How to save your failing restaurant
If you own a restaurant, then you must know better than anyone else about how you have to manage things because owning and managing a restaurant gives you a real tough time. If you do not manage well, risks are that you even might have to close you restaurants with high and heavy debts .Restaurants industry is not inevitable, you must understand each and every working part of your restaurant to operate, function and administer it well, whether it be human resource department, marketing department or the finance department. Firstly You must carefully analyze where you are investing your money and how much you earn on your investment because the money coming in and going out can be the first step in help you turning around your restaurant before it dies. Here are the few steps in helping you to save your failing restaurant
You must carefully train your finance department to make record of each and every thing from the single customers orders to the monthly and yearly balance sheets and track the record of each and every thing that where it falls and where it costs high and how much your supplies cost and how much you earn on your investments and where it needs to be improved. bBecause a financial performance is the first and the best way to analyze why your restaurant is not earning more money because a restaurant can fail as the result of too little money coming in and too much going out or a combination of both. You must track the direction of your sales, cost of sales, and other large expenses to get a handle on where you need to work on. Once you have analyzed where your problem lies , you can move to the next step.
You must keep a proper track of your store room because most restaurant fails because they forgot or are very careless and lazy to track record of their supplies that how much they need supplies and how much they already have which don't need to be purchased for their dishes, they don't bother to review their menu or customer preferences and the popular dishes of their restaurant and thus waste their money on unnecessary supplies.Not even knowing how much they paid for each supplies in the past. It is a clear sign of running a failed restaurant. You must keep a proper record of how much you need , because running out of stock of anything is totally unprofessional but ordering anything which you don't need is a huge waste of money. It should be responsibility for operating manager to keep full track of their storeroom about their supplies and manage it properly.
Food cost and price also plays an important role in getting you more customers to run your restaurant, as the food price impact most of your customers preferences to choose their food accordingly. You can earn most of your profit through your food cost. You must know how much you are making on your each and every item of your revenue and it is also critical to healthy bottom line. Make sure that how much you charge on your each dish from your customers also cover the costs of producing it and you also get a healthy margin but don't charge too much on your dishes because your customers are not fool.Some of them are professionals and they would know that you are charging too much higher prices and will stop coming to your restaurant, other would be school students and they will not be able to afford such higher prices so you must have to be very careful about it, analyzing both of the things from your revenue generation to customers affordable prices. It will be better to choose your supplier wisely, if your food costs are high then you should consider reviewing your supplier list and add higher profit items with low food supply cost.
Think right size of your staff because your labor cost is the second largest cost after food. Your employees are the key to your restaurant to run smoothly. Your restaurant's brand does not raise if your restaurant is filled with large number of people but it must be filled with right kind of people with right skills and personalities to provide greater service who will help you in earning more customers and profits through their dedication, vigor and absorption quality .Your must promote diversity practices in your restaurant to have a psychological capital because personal resources plays very important part for the employees to get engaged in your restaurant. And for this, you must provide them with the right kind of resources by keeping your employees’ morale high, making them feel valued ,to keep them happy properly training them and recognizing them, rewarding them on their good services will help you to earn loyal employees and you will see how your restaurant turn around .The employees who are not cutting it, need to be sorted out and if they don't improve must be replaced with better ones. A good manager must focus on human capital and do these things and they will see how their revenue rises through their loyal and dedicated employees.
Read online reviews
Read online reviews even if they are hurtful because you must know why your restaurant sales are declining. Reading what your customer thinks about you is the best way to get feedback. Few bad reviews does not mean that your restaurant have a problem but if every customer complaints about the same thing, then you really have a problem that needs to be solved to bring your restaurant back on track. Be sure to be responsive to the customers because if you don't respond, they will think that you don't care about them and you will miss a chance to get an honest feedback because customers won't respond you, if they feel you are not responsive.
If your customers wait for your tables daily, it will make your restaurant a big disasters because every customer is busy and don't like to wait and they will stop coming at your restaurant. When your restaurant is busy, it's critical to get people in and back out again, so that no one has to wait long. it does not mean that you should rush customers, but ensure they get seated and waited on quickly and that you stay on top of their needs throughout the meal. Clean and reset the table right away to make room for new customers, even if it means hiring additional bussing staff. The more tables you can turn during a dish, you will make more sales in a day. Because part of increasing restaurant revenue involves increasing customer volume throughout the day. And every customer who walks out of the door because of the wait to eat in your restaurant is a lost revenue.
If you need further help for turning your failing restaurant, don't forget to consult a great consultant to help you one of them is Bistoservices.com to provide you full assistance on running a restaurant.