A commonly held notion about the restaurant industry is that restaurant people are not “numbers” people. Before we add some context to this quandary, let’s first review some stats.
According to statistics from the National Restaurant Association, the restaurant industry makes up 10% of the overall U.S. workforce.
Last I checked, that’s a lot of people. Surely there’s got to be some “numbers” people in there, right?
Where There’s Money, There are Numbers
Here’s another stat to demonstrate the sheer magnitude of the industry.
In 2019, the restaurant industry will generate $863 billion in sales. Yes, nearly one trillion dollars.
Let that sink in for a moment. All of those NY strips, avocado toasts, burgers, and bottomless Bloody Marys add up to almost $900 billion in transactions. This statistic alone would suggest that yes, indeed, there are numbers people in the restaurant industry.
There are publicly traded restaurant companies, including Bloomin Brands, Yum!, and Darden Restaurants, to name a few of the non-McDonald’s or Chipotles of the exchange. In recent years, there’s also been a significant influx of capital from private equity fueling innovation and growth in a previously undisrupted industry.
All of this is to say that the restaurant business is indeed a big business. And, like any industry this large, this segment requires more than just a few “numbers” people.
From Entry-level to Ownership
One more stat from the National Restaurant Association. According to their surveys, 8 in 10 restaurant owners started their careers in the industry in entry-level positions. Bingo!
Now, I’m not one to jump to conclusions. In fact, there are few conclusions I’m willing to make; however, this statistic might infer why the restaurant bookkeeping business is a healthy industry, as well.
Eight in 10 restaurant owners (which, oh by the way, equates to 800,000 business owners) got into the business, not necessarily as experienced business owners and finance folks, but because they worked their butts off to eventually own their own place.
And, more than likely, they are still working their butts off to stay in business.
Why Restaurant Owners Need Insights, Not Number Crunching
Anyone who has worked with restauranteurs will attest that they are generally pretty busy folks. They have a lot on their plate just to execute the business model. When you think about it, a restaurant is basically serving as a manufacturer, distributor, and retail outlet all in one. This requires a lot of moving parts and management of large teams.
Add to this the fact that it can be truly difficult and outright uneconomical to dig into the details of their finances. Many restaurant owners are relieved when their bookkeeper reports that they made money in the previous period. (Always better to deliver that news, isn’t it?)
Enter bookkeeping and accounting professionals such as you, dear reader. Restaurant accountants alongside powerful restaurant accounting software can be combined to give clients the tools, the technology, and the insights into their own data. This combination is what restaurant owners need make it easier for them to make a buck.
So, Fact or Fiction?
I personally don’t believe it’s true that restaurant owners aren’t “numbers” people. It’s just that they lack the time, the mental bandwidth, and the resources to even get started.
That’s why restaurant accountant and xtraCHEF customer, Kristen Nies Ciraldo, chose xtraCHEF for her clients. She puts it this way, “By recommending an app like xtraCHEF…(your clients) come away with a better understanding of what you do and what you need to do to get them good numbers.”
So, before you assume that a restaurant owner is not a “numbers” person, consider that maybe they haven’t been presented the numbers in a way that makes sense for them and their business.
To learn more about xtraCHEF and how it can help your restaurant clients, check out our webinar with Jeff Steinberg of xtraCHEF on May 29 at 2:00 p.m. Eastern Time. This will be a free demo for Insightful Accountant subscribers. For more information and to register, click here.