Recently Max Brenner appointed an administrator and is now looking to shut the majority of stores and sell the balance, how did it all go wrong and what could be done to protect against it.
A fundamental cost for business is keeping the doors open, and your shop is paying rent 24 hours per day regardless of when you are open. Rental costs have not been declining and have been rising with increasing property prices over the last years.
Occupancy and rental costs are an area where businesses need to look at their footprint and what it is actually costing to have the doors open.
- Staffing and quiet times
In working closely with retail and especially food there are a lot hours of the day where the cash in does not cover the costs of opening the doors. A good friend often worked on the mantra “One good day doesn’t make a week”.
If rostering and staffing is not dynamic and matching the revenue of the store, there will be many times where the cost of opening will mean a loss for the owner. There are comprehensive dynamic software systems that all business owners to control revenue and staffing, and matching these to minimise wasted time and cost.
- Supply agreements and stock
Understanding the stock, not just on the shelves but also storage means that you are in control of your cash flow. If things are not selling or slow to move, is there a better option in order to improve sales?
- Brilliant in a dying market?
Whilst you may be a market leader, are you in a dying market, such as the decline in dessert only outlets. Max Brenner may have been a market leader but the market is clearly in decline.
If you need guidance on your business or wanting to understand your option, contact us at firstname.lastname@example.org.