your key staff that sort of reward for success, otherwise the motivation to achieve these key objectives is not sh

ared. We work here on a minimum, of 70% GP. The Chef has to meet that 70%, which is emailed to me and my business partner by the 2
nd of the month to ensure the result is immediate as otherwise it’s of much less value advising me of the stock take result halfway through the month as, if there is a problem, we've had another 15 days with that same problem. The invoices are processed by my wife every day, entered into Sage, so she then tells him what has been spent. The cost of waste collection continually keeps going up so it is in everyone’s interests to reduce waste
It’s a double whammy isn’t it? You’re buying it and you waste it so you've paid for it and then you’re paying for it to be taken away.
It’s £18 a collection now plus VAT so it’s £20 to take it. We've got five bins on the industrial estate what they don’t realise is every time they’re coming to collect the waste it’s over £100 a time.
And that's straight off the bottom line.
And in the summer we're having three collections a week because the waste from both restaurants is massive that's why it has to be so well managed here. Another one is wage cost. My managers write their rotas, they know how much they’ve got to spend against the projected turnover as detailed in the budget. We share the revenue sheets with them and in the summer they look at it and they think, ‘Crikey we've done 40 grand this week,’ whilst budget was 30, so they’ve probably achieved the right wage % of turnover. However we all realise is that's not just turnover that makes the profit, but that’s where it starts but then you've got business rates, heating, electric etc and after all that it trickles down to a profit that hopefully leaves something on the bottom line, the profit, which both and Derek and I need to repay the debt that we took on to buy and develop Rojano’s.
Profit’s not a bad word is it?
In reality everyone wants you to earn a profit and don’t mind as long as you provide them with a good service and excellent product without fleecing them. Profit is not

a bad word.
You talked about managing GPs, how do you cost your menus Paul, do you look at the whole menu and say the whole menu is a 70% GP or a 30% food cost or do you price each individual dish?
Each individual. Yes we cost each individual, everything’s individually priced. So every single dish is costed that it must be making 70%. We work out the cost of the ingredient through the dish, you enter those ingredients onto an Excel sheet, we allow for the paper napkin, at Number 6 we also include the bread, so that goes in there, next underneath that nominal ingredients. So the olive oil that's gone into the pan to cook it, the butter, that's been diced to finish it, the salt, the pepper, all those things that businesses don’t seem to think about and leave out. Then we have the 5% wastage because whatever you do there’s always a wastage.
Absolutely yeah.
There's always a wastage.
Of course there is.
Then next column 20% VAT.
That’s one of my next questions actually Paul if you don’t mind, how big an impact is the additional 2½% VAT having on businesses like this?
In the service industry it’s probably the worst thing that can possibly, possibly happen to you because…
Because you’re taking off that £17 spend you've got 20% straight off that going to George Osborne thank you v
ery much.
Yeah exactly but I’ve got nothing to claim VAT for because when I buy all the ingredients that we buy in for both restaurants there’s no VAT on food.
If you’re a plumber or a carpenter you buy your materials, a lot of them are not VAT registered anyway, I've got a carpenter that works for me and, and that's what the government don’t realise that that lad that doesn’t want to increase his business he doesn’t want to take on more work because he doesn’t want to go over the VAT threshold.
No it becomes price prohibitive doesn’t it?
Yeah it does and the same…but you've got companies which are buying their materials and claiming the VAT back. My last VAT bill was 42 grand for the quarter…
For both restaurants?
No just Number 6.
Christ.
It was even more here, with Number 6 it was 42 grand for the quarter, my next one is due at the end of January and it’s probably going to be a bit down or thereabouts the same,
So 160 grand a year VAT.
Yeah in VAT coming out and really little that we can claim back because there's no VAT on food, so when VAT goes up for me it’s not a good thing.
Last question then, you have a very successful Number 6, Rojano’s now going very well, what’s next?
I think what we talk about in the future is
I mean there comes a point where Padstow becomes saturated doesn’t it?
Exactly.
You've got Rick Stein, Nathan Outlaw across the road, both your operations, Adrian at Margots, there's lots of things going on and there's only so much business…
What we're talking about for the future is that this is a formula that works well and I can personally oversee the operations. My ambition and my dream, would be to roll this out as a brand, not just in Cornwall…
Why not.
…I'd like to do more here but, in but for Rojanos I think it would do well in sophisticated urban centres , not so much city centres like Manchester but more , like Alderley edge or Wilmslow in Cheshire,.
Yeah where the ladies are all orange.
It’s a long way off I mean we're talking the need to raise large amounts of capital through venture capitalists and stuff like that if we rolled it out.
But like you say there's a formula to this isn’t there?
Exactly with Padstow being the training ground.
Derek my business partner he bought his first pub, four years later he had 78 pubs and hotels around the country, Tom Cobleigh that’s who Derek is and from Birmingham upwards he knows the catchment areas like the back of his hand. I've got a lot of inspiration from Jamie’s Italians, the difference with what we try and do here is the great salad and pasta pizza, but also a cocktail angle to it as well because I think cocktails are really becoming big.
But there's a plan.
…I'd never ever want to do another Number 6 because it requires my absolute personal attention at all times. I don’t profess to cook here at Rojanos as I'm based at Number 6 but between me and you there's not the same opportunity in Number 6 compared with the opportunity of developing many more Rojano’s
Well look as always I wish you every success.
Thank you very much Mark.
Thank you for your time today.
Yeah and thank you for coming and seeing us.
Not at all.
Really appreciate it.