Why is running a financially healthy F&B business so important? Because anything less will result in unmanageable levels of stress and ultimately lead to business failure. We know the F&B industry thrives on passion and creativity, but behind the scenes, financial success often hinges on two critical factors: your systems and your team’s engagement.
At The Hospitality Company, all owners we meet fit in one of four quadrants. And the stats don’t lie, with 80% of all new clients feeling Lost or Alone.
Lost: No awareness, no engagement
This is the most dangerous place to be as an owner. Your team isn’t engaged, your systems are nonexistent or poorly executed, and the business is running you instead of the other way around.
When you’re in this quadrant, you often feel like you’re drowning: bills pile up, staff turnover is constant, and profitability feels impossible. There’s no clear sense of direction, and everyone is simply reacting to problems as they appear.
Unfortunately, many operators in this position don’t even realise how much better things could be. The first step is to raise awareness and acknowledge that the current way of working is unsustainable.
Alone: Strong systems, disengaged team
Some owners get their systems sorted, including ordering processes, costings, wage control, and rostering, but still struggle because their team isn’t engaged. On paper, the business looks organised. In practice, the owner feels alone, carrying the full load.
In this quadrant, the business may even look profitable, but it’s exhausting to run. Staff aren’t stepping up, culture is flat, and momentum is missing. Owners here often wonder, “Why doesn’t my team care as much as I do?”
The solution lies in leadership. Systems are vital, but they can’t replace an engaged, motivated team. Building connection, clarity, and accountability is the way out of this “alone” trap.
Stuck: Engaged team, poor systems
This quadrant can feel like a paradox. You’ve got a good team that wants to help, and they’re interested in doing well, but without strong systems, they’re stuck.
Energy is wasted fixing the same problems over and over. Mistakes repeat themselves. Managers spend their time firefighting instead of leading.
The frustration here is real, as owners and staff recognise that they could be achieving so much more if only the right processes were in place. Building consistent financial systems, implementing clear SOPs, and tracking the right numbers will unlock this potential.
Confident: Strong systems, engaged team
This is where the magic happens. With strong systems in place and a team that’s engaged, the business feels under control. You have clarity, profitability is consistent, and growth becomes possible.
In this quadrant, owners aren’t working 80 hours a week just to keep the lights on; they’re leading and building a business that could be scaled or even sold for a healthy profit. The team shares responsibility, and systems give everyone clarity on what winning looks like.
Which quadrant are you in?
Take a moment to reflect: Are you Lost, Alone, Stuck, or Confident?
The good news is that, regardless of where you are today, you can shift quadrants. Start by strengthening your weakest axis. If systems are poor, focus on financial control, rostering, and consistency. If your team isn’t engaged, invest in leadership, communication, and culture.
Winning in hospitality isn’t about working harder; it’s about combining the right systems with the right people. When you get both right, you stop losing and start winning.
This article was republished with permission from The Business of Hospitality and was originally published here.
