“Increased profits from the cafe – Reduce Costs or Increase Revenue”
Business cafe work can help people to hurry up the ” giant ” of the well can be quickly lowered it to below difficult. Because the cafe is doing business more crowded , its interest , but if the low bar , no or reduced revenue – facing large fixed costs – insufficient revenue , will very quickly lost .
Tables of fixed costs , cafes often have quite large numbers , including two largest loans are:
– Cost rent. Because in Vietnam , to be able to point to the cafe is nice and wide , so that rental costs are very high .
– Personnel costs : service sector must have enough personnel to work creating new professional good service , so that employees monthly salary is not less .
So when a recession or cafes are crowded , many investors began to ” crave collection Fear ” , cut out the cost required . That is really dangerous for the development of the restaurant .
– Reduce the cost of wages or salary increase for a long time does not make good employees : do employees frustrated , as the lack of fun , lack of enthusiasm . Recruitment difficulties .
– Reduce reinvestment : infrastructure damaged, old , bad old staff uniforms , … are not reinvested as picture cafe increasingly worse .
– Restricting promotions, gifts , discounts, customers do not feel gradually be encouraged , attention , competitive advantage is low.
These factors make the cafe declining business performance , losing patrons , no new guests . Revenue fell !
Revenue fell , investors even further tightened , even going down . Vicious circle not fix .
In this case , the most important factor is to change the business mindset . For the interest rate should have three measures :
– Reducing expenditures to increase profitability ( the most dangerous measures )
– Increased revenues to increase profitability
– Increase revenue and reduce expenditures to increase profits.
In particular , increased revenue is priority number one !
To increase revenue , to quality management , marketing , advertising , promotions and PR .
Must calculate and set aside a basic budget for these activities , as a cure-all for the low cafes or are degraded . You need to repeat your cafe image in the mind of the old and introduce new guests .
Do not wait to have visitors or tourists then do , because your cafe can never crowded up in a natural way again . When a crowded cafe , a satisfied person will mouth for 4 people, but if they have a bad impression , they are transmitted orally to 10 others . Results cafes downturn as a recession more !
Marketing is the daily activities and do not wait if you want to increase sales !