It can be said that running a restaurant, diner, eatery or other food services organization looks great. After all look in the cash register. Day after day money goes in. To an outsider – be it a family member or customer it looks as if you are “rolling in cash” and are more than wealthy.

One minute here. As a business you have responsibility. You have overhead. Your first responsibility as the owner, in essence the CEO that is the Chief Executive Officer. Of your business – in this case your restaurant, food service or catering organization, is to maintain, sustain and grow the health of the business.

The first thing that any business needs is a budget – a proper budget. Not one that runs by the seat of its pants. Businesses, as like people, rely on their reputation. How else can you expect any other firm, business, supplier or employee to trust you and extend their services – without cash on delivery of product or service at that very moment? Do you expect your customers to pay you for their meals before the product is delivered or served to them? Well your suppliers and staff are in essence
extending you their trust of providing their service or product, in good faith that they will be paid in full.

Running a proper business requires a budget. Whereas some owners may think that with all their risks, input, effort and hour put in that they should be the first one to be paid. Not so. It’s the other way around. That cash in the till is not yours. It is the businesses – to pay bills and maintain the good and fair reputation of the firm. In small businesses – a small proprietorship with no employees except family members the oft quoted maxim of well run , long lived and sustained businesses is “take care of the cash register and it will take care of you”. In other words to not be abusive and take unfair advantage of the good nature of the cash flow of the business. Even if the business is yours, and show profit, be conservative with any cash taken out the business or firm. Otherwise the voice and lesson of experience is that to take advantage of your cash flow- and it will “bite” back at you. You will pay dearly.

Who gets paid first? It’s all a matter of personal choice and preference. It may be your suppliers – your landlord, the utilities, the “chicken man”, and the wholesale or other providers. If your staff is the most important asset of your food service firm and your suppliers are not less important but “more accommodating” then it may be that your indispensable staff gets paid first in line. That cash in your register is not yours to take as your personal piggy bank. Planning for continual investments back into your firm – whether it is for upgrades to physical areas – décor , improvements , even routine maintenance , equipment upgrades and such should always be in the budget ,set aside and planned for. If not your business your become steadily shabby over time. You may not realize that your customers have figured that you are old hat and have moved on until the damage is done, and it’s all too late. People it seems are often polite and it’s not their business to speak up but find another favorite eatery, establishment or caterer.

In the end it can be said of any food service or hospitality service industry – be it a restaurant, eatery, catering operation, motel or hotel that the last person in line to be paid should be the owner themselves. After a budget is set and followed, everyone else and everything else should be paid first. The very last person to be paid, in the lineup, should be the owner themselves. Mind your cash flow well.