Introduction
Freya (name changed for confidentiality purpose) is a high-end Japanese restaurant that offers fine dining, catering, and delivery services to the areas around Kuwait. They specialize traditional Japanese delicacies and have earned a reputation for providing high-quality service to their customers. They have an online ordering facility through their website and have garnered a substantial Instagram following of more than 15K followers due to their spectacular and mouth-watering treats. Their users have left positive reviews and ratings unpopular food network sites like Talabat, Deliveroo, and other social networking sites.
Before AlPrime
When AlPrime approached Freya, they were in a state of ‘Ignorance is Bliss’ and had no bookkeeping or accounting procedures. There was no tracking of daily expenses, cost of sale, or inventory count. This did not pose a threat toFreya’s business but was holding it back from optimizing its resources and increasing its revenue.
Issues Identified
When AlPrime stepped in, they delved into understanding the various activities and resources of the restaurant. They identified that the restaurant was spending a lot due to high staff costs, high Cost of Sale, and high Inventory value. These costs directly affected the profits of Freya and led to a lot of wastage.
Proposed Solution
When these issues were brought before them, Freya proactively sought the help of AlPrime and worked towards rectifying them. AlPrime suggested processes and procedures to track the daily expenses and Cash flows. Within a short time, AlPrime’s team was able to see the Cost of Sale stabilize, thanks to the other changes and regular updating of the data by Freya. As the restaurant’s inventory largely contained perishable items like expensive meat and edible products, high inventory was causing unnecessary wastage. AlPrime explained an efficient way to count and track inventory to reduce wastage and high inventory value. AlPrime’s monthly follow-ups with the staff about inventory and wastage tracking helped Freya maintain an accurate inventory count. This process helped Freya in buying items based on availability, thus preventing wastage and saving money. Freya also followed AlPrime’s advice in reducing staff members, thus unburdening the restaurant with huge staff expenses. Now that the processes were optimized and proper working systems existed, the diminished employee count did not matter to the restaurant much. On the whole, Freya achieved a whole new level of efficiency due to the timely advice and right direction given by AlPrime.
Result
The changes to the Japanese Eatery are reflected in their reduced Cost of Sale, reduced Wastage, and effective processes driving the cash flows and inventory. Tangible results were seen in the form of a doubled revenue from the previous year propelling Freya’s business much further and greatly improving its market positioning.
Conclusion
Freya is a classic example of how proper accounting and bookkeeping can benefit any business to increase its profits by optimizing processes and plugging unnecessary leaks into the cash flow. Now that they have a taste of what the right direction and timely advisory can do for their restaurant, they are convinced about using these suggestions to accelerate their business and achieve excellence.
