Sometimes, for a restaurant to succeed, it is not enough to have the best chef or the tastiest food. The restaurant business may be considered a lucrative venture, yet there are still many restaurants that fail during their first five years of operation.
If you are looking to open your restaurant or dining establishment, you may want to take a step back before shopping around for restaurant bar stools for sale, or restaurant equipment for sale. First, you must understand that the success of a restaurant abides by certain fundamental principles. If you adhere to these principles, there is less likelihood of your business failing.
Here is a closer look at the factors that affect restaurant sales and how a restaurant can better manage these factors to increase profit margins.
The cost of employing staff
A large part of the monthly expense of a restaurant goes to staff wages. Every restaurant owner has to have a foolproof method of tracking the work hours of each employee. Monitoring work hours is vital to ensure that there are no schedule abuses which can cause you to spend more than the actual hours put in by each employee.
Reducing food waste
One of the realities of having a restaurant business is dealing with food waste. If you are not managing food waste, you are losing money needlessly. To mitigate this, you need to tighten the inventory of food that comes in each week. Buy food in anticipated quantities you are sure to use each week. This also helps in avoiding perishable goods from spoiling. You also need to make sure that every bit of each ingredient is used. A lot of restaurants ensure that no ingredient is wasted. For example, vegetable peelings and bones can be used to make stock for soups and sauces.
Wait time and customer service
When customers have to wait too long for assistance or to get a table at your restaurant, they are less likely to become regular customers. You need to look at the cause of the problem. For example, are the customers waiting too long because there aren’t enough wait staff? Are your kitchen staff too slow? Once you have identified the source of the problem, you must take action to ensure that customer services are improved; hence, customers will be satisfied with their dining experience.
Focus on customer retention
One of the misconceptions in the food industry is that restaurants fare better when more new customers are coming in each day. They fail to take into account that it is better for business to have loyal customers who will come in regularly than to keep attracting new customers every time. To increase customer retention, you need to ensure that they have an excellent experience every time they come in to visit.
In turn, these loyal customers will recommend the establishments to their friends and family. In a way, this becomes another marketing method which you don’t have to pay for because it comes as a natural consequence of valuing loyal customers.