Nick's Restaurant is a (fictitious) 65 seat bar and restaurant located in Toronto that serves dinner 6 nights a week and brunch on Sundays. It is also open late for drinks every night, after the kitchen closes. It is jointly owned in a partnership by the chef (Nick), the front of house manager (Jim) and one outside investor (Kevin). The menu focuses on classic pub fare, with many beers on tap and an extensive whisky menu. The restaurant has been in the same neighborhood location on The Danforth for over 35 years, with a strong network of regulars. Sunday brunches have proven to be more lucrative than opening for a regular dinner and late-night drinks on that particular day. It also allows staff and management to have a guaranteed night off, without losing sales. Brunch margins are very high, due to low labour cost and low food cost. Brunch service only requires one line cook and two servers and the menu is cut down extensively. The average guest cheque at Nick's Restaurant is 43.55 and the turnover for tables is 1.5. The turnover for bar seats is 1.9.

Potential Risks/Risk Audit

Example

1. Loss of high volume of business during closure - Major, but unlikely - Score: Medium 8

- While the potential loss of business is always a major risk, the middle two weeks of January, which is when Nick's Restaurant would close, are historically the two lowest sales weeks of the year for the business. Closing during these two weeks means it is very unlikely any surge in business would happen while closed, meaning major profit would not be missed.

Identify 5 more risks