Tacos Avenue is a concept of new taco recipes that offer a different way of making and filling the classic Mexican snack. After launching Tacos Avenue in 2007, 2 pilot restaurants and 19 franchises, Mohamed Soualhi shares with us his experience in the fast food industry and the importance of staying focused on profitability in order to sustain his business.
FOOD COST
gross margin increase
BRANCHES
pilot restaurants in Montpellier
NETWORK
franchisees throughout France
"I don't have time to gather all the performance data, Inpulse saves me time and profitability: 3 margin points in 6 months."
Mohamed Soualhi
Founder of Tacos Avenue
With 15 years of experience, Mohamed Soualhi reminds us that one out of two restaurants closes before its third year. This is a historical problem that forces restaurant owners to keep an eye on the margin on a regular basis since the price increase.
"We're in a sector where most entrepreneurs only look at the turnover, whereas the pillar of the restaurant business is the margin. They wait for the first balance sheet to discover the reality of the margin they have generated and sometimes it is too late.
With Inpulse, I can monitor the actual gross margin, optimize and understand why there are discrepancies. We take inventory of our best-selling products once a week, which allows us to analyze the different periods, see if there is runoff or if it's non-compliance with the data sheets that is causing the discrepancies between theoretical and actual."
As the company's founder points out, this is a period that requires great responsiveness: there is more and more turnover, managers with little experience, and pressure on margins is growing with increases of 8 to 9% in salary costs and 25 to 30% in raw material costs .
"With inflation, we need to review our business model on a quarterly or even monthly basis, and to do that, we need to monitor the margin generated by the business regularly to make the right trade-offs.
We also have a new charge to take into account, which is the delivery costs of 27 to 30%, all these charges must be managed strategically so as not to have a strong impact on the selling price. Centralizing all this information was essential for my business to be able to see my food cost easily and optimize my profitability."
Mohamed Soualhi emphasizes the importance of support when adopting a new strategic tool such as inventory and supply management for a restaurant chain:
"It's really nice to have a dedicated person who knows what she's talking about. Chloé has been a great help to us, with the recipe cards, price lists and the use of the tool, which is well designed and easy to use. We saved a lot of time. "
If you'd like to see a demonstration of Inpulse, ask for an appointment with an expert today to discover what Inpulse can do for you.
"With Inpulse, I can monitor the actual gross margin, optimize and understand why there are variances."
Mohamed Soualhi
Founder of Tacos Avenue