While it’s not true that most restaurants fail in the first year, studies have shown that nearly 60 percent of restaurants fail within their first 3 years. There’s a variety of reasons food service establishments don’t make it, ranging from location to customer service. Cost management is usually the most significant factor. Restaurants tend to be significantly wasteful when it comes to food use and inventory. These restaurants do not seem to be mindful with their most precious asset.
Combined with rising food costs, it’s clear why more than half of all restaurants don’t make it to year four. Fortunately, there are places online to find tips to help restaurant owners operate efficiently.
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Test run your concept
Sometimes, a restaurant fails because the concept behind it just doesn’t jive with consumer preferences and expectations. It’s always a gamble, but you can test run your idea before committing to a physical facility, a full complement of employees, and all the costs that go along with them. A pop-up restaurant gives prospective restaurant owners the opportunity to put your concept, menu and location to the test. According to the National Restaurant Association, pop-up restaurants are the nation’s sixth-most popular restaurant trend.
New restaurants rarely have an abundance of resources to devote to advertising and often must take advantage of free strategies. Social media is the best friend of many new restaurant owners who can raise their profile with relevant posts on a regular basis. Post pictures of menu items and interior shots of your restaurant as well as updates on specials and discounted items. Food is one of the most popular subjects among bloggers these days, so consider writing about the vision behind your restaurant with a free blog on your website.
The single best way for restaurants and food companies to find a community is Instagram. This is the Instagram for our Company. Gourmet Nuts And Dried Fruit or we go by the Instagram handle, nuts.fruit. We post a lot about fitness events and trends but we always stick to our core products.
There are several ways to determine whether your food costs are under control. Portion size is often a major contributing factor to waste, so look closely at plates as they are returned to the kitchen. If you notice a lot of uneaten food left behind, it may be a sign that you’re serving overly-large portions. This might necessitate adjusting them accordingly to avoid wasting money.
Your aim should always be to leave customers wanting to visit your restaurant again. Setting the lowest reasonable price for each menu item is important. Setting prices too low or high can undermine your profit margin and make it difficult to offset food costs and other expenses. Price is usually the first thing customers will look at. Over-priced items won’t fail to be noticed and taken into consideration when people decide whether or not to visit you again.
Maintain Restaurant Inventory
It’s essential to keep regular inventory counts to help control food usage and expenses. Certain high-priced items such as fine meats, cheeses and liquors may require inventory more frequently to help keep costs and income in balance. Consider using BlueCart, a user-friendly and affordable inventory tracking system that can be accessed through a phone, tablet or computer.
Keep Track Of Waste
In addition to taking careful inventory, it’s in your best interest to keep track of food wastage. Keep a log of wasted food, including anything that’s spilled, thrown out, burned, dropped, or undercooked. This will help your ability to accurately track approximately how much product is being wasted from week-to-week.
Turning a restaurant concept into a long-term success depends to a large extent on your ability to learn and adapt. It may be necessary to be flexible with menu pricing from time to time. Look for low-cost ways to get the word out and keep careful track of food costs and inventory, which will help maximize profitability.
Written By Dean Burgess
Creator of excitepreneur.net