It’s no secret that it’s tough to eke out profits in a restaurant. There is lots of competition, all kinds of costs to be managed, the unexpected happens daily if not hourly, and market conditions are constantly changing.
But as is pointed out in the infographic below, How to Boost Restaurant Profits, restaurant owners and managers have a wide range of options when it comes to managing costs, upping sales and generating better profits. The infographic makes great reading for any owner or manager ready to put together a strategic plan focused on profitability. And it’s never a bad time to do that.
Technology is an area where a lot is happening. POS systems and online reservation systems, a rarity not so long ago, have proven themselves and are cropping up in restaurants and bars of all kinds. These systems not only help manage costs, but create a better dining experience for patrons, which keeps them coming back and encourages them to share positive reviews on social media. Technology such as this is powerful, as it reduces cost and increases sales at the same time.
While we are on the subject of customer reviews, don’t overlook them. For many people, what customers have to say about your restaurant will be far more persuasive than anything you can say in your marketing and advertising materials. Customer reviews are widely read, and it doesn’t hurt to gently remind patrons that you’d love it if they shared their experiences online. (Don’t get carried away, though: Legitimate review sites have firm policies against businesses paying or otherwise compensating customers for writing reviews.)
And still on the subject of reviews, keep in mind many people are going to read them on their mobile devices, possibly when they are on the road looking for a place to eat now. This means your website needs to be not only up to date, but also mobile-friendly. If potential diners can’t make heads or tails out of your website, they are very likely to keep looking until they find a competitor with a website that easily provides directions, and has an easily readable menu.
But with all the focus on technology and social media, restaurant leadership shouldn’t lose sight of the meat-and-potatoes issues, so to speak, that make a huge difference in profitability. Again, the infographic sensibly suggests taking a close look at menu items. Could the serving size be smaller? Could a change in recipe reduce food costs without sacrificing flavor? What menu items are making the most money? Restaurants that examine these details and make the right changes become ever more profitable one step at a time, systematically and continuously.
For more profit-boosting ideas, please continue reading below.