How Olé restaurant uses real time, mobile cash flow management for success
Tuesday, May 13, 2014/
Eddie Isik knows a thing or two about restaurants. He is the owner of three restaurants in Brisbane’s popular Southbank dining precinct: The Point Bistro, Olé and the Sangria Bar. Plus, he operates Ahmet’s in Bulimba. And, there are more to come.
The logistics of running one restaurant is significant. Running four brings an entirely new intensity to the business operations. And, keeping on top of the financials for each restaurant is essential for success.
Cash management can make or break a restaurant
Through his experience, Eddie knows that restaurants live and die by their cash flow. There are suppliers and staff to pay and, there are customer payments to receive.
One of the keys to a successful restaurant is finding the balance between the payables and receivables, while juggling stock volumes.
In the past, a business had to wait several days before obtaining a report on the state of its financials. And, if there was a weekend involved, it took even longer. That meant there were 104 days a year (the weekends) where the cash flow data was out of date.
Now, there is access to real-time banking and everyday settlement. This gives Eddie visibility of transactions as they occur and access to his funds the same day he receives it.
This has provided Eddie the opportunity to run his business in a new way. Instead of reviewing cash flow weekly, Eddie manages his restaurant cash flow on a daily basis. He now has more information and can take greater control of his financial operations.
“Having automatic daily reports that show the exact state of the business is incredibly powerful,” said Eddie. “I can see the exact takings from last night. I can see instantly if a customer has paid and which suppliers have been paid.”
Using the CommBiz business online and mobile banking platform, Eddie gets an instant view of the takings of his restaurants and can quickly identify which are busier. His business report identifies periods of peaks and troughs, enabling him to manage his staff allocation more effectively during the peak periods.
This also allows Eddie to manage the fresh ingredients and stock volumes to purchase from his suppliers to meet the demand in each restaurant. Mobile banking in the truest sense.
Eddie is also constantly moving around his restaurants, and working on launching new ones.
Having CommBiz access via his mobile phone allows Eddie to run his real time cash flow even while he is dashing between businesses.
Everything he needs to know and make informed decisions is available in his hand, any time of day.
Business efficiency opens the door to growth.
The efficiency Eddie has created with real-time cash flow management has an interesting pay off for the business.
At any given time, Eddie knows if there are surplus funds available. When this happens, he immediately directs those funds to reduce his debt and the interest payable on his loans.
Continued growth is the future strategy for Eddie. The existing restaurants now operate at high levels of efficiency that can easily be tweaked when needed. Meanwhile, he can direct his energy into implementing his business growth strategy and opening new restaurants.