA
25 Managing a restaurant Cost structure 100 basis for turnover Turnover 100 Consumption of goods -30 Gross margin 70 Salaries -42 Prime cost margin 28 Rent -10 Other costs -13 EBITDA 5
26 Cost structure management Reduce labour cost but not quality: Flexibility (extras, short term contracts when possible, apprentices, trainees ) Manage team structure Purchase of goods Inventory management Maintain competition between suppliers Rungis remains a good solution
27 Manage profitability Compute variable cost of each item through recipe cards Consider all ingredients Follow-up on goods price Number of items sold by month Determine potential time effectiveness
28 Cost structure management Manage other costs Insurance Maintenance and repairs Accounting fees
29 Thank you for your attention Questions and answers
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