Freya(name changed for confidentiality purpose) is a high-end Japanese restaurantthat offers fine dining, catering, and delivery services to the areas aroundKuwait. They specialize traditional Japanese delicacies and have earned areputation for providing high-quality service to their customers. They have anonline ordering facility through their website and have garnered a substantialInstagram following of more than 15K followers due to their spectacular andmouth-watering treats. Their users have left positive reviews and ratings onpopular food network sites like Talabat, Deliveroo, and other social networkingsites.
WhenAlPrime approached Freya, they were in a state of ‘Ignorance is Bliss’ and hadno bookkeeping or accounting procedures. There was no tracking of dailyexpenses, cost of sale, or inventory count. This did not pose a threat toFreya’s business but was holding it back from optimizing its resources andincreasing its revenue.
WhenAlPrime stepped in, they delved into understanding the various activities andresources of the restaurant. They identified that the restaurant was spending alot due to high staff costs, high Cost of Sale, and high Inventory value. Thesecosts directly affected the profits of Freya and led to a lot of wastage.
Whenthese issues were brought before them, Freya proactively sought the help ofAlPrime and worked towards rectifying them. AlPrime suggested processes andprocedures to track the daily expenses and Cash flows. Within a short time,AlPrime’s team was able to see the Cost of Sale stabilize, thanks to the otherchanges and regular updating of the data by Freya. Asthe restaurant’s inventory largely contained perishable items like expensivemeat and edible products, high inventory was causing unnecessary wastage.AlPrime explained an efficient way to count and track inventory to reducewastage and high inventory value. AlPrime’s monthly follow-ups with the staffabout inventory and wastage tracking helped Freya maintain an accurateinventory count. This process helped Freya in buying items based onavailability, thus preventing wastage and saving money. Freyaalso followed AlPrime’s advice in reducing staff members, thus unburdening therestaurant with huge staff expenses. Now that the processes were optimized andproper working systems existed, the diminished employee count did not matter tothe restaurant much. On the whole, Freya achieved a whole new level ofefficiency due to the timely advice and right direction given by AlPrime.
Thechanges to the Japanese Eatery are reflected in their reduced Cost of Sale,reduced Wastage, and effective processes driving the cash flows and inventory.Tangible results were seen in the form of a doubled revenue from the previousyear propelling Freya’s business much further and greatly improving its marketpositioning.
Freyais a classic example of how proper accounting and bookkeeping can benefit anybusiness to increase its profits by optimizing processes and pluggingunnecessary leaks into the cash flow. Now that they have a taste of what theright direction and timely advisory can do for their restaurant, they areconvinced about using these suggestions to accelerate their business andachieve excellence.