It's still about the money.

If you are not making money, it simply will not work, not now and not in the future.

Much has been written about the demise of the restaurant industry and how hundreds have closed in recent times. Arguments are made on both sides about the whys and what ifs, who is to blame and what are the root causes. Much of this is hot air and does not in any way lift the lid on the reality of why a business slides slowly and then swiftly towards bankruptcy.

Just to be very clear as we head into 2025, there are thousands of hospitality businesses all over the country quietly getting on with it and making it work despite the challenges. They are strategising, innovating, analysing, discussing, debating and bringing their teams with them. They are the future.

Hospitality people are busy. Hospitality people are practical. Hospitality people are doers. So, by their very nature they like getting tangible things done. They, like others have blind spots and these cause the biggest accidents with the greatest fallout.

Over decades of industry experience on and off the shop floor, a few factors common to all businesses who end up with terminal illness have emerged for The Business of Food.

1.??????? Bad financial management

a.??????? In an industry which is as volatile as this sector, leaving the financial information to the end of the financial year is business self-sabotage and unfortunately, common.

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2.??????? Bad Managers

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a.??????? Bad managers blame everyone and everything when it all goes wrong.

b.?????? They have consistently ignored all warning signs.

c.??????? They are terrible at delegating and when they do offload some work, it is to blame someone else when it fails.

d.?????? They bring experts in to sort out their staff (it’s never their own failings that are at fault) only to prevent those staff from implementing the essential changes needed to save the business.

e.??????? They lay waste to talent on an epic scale – unfortunately, kitchens are still responsible for much of this – not helped by the depiction of the industry across TV, Film and media.

f.????????? They especially dislike ‘smart people’ who might have the solutions but means changing the way ‘we do things’.

g.??????? They will eventually ruin the business.

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3.??????? Bad Systems.

According to Edwards Deming ‘a bad system will beat a good person every time’

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a.?????? Sticking to a ‘system’ because it is the way it has always been done prevents a business from finding better ways to do things.

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4.??????? Bad Equipment

a.??????? Expecting staff to produce food/ drink/ services with substandard equipment/ products/ facilities, which consistently erodes the customer experience and damages any chance of repeat business.

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5.??????? Round pegs in square holes.

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a.??????? Wrong people in wrong job in wrong place at wrong time.

b.?????? Ignoring the fact that we are all good at different tasks and perform best when we are content in the job – ever been served by a surly waiter- chances are there is rot at the top.

6.??????? Theft

a.??????? It is curious that the industry in general does not talk about this, even though it happens- staff and guests.

b.?????? It chips away at the bottom line like a slowly growing cancer until it is too late to cure.

So, what can you do in this year of 2025 to future proof your business.

1.??????? Finance

a.??????? Close your business for at least two days( might need longer) and analyse the figures – get help if you are not a figures person.

b.?????? Set up a weekly financial reporting system – no matter how tiny your business is.

c.??????? Get to know how to read the figures – what does it mean, what can we do, what needs to change for next week.

d.?????? Use the data to continuously tweak and improve. ?

e.??????? You cannot pay the bills unless you have the money.

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2.??????? Managers

a.??????? If you are the bad manager – this is the wrong forum for you.

b.?????? If you have a bad manager – time for action – get legal advice and move them on fast.

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3.??????? Bad Systems

a.??????? Carry out a forensic analysis of the business systems across all departments.

b.?????? Enlist each HOD to do this with their team – what works, what doesn’t, why, what can be done?

c. Use workshops to discuss and surface solutions.

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4.??????? Bad Equipment

a.??????? You know what to do.

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5.??????? Round Pegs.

a.??????? Team workshops, honest discussions, expert facilitators, practical changes which work for the team and the business.

6.??????? Theft.

a.??????? Systematically remove the opportunities.

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For a C.S.I of your business for 2025, contact Blathnaid Bergin at 00353876790854 or [email protected]

Online Mentoring Sessions or in house visits.