RESTAURANTS / COUNTRY CLUBS / CATERERS / BARS / CAFE'S / NIGHTCLUBS
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Lopolito Hospitality Consultants is a leading hospitality consulting company in the New York Region and we work Nationally in support of providing a better consulting outcome experience. We provide in-depth study and assistance to your concerns in the creation and/or operational progress of your business. High costs and low revenue or difficulty understanding ongoing situations lead owners to reach out for help, and we provide solutions to almost any difficulty you are experiencing. Look no further for the answers you seek and the results you need.
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Talk to us today about the goals you have and how to achieve the progress you expected.
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If you having any concerns or difficulty in your business;
It is well documented that there is a high failure rate in food service with café’s, restaurants, and caterers struggling to stay afloat, with an elevation in country club closures also occurring. I have engaged years of observations and looked at patterns to uncover reasons for this dilemma. While there are an abundance of influences that can lead to difficulty or demise of a business, a specific cause that I observe over and over is poor expenditure behavior management, which is the reason that I created and coined “Expense Loss”. Management is occupied with the revenue generation areas of a business because there is a firm belief that without growing revenue you cannot survive. While revenue growth is certainly a necessary path to be on, spending behaviors that cause an equal or further amount of expenditures than incoming revenue without the knowledge that this is occurring is a common dilemma in the hospitality industry. You can increase revenue but your expense grows concurrently or even excessively if you are not being responsible as you grow. Yes there are plateaus for some fixed expenses and upon attaining higher revenue the expectation for additional profits can be realized if you are managing your decisions effectively. However, my observations indicate that as additional revenue begins to achieve more profits the expense decisions develop into more of a luxury and ease of concern, and this always becomes problematic.
In order to correlate business closures to the unambiguous reason of Expense Loss I began to observe the relationship between managing expenditures in organizations and how they were accepted or treated against other practices or procedures used by management in the goal to achieve profits. This relationship examination uncovered ongoing efforts to build the business with an acceptance to expenditure procedures when the business seemed to be doing fine or the appearance that plenty of revenue was incoming to support profits was ongoing. When looking at common expenses related to; service delivery issues, guest dissatisfaction costs, insufficient recipe calculations, disproportionate menu prices, overburdening vendor prices, property expenses, guest/member programs, coupons and percentage off programs, repairs and maintenance costs, and other concerns and then comparing this to expenditure management behaviors the comparison showed a disconnect by management for these issues until profits were determined lacking. During this time I learned that while controlling consistency within an organization can foster stability and progress; I also noticed common behaviors among businesses that relied upon and compared expected profits based upon their achieved revenue, which is an afterthought. Few businesses seem to consider the effectiveness of fiscal responsibility beforehand, or the fact that you can earn higher profits without increasing revenue simply by paying more attention to money lost on expenditures now.
Jim Lopolito, President
It is well documented that there is a high failure rate in food service with café’s, restaurants, and caterers struggling to stay afloat, with an elevation in country club closures also occurring. I have engaged years of observations and looked at patterns to uncover reasons for this dilemma. While there are an abundance of influences that can lead to difficulty or demise of a business, a specific cause that I observe over and over is poor expenditure behavior management, which is the reason that I created and coined “Expense Loss”. Management is occupied with the revenue generation areas of a business because there is a firm belief that without growing revenue you cannot survive. While revenue growth is certainly a necessary path to be on, spending behaviors that cause an equal or further amount of expenditures than incoming revenue without the knowledge that this is occurring is a common dilemma in the hospitality industry. You can increase revenue but your expense grows concurrently or even excessively if you are not being responsible as you grow. Yes there are plateaus for some fixed expenses and upon attaining higher revenue the expectation for additional profits can be realized if you are managing your decisions effectively. However, my observations indicate that as additional revenue begins to achieve more profits the expense decisions develop into more of a luxury and ease of concern, and this always becomes problematic.
In order to correlate business closures to the unambiguous reason of Expense Loss I began to observe the relationship between managing expenditures in organizations and how they were accepted or treated against other practices or procedures used by management in the goal to achieve profits. This relationship examination uncovered ongoing efforts to build the business with an acceptance to expenditure procedures when the business seemed to be doing fine or the appearance that plenty of revenue was incoming to support profits was ongoing. When looking at common expenses related to; service delivery issues, guest dissatisfaction costs, insufficient recipe calculations, disproportionate menu prices, overburdening vendor prices, property expenses, guest/member programs, coupons and percentage off programs, repairs and maintenance costs, and other concerns and then comparing this to expenditure management behaviors the comparison showed a disconnect by management for these issues until profits were determined lacking. During this time I learned that while controlling consistency within an organization can foster stability and progress; I also noticed common behaviors among businesses that relied upon and compared expected profits based upon their achieved revenue, which is an afterthought. Few businesses seem to consider the effectiveness of fiscal responsibility beforehand, or the fact that you can earn higher profits without increasing revenue simply by paying more attention to money lost on expenditures now.
Jim Lopolito, President
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EXPENSE LOSS
A Proprietary Term of LHC.
Definition of Expense Loss:
The variance between money that is currently unsystematically expensed on product, services, or equipment and the achievable amount of expense reduction that is possible or interpreted through a review and fiscally applied methods of spending behavior and forward thinking decisions.
Common unsystematic spending can occur in any business, and with useful information or training this encourages a more fiscally responsible method of performance and behavior that will improve your profits. Ask about how we can bring our Expense Loss Review to your business.
A Proprietary Term of LHC.
Definition of Expense Loss:
The variance between money that is currently unsystematically expensed on product, services, or equipment and the achievable amount of expense reduction that is possible or interpreted through a review and fiscally applied methods of spending behavior and forward thinking decisions.
Common unsystematic spending can occur in any business, and with useful information or training this encourages a more fiscally responsible method of performance and behavior that will improve your profits. Ask about how we can bring our Expense Loss Review to your business.
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