Many food-loving entrepreneurs have a desire to own a successful restaurant. However, it’s a tough business, and the percentage of those who don’t make enough money to survive is around 60 percent. Having said that, a good number of restaurateurs are highly successful, so why do they succeed when others fail to get off the ground?
The answer is simple: they make a decent profit! Here are 10 proven tips to help you increase your profits.
The success of your business relies on generating enough income to cover all your expenses while having money left over. You can only achieve this if you keep a close eye on all your costs and regularly monitoring your income and expenditure. It helps to establish a base line for each expense and to follow-up on deviations.
Plan your menus carefully. You need to ensure you understand exactly how much each item costs and what you can reasonably charge. The menus need to be attractive and the portions acceptable.
Food purchases represent the biggest portion of your input expenses, so keep a tight control of what you buy. Keep your suppliers on their toes and actively shop around for the best prices. Firmly resist pressure for unjustifiable price increases.
Everything that’s thrown away represents a loss, so minimise wastage by not over-ordering. Insist that all fresh produce is fresh, and keep an eye on best-by dates.
Get the chef on your side and work constructively together to optimise your menus and food presentation. Play open cards with your chef regarding restaurant expenses so the chef understands your concerns.
Take the time to carefully select the right front of house staff, especially managers. They need to be presentable, polite and loyal. All staff that handle money should be vetted for honesty.
Welcome your customers and have them seated promptly and with courtesy. Ensure their tables are spotlessly clean and that waitrons are efficient. Always let your clientele know how long their food will take and don’t disappoint. Ensure billing is efficient and accurate.
Boost your presence by having clear and attractive signage and outside decor. Advertise in the local media and in any promotional material published in your area. Always keep a tight control on advertising expenses.
Consider offering a takeout menu. If you do, provide a place where clients can wait that does not detract from the ambiance of the main restaurant.
Get professional help to set-up a website to publicise your restaurant. List your menu, current specials and prices on the website. You can even allow clients to book their tables and order takeout food. Use a food delivery service to expedite food delivery.
It’s important to remember that serving many customers doesn’t necessarily imply increased profits. It’s also the careful management of your restaurant expenses along with taking positive steps to ensure patrons have a fabulous time eating in your restaurant.
Now it’s your turn. How do you run a profitable restaurant business? Share with us below.
Food cost too high? Find out how we can assist you with your stock control and ensure your profitability with Ideal Stock Control