What drives restaurant profitability in today’s age? This is the sector’s biggest question, and one that Restaurant Profitability Expert and industry thought leader, Ivan Brewer, has dedicated his career to solving. He is currently in the process of launching the world’s first hospitality profit software that is set to revolutionise how the sector operates and help the industry bounce back from the effects of COVID-19.
Due for release in February 2021, PEISO Profitability Software integrates venue rostering, accounting and POS to offer businesses advice on how to increase profit margins and manage labour forces.
“PEISO is oriented to solving the challenges I had as a manager,” says Ivan.
“It is a profit-first software that guides operators day by day and provides weekly results, allowing businesses to shorten their decision-making horizons and react in as close to real-time as possible.”
For over 25 years, Ivan led several successful multi-million-dollar companies in the hospitality and innovation spaces. After suffering a severe spinal cord injury three years ago, Ivan was unable to return working directly in venues, and instead turned his mind to consulting technology companies that assisted the hospitality sector in becoming more profitable.
“My life changed three years ago when I had emergency spinal surgery, and whilst I’ve since helped thousands of businesses, I grew frustrated by the lack of impact and the lack of reach I was achieving,” says Ivan.
“A profitable hospitality industry underwrites the entire economy; it is the soul of our cities and towns.
“It means staff are paid fairly, working conditions improve, jobs stay, taxes are paid, suppliers and creditors receive what they are owed; thus PEISO Profitability Software was born to help business owners improve their practices and become more profitable.”
According to the Restaurant Resource Group, the average profit margin for the restaurant industry is around two to six percent. Since restaurants can take many years to reach the top percentiles of profitability, Ivan says businesses within the sector will be able to leverage PESIO as a tool to grow their profit margins and return to some semblance post-COVID-19.
“With evolving customer expectations, unlimited competition, social media and endless technology evolutions, the operation of a food and beverage business has become more challenging than ever before,” he continues.
“The new post-COVID complexity means that businesses can no longer rely on historical norms to inform their key decisions, like revenue forecasts and labour targets, and cannot wait until the end of the month or quarter for accounting information to inform their decisions.
“PEISO helps to make sense of this complexity by providing explicit information on those business models, and highlighting what needs to change.”
Prior to COVID-19, the sector experienced an increase from 14,000 to 42,000 cafes and restaurants in a decade. In spite of this, the total market only increased by five percent. Ivan points out that while COVID has certainly hit the industry hard, it has also highlighted a need to change business practices that weren’t previously working.
“For too long the hospitality industry has been struggling, with a 50% failure rate, and 40% of businesses (pre-COVID) not making any money,” he explains.
“The historical business model is fractured; it has been for years. I’ve seen many very experienced operators, and indeed venues that are busy but struggling to be profitable.
“With the temporary debt protection period set to expire in March, I fear as many as 25% of our industry may close. That could be over 10,000 businesses.
“We have a lot of grey area in hospitality that we need to exploit, and operators need to discern those nuances so they can build the best business for themselves.”
PEISO is a finalist in global alcohol distributor, Beam Suntory’s ideas competition and is now preparing to launch their BETA test in the coming weeks, where Ivan will invite 20 users to experience the revolutionary software for the first time.
“The BETA test is a pre-launch offer to an exclusive group of operators that use Xero, Deputy and Kounta. It allows us to test the software rigorously and provides avenues for feedback from discrete users,” says Ivan.
“Open to only 20 users, the BETA testers can get PEISO for free for 6 months and have a locked-in lifetime discount of 30%. They will also become an ongoing user base that sees new features before anyone else.”
When it comes to success within the industry, Ivan says that a unique perspective is the key to making your mark.
“Dig deeper. Know more. Be more patient. Ignore all the innovation porn. All the hustle rubbish, all the fail fast and fail often discourse,” he muses.
“Find a problem that people are willing to pay to have solved, create an MVP and test both the solution and the appetite for people to pay for it.
“And one thing that’s a mantra for me; it’s never the first solution. Keep digging. It’s the 4th or 5th versions where the gold lives.
“I see innovations all the time that are a solution looking for a problem to solve. They struggle every day to get anyone to use them. Start with a problem. The harder the better. And solve it.”
Venues interested in Peiso can see more info at www.peiso.com.au, and apply to be a BETA tester.