Would you close for lunch?


Posted on September 3rd, by Helen in business advice. Comments Off

Would you close for lunch?

Imagine you are the owner of a shiny, bright new cafe? How would you decide your opening hours? Well you could look at what all of the other cafes do  and follow the trend.

Or you could do what this cafe does and close for lunch!

Yes, you did read that correctly. No, I couldn’t quite believe it either.

Let’s think about this in terms of the costs of the business

Cost of the food

Staff wages

Heating and lighting

Rent, rates and water rates

Other fixed costs like accountancy, food hygiene certificate etc.

By closing for lunch, what does the owner actually save in costs? Well only the staff wages, cost of the food and some light and heat.

If he stayed open then presumably he would have more customers.  It’s a very simple calculation to make. It is worth staying open for longer if the value of your sales is higher than the cost of wages plus food costs.

Have you noticed that places like Cafe Nero and Costa stay open until early evening, yet you can be unwelcome in some cafes after 3.30pm? It seems that Nero and Costa have done the maths and know that as long as the income is higher than the variable costs then longer hours mean higher profits.

 





Comments are closed.