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Hoteli Kazi Ngumu
Rank: New-farer Joined: 3/6/2014 Posts: 21
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I started a medium sized hotel last year as a side hustle and I am about to give up. I committed quite some capital and instituted strong controls but I am yet to make any money. Sales have been on decline and I am not sure my staff do not eat all the mandazi and then give me a measly 3000 in the evening yet I have to pay rent, stima and their damn salaries at the end of the month. Now in a dilemma - do I sell it? to who? Anyone running a hoteli out there with some ideas?
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Rank: Hello Joined: 2/17/2014 Posts: 7
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Where is the Hotel located. Maybe you should start by investigating why sales have been on the decline. It can be a a case of the Controls not being strong enough and the staff pocketing part of the sales
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Amani254 wrote:I started a medium sized hotel last year as a side hustle and I am about to give up. I committed quite some capital and instituted strong controls but I am yet to make any money. Sales have been on decline and I am not sure my staff do not eat all the mandazi and then give me a measly 3000 in the evening yet I have to pay rent, stima and their damn salaries at the end of the month. Now in a dilemma - do I sell it? to who? Anyone running a hoteli out there with some ideas? 1.How long have you been operational? 2.Do you have a business plan with cash flow? 3.What kind of controls are in place? 4.Is it a hotel or restaurant? 5.Have you ever randomly stayed at tthe counter and cash till? If Obiero did it, Who Am I?
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Swenani wrote:Amani254 wrote:I started a medium sized hotel last year as a side hustle and I am about to give up. I committed quite some capital and instituted strong controls but I am yet to make any money. Sales have been on decline and I am not sure my staff do not eat all the mandazi and then give me a measly 3000 in the evening yet I have to pay rent, stima and their damn salaries at the end of the month. Now in a dilemma - do I sell it? to who? Anyone running a hoteli out there with some ideas? 1.How long have you been operational? 2.Do you have a business plan with cash flow? 3.What kind of controls are in place? 4.Is it a hotel or restaurant?
5.Have you ever randomly stayed at tthe counter and cash till? Kiosk? In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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What about taking leave for a few days n spending at the hotel? That would give you an idea of what is happening.
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Rank: New-farer Joined: 3/6/2014 Posts: 21
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Thanks friends. It is in Wangige at a place with good pedestrian traffic.Have tried to spend a couple of days there and the sales actually go up. Only that I cant quit my day job to run this thing. Those wondering what type of hotel it is, it is a basic kenyan eatery. Samosa, Mandazi, chai, Matumbo, chips, kienyeji type of a place.
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Rank: Member Joined: 3/15/2010 Posts: 391 Location: nairobie
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Amani254 wrote:Thanks friends. It is in Wangige at a place with good pedestrian traffic.Have tried to spend a couple of days there and the sales actually go up. Only that I cant quit my day job to run this thing. Those wondering what type of hotel it is, it is a basic kenyan eatery. Samosa, Mandazi, chai, Matumbo, chips, kienyeji type of a place.
try and get to know where the money is going to you can even try and get somebody else to be the cashier
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Amani254 wrote:Thanks friends. It is in Wangige at a place with good pedestrian traffic.Have tried to spend a couple of days there and the sales actually go up. Only that I cant quit my day job to run this thing. Those wondering what type of hotel it is, it is a basic kenyan eatery. Samosa, Mandazi, chai, Matumbo, chips, kienyeji type of a place.
So its a restaurant/cafe and not a hotel. 1.Have an order book in triplicate(one copy for kitchen, one for the cashier and the other remains in the book) 2.Have the receipts in triplicate too(one copy for the customer, the other for the cashier and the other remains in the book. 3.Reconcile the above two on a daily basis and have punitive measures if they dont recconcile. 4.Have punitive measures in place for staff who do not use the order book and receipts books.You can carry out random checks or send your friend there to pose as a customer. 5.Note the number of chapatis/mandazi,samosa's are made from one packet and calculate the expected sales based on that.Also note how the number of servings in 1kg of meat and 1 packet of ugali make so as to determine expected sales per day based on the inputs used per day Note that, thieves and liars are not consistent hence if the order book and receipt books do not reconcile;the only justification is that they are stealing from you If Obiero did it, Who Am I?
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@Swenani,
What if the workers make food on the side(using their own ingredients) for sale in the restaurant and also have fake order/receipt books ?
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Chaka wrote:@Swenani,
What if the workers make food on the side(using their own ingredients) for sale in the restaurant and also have fake order/receipt books ? Impromptu checks are key If Obiero did it, Who Am I?
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Swenani wrote:Chaka wrote:@Swenani,
What if the workers make food on the side(using their own ingredients) for sale in the restaurant and also have fake order/receipt books ? Impromptu checks are the key You will catch them. Once you catch one, then you try to be remorseful cheat them that if they say the truth and the people in the chain of eating then you will look into their case favourably. Once sure of the thieves, fire! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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Amani254 wrote:Thanks friends. It is in Wangige at a place with good pedestrian traffic.Have tried to spend a couple of days there and the sales actually go up. Only that I cant quit my day job to run this thing. Those wondering what type of hotel it is, it is a basic kenyan eatery. Samosa, Mandazi, chai, Matumbo, chips, kienyeji type of a place.
@Amani254, the effective controls for such a start-up establishment can be too high compared with the returns. One option would be to get one of your trusted employees there and make him/her a co-owner with some small ownership %. That person will then manage with an eye on better returns and minimize the "eating" by the others. "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: New-farer Joined: 3/6/2014 Posts: 21
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Very helpful ideas there. I particularly like the control measures suggested by @ Swenani above. Someone also told me recently that portining is absolutely important in such a restaurant. Thanks Gathige too for the 'stake' idea with my loyal staff. Will think through these carefully and come up with a plan. I can see it being profitable in the near future.
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Rank: Member Joined: 6/27/2009 Posts: 10 Location: Kiambu
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Remember,most employees dont buy into your dream.Get one who believes in your dream and let him handle the cashier and "whip" the others into action. All the best chief. There is a difference between Breathing and Real living.One is God given,the other is a personal Choice.
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Rank: Elder Joined: 7/22/2008 Posts: 2,703
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@Amani254. Restaurant businesses are some of the most complex businesses to operate. This is because there are many variables to control and the trick is achieve a sustainable balance rather than be exceptional in any one of them. The one thing that is however central to the running of a successful restaurant is cashflow. To cite examples of successful strategies:
Visit Kosewe's and see that cash is collected before anything is served. The money is collected at a central location by one person. The waiters do not handle money except for drinks which are easily quantifiable and inventory is easy to account for. Even here note that money is collected first before goods are dispensed.
I do not know whether she is still there because i have not been there in a long while but ask around and see if a lady called Nyaugenya is still operating from the market opposite Aga Khan. If there was an MBA in food business this lady would be the ultimate professor. Go there when it is busiest and watch her performance of customer service, control of money (she walks around with a money bag round her waist and it is the one thing she does not delegate), quality control, you will hear her barking orders back to the kitchen, control of seating arrangements, hygiene and linking up with other businesses around her (you will seat at her table and if you need something that she does not sell, she will have it brought from whoever is selling it without you leaving). She is in charge and the place runs amazingly well.
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Rank: New-farer Joined: 3/6/2014 Posts: 21
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Fully agree @ Kusadikika. One has to personally manage this kind of SME in Kenya. Employees do not care an inch about you.
My friends, I have given up.
Perhaps I should add a chapter when that book is finally published 'Small Business Failure' One year down the road more than an M down the drain and as my single biz permit comes up for renewal next week, I will not be in the queue.
However, a million lessons have been learnt and hopefully, i might recover something small from disposing the damn thing.
Cherios.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Amani254 wrote:Fully agree @ Kusadikika. One has to personally manage this kind of SME in Kenya. Employees do not care an inch about you.
My friends, I have given up.
Perhaps I should add a chapter when that book is finally published 'Small Business Failure' One year down the road more than an M down the drain and as my single biz permit comes up for renewal next week, I will not be in the queue.
However, a million lessons have been learnt and hopefully, i might recover something small from disposing the damn thing.
Cherios. @Amani254, At least you tried..many of us are too scared to try anything!All the best..
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Rank: New-farer Joined: 3/6/2014 Posts: 21
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@ Chaka Thanks for the consolation. Try I did and will not be scared to try something else.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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del Life is short. Live passionately.
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