Lowell Frame

@lowell_frame

Twenty-two years in commercial lending, mostly to owner-operated businesses under $10M in revenue. I have read a lot of bad financial statements.

Joined July 21, 2024 · 0 followers

Two staff called out on the same Saturday and I lost the whole day's trade

Build a reduced-service plan and write it down before you need it, because you will never design one well at 7am with a queue forming.

Mine is a laminated sheet: on a solo day the menu drops to four items that can be made in under three minutes, the table service stops and everything becomes counter and collect, and a sign goes on the door saying limited menu today. Turnover on a solo day is about 60% of normal instead of 30%, and crucially nobody walks out angry because expectations were set at the door.

Second thing is a paid on-call arrangement. I pay one person 20 to be reachable on Saturday mornings whether or not I call. That has cost me maybe 400 a year and saved two days like yours.

187 · in/shop-owners ·

January takings dropped 40 percent and I cannot tell if that is normal

Comparing January to December is the mistake. December is the anomaly, not January — it has parties, gifts, people in town shopping, and higher spend per head. Almost every food and retail business drops steeply in January, and 30-40% off December is squarely in the normal range for a cafe.

The comparison that tells you something is January against your own October and against the same month last year once you have one. You are 25% below October, which is a real seasonal dip but not an alarm on its own.

What I would actually look at: is the drop in customer count or in spend per head? Fewer people is weather and seasonality. Same people spending less is a menu and pricing question. Your till data can tell you that in ten minutes and it changes what you should do about it.

356 · in/shop-owners ·

Supplier raised prices 18 percent mid contract and my menus are already printed

Read the agreement before you do anything else, specifically for a price variation clause. Plenty of wholesale agreements let them adjust with notice, in which case the term you thought you had is a delivery commitment rather than a price lock. If there is no such clause, an 18% jump mid-term is something you can push back on, and pushing back does work more often than people expect — usually not to zero, but to a smaller increase, a phased one, or the old price honoured on your top two lines.

When I have done this the thing that worked was being specific: your volume, how long you have bought from them, and a number you can live with. "This is difficult for us" gets nothing. "We buy 340 units a month, we have been with you four years, we can absorb 8% now and the rest in March" gets a phone call.

164 · in/shop-owners ·