We believe one does not have to accept that times are tough - this is when true entrepreneurs stand up to the opportunity presented. Tough times create strong survivors which positions them well for times of economic boom. Restaurant visits are the ultimate in discretionary spending and are often the first to feel an economic downturn.
There is no doubt that businesses in general are feeling the strain of the current slow economic recovery and fears it might still get worse before it gets better. The flip side of this is that businesses that have survived what has now been five years of economic stress, are either on their last legs or fighting fit.
Which category they fall into probably depends on how they have adjusted their business to suit changing economic conditions. Businesses have had to change rapidly just to stand still, because the business environment has become markedly more complex over the past 10 years. A business of a decade ago was relatively simple compared to that of today: administered costs such as water & lights and transport costs (petrol) were much lower.
I foresee a return to the hard entrepreneurial drive not seen by current generations, but well-known to my parents: they worked seven days a week, 16 hours a day just to make a living. In the end, it paid off.
I believe business owners, and particularly restaurant owners, have to become far more involved in their business, to understand every aspect of it and in particular to understand who their customer is.
In an age of increasingly government regulation controlling every aspect of life and business, local communities are returning to their local Mom & Pop businesses - where they can see who is in charge and that he or she cares.
That is not to say restaurants can become passive institutions - they have to have a more dynamic management style. Staff costs are continuously rising, so shops must be run lean, and who does the work best but the individual who has a vested interest?
For instance, instead of having all 10 staff arrive at the same time, stagger their arrival (and pay by the hour) to reduce costs. Do the same with electricity consumption. Few people realise their cost per unit is based on peak usage - so keep that peak down by also staggering the switching on of energy-consuming devices. At Ocean Basket, we are currently testing low-energy electrical devices, using smaller fryers and switching over to tried and tested low-energy LED lighting instead of neon.
Operational costs are only part of the challenge - we all know it has become harder to access bank finance such as overdrafts, which can have a major impact on running a business. We view this as a purely transitional phase and ultimately entrepreneurs have to change the way they fund their businesses, which will be better for us all in the long run.
Once we are all fitter and leaner, during renewed boom times diners will have deeper pockets and expense accounts and just maybe we can reduce those works hours to 12.
