Chapter 2 – Administration

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Forming the Business

The first step in setting up your business is to establish an entity in which to operate. This is an important step as the entity structure you select is often difficult to change after you have commenced operations. A business entity is an individual, association, or organization engaging in economic activities, usually for profit. A structured business entity allows Franchisees to separate personal and business finances.

You may not use the phrase “Monkey Bizness,” any commercially similar derivation of the name, or any portion of the branding marks in the legal name of your corporation, partnership or any other business entity used in conducting your Monkey Bizness franchise.

The most common business entities are sole proprietorships, general partnerships, limited partnerships, limited liability companies, and corporations. Deciding which business entity works best for you is complex and has many legal and tax ramifications. It is a best-demonstrated practice to discuss these business entities with your legal and accounting/financial advisers to determine which is most appropriate for your situation and goals.

Obtain Business Licenses and Forms

Once you have selected an entity type and complete the appropriate state filings, there are several additional licenses that you must apply for. While licenses and tax accounts vary by jurisdiction, the following all generally apply:

  • Business Licenses (Secretary of State)
  • City Sales Tax and Withholding Numbers, if applicable
  • Federal Employer Identification Number (FEIN Form SS-4)(link – may be applied for online)
  • State Employee Withholding Number
  • State Sales Tax Number
  • State Unemployment Number

Each city and state have different laws regarding licenses and forms. The Small Business Association (SBA) is a good information source. Contact your local SBA or Chamber of Commerce for a start-up kit.

Site Selection

It is important to be central to the demographics that support your business and Monkey Bizness offers an outsourced real estate department to handle the complete process on behalf of Franchisees. While it is up to the individual Franchisee to determine if they wish to use this vendor, it is strongly recommended. With that in mind, however, Monkey Bizness recognizes that individual owners may have relationships with certain brokers and agents locally. Monkey Bizness respects the right of its owners to use a provider they select. However, if you choose your own provider, site selection and the final lease documents must be approved by Monkey Bizness. Whichever method you choose and is appropriate for your situation, the suggested steps should be completed while finding and negotiating a site for Monkey Bizness franchise.

As mentioned above, Monkey Bizness has an outsourced real estate department that can assist you in virtually all steps to opening your business.  This includes an architect that we have selected that is well versed within the Monkey Bizness System.  A real estate brokerage that has experience in working directly with us and our franchisees.  Lastly, a project manager that has years of experience on projects and working with contractors.  All of these resources are available to you, at your own cost.  However, while it is strongly recommended that you work with these individuals, it is not required.

We have created various resources to support your real estate and site selection process.  Refer to the supporting Real Estate Guide and Design Guide regarding site selection specifics, templates for franchisee use, and design & construction best-demonstrated practices.  These guides were created in an effort to make your process more efficient, save you and your contractor time and money, and provide you with the tools you need to get your Monkey Bizness up and running successfully.

Independently Owned and Operated

A mandatory responsibility of a Monkey Bizness Franchisee is compliance with all applicable local, county, state and federal laws, codes and regulations. You must know what these are BEFORE you begin operations. Monkey Bizness will assist you as much as possible in this regard, although MB Franchising, LLC is held harmless against any and all liability resulting directly or indirectly from the Franchisee’s violation of any local, county, state or federal law or regulation. It is the responsibility of each Franchisee to consult their own legal counsel.

In addition, Independently Owned and Operated delineation should be posted on the front door of every location, posted by the labor regulation poster, and signed off on by each employee during orientation.

Professional Advisors

There are a number of professionals that you should begin developing a working relationship with to help manage your business.

  • Certified Public Accountant (CPA) – A CPA is vital in helping you account for the finances of your business as well as help you with the tax ramifications of some of the decisions you are making.  It is a best-demonstrated practice to choose someone with QuickBooks experience.  However, you may also choose to use a bookkeeper separately from a CPA to do your on-going accounting.
  • Legal – It is a best-demonstrated practice to choose an individual who has experience in franchising, business law, employment etc.
  • IT Professional – It is a best-demonstrated practice to contract with a local networking and hardware specialist who will come to your location to help with any computer issues including computer network, internet modem connections, system backup, crashes, wireless, Internet, file sharing and internal programs such as virus protection, email, and system optimization etc. If they work on phone systems as well, that is a plus.  Monkey Bizness stores do not require a server on site, however, it is a good practice to have an IT Professional available to call for other issues that might arrive.  We do not encourage our stores to sign on-going contracts with IT Professionals.

Technology

Technology changes faster than any other piece of office equipment you will purchase. The following are best practices when dealing with technology.

Purchase the most updated version of hardware and software. A new computer with a warranty is a much better value than buying something used.

  • Take action sooner rather than later – if something isn’t working correctly, fix it. You’ll save money and aggravation in the long run.
  • Take reasonable steps to password protect your computers, software and information. You can never be too careful with the data that you are storing in your technology. When you are done using a particular piece of software, such as QuickBooks, always exit out of the software. Do not leave it running for someone else to view, or for the computer to crash with a program open.
  • Take necessary precautions against electric surges – be sure you are educated about the type of surge protectors you are purchasing and what they will really do when the power is out. If you are running a network, be sure you have the correct setup and levels of protection on your internet access as well.
  • Back up your information regularly.

Requirements

Monkey Bizness requires that each owner has a dedicated computer for their business. Below are the suggested hardware requirements for your dedicated computer.

Suggested Hardware Requirements

  • At least one desktop or laptop computer.
  • Intel Corei5 processor or equivalent or higher.
  • 500 GB hard drive or higher.
  • 4 GB RAM or higher.
  • Windows 8 (or Higher) – “Professional Version” recommended.
  • Cable, or DSL high-speed Internet connection.

The programs listed below are required to operate your Monkey Bizness and as such, you should have these installed on your dedicated computer.

Software Requirements

  • Microsoft Office Small Business Suite including; Word, Excel and Outlook.
  • QuickBooks Pro: You will need the current year in addition; the online version will not work with our model.
  • Browser (Internet Explorer, Firefox or Chrome).
  • Data Backup System.
  • Web-based programs may also include Gotomypc.com, Join.me, and Dropbox.

Specific POS software details

All Monkey Bizness locations utilize Party Center Software for their POS systems. All locations are required to have at least one POS station and it is suggested that you have two. Party Center Software is a cloud-based solution which stores all information on an offsite server and is backed up nightly. As such, backups on your POS machine are not required. The vendor has the following requirements:

  • Microsoft Windows 7, 8.1,10
  • Must have .NET 3.5 installed and updated
  • CPU: Quad-Core with 2.4ghz+ 64 Bit
  • RAM: 8.0GB minimum
  • Monitor: 17″+ (1280×800 resolution or higher)

We have found that the best type of system is an All-In-One touchscreen machine. Along with the POS station, a receipt print and cash drawer are required.

Compatible Printer Driven Cash Drawer

  • MMF Val-u Line Series
  • M-S Cash Drawer Economy
  • M-S Cash Drawer EP-102N

Other brands and models which are known to be compatible with Epson printers. Check with your hardware vendor.

USB Cash Drawer (if not using a printer)

  • M-S USB Drawers
  • APG USB Drawers

QuickBooks Pro or QuickBooks Online

QuickBooks is an Intuit branded business financial software product that helps you manage finances more effectively i.e. paying bills, invoicing guests, tracking sales tax, filling out purchase orders, etc. Monkey Bizness requires that you use a current version of QuickBooks Pro or Quickbooks Online for your accounting software. Specific training on QuickBooks usage is highly recommended for everyone that will be using QuickBooks in your office. When setting up your QuickBooks software, you are required to use Monkey Bizness’s standard Chart of Accounts.

Note: In order to do payroll with QuickBooks, you must also purchase the Payroll module and a laser printer. At this time there is not a required payroll vendor.

Return Visit

Return Visit is our internal solution which will track waivers, customer loyalty, in-store reporting, and adminsiter some of your on-going marketing solutions.  You are required to use Return Visit and there is a monthly fee associated with the system.  The system is SAAS-based and requires very little support.  For issues that you encounter with the system, you should email support@return-visit.com.

The system has the following requirements:

Data Management

Data Management refers to managing data as a valuable resource; including database administration, storage, backup, and security. When data is managed effectively the consistency, accuracy, and reliability of data assets is increased.

Data Backup

Backup data is a critical and important aspect of business strategy and planning. It is a key element in information technology policy. Statistics show that data loss can mean a severe blow to any business.

Monkey Bizness recommends you use the remote data backup service available through QuickBooks Pro (or a similar resource). These services (for a nominal monthly fee) will automatically access your computer every night and pull down the files you would like to have saved. It is an effective and efficient process that allows you to recover files if they are ever lost. Remote data backup also protects you from the threat of fire or natural disasters. In such cases, your data will be spared, and so will the business. Monkey Bizness requires, at a minimum, that you back up the following data files on a daily basis:

  • QuickBooks company file. (.QBW file).
  • Outlook email folders (.pst files).
  • Monkey Bizness specific folders located on your hard drive.

As part of being a Monkey Bizness Franchisee, you are allocated 100 GB on Google Drive.  We strongly reccomend that you use this service to store your business documents.  This service enables you to access your files on any device and at any time.  It also reduces the need for you to back up your files since backups are done by Google automatically.

Virus Protection

Monkey Bizness will assign you an email account. It is your responsibility to be smart about emails you receive and to ensure you are actively avoiding attachments containing a virus. If you are not sure who sent you an email, and it has an attachment, DO NOT open the attachment.

The computers and systems you use to run your business are your responsibility to protect and keep maintained. You are responsible for protecting your network from viruses and hackers by maintaining a virus protection service on your machine(s). Consult with your personal IT professional to help you select the right software for your system.

Credit Cards

You are required to use an approved vendor for merchant services (credit card processing).

Security Breaches

Franchisees are responsible for PCI compliance as it relates to merchant services. The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that all companies that process, store or transmit credit card information maintain a secure environment. Essentially any merchant that has a Merchant ID (MID). You may be required to provide Monkey Bizness with information concerning your compliance with respect to data and cyber security requirements.

In addition, all of your technology should be password protected. The following are a few best-demonstrated practices when creating your passwords:
Use strong passwords that contain at least 8 characters and include at least one capital and one number.

  • If passwords are written down, they should be stored in a secure place.
  • Passwords should not be shared and each user should have a unique password.
  • Passwords should be changed every 90 days.
  • Franchisees are required to update all their software and security in order to maintain a secure system.

Franchise Support

Monkey Bizness is dedicated to the success of its franchise system. You will have access to the proprietary Monkey Bizness intranet system. Each Franchisee is provided with a unique login and password. For security purposes, you should not share this login information and it should be changed should your staff member with access leave or be terminated.

In addition, Monkey Bizness will work with you on a regular basis to refine and improve your local operation, and continually provide guidance with respect to:

  • Specifications, standards, and operating procedures.
  • Development and implementation of local advertising and promotional programs.
  • Administrative and general operating procedures.

This ongoing support may be in the form of updates to documentation, on-site visits, written reports and recommendations, telephone contact, and conference calls.

Initial Training

Before you open your Monkey Bizness franchise location, it is required that one owner (“Franchisee”) and up to two other people, who will assume operational responsibility, attend and complete the initial training program to Monkey Bizness satisfaction. Training will be conducted at the Centennial, Colorado headquarters or an approved training location. Initial training must be completed three weeks before the scheduled opening of your franchised location. You are required to pay for all transportation, room, board, wages, and other living expenses incurred while attending the training program.

Start-Up Checklist

Opening a new Monkey Bizness franchise requires many tasks, assignments, jobs and tools. There is a high-level step-by-step checklist to help with this process. Following this checklist helps Franchisees manage the estimated 15-week opening process. Please understand that this is an estimated timeline and since each opening experiences nuances and unforeseen events, you may need to adjust and reprioritize tasks as needed during this process. The Support Center will be available to help you navigate through this process with weekly phone calls.

Prior to opening, you are responsible for training your staff on the Monkey Bizness brand standards. It is a best-demonstrated practice to begin the hiring process 3-4 weeks before the opening date. You will then facilitate a soft opening. During this time, you are open to the public without fanfare. You can use this time to host trial parties with friends and family at no charge. This allows you to create a controlled environment and gives you a chance to assess your staff and smooth out any operational challenges. Your efforts to this point culminate with the Grand Opening. It is very important that you boost sales as much as possible during your Grand Opening because generally, it sets the tone and stage for later success.

Visits from the Support Center

In an effort to maintain the brand standards and the reputation of the Monkey Bizness franchise system, a representative from the Support Center may visit your business, both announced and unannounced, to check on your operation. These visits may include the following:

  • Inspect the premises, quality of service, and cleanliness.
  • Observe actual operations for specified periods of time.
  • Inspect all invoices and records relating to the franchise.

These visits will be conducted randomly as deemed necessary by Monkey Bizness. During each visit, the Support Center representative will complete a report and provide recommendations to improve or update procedures. You will discuss areas of your business that are doing well and where improvement is needed.

Variations Request

Any modifications or additions to Monkey Bizness operations must be approved in writing by Monkey Bizness Support Center. In the event that a Franchisee desires a brand modification, a written request containing your name, location, date, and the following information is necessary:

  • Identify the operational adjustment requested. Be as specific as possible.
  • Include any information in regards to cost. This includes the cost to implement the idea and projected profit margins.

The request will be considered, and a written approval or denial will be sent back to you in a timely manner. After all data required is quantified, if the modification is approved, a communication may be issued to all Monkey Bizness Franchisees. In order to maintain consistency from location to location, any operational modification or update implemented must be adhered to in all locations system-wide.

Communication

Monkey Bizness utilizes a variety of communication vehicles to ensure you are always kept up to date with valuable information you need to run your business. Whenever there is new and relevant information to the system the goal is to communicate that information as quickly as possible. There are many channels used to communicate between the Support Center to the Franchisees, as well as peer to peer with other Franchisees. It is your responsibility to read any and all communications from the Support Center, regularly check the intranet site, as well as attend any conference calls and annual meetings.

From time to time, it may become necessary for Monkey Bizness to communicate with you regarding issues that are occurring or not occurring at your franchise. These letters should be taken very seriously by you, and any and all issues outlined in the letters should be addressed immediately.

The main areas of your business that could fall into the non-compliance area include:

  • Errors in recording sales into the point of sale system.
  • Failure to submit reports or timing of report submittal.
  • Insufficient funds to cover auto withdrawals.
  • Failure to follow the business model and brand standards.

When one of these issues has been communicated to you and not correctly resolved in a timely fashion, you will receive a letter outlining the problem and the immediate solutions.

Monkey Bizness strives to assist each and every Franchisee with the running of their business. However, each Franchisee is recognized as an independent business owner, and your participation in your business and the franchise system as a whole is completely your responsibility.

Conferences

Monkey Bizness may hold periodic conferences or regional meetings. While we strongly recommend that you attend these meetings, your attendance is optional. You will be responsible for all travel, transportation, lodging, meals, and incidental expenses and compensation of the people you send to any conference. In addition, there may be an additional fee as stated in your Franchise Agreement.

These meetings are designed to:

  • Introduce new marketing tools and campaigns.
  • Discuss best practices.
  • Share new ideas and resources.
  • Guide the Support Center on initiatives based on group discussion.
  • Network with fellow Franchisees.
  • Introduce future projects and technology.
  • Learn about vendor relations and partnerships.

Decisions will be made at these meetings that may affect the entire franchise system, including your location. Your lack of attendance at these meetings does not exempt you from new systems or procedures that are determined to be put in place.

Validation Process

The Monkey Bizness validation process allows qualified franchise candidates the opportunity to speak with existing Monkey Bizness Franchisees. Once a prospect completes a detailed sales process with the Monkey Bizness Support Center they will be prompted to call existing Franchisees for information that the Support Center cannot provide.

During the validation process, a potential Franchisee may ask to come visit your business site. Please refer the candidate back to Monkey Bizness Support Center to handle this request. DO NOT invite them over to your location unless previously authorized by the Support Center. Not all candidates are offered the opportunity to purchase and this step helps protect proprietary systems.

Insurance

Insurance is an integral part of any business in order to mitigate your personal and business risk. Because of this, Monkey Bizness takes a vested interest in ensuring that Franchisees have the appropriate coverage. Each insurance policy required by your Franchise Agreement must contain a provision that the policy cannot be canceled without thirty days’ written notice to MB Franchising, LLC. Send a copy of the insurance certificate to the Support Center within 10 days of the date on which the policy has been issued and also within 10 days of each policy renewal, change in terms, or replacement of insurance. Monkey Bizness has a required insurance provider that must be used for comprehensive and general liability and worker’s comp insurance. MB Franchising, LLC must be designated as an additional named insured or loss payee, as appropriate, on each policy. It is also your responsibility to determine if you need to name your landlord/building owner.

Required Coverage

You must obtain the following coverage:

  • Comprehensive and General Liability Insurance with a minimum limit of $1,000,000 per occurrence, a total of $2,000,000 (this may vary based upon the building owner’s requirements).
  • Combined Single Limit Coverage in an amount recommended by your insurance agent.
  • Property Damage Insurance in an amount equal to the tenant finish construction expenses and all contents inside your business.
  • Liability and Worker’s Compensation Insurance, as required by state law or by any lease or lender terms for your franchised business.
  • Any other insurance required by state or federal law.

Additional Insurance

Discuss your situation with your landlord, insurance provider, and legal counsel to determine if your situation requires additional insurance. If you wish to have additional policies to those described above, you may use any provider that you wish. Explain your operation in detail to ensure that you are purchasing the appropriate coverage.

Failure to Purchase Insurance

MB Franchising, LLC specifies your minimum required insurance coverage and may change the insurance requirements at any time, with 30 days’ advance notice to you by updating the Operations Manual. If you fail to obtain insurance, we may obtain insurance for you and you must reimburse us for the cost of insurance obtained, plus 10% of the premium as an administrative cost of obtaining the insurance.

Finance

The following information regarding finances serves as a high-level overview. For day-to-day accounting procedures at the unit level, such as daily/monthly accounting checklists as well as cash handling best practices, you should refer to supporting documentation.

Professional Advisors

Accountant

It is recommended that you work with a Certified Public Accountant (CPA) to help you set up your bookkeeping system, generate financial statements and do some basic financial analysis. However, don’t count on an accountant to completely take over your responsibility for financial management! Your accountant can help you set up a bookkeeping system, generate financial statements and analyze them, but you have to understand the financial data in order to understand the current state of your business and how your decisions will affect the financial condition of your business in the future. Your accountant is generally very good at tracking your business, however, it is up to you to make strategic decisions based on the information he provides.

Some of the decisions you make with your accountant may include the accounting method used on your tax returns, what startup expenses will be amortized when equipment purchases will be capitalized and how depreciation expenses will be reported.

Your CPA should be aware of the following:

  • Monkey Bizness has a prescribed chart of accounts you must use.  They will not be allowed to change the Chart of Accounts; any edits must be approved through the Support Center BEFORE changing.
  • They may review and/or prepare payroll monthly if payroll is completed in house.
  • They may help set up any garnishments, levies, child support, etc.
  • They may be asked to assist with local taxes in accordance with local tax laws and regulations.

Bookkeeper

It is recommended that you hire a qualified, competent bookkeeper to keep your books on a day-to-day basis. A bookkeeper may be less expensive on an on-going basis than a CPA, so for day to day accounting, this may be a better option.  You want to find a person who understands your business and can fully service your needs and handle the following duties:

  • Manage and maintain the general ledger.
  • Prepare the balance sheet, profit and loss statement and cash flow statements.
  • Reconcile bank statements; deposits and payments.
  • Track and enter invoices, Accounts Receivable and Accounts Payable.
  • Has a familiarity with QuickBooks

Pricing Strategy

The Support Center can offer you guidance in determining your pricing, however, the final decision on pricing is your decision. Monkey Bizness believes that pricing is unique to the local market and therefore does not have standard pricing across the franchise system. However, based on the history of current Franchisees and company-owned stores, historical data will be offered to assist you with your pricing at the opening of your store and upon request.

Pricing should be reviewed on at least an annual basis considering such items as current market trends, increase or decrease of your expenses, and overall market inflation.

Monkey Bizness does reserve the right to set minimum and maximum pricing on any and all products and services sold in your store. If that right is exercised you will be given 30 days’ notice to comply.

Financial Statement Preparation and Submittal

Royalties

Franchisees are required to pay 6% of gross sales. Payments are due on or before the 10th day of each month for the preceding calendar month. Gross sales include all revenue from your Monkey Bizness location minus any refunds paid to guests and sales taxes paid to the government.

Franchisees are required to complete the Monthly Submission Form approved and provided by the Support Center along with the payments. Failure to include a fully completed form when it is due shall constitute a material breach of your contract.

National Marketing and Promotions Fee

Franchisees are required to pay a National Marketing and Promotions Fee. Payments are due on or before the 10th day of each month for the preceding calendar month. The fee is currently one-percent (1%) of gross sales as described above. Monkey Bizness may increase the National Marketing and Promotions Fee up to three percent (3%) of your monthly Gross Revenue. 30 days’ advance notice will be provided to you before increasing the National Marketing and Promotions Fee.

Additional Fees

Additional fees may include but are not limited to; technology fees; late charges, additional training fees, transfer fees, default reimbursement, and renewal fees. For additional information refer to your Franchise Disclosure Document and Franchise Agreement.

Profit and Loss (P&L) Statements

Always have your personal financial advisor review your books to ensure you have a complete accounting of all income and expenses before sending reports to the Support Center. Failure to do so could significantly impact the amount of royalties you calculate and pay. Franchisees will supply Monkey Bizness with a yearly Profit and Loss statement for two reasons:

  1. This information will be used in order to reconcile previously estimated royalties.
  2. This information allows the Support Center to access your business for profitability and create baseline numbers for the system.

This report should be emailed by the 20th of January each year. This provides Franchisees with sufficient time to close out your previous year’s books.

It is important to note that it is mandatory that you use Monkey Bizness standard Chart of Accounts when developing your financial statements and that Monkey Bizness has the right to inspect all of your financials including QuickBooks files upon request.

Managing Taxes

Taxes are one of the most serious expenses a business owner must manage since there are multiple regulatory requirements and agencies controlling them. Each state and locality are different, therefore, you should work closely with your financial advisor to comply with and manage all your local, state and federal tax obligations. There are many tax strategies that you may employ and you should have a discussion with your CPA to determine which are most appropriate for your situation.  This single expense category can create a large burden for your business if not managed properly.

Payroll

You may either choose to process payroll yourself or you may want to investigate utilizing an outside company whose specialty is payroll processing. It is a best-demonstrated practice to hire a payroll company if you do not have prior experience processing payroll.  A payroll processing company has the ability to not only manage your payroll but file all necessary tax and hiring forms that are appropriate for your location.

If you choose to process your own payroll, discuss in detail with your financial advisor any and all local and state regulations, taxes, and specifics in order to remain in compliance. You must ensure that all required wage deductions are withheld and/or paid.

Business Accounting Records

When starting your business, it is important to establish a method of organization as early as possible. There are many different methods that work and finding the right one for you is important. It is recommended that you complete the following tasks when setting up and organizing business accounting records:

  • Create an unpaid invoice file – This is a way to track invoices that are open and still need to be paid. Many accounting software’s often help accomplish this.
  • Designate a file cabinet, or filing drawer for staff files – Record keeping for staff files should be reviewed and discussed with your personal advisor. There are regulations surrounding storage requirements of applications and I-9 forms.   Be sure you are up to date about specific laws pertaining to employee records and files in your state.
  • Establish a business checkbook – After setting up your bank account the next step is to enable yourself to get funds out of the bank account.
  • Open a credit card merchant account – In order to accept credit cards, you must open a merchant account. Monkey Bizness has a required vendor that must be used for your merchant account. Please see the required vendor list.
  • Permanent File – The permanent file should include all vendor agreements and contracts, templates of checklists used in running the business, and start-up filing documents such as your EIN letter, sales tax license, etc.
  • Organize a paid invoice file cabinet or filing drawer with individual vendor files – The IRS recommends keeping invoices that will help substantiate business income or deductions during the entire statute of limitations for when the tax records can be changed or reviewed. This is generally three to seven years, depending on the circumstances.  QuickBooks does allow you to keep an electronic copy of invoices within the system.

The paid invoice file cabinet contains alphabetized file folders in which invoices are filed after they have been paid. Your invoice copy should have the following information:

  • Amount paid
  • Check number
  • Date paid
  • General Ledger (GL)

Key Performance Indicators

Labor

The first step in determining your labor cost is to determine what percentage of net sales should be allocated to labor. You should be spending money on labor in order to meet the needs of guests, and stay profitable. Having the right number of people working allows you to fulfill the brand commitment for guest service, maintain consistency, safety, and quality of experience. Budgeting for labor is a critical component of profitability.

The following are suggested guidelines for controlling labor costs:

  • Adjust labor (and other) cost factors to maximize profitability.
  • Avoid overtime whenever possible.
  • Forecast and project for holidays, school closures/outings, etc.
  • Keep scheduling flexible so you able to add or reduce the number of staff members on the floor as needed.
  • Project seasonal sales increases and review staffing needs according to the budget.
  • Review monthly profit and loss statements and budget goals.

Suggested Guidelines: 
• Front desk person.
• Part-time floater (cleaning, invitations, small projects, etc.).
• If applicable, one party-room host per party.

On the weekends you may want to increase your staffing levels by 1-2 hosts depending on party rotation; cleaning, covering breaks, etc.

Business Metrics

Below are a few of the metrics we strongly suggest you are looking at on a monthly basis to manage your business:

  • Average cafe revenue per open play guest – Divide total cafe revenue by the number of open play guests
  • Average revenue per party – Divide total revenue for parties by total parties held
  • Average revenue per open play guest – Divide total revenue for open play by open play guests
  • Payroll as a percentage of revenue – Divide payroll costs by total revenue
  • Gross Cafe Margin Percentage –  Subtract total cafe revenue from total cafe costs and then divide that figure by total cafe revenue