700,000 in Sales But Just 2,000 in Profits! Good Sales without Profit, What's Going on with Restaurants with Good Sales without Profit?

700,000 in Sales But Just 2,000 in Profits! Good Sales without Profit What's Going on with Restaurants with Good Sales without Profit? "Chan Mai Wang", a Seafood Restaurant along Banthat Thong Road It's sort of a bad joke for restaurateurs who sell well and receive heavy crowds at their restaurants every day but make only a little bit of profit at the end of the month after deducting their costs. This situation is real and happened to Mr. Pond Worameth Usaengthong, the owner of the Chan Mai Wang restaurant, a famous seafood restaurant in Bantaht Thong. Thus, Makro HoReCa Academy took 48 hours to transform the restaurant. "My restaurant sells very well, but the profit is totally opposite to my expectations, and I still don't understand why," Mr. Pond said. Mr. Pond, the restaurant owner, said that the restaurant had two main problems, namely, inconsistent recipes due to frequent changes in chefs and lack of sufficient knowledge and understanding in how to calculate food costs, so even though monthly sales are really high profits are very low after all expenses are deducted.

"48-Hour Countdown for Transformation by Makro HoReCa Academy" After experts from Makro HoReCa Academy learned about the problems, they worked together to plan and analyze the problems to produce some preliminary solutions before visiting the restaurant to give recommendations to the owner. Chef Nattinee Plodthong commented that the most worrisome issue was low profits despite high monthly sales, since the goal of restaurant businesses is to make a profit. In addition, Chef Booncherd Sornsuwan, Vice President of Thai Chefs Association, held the view that frequently changing chefs was like frequently changing recipes that lead to inconsistent flavors. Once the team of experts from Makor HoReCa Academy drew their conclusions, they visited the restaurant to work with the restaurant owner to transform the restaurant in under 48 hours.

"Visit for Inspecting Problems at the Source" The experts from Makro HoReCa Academy examined the restaurant's problems and discovered that there were additional areas that require correction in addition to Mr. Pond's concerns. To begin with, the cashier's counter shouldn't have been set at the restaurant's entrance, and the restaurant and the restaurant's kitchen are separated into two different locations at three housing units apart from each other, which posed a big problem, since customers had to waste time walking back and forth when making their orders. Furthermore, the kitchen area was also insufficiently lit.

   Therefore, the experts from Makro HoReCa Academy gave their recommendations and worked together to solve the problems as follows: "Making Recipes" Chef Booncherd Sornsuwan, Vice President of Thai Chefs Association, said that the lack of consistency in the restaurant's flavors were caused by the fact that the restaurant did not write down its recipes. Because of this, when flavors could be controlled when chef changes occurred. This problem could be resolved by clearly writing down food recipes and clearly stating ingredient quantities. Chef Wutthichart Muadsri, director of Thai Chefs Association, added that a recipe must be created first for every menu item and that the recipes are to be multiplied when preparing large quantities of food.

"Calculating Costs" Chef Nattinee Plodthong, expert Chef from Makro HoReCa Academy, suggested that calculating standard costs could create the benefit of providing a map that leads to actual food cost and appropriate sales price calculation. She also said that where ingredients are purchased is important in ensuring that high-quality ingredients are used. Summary of Problems Encountered:

1. High sales, but low profits.
2. No clearly specified recipes.
3. Inconsistent food flavors.
4. The restaurant and the kitchen were located far away from each other.
5. Insufficient kitchen lighting.
6. Improperly positioned counter.

Summary of Solutions:
1. Cost calculation.
2. Standardized recipes.
3. Mother sauces for control flavors.
4. Improved communication system.
5. Replacements of light fixtures for better lighting.
6. Counter relocation.
7. Ingredient selection.

Mr. Pond said that sales and profits improved within the three months after Makro HoReCa Academy came in and assisted him and that he could better manage the restaurant's problems. You can watch the 48-hour mission of Makro HoReCa Academy's experts to transform I'm Busy Restaurant. Click to play it now.