Part 4/7:
Operational and Cost Challenges
The logistical challenges were compounded by increased expenses. The owner notes that his manager mistakenly overpaid for delivery orders, spending $7,048.48, which was notably above the usual expenditure of around 28%. This overorder, combined with lowered sales, resulted in a rough financial landscape.
Labor costs also increased to $5,657.43 this month, reflecting possible staffing adjustments or overtime, though the owner clarifies that tips are excluded from this figure. Tips paid out separately amount to about $2,000, but this does not impact the official payroll expenses.
Additionally, other fixed costs include:
Royalty Fees: $3,334.55 (12.5% of gross revenue)
Rent: $3,100
Utilities (Electricity): approximately $800