The restaurant industry has been struggling for what seems like an eternity now. While you may have a great restaurant concept, a handful of high-selling menu items, and a substantial dinner rush there are always ways to diversify and grow your revenue.
Cut food costs. Make a descending dollar report. A fancy way to say “find the 10 foods you spend the most on every month,” a descending dollar report itemizes where the largest portion of your food expense is going. Have a discussion with your distributors and see if there’s a comparable product, or even a better one, that you can get for less. Don’t be afraid to cut ties with a distributor who’s costing you more money than you need to spend.
Invest in bulk storage to find additional available discounts. If you use your buying power to navigate the roads to the best deals, and invest time in detailing your inventory process to avoid spoilage, you can and will save money.A few cents for every pound purchased turns into significant savings in the long run.
Give employees power to make you money. Sometimes your biggest expense, properly trained employees have the ability to be your greatest asset. Being the face of your restaurant your employees are essentially the windows through which customers view your establishment. Give your staff the tools and know-how they need to please. The key to doing this is excellent, ongoing training. Constantly update and review procedures with all employees. Help your staff feel comfortable enough to offer suggestions, and have conversation-style performance reviews in which you set goals and give incentives for performing well.
A well trained employee has a greater chance of lending a helping hand, upselling menu items, and impressing customers. As a result, happy customers tend to buy more, enjoy their experience, and come back the next time their appetite calls. Remember, training is an on-going process and it’s important to set a good example.
DIY equipment repairs. Being able to service and maintain your restaurant equipment can be a huge money saver. Each piece of equipment in your kitchen serves a purpose, and when one of those pieces doesn’t function well it can affect your entire operation. Additionally, expensive labor and parts costs paid to outside repair companies can add up quickly. Take time to learn the ins and outs of how your equipment works, what’s most likely to fail, and how best to fix what fails when it does. You’ll be surprised how much money can be saved by employing a little know-how and some elbow grease.
Technology can help reel in customers. Consumers are exploding personal information into digital space at ridiculous speeds. If you’re not doing the same with your restaurant you may be behind the curve. Finding menus, shopping for happy hour deals, and recommending hot spots to friends are all ways potential customers search and share when it comes to the restaurant industry. You need to be part of the conversation, and the obvious way to get a word in is by having an intuitive, attractive website. Don’t have a website? You need to get one.
Make sure you feature a current, printable menu, and provide your address, driving directions, and phone number on every page. Butdon’t be content just having a website. Today’s most popular eateries have additional technologies working in their favor like an established e-mail list, social network sites that encourage participation, and wireless avenues of advertising like text messaging.
Diversify your income. Navigating the ever-twisting current that is your revenue stream can become dangerously safe in its monotony. Conducting business as usual can leave you blind to rapids ahead, and without a revenue inlet to steer towards you could find yourself quickly dashed against the rocks. To help avoid unseen obstacles it’s a good idea to branch out and include as many income opportunities as possible.
- Add retail items – Customers enjoy creative apparel referencing your restaurant. Selling hats, t-shirts, and wrist bands is an inexpensive way to outfit your customers while getting the word out.
- Make your food more accessible – Try offering a take-out or delivery option for your more popular items to accommodate customers who don’t want to dine in.
- Host special events – Serving corporate functions and big parties requires special pricing and menu options, but catering to the needs of large gatherings is an excellent way to sell out your space and take advantage of seasonal holidays.
Within a constantly changing landscape, the food service industry is a precarious place to stay stagnant. As doors close left and right new innovations are thrown from windows like confetti, littering the industry with pop-up restaurants, food trucks, unexpected tastes, and evolving palates. While riding the waves of change might not always be the best bet when it comes to your restaurant, it’s safe to keep that metaphorical surfboard in your closet for when the right wave rolls your way.