Keeping on top of your finances is vital to the success of any multi-venue restaurant. Why? Because it helps you make sure that your business is profitable.
Cash flow management shows you how much money is coming into each venue, how much you’re spending, and what your profit margins look like.
It also helps you identify your most profitable venues. This means that you can make informed decisions about how to allocate your resources, where to invest more funds, and how to grow your business.
But how exactly do you manage cash flow for more than one venue?
You’ve come to the right place for answers.
In this article, we’ll walk you through some simple but effective strategies that can improve your cash flow management across all your restaurant venues.
What is the cash flow of a restaurant?
Cash flow is the money that comes in and out of your restaurant. It shows if you’re making more money than you’re spending, and helps you understand how much cash is available at any given time.
Cash flow also provides valuable insights for prospective investors. It represents your financial health and liquidity, showing the potential strength and longevity of your restaurant business — all of which helps them make a decision on whether to invest.
Here’s some of the information you’d cover in a restaurant cash flow statement:
- Cash inflows, including sales revenue from food and beverage sales, merchandise, and any financial assets.
- Cash outflows, such as operating costs, staff wages, unexpected expenses, and payments to suppliers.
- Beginning and ending balance for the given period of time (which is usually an accounting period, like a financial quarter).
Simple cash flow management strategies for multi-venue restaurants
Financial operations can be complex for any restaurant owner, but even more so for multi-venue operations 🤯
Take a look at these strategies to manage your cash flow across all your venues.
Centralise your financial systems
If you’re managing more than one restaurant at a time, the last thing you want to do is flick between different platforms to track your cash flow. You need a way to streamline all your finances in one system, which is where a centralised financial system can help.
Think about it. With one system to track the cash flow of each restaurant, you don’t have to keep tabs on different platforms. You can view everything in one location, including the total cash flow of all your venues at once. It’s a win-win!
Plus, a consolidated cash flow system can help you forecast sales.
The system can review the cash position of each venue, identifying periods of high-demand, popular food items, and total revenue. As a result, you can create accurate forecasts to improve your financial planning.
Take a look at Nory as an example. With our performance management features, you can track cash flow across all your venues. You can access sales data in real-time, analyse key financial metrics, and visualise the cash flow of all your venues at a single glance.
Integrate your POS systems with your financial software
Integrating your point-of-sale (POS) software with your financial system is a great way to consolidate your sales data. It means you can automatically add real-time order data to your restaurant cash flow management, giving you accurate and valuable insights into your financial performance.
Not to mention, it can streamline your operations, automate data entry, increase efficiency, and boost productivity.
So how do you integrate your POS system?
Well, it depends on the platform you’re using. You’ll need to make sure that you’re using a POS system that can work across multiple venues and integrate with your financial system.
Take a look at some of our POS partners, for example. Our restaurant management software integrates with various POS platforms (such as Lightspeed and Square) to give you more choice.
Upgrade your cash flow management with Nory
Managing cash flow across all of your locations is no easy feat. Following these cash flow management tips should give you a solid starting point — but if you want even more support to create a strong cash flow and boost profit margins, use Nory (that’s us — hi 👋).
Our restaurant management software can help you manage all your in-store operations. You can track your cash flow, predict demand, and analyse real-time data to make profitable decisions. Get in touch to find out more!
FAQs
What is cash flow in the context of a multi-venue restaurant?
Cash flow in a multi-venue restaurant refers to the movement of money into and out of the business. It encompasses sales revenue, operating costs, staff wages, and other financial transactions. Understanding cash flow is crucial for assessing the financial health and profitability of each venue.
Why is centralising financial systems important for managing cash flow in multi-venue restaurants?
Centralising financial systems simplifies the management of cash flow across multiple venues. It allows for a unified view of finances, making it easier to track and compare the performance of each venue. Centralised systems also aid in accurate financial forecasting and decision-making.
How can integrating POS systems with financial software improve cash flow management?
Integrating Point-of-Sale (POS) systems with financial software automates the transfer of sales data to financial records. This integration provides real-time, accurate insights into financial performance, streamlines operations, and enhances efficiency and productivity in cash flow management.
What are the benefits of using Nory’s restaurant management software for cash flow management?
Nory’s restaurant management software offers comprehensive features for tracking and analysing cash flow across multiple venues. It provides real-time sales data, key financial metrics, and predictive analytics, enabling restaurant owners to make informed and profitable decisions.
Can effective cash flow management help in attracting investors for a restaurant business?
Yes, effective cash flow management can be a key factor in attracting investors. It demonstrates the financial health and potential longevity of the business. A well-managed cash flow indicates a sustainable business model, making it more attractive to potential investors.
