Many restaurants that were full service are taking a massive beating right now to their earnings – and to their bottom line. At DSR, we are working with our clients to navigate this crisis as best as possible. Below is a list of ways you can help your cash position until things get back on track:
- Take weekly inventories that are extended with values
- Ask landlord for rent deferment
- Call your insurance provider and lower you sales and alcohol sales to reduce premiums (they are also giving deferment on payments)
- Stop all non-essential services (cable, knife sharpening, beer tap line with CO2, etc.)
- Keep all utilities set for 70/78 degrees to conserve costs
- List and calculate all Fixed Cost and breakeven points (DSR created an easy one page excel worksheet for this)
- Project cash flow for the next 13 weeks
- List all short and long term debt
- Review AP Aging’s and calculate all AP weekly
- List and calculate all payroll schedules for the next 13 weeks
- Track all lost product and assign a cost based inventory – talk to your local food banks, they have shortages and are in need
- List and calculate all tax liabilities, sales, payroll and property taxes (FL establishments probably already paid their property taxes)
- Help find Bridge loans in your area and the CARE ACT SBA loan officers (private sector) to bridge those shortages in cash
Additionally, although it may be tough to get past the day-to-day grind, there are several important things to to start focusing on – remember social distancing will still be in place once we get our dining rooms open again. It will be a slow process, here are a few things to help you stay ahead of the curve:
A) Take full inventory again before opening
B) Calculate COGS and recipes
C) Project cash flow 60 to 90 days out, including taxes, rent, COGS and utilities
D) Call landlords or any vendors we deferred payment to and discuss the current situation. Communication with staff and vendors is key during ANY change in your business. They will appreciate it.
E) Make sure all of your supply vendors are going to make it out of the crisis and they have in stock what your recipes call for or find a way to source them differently
F) Get a training plan in place to get started before reopening – it is time to say thank you to all of our guests and start showing them what hospitality is again.
G) Trim all schedule where necessary – now is the time to hire and get the good ones
H) Start with a new and/or limited menu until it things are in full swing again – this will give your customers a new reason to try you all over again or the faithful ones something new and exciting. It is ok to cater to your guests.
I) Focus on building your brands and the community again
Contact us for further assistance.
Principal/President, DSR Financial