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Monday 31 May 2010

SMALL PROFIT – BIG TURNOVER

Two weeks ago, we tried to book at Dias Tavern, but they were full so we decided to go to The Butchers Grill in Buitengracht Street.

The place was deserted and the reception desk unmanned when we arrived at 18h40. We had booked or 18h30.
The waiter who eventually approached us seemed surprised when we said we had made a reservation, and judging from the body language and facial expressions of the rest of the staff we got the distinct impression that we were invading their space and privacy.

To cut a long story, we respectively had Snails and a Shrimp cocktail for starters, and we both ordered fillet steak.
The steak was served with a portion of chips.
At an average price of R48, everything else was extra.
Onion rings, veggies, two sauces and a horrible mush dubbed ‘pan-fried mushrooms.’
Our bill came to R668 excluding tip. I had a coke and Nellie had a glass of red wine.
We did not leave a tip because when we were done our waiter was nowhere to be found and we had to go to reception to get the bill. There were by now about ten or twelve more diners in the restaurant

The following day we were invited to the white house for a braai.
I went to Shokut’s Butchery in Belgravia and bought a first-grade 2.3kg fillet for R220.
It was too big for the braai, so I cut off one-third and took the rest to do on the fire.
At least ten people had a decent portion of perfectly grilled fillet steak at the braai, and the rest of the cut was good for another two meals each at home.

My dad was a shopkeeper and a firm believer in the Indian-of-old policy of ‘Small profit – Big turnover.’
Not only did the policy ensure a fairly decent profit, the many customers got a very good deal and always came back for more.

I understand the difference between cost of sale and purchase price, but is it sound business practice to depend on a handful of clients to cover your overheads?

Is this maybe the reason why hundreds of restaurants in Cape Town have been forced to close down over the past several months?

Come on guys.
You would do well to revisit the ‘Small profit – Big turnover’ policy.
Just look at Dias Tavern.

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