The Japanese restaurant, Tokumaru, was opened in 2014, having organically grown out of a previously opened Japanese food store, MoMo. Tokumaru differed from other restaurants on the market by offering authentic Japanese cuisine. In 2016, Tokumaru opened a takeaway location in Solaris center, whilst also expanding its business to Tallinn Airport and the food court in Balti Jaam’s Market. Rapid expansion and growth, however, brings along unique challenges, large expenses, liquidity issues and an increasingly complicated management process.
Managing the finances of one restaurant can be time-consuming and complicated in and of itself, and the potential for problems to arise only multiplies with additional locations. To account for every potential unexpected wrinkle or intricacy, a consistent cash flow must be established. The first towards is creating clarity: how, why and to what extent is money spent? How much of the investment will provide returns? Most importantly – how to be clear and concise in minimum time? Alongside the expansion of a business, additional workload is created, so it is not advisable for management to spend their valuable time dealing with data entry and analysis etc.
The general purpose was simple: to create an efficient financial management system that would be clear and concise without demanding too much labour or time investment. The created system was to identify the flaws in current business processes, thus providing directions for future improvement.
Necessary steps to complete goals:
- Comprehensive analysis of business conduct so far, incl. calculating every location’s actual profitability.
- Creating a monthly financial budget for both the entire business and each separate location.
- Establishing and implementing KPI’s to better assess the results and growth of the company.
- Installing and applying a consistent, widely applicable and modern business management software.
- Thanks to profitability analysis, the company’s realistic growth options and ambitions became clear.
- Setting and following certain parameters and measures created an opportunity to consistently keep an eye on the profitability of the company, thereby quickly identifying both potential problem areas and growth opportunities.
- Increased transparency of the company’s figures and sales, enabling the establishment and identification of numerous correlations between investments and their according returns. This allowed for better informed decision-making in further managerial and investment-related decisions.
„The biggest benefit for me is that thanks to the services of CFO Advisor, every manager has a comprehensive overview of the company’s financial situation, which will lead to further managerial implementation. The service helped create a unified understanding and overview of our financial engineering – now our data and figures are both understandable and accessible to every manager, not just me. Transparency is key! The CFO team is very sympathetic and likable – I’m glad that they were willing to teach our young managers who didn’t have previous management experience, as the growth of a company goes hand-in-hand with the growth of its people.“ – Daigo Takagi, chef and owner
If you also wish to better understand where the money in your company goes and how to improve efficiency, then please do not hesitate to contact us HERE!