OLI 0.00% 1.3¢ oliver's real food limited

Ann: Response to ASX Aware Query, page-20

  1. 1,782 Posts.
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    There are only 2 figures you have to be worried about when running retail food,
    food cost and wages,

    food cost should be in the low 30 % and wages 40%, combined 70% and there should be 10% at the end in net profit after all other costs, currently OLI is running a combined cost of 112%, nothing else really matters, expanding will only really bring down head office costs, it still takes the same amount of people to run the restaurant, there can only be small savings in wages , indeed at the moment the quicker they grow the more money they will lose, this is not a tech business that can grow scale without any real add on costs, wages and food are always going to eat up the lions share of the growth, thats why it is critical for them to control those 2 costs,
    they should have had them under control before now, they are a mature business not a start up.
 
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