The restaurant industry is one of the most exciting places to be when it comes to running a business, but it's also one of the most competitive. Discover how to stay afloat and move ahead of the competition, while increasing your business's profits.
Arguably one of the most competitive business markets today is the restaurant industry. With so many restaurants for people to choose from, finding your niche can be a difficult task. If you're looking to grow your restaurant and increase your profits, not only do you need to offer exceptional service and a wonderful dining experience, you need to master business and management tactics as well.
Ready to turn your restaurant into a major success story? Here are several important strategies that can help you increase your profits this year.
1. Do your research.
Owning a restaurant is extremely difficult. Between managing employees, balancing finances, implementing marketing campaigns and pleasing customers, you have to do it all – and no one can be an expert on everything. If you're ready to expand your restaurant, taking time to conduct research will help guide you in the direction you're trying to go.
Regularly reading restaurant management blogs will give you keen insight from industry professionals on best practices for running your restaurant efficiently. With so many resources available at your fingertips, you can educate yourself on restaurant management practices that help you save money on costs and increase your profits.
2. Cut down on food waste.
We're all guilty of it, even at home. America is the leading country in food waste, costing billions of dollars each year. One strategy for increasing your profit margin is to focus on cutting down food waste. Start by investing in a food waste tracker. These devices measure food and have a camera that monitors food waste so you can keep an eye on what's being thrown away (and why). If you still end the day with a surplus of food, you can donate it to food banks to receive a tax break.
Another way to cut down on food waste is to redesign your menu, focusing only on making what you do best. Here are some tips for creating an effective menu:
- Simplify: Don't bombard your customers with too many options.
- Keep it short and sweet: Provide brief but detailed descriptions.
- Watch the market: Adjust your prices to include direct, indirect and volatile costs.
- Consider ingredients: Promote your most profitable items (those that use the least expensive ingredients).
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3. Use technology.
Incorporating modern systems into your restaurant business will increase your profits dramatically. If you're unorganized, lose receipts and have a desk cluttered with paperwork, you may be throwing money out the window. A restaurant management system will help you keep track of sales, manage employees, and create a rewards program or mailing list for your customers – and that's just for starters.
As previously noted, food waste costs restaurants a ton of money. Restaurant inventory software will let you track every ingredient you use, whether it's a teaspoon of spices, a diced carrot or an egg. With inventory software, you can also keep a watchful eye out for expiration dates so your bread doesn't get moldy and your milk doesn't spoil.
4. Market your restaurant.
One of the best ways to grow your audience and increase profits is through marketing. There are so many marketing techniques that can help you expand your business and attract the attention of customers you previously couldn't reach.
If you want to increase your restaurant patronage and keep your regulars coming back, form a relationship with them. Social media is a virtually free marketing platform where you can interact with customers and grow your brand. Utilize social media management apps that allow you to schedule when a post will go live and give you insight on the perfect time to upload your #foodpics so you can reach the largest audience.
5. Consider food delivery options.
People love convenience. After a long day at work, the last thing we want to do is prepare a home-cooked meal or drive through busy traffic to get a bite to eat. Food delivery services now act as taxis for food, so you don't need to hire drivers or buy company vehicles to send food to hangry customers. With a small commission fee, you can partner with an online ordering company to expand your business and bring home the big bucks.
Increasing your restaurant profits doesn't have to be a daunting task. With so many resources readily available to you, you can soar past the competition and bring in more customers. Technology has saved the day with easy-to-use and efficient point-of-sale systems, marketing tools, and online delivery services. Take matters into your own hands and utilize these resources to increase your restaurant's profits.