The first quarter of 2018 is now a distant memory. However, as caterers we ask hospitality businesses:
- Do you truly know how your business performed against your budget yet?
- Do you have faith in the numbers forecast for the new quarter?
- Is your current process for tracking this quick and convenient?
If you answered no to these questions, you are not alone!
As professional caterers, we have come to realise that it has become a widely accepted truth within the industry. This truth is that there is going to be a gap between the data that operators work with (price lists that become out of date as soon as they are agreed), and the management reports that are provided to the strategic decision makers (after much back and forth between operators, suppliers and the finance team). This is as much as 6 weeks after quarter end (just under 3 weeks to go by our calculations!). In this situation, by mid-May, critical decisions are missed, which means preventative measures are enforced to prepare for the next round of out of date reports. Does this sound familiar?
How to avoid the cycle
The reality is, this cycle can be avoided and live accurate information is available, right now. Many busy catering businesses have invested in end-to-end Hospitality Purchasing software that ensures price creep is a thing of the past. This is because today’s live price is agreed by supplier and buyer via an SLA (Service Level Agreement) which means that the data in the order>delivery>invoice is the same, with adjustments and credit managed online too.
The outcome of having live accurate data from purchase to payment has meant that these Catering businesses are able to produce an accurate daily P&L report for all stakeholders to view online. This means that unwelcomed financial surprises become outdated, as you no longer have to wait more than 6 weeks for management reports. Ultimately, this facilitates effective management decisions and a forward facing and decisive business (instead of constantly having to make reactive decisions).
Daily P&Ls are no longer the Holy Grail and they are here right now. For more information get in touch.