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Invisible Costs :Destroying the Bottom Line

You are working as hard as you can, your restaurant is full, your tables are turning, your business is buzzing and your bottom line is tanking. There are myriad reasons why restaurants struggle and many are endlessly discussed and parsed for solutions. One that is not often discussed is the invisible cost of items not charged for.

A recent experience in a restaurant which was full and buzzing was a reminder again (after many such experiences) that a café, bar or restaurant that does not have a robust system of inputting all transactions before they are released to a table is at minimum losing hundreds of euros weekly and many thousands annually.

Our bill for four came to €127.00 – we immediately knew this could not be correct as we had four starters, four mains and three desserts plus a pint and some good wine. On closer inspection, we had been given someone else’s bill.  We sent a scout to find out. Not only had we got a bill for another table, but €105.00 had been left off our bill and a similar amount left off the other bill. That is an error of over €200 on just two bills on just one service on one day.

Few possibilities here. One, many people present their card and just pay the bill without checking it – no bad intentions, just a trust in the system. Two, some people will check the bill, find it wrong and say nothing. Three, it may be intentional, should a staff member have a few friends in. Four, the system isn’t working.

This is an easy fix. It involves having a system whereby nothing, not a cup of coffee, not a glass of wine, not a cream bun leaves the kitchen or bar without having been inputted into the system, a transaction generated and added to the bill. Comprehensive training should then follow. Failure to use the system should be linked to a disciplinary process. Three strikes!

This is one of the most heart-breaking ways to lose money. It is virtually invisible and unless the business has ironclad stock control and reporting, it will not be picked up before a lot of hard earned potential income is lost.