26 posts categorized "Running a Cafe"

31/03/2015

Free Download: Cafe Mystery Diner Report

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Whether you have bought a copy of my book, The Complete Guide to Buying a Cafe or not, this Cafe Mystery Diner Report template will help you keep track of your cafe and staff's performance!

Download Mystery Diner Report Template

I hope you find it useful.

Regards,

Craig Reid - The Cafe Ninja

24/02/2015

Free Download: Supplier Ordering Template

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Here's a list of some recommended suppliers and a supplier ordering template to help you manage your supplies! I've used this template as the basis for tracking the supplies and suppliers for many cafes over the years.

Whether you have bought a copy of my book, The Complete Guide to Buying a Cafe or not, this Supplier Ordering Template will help you achieve your cafe success!

Download Supplier Ordering Template v2.0

I hope you find it useful.

Regards,

Craig Reid - The Cafe Ninja

13/01/2015

Free Download: Cafe / Restaurant Staff Handbook Template

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If you've been trolling the web looking for a Cafe or Restaurant Staff Handbook Template, then troll no more!

I've used this template as as the basis for creating staff handbooks for many cafes over the years. I hope you find it useful.

Download Staff Handbook Template

Cheers,

Craig Reid - The Cafe Ninja

30/12/2014

Free Download: Cafe / Restaurant Sales Tracking Template

Lead-Tracking
Whether you have bought a copy of my book, The Complete Guide to Buying a Cafe or not, this Sales Tracking template will help you keep track of your daily and weekly sales!

Download Sales Tracking Template

I hope you find it useful.

Regards,

Craig Reid - The Cafe Ninja

18/07/2014

Free Download: Buying a Cafe Checklist

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Whether you have bought a copy of my book, The Complete Guide to Buying a Cafe or not, this checklist will help you to tick all the boxes of cafe success.

Download Buying a Cafe Checklist Template

I hope you find it useful.

Regards,

Craig Reid - The Cafe Ninja

 

01/07/2014

Free Download - Cafe / Restaurant Profit / Loss Assessment Template

Whether you have bought a copy of my book, The Complete Guide to Buying a Cafe or not, this checklist will help you to analyse a cafe's financial situation, prior to purchase:

Download Cafe / Restaurant Financial Analysis Template

I hope you find it useful.

Regards,

Craig Reid - The Cafe Ninja

18/06/2014

Free Download - Cafe / Restaurant Business Plan Template

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If you've been trolling the web looking for a Cafe or Restaurant Business Plan Template, then troll no more!

I've used this template as the basis for creating business plans for many cafes over the years. I hope you find it useful.

Download Business Plan Template - Existing cafe.

Cheers,

Craig Reid - The Cafe Ninja

11/06/2014

Free Cafe / Restaurant Profits Workshop with Restaurant Marketing Expert, Howard Tinker

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I know it's a challenging time in the industry right now so I thought I would give you a TIP about something that could really accelerate your profits!  
 
I recently came across a guy called Howard Tinker, who is helping hundreds of restaurant and cafe owners to increase their profits through smart marketing.  He doesn't use daily deals or any kind of tactics that cost owners, just very clever strategies that work - and make big profits.  
 
I told him about my book and he kindly said I could invite people who had bought it to attend one of his workshops for free. There really isn't anything in this for me I just wanted to offer you more support if you needed it.  
 
If you are interested, there's a website about Howard's next workshop here: 
 
http://restaurantprofitology.com its in Sydney in a couple of weeks.  
 
Howard also has a book you might want to check out too:
 
 
Good luck, I look forward to hearing about your successes.
 
Kind regards,
 
Craig.

02/12/2013

Cafe Financials - The Importance of Fixed and Variable Costs

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The following is an excerpt from my book, The Complete Guide to Buying a Cafe...

Fixed & Variable Costs

Fixed costs are costs to the business that tend to remain the same or “fixed” over a period of time. For example, the most common fixed cost is rent. Rent will be agreed at a set rate, usually on a yearly basis with a percentage increase per year.

Other fixed costs are likely to include:

  • Council rates
  • Strata rates
  • Rental costs for equipment, etc.

Fixed costs are important to consider as they are independent of turnover,i.e. no matter how much – or how little – the business is taking in, you still have to pay them.

All other costs are known as variable costs, and they will tend to vary in direct relation to turnover. This makes sense when you consider that if you get busier you will need to buy more food to meet demand and more staff to serve more customers. The opposite is also true – less
custom and you will need less food and less staff.

If you are managing the business properly, your café’s variable costs will drop if the turnover starts to drop – however the fixed costs will remain and these will start to represent a bigger percentage of your overall costs. This is where a business can get into trouble. So the bottom line is that fixed costs need to be looked at carefully to ensure they will not represent too much of a burden if times get tough. 

On the contrary, as turnover increases, profitability can increase by a proportionately larger amount, as the following example shows:

Turnover

$6,000

$7,000

$8,000

Variable Costs
  (50%)

$3,000

$3,500

$4,000

Fixed Costs

$2,500

$2,500

$2,500

Weekly Profit

$500

$1,000

$1,500

If you bought the café with a turnover of $6,000 and profits of $500 (8%) and you can increase the turnover to $7,000, the profit margin increases to $1,000 (14%). At a turnover of $8,000 the profit margin increases to $1,500 (19%).

The profit margin has more than doubled even though turnover has only increased by one third. The limit on your growth is simply the capacity of the café. If you can outgrow the capacity, it is time to find a bigger, better café or, perhaps, to open a second one.

Want to read more? Buy my book today!

Cheers,

TCN

01/10/2013

Should You Buy a Cafe Franchise? Differences between cafe franchises and independent cafes explained...

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The following is an excerpt from my book, The Complete Guide to Buying a Cafe...

Do I want a Franchise or an “Independent” Café? 

A franchised café is a café concept that is owned by a company and sold as a reproducible commodity business. You might think of it as the replication of a café concept. The franchisor
sells a café as a business to the franchisee who in turn agrees to run the café according to the guidelines and procedures of the franchisor. The franchisor provides backing to the franchisee in terms of people, procedures, systems, marketing, etc. – basically everything required to run the business. In return the franchisee usually agrees to pay both initial (one-off) and ongoing franchise
fees – typically a percentage of turnover.

Many new café owners start off with franchises as they are viewed as a “safe bet” – this is far from the truth. Let’s look at some of the major differences of a franchised café:

 

Price

 

Café franchises will be typically 2-3 times more expensive than an independent café.

Operation

Café franchises are generally easier to operate than independent cafés  due to the structured processes and procedures in place – however, franchisees have to run the business as dictated by the franchisor.

Marketing

All marketing is controlled via head office and franchisees have little say in the marketing activities undertaken.

Suppliers

Franchised cafés are typically tied to buying their products from the franchisor (although some variation is usually allowed).

Start-up

The franchisor is fully involved with the start-up process for new cafés, including location selection, fit-out and promotions.

Location

Typically franchises are “mass market” offerings and are therefore best  suited to high traffic areas such as shopping malls.  This typically means that lease payments will be high and that the café has to operate at “high volume” levels to survive.

For some people a café franchise is an ideal first step as they are generally easier to run and the franchisor offers continual support for the franchisee. Saying that, there are also poorly run “flash in the pan” franchises out there that seek to take advantage of the unwary. Whether you decide to buy a franchise or an independent café, both require thorough due diligence.

Want to read more? Buy my book today!

Cheers,

TCN

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Craig Reid is one of Australia's top business improvement consultants and is a former owner of one of Sydney's top breakfast cafes.

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