Best Practices
Survival Tip #2: Aggressively Cut Non-Essential Expenses NOW!
You've likely already taken the axe to many of your expenses, but is there more you can do? Survival now depends on eliminating non-critical costs that don't negatively impact your ability to operate your food-to-go operations or would hinder your ability to re-open.
Here are a few ideas from participants in our recent Cost Cutting / Cash Flow webinar:
- Cut bib/CO2 orders
- Dish machine lease payment waived for April
- General liability reduced based on lower sales
- My accountant temporarily suspended his fee
- Recalculating monthly worker's comp payments due to lower payroll
- Checking into less expensive VOIP phone system
- Cable company has been very helpful. Lowering cost and comping 1 month
- Reduced frequency of trash pickup
- Cut linen in half
- Cut our music service
- Cut our mat rentals from uniform company
- Social media company forgave monthly fee
- Reduced armored car pickup
The greater the difficulty the more glory in surmounting it. Skillful pilots gain their reputation from storms and tempests.
- Epictetus
We're also hearing that many operators are informing their landlords they are suspending all rent payments and asking for rent abatement- not just a deferral-.
Think in terms of absolutely- essential versus not absolutely- essential to keep your restaurant operating or in a position to re-open. Remember, once you make a payment, that cash is gone, forever!
Product, people, insurance and utilities are essential to continued operations. Take a hard look at what else can be cut or delayed.
Your survival is dependent on how quickly and effectively you contain your costs and manage your cash flow. Below are webinars and resources that can help!
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Managing Cash Flow in this Uncertain Time
This free 4-week mastermind series is presented by our friends David Scott Peters, author of The Restaurant Prosperity Formula and Anne Gannon, CPA and founder of The Largo Group accounting firm.
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Financial Strategies for Restaurants with Empty Dining Rooms
Cash is king in the restaurant business. Today, there is precious little of it without the revenue your dining-room provides. The RTS experts below use spreadsheets to show how small- and medium-sized restaurants can strategically manage their cash flow to survive the impact of Covid-19.
