Is your restaurant or catering service completely booked but you are not turning a profit? Have you got a wonderful menu, but no business? The food market is one of the hardest industries to be successful. Competition is fierce and people are unpredictable. As a result of this, you will need to do everything possible as an owner to be certain your business is operating at maximum efficiency and providing the best quality services in your specialty.
Though people in our business fail daily, the causes of their failure can frequently be attributed to only a few issues that are relatively easy to solve.
Following is a list of reasons why food establishments fade quietly into the sunset and what you can do to prevent it from happening to you.
1. Know your costs!
This could be the number one reason why any business fails. I am not talking about knowing how much salmon is a pound. I am talking about knowing how much salmon is a pound and how much it costs you to cook it, sauce it, serve it and wash the dish on which you serve it. These are all costs that have to be taken into consideration when pricing each dish. It doesn’t matter if you sell the most luscious salmon in the city in amounts that maintain a whole fishing fleet occupied if you are not making a profit doing this.
Additionally, practice portion control. This is a frequent oversight when estimating the cost, and a black hole into which your cash silently falls. For those who have priced a pasta dish based on an eight-ounce part but your chefs are serving twelve oz at a time, you’re losing money.
2. Advertise efficiently!
Sticking flyers on windshields in random parking lots is a waste of money and time. Take the time to learn your target group and use your advertising dollars wisely. Participate in activities that showcase the food. It costs little to input and you’re putting your name out there to people that are specifically searching for what you have.
Pick 1 business near to your organization each week and send lunch to them at no cost. Use some of your lower-cost but tasty menu items. You’re accomplishing two things by doing so; you’re setting yourself in your area and you’re getting people to try your meals. Word of mouth is totally the best advertisement.
Establish a fantastic internet presence. In the modern technological world, we often choose providers right from their mobile phones. If your name is not in the hat, it can not be picked. Be certain every word on your website is spelled correctly and that the website looks professional. Update it regularly. This does not have to cost a lot but it ought to be on top of your advertising list. Provide a member’s record so you can send special offers and news. Many areas offer a free birthday dinner to members. You may invest in one free meal, but bear in mind that people do not celebrate their birthdays alone! For you caterers out there, consider perhaps offering a discount to repeat customers for parties of a particular size.
3. Ensure that your restaurant or catering business is attractive to clients.
Including using a clean, pleasing environment, well-groomed and well-trained staff, and excellent literature. You never have another opportunity to make a first impression If a guest walks into your institution and is greeted with a clean environment and friendly, knowledgeable people, you’ve already won half the battle.
Ensure any literature such as brochures or menus is professional and clean looking. You don’t need to use a professional printer, but be sure everything is spelled correctly and is easy to comprehend. Define your meals and services well. Lastly, keep the place clean during the ceremony. Small things like stocking the toilet or wiping down the bar make a massive difference in a guest’s experience. You need your last guests of the day to be just as dazzled as the first.
4. Know your limits!
A lot of folks attempt to do too much. A restaurant or catering business can be tremendously successful with a little menu provided that everything on that menu is fabulous. Attempting to incorporate too many options increases food expenses, raises waste and overwhelms the guest. Pick what you do best and do it flawlessly every time.
5. Listen to your guests!
Speak to them. A glitch in their own meal does not need to become a disaster. It is how you manage that glitch that will make all of the difference. That is where having a professional, well-trained staff will serve you well. Use guest comment cards and exit interviews (for caterers) and listen. Search for trends, and make adjustments as required. People are more than happy to let you know what they believe if you just ask, and what they believe is what decides whether you will succeed. You can not please all the people all the time, but you have to please the majority of the people all the time.
Many food businesses fail because people jump to them without educating themselves, or since they’re too hung up in their suggestions to hear what the people they serve are trying to tell them. To be able to be successful in this business, you always have to keep one eye on the client and one on the bottom line. Educate yourself and keep your mind open to suggestions. It can be annoying and time-consuming to do this but in the long run, your business will flourish and you’ll be proud.