Entrevista a Cesar Torres 20260623 194145 Grabación de la reunión
Introduction to César Torres and Chihuahue Restaurant
Overview of the Interviewee
- César Torres introduces himself as the owner and general manager of Chihuahue restaurant, with a background in business administration and a master's degree in marketing and commercial management.
- He has studied restaurant management at Bordo Empleo and another culinary institute, indicating a strong foundation in both theory and practice.
Restaurant History
- Chihuahue has been operational for 10 years and 8 months, having undergone three phases: pre-pandemic, during pandemic closure, and post-pandemic reopening.
- The restaurant recently relocated to the Hipódromo de Monterrico, enhancing its visibility and customer experience.
Restaurant Operations
Current Structure
- The restaurant employs 25 staff members under a medium-sized enterprise tax regime (RUC 20605013024).
- César's primary role encompasses ownership responsibilities along with general management duties.
Cuisine Type
- Chihuahue offers diverse cuisine aimed at corporate clients looking for more than just traditional dining options like cevicherías or pasta places.
- The menu is designed to cater to both individuals from companies and families seeking varied food experiences.
Cultural Significance of the Name
Origin of "Chihuahue"
- The name "Chihuahue" is derived from a Nazca legend about how Peruvians learned to cook using local ingredients after a mythical hummingbird lost divine supplies on its journey. This story emphasizes cultural pride in Peruvian cooking traditions.
Dining Experience at Chihuahue
Menu Offerings
- Customers can enjoy breakfast items such as criollo sandwiches, seafood sandwiches, as well as lunch options including fish, seafood dishes, pastas, and criollo food served from 8 AM to 5 PM daily.
Location Benefits
- Located on the fourth floor of the Hipódromo de Monterrico with panoramic views overlooking horse racing tracks enhances the dining experience significantly compared to typical enclosed restaurants.
Customer Base & Engagement
Target Audience
- The current clientele includes members of the Jockey Club del Perú while also working on regaining pre-pandemic customers across various demographics.
Financial Management Practices
Daily Cash Flow Management
- Daily revenue primarily comes through debit/credit card transactions (95%), deposited into a company account managed for payroll and supplier payments without needing cash reserves for emergencies due to effective inventory management practices that maintain liquidity levels.
Inventory Control Strategy
- Inventory is replenished every seven days for non-perishable goods; perishable items like fish are restocked every other day ensuring freshness while maintaining financial stability through careful demand-based purchasing strategies.
Inventory Management and Supplier Relations
Inventory Practices
- The business maintains a seven-day inventory for perishable goods, ensuring consistent stock levels through regular replenishment.
- Replenishment occurs immediately after the seven-day period, preventing inventory from dropping below this threshold.
Supplier Agreements
- All suppliers are paid in cash; the business does not operate on credit due to a policy among partners to avoid debt.
- This approach is atypical as many businesses prefer credit arrangements with suppliers for flexibility.
Payment Terms with Suppliers
- Major companies like Coca-Cola require immediate payment upon delivery, reflecting current market practices.
- If payment isn't made at delivery, a deposit must be provided immediately to retain the goods.
Sourcing and Pricing Strategies
Vegetable Procurement
- Vegetables are sourced directly from wholesale markets to control costs effectively; prices can vary significantly between locations.
- For example, potatoes cost 4 soles in one market but 9 soles in another, highlighting the importance of strategic sourcing.
Pricing Structure
- The restaurant uses a systematic approach to determine dish pricing based on ingredient costs and suggested retail prices.
- A review of the menu occurs every six months to adjust prices and rotate offerings based on sales performance.
Menu Innovation and Cost Management
Product Rotation Strategy
- The restaurant follows the Pareto principle by retaining 20% of products that generate 80% of sales while removing underperforming items.
- New dishes are developed by chefs and incentivized through a percentage of sales for three months post-introduction.
Handling Price Fluctuations
- Price adjustments are not made reactively; instead, they follow a structured review every six months considering cost variations over time.
- Seafood prices fluctuate significantly due to seasonal availability, necessitating careful planning around these changes.
Sales Performance Insights
Daily Operations
- Average daily plate sales are variable; however, approximately 500 customers are served weekly which translates into about 600 plates sold when accounting for shared dishes.
Fixed Costs Confidentiality
- Specific fixed costs such as utilities remain confidential as part of company policy.
Financing Strategies
Loan Acquisition
- The business has taken loans primarily for renovations during relocations but avoids corporate loans due to high-interest rates (17%).
- Instead, personal loans from partners at lower interest rates (6%-7%) are utilized as capital contributions.
Customer Interaction Challenges
Managing Customer Expectations
- One significant challenge involves managing diverse customer expectations and experiences within the restaurant environment.
- The motto "the customer is always right" guides responses to complaints or dissatisfaction regarding food quality or service speed.
Seasonal Sales Trends
Revenue Patterns Throughout the Year
- Business experiences fluctuating sales patterns throughout the year with weekends being peak times.
- Key revenue periods include holidays such as Mother's Day in May and Christmas in December when group gatherings increase patronage.
Seasonal Business Trends in the Restaurant Industry
Impact of Seasons on Business Performance
- The restaurant experiences a decline in business during summer as many customers travel south, while winter sees an improvement in sales.
- Current financial strategies are satisfactory; there is no desire to change how finances are managed, as inventory management aligns with sales.
Financial Management and Liquidity
- No additional capital is needed for operations; past liquidity issues were only encountered during business relocations.
- In case of liquidity shortages, partners are willing to take loans, ensuring repayments do not harm business liquidity.
- Any surplus profits in a month will be used to amortize loans, maintaining financial stability.
Future Expectations and Market Challenges
Growth Plans and Market Conditions
- The restaurant currently operates two locations and has no plans to open more due to unfavorable market conditions.
- Rising commercial rental prices have made it impractical to consider new locations; current rents exceed $10,000 monthly compared to $3,000-$3,500 five years ago.
Family Involvement in the Business
- Family members play active roles within the business; one partner is the owner's wife and another family member assists on weekends.
Conclusion of Interview Insights
Closing Remarks
- The interview concludes with gratitude expressed by both parties for participation and assistance in completing a financial management paper.