Making the Most of the Christmas Period

The Christmas period can make or break the year for many restaurants. A successful Christmas can significantly improve cash flow and set a positive tone for the year ahead. Conversely, a poorly managed season can lead to stress, staffing problems, and missed chances.

If there was a secret to getting it right, we'd say that it lies in early planning and concentrating on what boosts profits, not just sales volume.

Understand your most lucrative days and times

Not all holiday business is beneficial. Review last year's data to pinpoint:

• The days and times that yielded the highest profit margins
  
  
• Slow periods that were overstaffed
  
  
• Services where demand exceeded available capacity
  
  

Use this information to inform your opening hours, menus, and staffing levels. Extending hours is only worthwhile if the extra sales generated exceed the additional wage expenses.

Streamline your menu

Complex menus can bog down service, generate excess waste, and strain kitchen staff. For December, consider these steps:

• Eliminate items with low profit margins or those that don't sell well.
  
  
• Prioritise dishes that are both quick to make and consistently good.
  
  
• Limit specials to those that actually move.
  
  

A streamlined menu often results in quicker table turnover and a better experience for customers, rather than a reduction in options.

Price for the season, not out of habit

Christmas patrons anticipate paying a bit more, especially for:

• Set menus
  
  
• Christmas specials
  
  
• Group reservations
  
  

Now is the time to review pricing, rather than simply carrying over last year's figures. Even modest price increases can have a substantial impact when business is brisk. Ensure prices account for higher wage expenses, extended hours, and staff incentives.

Secure bookings and deposits early

No-shows and last-minute cancellations are particularly damaging in December. Where possible:

• Take deposits for group bookings whenever feasible.
  
  
• Establish clear cancellation policies.
  
  
• Confirm all bookings well in advance.
  
  

These steps safeguard your income and streamline staffing and inventory management.

Plan your staffing effectively

December is not the time to be scrambling to create schedules. Confirm staff availability early, accounting for potential illness and burnout, and avoid excessive reliance on last-minute replacements. Overworked employees are more prone to errors, leading to subpar service and lost repeat customers.

If you provide incentives for extra shifts or peak periods, budget for them now to avoid unexpected costs later.

Manage cash flow, not just sales figures

Higher sales don't always translate to increased cash reserves. December frequently brings:

• Elevated supplier invoices
  
  
• Bonus or overtime payments
  
  
• Increased card processing fees
  
  

Be clear on your cash flow, particularly if you're shutting down for a stretch in January or seeing a slowdown after the holiday rush.

Think past the immediate Christmas sales

The aim is more than just a profitable December; it's about setting the stage for a solid start to the new year. Use this time to:

• Gather customer information for future marketing efforts
  
  
• Drive repeat business in January
  
  
• Foster customer loyalty, not just one-time sales
  
  

A well-timed January promotion, advertised in December, can help mitigate the typical post-Christmas slump.

Our final thoughts

The most successful businesses during the Christmas season aren't necessarily those that extend their operating hours. Instead, they are the ones that get a jump on things, set their prices wisely, and keep a close eye on their expenses.

If you're looking for assistance in assessing your financials, cash flow, or staffing expenses before Christmas, get in touch. A brief discussion now could significantly impact your year-end results.

Restaurants, cafes, and takeaways can benefit greatly from working with a specialist accountant. If you hadn’t noticed already, we are specialist accountants in Leeds for food service businesses, so unlike most accountants, we have years of experience working with businesses just like you. If you're interested in finding out more about how we can help your restaurant become more profitable, book a call with one of our accounting experts.