CFO of a restaurant has a lot of potential towards the strategic growth. He continuously re-evaluates and re-balances resources, tactical execution, and internal capability. From focusing on commodity pricing, media interactions, Information technology, with coordination and evaluation of the accounting and finance practices, he has to be a master of all.
“He should maintain a positive cash flow and streamline the invoice collection and payment system, such that the production cycle is smooth” pointed Deepak Datwani, Owner, Fat Lulu’s.
Helping the brand execution
“For brand execution, CFO has to build a brand identity as they are the ones who ensure that the project costs are in control, agreements and licenses are in place and the business is 100 percent compliant, business is profitable and is on track, all safeguards to ensure profitability; growth and building value are in place” shared Bakshish Dean, CEO, Prime Gourmet (P) Ltd.
Technology plays the key role for the restaurateurs to build brand identity and also sharpen the competitive edge. This way the customer information can be used to promote specials, loyalty programs and reach to the market with relevant marketing information. “By collecting and analysing data and presenting it to the CEO in a way that offers clarity on the financials and helps in a more efficient capital allocation”, said Datwani.
On the other hand, CFO ensures the company’s investment being maximized. Effectively manages the companies labour reduction plan including the rollout, goal setting, and analysis and reporting. He also negotiates with vendors by leveraging the buying power of multiple stores.
Again, brand awareness which should be given equal important by the restaurant owners, as it will create awareness among the target audiences. For a brand to be successful, it should include some sound and innovative financial structuring and management, create visual awareness, which will create memory for the customer and indirectly help build the brand.
Frequent advertisements and marketing of menus etc will also help in the growth of the brand. On the same note, Kamal Khattar, Owner at Terrace Bar & Bistro says, “The operation management and finance team compliments each other whereas promotion of the brand is concerned which works simultaneously”.
Apart from these roles, today CFO requires to be part of a board, manage investor relations, and interact with bankers, regulators and policymakers. After that he also gets into the minute details of all agreements to development, execution and operations budgets which lead to strong brand awareness.