Restaurant Growth
Each year, millions of dollars are spent on the development and construction of restaurants and cafes in Melbourne. The hospitality industry has grown substantially over the past decade and now there are restaurants operating with a high turn around in almost every suburb in Victoria.
According to the Australian Bureau of Statistics, 13, 987 cafe and restaurant businesses were operating in Australia in 2007. These businesses contributed 0.4% to Australia's gross domestic profit for that year and generated $9.7 billion, today, the figures continue to climb.
Melbourne is recognised as a cultural city, and because of this there are many restaurants and cafes offering differing foods and beverages. Small businesses, large franchises and restaurant chains all exist and operate within Melbourne.
Whatever the size of restaurant or cafe, each owner needs to monitor spending and business costs to ensure profit is obtained. Some restaurant or cafe owners choose to liaise with a restaurant accountant who is a specialist in the field. That way they can carefully calculate business expenditures in order to make profit on the restaurant operation.
Restaurant Competition
Unlike selling legal services, widgets, or even grocery items, restaurants are essentially a manufacturer selling direct to the public. That is, they have a kitchen with a large variety of materials and high labour costs.
Each restaurant or cafe is a shop that relies heavily on great service, marketing but also has high labour costs. The restaurant industry is highly competitive, as there are thousands of businesses operating and all wish to obtain a large portion of the hospitality income.
To succeed in the hospitality industry, a restaurant must stay ahead of the market and ensure every aspect of their business is steadily controlled. Using a restaurant accountant, many restaurateurs carefully plan their financial movements to ensure they stay relevant in the competition.
Every restaurant is different; the key margins for a high volume sandwich bar in Collins Street are far different to the key margins of an upmarket Four Star Restaurant in Albert Park. But what makes restaurants alike is that the accounting needs to be completed to a high standard in order to make a profit.
An experienced restaurant accountant can help your restaurant's profitability increase and steer you in the right direction for future earnings.
The Importance of a Restaurant Accountant
A restaurant accountant can determine which margins apply to your restaurant. An experienced restaurant accountant will advise you to separate manufacturing and selling to ensure the key margins that run the business are kept intact.
Sothertons Chartered Accountants have over 30 years experience within the hospitality industry and can help ascertain which margins apply to your restaurant. A Sothertons restaurant accountant has access to industry benchmarking and can provide a benchmark for your business to compare its key drivers against similar businesses.
With a qualified Sothertons restaurant accountant, restaurateurs will be able to effectively manage cash flow, labour costs, benchmarking and KPI's, feasibility studies and BAS statements.
To learn how a Sothertons restaurant accountant can assist with your restaurant, cafe or franchise requirements call (03) 9820 6400 or submit an online contact form.
