Episode 11 - The Crust of Success: The PNL is a Tool Not a Report

Step into my kitchen, Tyrell Reed here, the Pizza King, and I'm ready to dish out the secrets behind the dough of pizza business success. Tune in as I slice through the complexities of pizzeria financials, expressing how crucial it is to balance the books in the face of rising minimum wages. I'll share the nitty-gritty of P&L statements and why they're your lifesaver in a sea of expenses. And for those with a taste for the culinary side, I'll spill the sauce on perfecting both Chicago and Detroit deep-dish pizzas, and how cooking times can make or break your pie.

But running a pizzeria isn't just about the pepperoni and cheese - it's about the people, the passion, and yes, the tough calls. Hear how I've wrestled with the work-life balance beast and why personal goals are the seasoning that flavors your efforts. I'll also tackle the heart-wrenching moments of letting go of valuable team members when the numbers just don't add up. And because no empire was built on crust alone, I'll introduce you to the 'Profit First' method that could revolutionize the way you handle your cash flow and bake up profitability. So grab a slice and join me for a candid conversation on keeping your pizzeria in the green while still churning out the mozzarella dreams.

Transcript

Speaker 1: 1:02

We are no longer in a season where we can overpay people to do less work, and that's the reality of this business. Minimum wage is going up all over the country and we can no longer afford to overpay people to do less. It's just. I mean, you're honestly getting to the point where you have to pay people less to do more. What's going on? Pizza family? We back at it again. Pizza king podcast. I'm your host, tyrell reed, the pizza king, bringing you tips, tricks, advice and support on your journey to becoming a successful, profitable pizzeria. I've been in this business, like I've said before, over 20 years. I think we're at 22. This is year 22 now and I'm using my experience and my knowledge and really the lessons that I've learned to come here and bring you, you know, some value to what you're doing every single week. So I appreciate every, every person that has has been rocking with us through this. We're on episode 11 now. It's just. We've just been getting more and more downloads every, every week, every episode, more people reaching out, more feedback. We released the checklist the new store opening checklist. That's going well. A lot of people have downloaded that, reached out. I've you know. We got the ad running on on Instagram for that. So a lot of folks have interacted with it. So you know, just appreciate everybody that that has been along for the ride and wishing nothing but success to all of those, all of those folks, to all of you folks here, and continued success, even for us, in our business as well. With that being said, we'll get into this week's episode.

Speaker 1: 2:54

I want to talk about the P&L. I want to talk about the ugly side Not the ugly side, but the other side, that side that, for me, is the not so fun side of of doing this in business, but it's the, it's the necessary side of it. So I want to spend a little bit of time just kind of talking through how you should be reading and using and understanding as you hear Oliver walk out of the room, don't come back, but I just want to I want to talk about how you're using your, your P&L. Like, are you even? Are you even getting P&L? Are you using it the right way? You know what's the right frequency for it. You know is it. Are you growing your business? Are you truly profitable? Because truly profitable? Because at a certain point I'm trying to think of the best way to say this there's a point where you can be losing money and not even know it. If your sales are enough, like if you're, because you know how it goes, it's money in, it's money out, it's money in, it's money out, it's money in, it's money out. If the money in, if the money that's coming in is, if you're, if you're generating enough revenue to the story that the pnl is trying to tell you, or you haven't been taking taking heed to the things that are glaring on that, on that report, so I just wanted to talk through that a little bit today.

Speaker 1: 4:40

First, I want to get into. Well, even before pizza the week, check out my shirt. Pizza that makes you scream. That's from Pizza King of Texas, lee City. Shout out to my guy Doty out there, pizza King, go follow them on Instagram, go follow them on TikTok. Their shit is live. So when I make my way out to that Houston area or I think they're right outside of Houston when I make my way over there, you know I'm going to Pizza King and I'm coming to work because I got the shirt. Don't play with me, I'm coming, I'm coming to work, put me in the video. But this week I want to, you know, pizza.

Speaker 1: 5:16

The week I made two pizzas and I wanted to kind of do this. You know the battle of the deep dish the Chicago style deep dish versus the Detroit style deep dish, and we we made both in the shop last week and me personally, I am a fan, a big fan of the Chicago style deep dish, even though it's a monster of a pizza to make and eat. And I can, I can, work through some of the execution on it. I shamelessly just watching videos from Giordano's on TikTok and decided to make it. But I tried to Detroit. I tried Detroit a couple of times. Actually, one of the kids that works with us, matt, was in, was there with me on Tuesday night and he's like have you ever tried to make one of those Chicago style deep dish pizzas? I'm like I've never made one. I'm like grab the pan, let's try to figure it out. And it came out pretty good. Now, obviously, when you've been in the kitchen long enough and you've been tossing pies, you've been doing a bunch of different things, you can pretty well execute just about anything that you see To some degree. Now was it good enough to put on my menu and sell it? No, but it was good. We tore it up. Here's what I'll tell you about that Chicago style deep dish Cook it longer and I cooked it for about 30 minutes.

Speaker 1: 6:40

It probably could have went another 20 minutes in the oven because it's that much pizza like dough, sauce, cheese. There's so much cheese. It's just so much going on. It's like a pie. You can, you can bake that thing and I'm, I'm cooking. You know, I'm in the, in the blotches and I'm cooking at. You know, five, 50 on top. Usually I'm about five, 75, 600 on the bottom of it. But I cooked that thing for a long time and I could have cooked it longer. So that was the lesson. That was, excuse me, that was the lesson that I learned from that, from cooking. That was I can. I can cook that a whole lot longer.

Speaker 1: 7:19

Detroit's we made a few Detroit style. You know pies and you know the square, the square pan pizza. I really liked that. Mine's come out a little bit, you know, on the thin side, just because of the style of dough we use. You know we make New York style pizza, so it's not necessarily as airy as some of the other the other door dough form formulations, but still a very good pizza in its own right, probably even more popular, more tasty, in my opinion, then the Chicago, just because you get, you know that crispy cheese edge, you got you know a nice dough profile. The dough kind of gets lost in the Chicago style, I won't lie. It becomes more about the cheese, the sauce and the toppings because of the way that you have to eat it. But on that Detroit, that Detroit square like that is, that's like a full on pizza experience and I'm I'm a big fan of that. So I can't choose a favorite. I love them both, I love them all.

Speaker 1: 8:15

Um, but in in the store I think the the Detroit, the Detroit, was more popular that night, or one, you know, on a side-by night, just because the execution wasn't 100 percent on the Chicago. So we bring it back and maybe I'll do it again, you know, we'll bring it back, try it again and execute it a little bit better and see if that helps sway the judges. And, mind you, the judges are totally biased, they like what we do, but they also love when we do something different. So, and mind you, the judges are totally biased, they like what we do, but they also love when we do something different. So that's, that's just how it is. If you want to judge, come, come, holler at me. You know where the shop is that we in Brandon Florida. Come on by.

Speaker 1: 9:01

But it was really fun to make those have. You know Online and on Instagram and you know, with all the connections that we're making, you see so many different styles of pies and so many types of folks that are making pies, so many types of pies that are getting made out there. Detroit is getting real popular. I don't see a lot of folks making Chicago style deep dish, Um, but I do see a lot of folks making Detroit style um. You know, pan deep, deep dish pan pizza. So you know it. Obviously it's it's gaining some, some pop, not gaining some popularity. That shit's probably been popular long before I was ever making pizza. But certainly a fantastic pizza and a fantastic pizza eating experience when it's done, when it's done the right way. So you know, shout out to both of those styles of pizza. So we had a little, a little versus battle, the Detroit style square pizza versus the Chicago round deep dish pizza. And I don't know, we play and we have fun in this and it's different. Also made another pizza Earlier in the week, or maybe it was last week, the week before last it was last week, the week before last, but I I, you know we've been trying to figure out a way to use the hot honey on a pizza that that's not just like a cup and char pepperoni or a double pet pizza or something like that, which you see a lot of folks do, and nothing and shit, nothing against.

Speaker 1: 10:21

That is delicious, is is beautiful, but I don't want to do it the same way that everybody else does it. So we've been thinking of different ways to use that hot honey and I was working on something and we've been talking Excuse me, I have to go back. In addition to using the hot honey, we've been talking about a way to use our sweet red chili sauce, which is one of our wing sauces, not a very popular sauce, delicious sauce, kind of has that I don't know, kind of like a Thai kind of flavor to it. It's sweet red chili, absolutely amazing sauce. Sweet Baby Ray's. We use Sweet Baby Ray's for all of our sauces, by the way, except our house-made hot, medium and mild sauce, but all of our other sauces are Sweet Baby. So shout out to Sweet Baby. Let me get the sponsor, let me get the affiliate.

Speaker 1: 11:08

You know, give me something, and um, but you know, I've been trying to find a way to use the sweet, the sweet baby's sweet red chili sauce, and so I, you know, just started messing around, threw some down as a base, drop some fried chicken on it, put some bacon way over the top with the garlic nut crust. That's not something I'm going to do on a regular basis. That was cool, though, but I'm not going to do that. I'm not going to sell a pizza with the garlic nut crust. It's too much. I want to be fast. But threw the bacon on it, garlic nut crust, cooked it up, pulled it out, dropped it with, obviously hit it with it. Garlic knot crust cooked it up, pulled it out, dropped it with, you know, obviously hit it with the garlic butter crust, hot honey drizzle over the top. Fire, fire pizza.

Speaker 1: 11:56

So I threw it out there online to say, hey, look, help me, help me name it. And um, shout out to my homegirl autumn in michigan, because she was like that's some south, that's some south side heat right there. And if you know me, south side lansing, that's uh, that's some Southside heat right there. And if you know me, southside Lansing, that's where I spent a lot of my time growing up. I'm an Eastsider, I'm born and raised on the Eastside but I spent a lot of time on the Southside with my family over there. So as an ode to the Southside of Lansing Michigan, we'll call that boy Glenburn the Glenburn. So here, let's get ready for that. That'll hit our secret menu probably this weekend, once I get back to the shop. This dude, he just won't let anybody cut grass in his neighborhood without him letting them know how he feels about it. All right, like I was saying, the Glenburn, that's coming. That's coming on the secret menu. So if you're in the Tampa or Brandon area and you want to check that out, you know, check us out. Our secret menu is available online. We also do everything on Uber Eats as well. So if you if that's, you're outside of our delivery zone and you need, you need that order on Uber.

Speaker 1: 13:10

Q and A. This week was interesting. I had a couple of good questions and they actually kind of tie into what I wanted to discuss today. So it all kind of runs together. The first question came from Instagram, from a pizzeria that we kind of follow each other and talk a little bit.

Speaker 1: 13:31

From a pizzeria that you know we, we kind of follow each other and talk a little bit and there's, and it simply says is there such a thing as work, work, excuse me, is there such a thing as work life balance in this business? Is there such a thing as work life balance in this business? And how do I put this without being just, without being discouraging, right? I think, like like anything, it becomes a matter. Well, first off, it's all relative to what your idea of you know, all relative to your idea of what the life side of work-life balance looks like.

Speaker 1: 14:08

Right, some, some people, they, some people the balance is in the work. My life is in this shop, my life is doing these pies, my life is in growing our business or whatever that is, and that's 1000% okay. For some folks, the life side might be I need to be able to spend as much time as I can with my family. My kids are growing. I need to coach the soccer team. I need to be able to take kids are growing. I need to coach the soccer team. I need to be able to take these vacations. I need to be able to do these things, and that's also perfectly okay. And I would tell you that balance is achievable based on how you prioritize your balance, so can you.

Speaker 1: 14:46

Is it harder in the beginning, especially when yeah, when you're starting out and you don't have people or you don't have, you don't have leadership in place. It's hard, hard to get those you know to to put yourself in a position to be away from the shop. And that's what I'm assuming is meant by the work life balance. How do I, how can I, comfortably step away from this business for a day, a week, two weeks to handle some of the things that I need to do? How do I build that in?

Speaker 1: 15:16

And it starts first with prioritizing what needs to be what that balance looks like for you. But then you also need to work on developing people to take some things off of your plate, because if you're missing the work-life balance, the chances are you're probably doing way more jobs than what you you need to be doing, or you're wearing way too many hats, and that's easy to do. And as a business owner, you you do everything better than everybody else. But you're gonna have to start training some people to take some of those things off of your plate. Pardon me, come on, bro, I'm trying to record. You're going to have to train some folks to take some of these things off of your plate in order for you to have some peace and some balance in your life.

Speaker 1: 15:58

Does that come easily? No, it comes. It comes with time and it comes with with like like football, sometimes you sometimes the best move is to drop back and punt. Sometimes you put some effort into some things and then it shows you that it's not going to work and you got to go back to the drawing board. You've been training somebody for a month to take over the scheduling process and then that person leaves. So now you got to start back over and there's always going to be ups and downs. Sometimes you lose a person and you got to step into a row, but as long as you're clear about hey, these are what our goals are, this is what I want to do and I want to make it a priority to have this environment where people are trained, where people are cross-trained, where people support each other. And if I'm a way that somebody steps in, or if this person is a way that I can step in, that becomes much more easier to manage from a work-life balance standpoint than having, than just than it just being you. I always recommend having.

Speaker 1: 16:55

You know, partnerships are tough. Right, in business partnerships are extremely tough because financially people don't always see things the same way. But if you get to a situation where you can operate with a partner, that that helps you create that balance. And I love, I love the partnership that I'm in with, with JR and our partners, because we, we know that, no matter what we got it like, we're going to take care of it and we and we prioritize a taking care of the shop and doing things you know, doing things that that are going to continue to push our business forward. But we also make it a point to prioritize our family life in our, in our our time away and and building in the quality in those moments.

Speaker 1: 17:41

So like and that's the other piece of advice I say quality over quantity and quantity. Quantity gets better, gets increases over time, but the quality should always be top national matter. If you, if you're starting out and you're only getting one day a week off, make that shit count until you can get two days, until you can get three days, until you can, until you can take a vacation, don't be in two places, don't be, don't have one foot in and one foot out, don't you know? The shop is going to be okay for a couple of hours without you. I promise you empower your people. That's going to be the key to doing it. You got to empower some people and you got to create systems that allow you to step to step away. So we can go into that forever. But I always wanted to say absolutely, it is achievable. It takes time, it takes investment in people, it takes people, it takes trusting people, it takes people breaking that trust sometimes, so that you know where you can and can't assign or align responsibilities. But then you stay at it and you stick with it. So I'm rooting for you. I'm rooting for you.

Speaker 1: 18:51

Second question is this one? This one was actually a really good one. This one was really about one of the tougher parts of the business. How do you part, why? How do you part ways with someone when performance isn't the problem Meaning translation my payroll is out of control. I got to figure this out. I'm paying somebody way more than I can afford to pay them and they're doing a good job, but the business can't afford to, can't afford to take it to do that, and that's a hard one to do.

Speaker 1: 19:25

And the the, the next segment is really the answer to this question, but I'll start this, I'll state this or I'll answer it by saying this you have a responsibility as a business owner and look, don't get me wrong and you'll say T what you said, what you said, and I did say it and I was, I said it and I meant it. But I also want you to understand that that comes from a different place. Yes, you have to invest in people. Yes, yes, you have to continue to grow and build your team, but you have a responsibility as the steward of this business to be financially and fiscally responsible for the longevity of your business. So, if you're, if you're irresponsibly like you, you hire people, but you don't have to. You don't have to hire people that you're not ready for.

Speaker 1: 20:21

You got to make a tough decision and that's and that's a hard thing to say to some folks like this isn't working. But do you want to do? You want to be, you know, this person who created this wonderful short term economy for folks or do you want to do? You want to be a staple in the community for the next 20, 30, 40 years, like you can have a couple of good summers and pay people you know way more than what, what they're valued and what they're worth. And that's the ugly side of this business, like we just can't afford to do it. All right, I mean, things cost but you got it.

Speaker 1: 20:57

But you got to make these tough decisions and you know if, if I'm working with you or if you're, you know somebody that I talked to I'm going to tell you one of the best decisions that we ever made as partners in our business was that we never, we never, ever, ever, ever, let our egos get involved. We try not to make too many decisions based on emotion. We try to look at every decision as is this to the benefit or the detriment of our business? And when we can break it down to those two simple buckets, is it going to help our business or hurt our business? That helps us, that helps us stay balanced in our decision making processes. So you know, I would never tell you that you got to, that you should get rid of a person, because I'm a people person, I love people, I want to, I want to find a way to make it work, but I would say that it's to your benefit to at least have a conversation with that person and say look, this is, this is where we at you know, maybe maybe the overtime got to go or maybe we can try to find some balance or something, but or I can try to find a way to continue to make you, get you a role that is more productive for you.

Speaker 1: 22:06

But we are no longer in a season where we can overpay people to do less work, and that's the reality of this business. Minimum wage is going up all over the country and we can no longer afford to overpay people to do less. I mean, you're honestly getting to the point where you have to pay people less to do more, and that's the reality. Like we're paying, we're finding ways to do more for less. You can't pay more. You can't do less for more. Piece of.

Speaker 1: 22:52

And I'm not here to give HR advice. I'm not an HR professional, but some of the best advice that I've gotten from an HR professional was to hire slow and fire fast. Hire slow, have the conversations, vet people out, set the expectations. Do you know job previews? Do do you know demo days or things like that, so that you get a set the person that you're looking to hire, especially if it's in a leadership position or you know a specialty role, like a pizza guy or something like that. Make sure you set all of the expectations right from the beginning, because if you do get to the unfortunate event that you have to part ways, at least at least it's not coming under these false pretenses Like, listen, I told you, this is, this is what our goals were, this is where we are, this is, you know, this is where we needed to be, this is where we are and I got to make up this gap. And you know, unfortunately, that means that we got to make some hard decisions. And you know, unfortunately, that means that we got to make some hard decisions and then fire fast.

Speaker 1: 23:55

You know the other ugly side of this business is that you're always exposed as a business owner, you're always exposed to some kind of claim or litigation or insurance insurance claim or you know there's exposure on. You know, on all sides of you, right and and the human resources. The people side of it becomes some of your biggest, some of your biggest exposure points and the way that we handle these situations could leave you, could leave you. You know, out there in situations you don't want to be in. So you know, learn your laws, learn your local. You know rules and regulations and laws around. You know how the employment processes work.

Speaker 1: 24:40

But where I'm at in Florida, no reason is the best reason. I'm sorry we don't need you anymore and it is a tough conversation to have but it's a necessary conversation to have. A lot of people, you know, fire themselves right, especially kids and things like that. But sometimes there's there's moments where you got to part ways with people you don't want to part ways with or that you know you don't really have. You know there was no, there was no reason other than the business can't support it. There was no reason other than the business can't support it. And those are hard conversations. But you got a business to. You have a business to tend to. So pull them up marching there and have that conversation and, and you know, keep your, keep your runway going so you can take off in this thing. Don't don't shoot yourself in the foot by trying to trying to do too much.

Speaker 1: 25:35

But that really comes down to what I wanted to talk about today, which is, you know, the P&L. The P&L is a tool and we it's not a report. The P&L is not a report. That was, I think that may be what we titled it. P&l is a tool, not a report. The P&L is a tool, not a report. The P&L is a tool, not a report. So you have to use it to improve your business. It's telling you a story every single, every single month or every week or quarter or whatever frequency frequency that you are having these reports generated, this tool generated. It's useless if you don't, if you don't act on the information that it's giving you. So you got to take the time to understand your P&L. If you're getting it from a CPA, make sure you take that time, especially as an owner. Take that time and go sit down and have those meetings and have those discussions. Don't just, don't just get the email and then say okay, and then you don't even look at it, no, talk about it, because there are, there are gaps and there are things in there. And if and if you're, if you're in this business and you're doing this and you're not making money, there's probably a good reason why. And if and if you're not looking at the P&L, you're missing that reason and you're probably missing the solution to it, especially if you're doing sales.

Speaker 1: 26:55

I read a book and I don't have it in front of me, but it was called Profit First by Mike Michalowicz and it's. It was basically based on an accounting principle where you know things like profit and taxes and you know utilities and all these different. You start to have all these different. You know categories and buckets of expenses and as sales come in and as sales are generated, you start to make allotments almost on a daily basis. And you know how in our business we get paid every day. You know credit card deposits are hitting every day a little bit of cash, you know nowadays, but not not much. But you know you're getting deposits every day. So you gotta you know you can start to make allotments to things like you know having having a dedicated profit bucket or an an you know, an operating expense account or things like that. So it's a very good book. I highly recommend it.

Speaker 1: 27:47

But the principle behind it, what I the reason I brought it up was, if you're not making profit in your business and your business is doing sales, then the profit is probably getting lost on some unnecessary expenses. That profit is probably sitting there. Your salary, your paycheck is going out the door in the form of something that you don't need or don't use or don't want or don't even know that you're paying for. If you're not digging into your PNL every single, every single month or every you know. I I recommend weekly as a review with you know, like with your team, with your leadership team, your managers, you know, your team leaders, your staff. Having a weekly pulse on the financial health of your business helps you react quicker and make adjustments and, you know, really change the course for the rest of the month. Monthly is great because you get to see a more clear picture of how the expenses went for the month and you know what you actually brought in and and you know for an act, from an accuracy standpoint, monthly is going to be, it's going to be great. But weekly helps you make decisions and do things.

Speaker 1: 29:02

I remember having a conversation with a good friend of mine and you know he's got a restaurant and no, we had the same conversation. Like dude, if it's with the sales that you're doing, you should be making this amount, at least this amount of money, and if you're not, there's something, there's something going on and I'm like man digging, digging to your expenses and see where it's at. I bet, I bet you can find it. And we talked the next day 150,000 in unnecessary expenses in one night. When you start looking at contracts, you know lending contracts that are you're getting overcharged for you're supposed to be paying this amount and they're overcharging. Or you're looking at you know inventory on a shelf that never got used. You got a thousand dollars in cleaning products and you're still. You're still on a on a every week frequency with this company.

Speaker 1: 29:53

You know there's there's so many little things that creep into your check, your checking account, your operating account as a business owner and if you don't take the time to really balance and keep those things in line, it can get out of hand quick. And get out of hand quick you can. You can find thousands of dollars just by just by staying in tune with that part of it. And I know that's. That's not the fun part, because the fun for at least for me, the fun part is putting on an apron, tossing pies and having fun music on. You know laughing and you know interacting with customers and you know doing having jokes and doing stuff with the team. That's the fun part. The ugly part is what happens. The not so fun part is what happens you know real two hours before we open or you know after we close and we're having these conversations or when we're digging, we're looking at reports or it's time to start, you know, talking about our quarterly distribution and things like that.

Speaker 1: 30:47

That's you know. That's where we got to make those adjustments. My partner and I and I'm a big fan of it JR and I we talk almost not almost there. We talk every single day and we talk about how we get better. Every day. Sometimes we make decisions that we got to walk back because we thought it was going to work and it didn't work. And then next thing, you know, we're doing something different. That can be taxing on a staff, but our staff knows that we're doing everything that we can to make the business better for all of us. So they roll with it, and that's a whole other lesson in transparency and communication. But we always do things to try to help improve our business and that helps get everybody else on that page too. So the P&L the P&L tells a whole lot of those stories.

Speaker 1: 31:36

What else do we have? I'm just looking through my notes Where's your break even point? Yeah, where's your break even point? That's going to. That's really going to be the first step understanding your break even, and you should know where your break even is before you ever open those doors. You know, based on based on rent, based on industry averages you should understand where, where your break even is meaning where do sales, where do income and expenses meet? And then, once we start pushing income past expenses now we're talking about profitability Expenses still rise as income goes up because labor costs goes along. Cost of goods start to rise as you do more sales, but some of the fixed costs don't change and that's where profitability happens, right. So you're here. Then you start doing more sales and it's going up, and it's going up, and it's going up, and it's going up, and this one's rising slowly, but this one's going fast. And then you start to make more money and I'm sorry for anybody that didn't see this on video. I just realized I'm talking on audio and I'm showing, giving you hand gestures, sorry about that. But basically, as your sales start to increase and your expenses do go up, but not at the same rate. So understanding where your break, your break even point is helps you understand, you know, the likelihood of profitability in that business.

Speaker 1: 32:58

Um break even. You know, and y'all know me. I got a tool. You want to see the breakeven analysis? Email me, I'll send it to you, I'll show you mine. You know we we do that on and I probably talked about this before, but I do breakeven on anything that we look at because we need to know. Like is this if we don't see a realistic path to breakeven, then there's not even any reason for us to get into something, because you know who the hell wants to open up something and not make no money. You know, I already got one. I already got a store. I don't need another one just to lose money. So just making sure that we understand financially what we're getting into before we get into it helps us out a lot. See what else we have.

Speaker 1: 33:45

Shortening the window allows for quicker corrections. Yeah, that's what I mean. Like I said before, when it comes to working with dealing with the team and the folks that are, you know, at the store level in and every single day, having a weekly pulse on how we performed gives you the opportunity to to really to correct course and do things, because if you're talking, we can't have a labor discussion 30 days later. That just don't make any sense If labor's out of whack and it's going to affect our profitability. We need to know now, like we need to know a real, as close to real time as possible. So at minimum I would say weekly.

Speaker 1: 34:26

If you have the kind of tools in place like a, like a margin edge or the restaurant 360 or something, what's the one or phobos off or Phobisoft I like Phobisoft, phobisoft, hit me up If you like, or something like that, use it. Use a tool because that helps you make the adjustments Much quicker than waiting on a monthly report from an accountant or CP. You see, like weekly, monthly and monthly you got to do anyways. Oh, and then the last note says you. It says you could be losing money without even knowing it if your cash reserves are high enough. So if you came into this and you got some pretty strong, you had a nice bit of cash set up to operate and you're opening and you're running in the red. You could run in the red for a while if your cash reserves are big enough. But that's scary If you're doing that. Not running in the red and understanding why you're in the red and understanding that you're growing, that's one thing, but running in the red blindly and just watching your cash dwindle, that's scary, that's losing sleep. So get into that P&L, check that thing out and make the adjustments. It's a tool. It's not a report. It's a tool, so understand what it's telling you and get back into your business and make the necessary adjustments.

Speaker 1: 35:51

All right, and then my last segment we're just going to talk about. I got one team building tip for you this week, and it's very simple. You this week, and it's very simple Plant seeds daily for development, ask questions, pass along a tip, share a book. We're not always in this hire and train and develop mode, especially when your staff is settled and you got a pretty stable business, but you still need to stay planting those seeds of development in your folks, and that all ties back into having that balance right. When you're constantly in, you know and I'm a gardener so I'm always making these references and things like that but when you're always, you know, pouring into the growth or giving somebody a little bit of light, or you know giving a little bit of water, plant planting seeds here, planting seeds here.

Speaker 1: 36:44

Hey, you ever thought about this?

Speaker 1: 36:45

You ever read this book?

Speaker 1: 36:45

You ever seen?

Speaker 1: 36:45

Oh, did you see what this company did? Like little stuff. Share that knowledge, because that helps folks, even folks that aren't even close to being ready. Change a little bit about a little bit of their mindset when it comes to leadership and development and growth in the business. Little bit of their mindset when it comes to leadership and development and growth in the business to? Hmm, I didn't think about it like that. And then they. And then what happens? They start bringing you stuff. It's like dang okay, plant the seeds, like I said, ask questions, pass on tips, articles, books, any of that. So water nurture oh, here's the line. It says plant seeds, water and nurture your team like a gardener. The beauty is in the growth, because you're going to see growth, you're going to see new sprouts, you're going to see new ideas and light bulbs going off on folks. So get out there, plant those seeds, take care of your folks.

Speaker 1: 37:39

But also remember what I said take heed to what the P&L is telling you. It's always, there's always something that can be done in there. Don't let your expenses get out of hand. I think we should do a whole episode just on breaking down what expenses really look like. I think we I know we talked about startup costs and what, what new store, what a new store opening could look like financially, but I think we need to just have an episode just on what the day-to-day expenses look like in a shop and usually in business. There are a lot of misconceptions that there's just money flowing freely. So I think we owe it to any aspiring pizzeria owner to break down what the ongoing expenses look like in a pizza shop. So stay tuned for that one. But that's all I got for you today.

Speaker 1: 38:32

Pizza King Podcast. I'm your boy, tyrell Reed. Tap in with me. Instagram at pizzakingpodcast. Personal page at Tyrell Reed Sr. You can get any of the things that I talk about. Um, you know the new store opening checklist. I've still got the 21 day leadership course. All that's available at tyrellreedcom. Or just DM me or email me or text me. If you got my number and say T, send me the stuff and I'm trying to get going. I'm always here for you. Um, again, appreciate everybody rocking with me. Go leave those reviews. Go leave those ratings. Tap back in for the next episode, peace.