If you've just moved into new premises or have been running your pub for a while and noticed a decline in profits, you might be wondering how to boost your earnings. Perhaps your business needs an independent review to stay current with industry developments. Where can you get consistent, cost-effective advice?
The answer is a stocktaker. You might have only encountered a stocktaker during the initial valuation of your new business, but their role extends far beyond that. Regular stocktaking is crucial for any pub and should be handled by a skilled and qualified professional. While every business needs an accountant to handle profits and tax affairs, the pub industry is unique in the number of ways it can lose money. It's essential to know not only how much you actually made but also how much you should have made. The key to improving profits lies in analysing the difference between these figures. Real-time stock reports from a stocktaker, rather than historical accounts, allows for timely adjustments.
What a Stocktaker's Audit Involves
A stocktaker's audit involves counting all your stock, reviewing purchase information, and analysing sales figures. Modern technology allows a good stocktaker to download the necessary information digitally, requiring minimal involvement from the publican or business owner. Stocktakers also need records of sales and wastage, which can be efficiently recorded in a good EPOS system like TouchOffice.
Maximising Gross Profit
Understanding your gross profit percentage (GP%) is critical. A stocktaker can help you determine your current GP and explain the implications of incorrect GP figures. They can also assist in identifying ways to improve your GP, such as adjusting prices, reducing costs, or switching brands.
Managing Stock Levels
Proper stock management is vital. Your stocktaker's report will help you determine if you're carrying too much stock, which can harm cash flow, or too little, which can lead to shortages. This balance is crucial for maintaining operational efficiency and profitability.
Ensuring Accurate Measures and Prices
Errors in measures and pricing can significantly impact your profits. A stocktaker will highlight any discrepancies, ensuring that your staff are using correct measures and prices, thus safeguarding your revenue.
Handling Supplier Price Increases
Regular stocktaking helps you deal with supplier price increases effectively. By keeping your margins accurate, a stocktaker ensures that your profitability remains intact despite rising costs.
Strategic Business Advantage
Accurate stocktaking provides you with a clear understanding of your business operations, preventing surprises when preparing accounts. If you are a tenant or lessee, you can negotiate with your BDM confidently, fully aware of the implications of any operational changes.
Freehouse operators can discuss changes with banks or suppliers, assured that decisions are based on reliable information from their stocktaker. The cost of hiring a stocktaker is often recouped many times over through the savings and profit improvements they help you achieve.
With food becoming increasingly significant in pubs, a stocktaker can accurately track your gross profit, assist with menu costing, supplier selection, and kitchen control. The bar, however, is where significant losses can occur quickly.