What NOT to do when opening your first hospo venue: Part 2
Part two of three of a Cafe Bookkeepers fictional case study of worst practice.
(Any similarities to existing venues or operators are entirely coincidental.)
We trust you’ve met Chris. He’s the headstrong young man who dove headfirst, eyes closed into opening his first hospitality venue. Read more about the early days of Chris’s cafe here and we’ll continue his story …
Chris’s cafe, when business is as usual.
The staff Chris does pay “on the books” are casuals on a flat rate for every day. The chef is on $60k a year but clocks 50 hours most weeks and a lot of work over the weekend. The “team” can have a coffee whenever they want and they have a “sick” Christmas party every year.
Staff don't get proper breaks (that's just hospo, right?) although, they can grab a quick cigarette break when it quietens down. Timesheets are logged on paper and given to Chris each week and he makes any adjustments which he thinks are fair.
“Harry” is a kitchen hand. He's been there since opening, is hardworking, never late, never complains and gets his job done. “Harry” came to Australia a few years ago and English isn’t his first language. He wants to work as much as he can to send money to his family overseas. He verbally agreed $18 an hour was fine and can have as many hours as he can handle. He generally works 40 to 50 hours most weeks.
Cut to 18 months later and business is okay, steady but not spectacular. It's busy enough on weekends but most of the weekday mornings are quieter than hoped for and lunchtime trade is almost non-existent.
Chris's mate moved on so he's had a quick succession of baristas work for him. People say the coffee has gotten worse and they don't know anyone who works there anymore.
Unfortunately, tales like this are all too familiar – we’ve seen the mistakes “Chris” made, and bad ideas he had, a lot here at Cafe Bookkeepers. Our advice? Ensure ALL your ducks are in a row from the beginning. If Chris has made different decisions at his business’s inception it’s likely he wouldn’t be in the position he is now.
Cafe Bookkeepers specialises in bookkeeping, accountancy and payroll for the hospitality industry – from small cafes like Chris’s to large-scale coffee roasters. We don't just process your numbers, we look at them and learn about your business. Our team is highly experienced in both the financial and operational side of the hospitality industry so you can rest assured any problem you may have has been encountered before.
Sound enticing? Get in touch here.