How award-winning Chefs manage finances and create a winning mindset within their team
The hospitality industry, a vibrant and creative space, demands more than culinary prowess for success. Additionally, it calls for dedication and keen business and financial management skills.
In Part 1, we discussed Mark’s journey from his early days to becoming Head Chef and his experience on The Great British Menu.
Part 2 delved into how Mark manages costs, prices menus, and bolsters profitability.
Part 3 (this blog)
In this instalment, we speak with Mark about the financial strategies used by award-winning chefs and their methods for fostering a winning mindset within their teams.
Let’s dig into Mark’s insights!
Managing Finances
Budgeting
Managing finances and creating a winning mindset go hand in hand in the culinary world. Let’s start by exploring the critical role of budgeting.
Ahh…. boring, you might think, but when I asked Mark whether he enjoyed reviewing the budgets and financials, he appeared to be highly driven by this aspect of his Head Chef role. Furthermore, Mark clearly understood how budgeting provided a roadmap for managing finances and achieving the financial goals of whatever business he was working in.
At EOG Accounting, we’re massive advocates of budgeting. Nonetheless, we understand that not all chefs/business owners are like Mark, so we take the time to explain financials when customers use our Budgeting/Management Account services.
Regular Reviews Matter
Regular Reviews Matter. Moreover, Portmeirion is a large enterprise with its own internal finance team; therefore, Mark doesn’t have to use an external finance function such as EOG Accounting. Similar to EOG Accounting’s customers, he regularly gets up-to-date financial figures and has regular meetings to see how he and his team have performed. Consequently, these regular meetings help him track Sales and other financials and allow him to adapt if necessary.
Mark mentioned receiving a weekly budget report that provides a snapshot of their financial performance. Meeting or exceeding the budget fuels their enthusiasm, while falling short prompts reassessment.
Adapting and Innovating
When sales fall short, innovation is key. For instance, Mark opened a Street Food outlet, Caffi Sgwar, during Covid to adapt to changing culinary trends and regulations. It’s about understanding the market, staying adaptable, and finding new revenue streams.
Transparency is Essential
Sharing financial results with the team can reduce the burden on business leaders and encourage a culture of shared responsibility. Mark believes in sharing everything with his team – “I share everything. Good, bad, everything. Because there’s no point me taking all the pressure”.
Creating a Winning mindset
This is something I’m proud of! After watching one of my videos on EOG’s Core Values and our commitment to continuous improvement, Mark adopted the Kaizen philosophy in the Portmeirion kitchen. Kaizen, a Japanese concept for ‘continuous improvement,’. encourages constant enhancements in recipes and financial practices. It’s about striving for excellence and embracing the idea that there’s always room for improvement. They even named their chef’s WhatsApp group ‘Kaizen’!
Mark’s team revaluates and reimagines dishes until they meet their high standards. As a result, this approach ensures they deliver the best possible product.
In hospitality, financial management and culinary skills complement each other. By combining expertise in both areas, businesses can thrive. Regular financial reviews, transparency, continuous improvement, and quality produce, alongside financial acumen, create a balanced recipe for success.
Book a discovery call with EOG Accounting today to explore how we can boost the profitability of your hospitality business.
This information is subject to change and is not professional advice. Refer to our disclaimer for more details.
