On average, nearly 2 billion dollars are spent in the US on restaurants alone. Out of these, 60% of restaurants fail in their first three years of operation. The restaurant industry is a money making machine but not every restaurateur knows how to get the maximum potential and find gains in every nook and corner.
You need to know overall operational costs for a typical restaurant. Restaurateurs need to have a thorough knowledge of combined costs of food and alcohol which will help set up menu prices, and maximize your profit without putting too much of a burden on the customers. Menu prices marked between $15-25 tend to bring the highest margins. A hospitality consultant will help build partnerships with your vendors so you are eligible for discounts. In addition, ensure you order the correct amount of food so that you don’t waste and cut down on unnecessary expenses to bring cost effectiveness.
What is your role in the restaurant? Do not overwork yourself. You are living out a dream; do not turn it into a nightmare. You can’t be everything to everyone. Different people need to have different roles. For instance, the chef, the wait staff, the front house staff, the restaurant manager, bartender and servers need to be doing their own job. Delegate tasks appropriately so you can focus on the goal of making your restaurant profitable, instead of running around in circles doing everyone else’s work.
First impressions make a difference between the success and failure of targeting your niche customers. The front house of the restaurant should be of the highest standard to attract new customers and retain old ones. Use inviting gestures and be welcoming to all your customers. Give your customers only the best treatment and in return they will become your most loyal base.
Who are your customers and what do they expect of your restaurant? Understand your niche customers and the type of restaurant you plan to operate. If you are in the South offering fancy, high-end dishes that people cannot pronounce, it is unlikely your restaurant will have customers or that it would make too much of a profit. A restaurant consultant will help cater to the taste buds of your customers to maximize revenue and turn a new customer into a repeat one.
Not everyone lives close by to your restaurant but may be interested in trying out the food. Why not offer a delivery service? With shorter breaks and hectic schedules in people’s lives, a delivery service will serve your customers and the restaurant well.