Restaurant Management Companies Key Terms

Find out what a restaurant management company can do for your business

Restaurant management companies provide a wide range of services to restaurant owners. They may be hired to choose a site and develop a restaurant's concept and menu. Some restaurant management companies also develop operational handbooks and employee training programs. If you're opening a restaurant, or need help managing a business that's up and running, learning some key terms can help you navigate which types of services a restaurant management company offers.

 

Concept development

Concept development happens in the beginning, when developers decide on a theme and price point for their business. Based on these decisions, they'll develop a marketing strategy, design a menu, and plan the decor, employee uniforms, music, and other aspects that'll make up the identity of your restaurant.
Try: Quantified Marketing Group provides comprehensive concept development services.

Operational audits and analysis

When management companies are called in to improve a restaurant that's already running, they need to get a handle on how things stand before they can recommend improvements. Operational audits provide managers and consultants with a picture of a restaurant's overall efficiency.
Try: National Restaurant Consultants analyzes financial and operational factors, including vendors, operations, human resources and marketing, to come up with a plan to increase profits.

Cost control techniques

Controlling food and beverage costs is a key issue in the restaurant industry. Most cost control techniques focus on minimizing waste through a combination of smart purchasing and menu planning.
Try: The Food Cost Control Blog has a lot of tips on maximizing purchasing efficiency, and by extension, profits.

Operation manuals and employee training

Some restaurant management companies develop operation procedures, write manuals, then ensure that employees are trained and adhering to rules and regulations.
Try: Topserve Consulting trains front house staff.

Marketing programs or solutions

To turn a profit, a restaurant needs to build and maintain a solid customer base. Some restaurant management companies specialize in marketing programs targeting the segment of the population most likely to appreciate the food and concept of your restaurant.
Try: Restaurant Report has an article on how managers can stretch their marketing dollars.

Site selection

Restaurant management companies hired to develop a concept may also be involved in selecting the restaurant's location, or site. A good site has a rent or mortgage that the owner/operator thinks she can afford, and gets good traffic flow, among other factors.
Try: Realtor.org has a brief guide to site selection.

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