Does your Restaurant have room for Improvement? Checkout these Five Essential Tips to Make this Year Your Most Profitable Year Yet

Amazing New Year

Have you ever heard the saying "if you keep doing what you're doing, you'll keep getting what you get?" This means that if you go into the new year without a plan to fix problems or simply improve, then your new year might not be the new year you were expecting.

Here are five restaurant tips that can make this year your most profitable year yet!

Calculate your restaurant's breakeven revenue

Your restaurant's breakeven point is the amount of revenue required in order for you to make a profit. Now you're probably thinking, "how is this going to help me become more profitable?" The more you understand about your business, the stronger you become as a leader and the better decisions you'll make.

Imagine if you calculate your breakeven and the result is $85K in revenue as your breakeven revenue. Now let's say that your restaurant generates $94K in revenue but you're still not profitable. This is what we call instant actionable insight. You immediately know that there's a problem that needs to be figured out and addressed.

Create a budget for marketing and use it

Ever hear the saying "you have to spend money to make money"? We're amazed by how many restaurants we've worked with that don't have a marketing budget. With the cost and reach of advertising on social media (going beyond just posting to your followers), you can help drive revenue like never before. We recommend a budget of 2% of revenue.

Tip: don't just advertise your food, try to connect with your target audience through customer experience.

Weekly or monthly meetings

When your management team is working 60+ hours per week, the last thing they want to do is spend another 2-3 hours in a meeting, but nothing can have a bigger impact on your restaurant than getting feedback and sharing information with your team. Here are five high-level things to discuss and review in your meeting:

• Forecasted Revenue vs Actual Revenue

  • Forecast for the upcoming period considering holidays, special events, weather, etc.

  • Review the prior period forecast compared to actual

  • Change in number of customers from period to period

  • Change in average ticket from period to period

• Customer Reviews from online resources and employee feedback

• Budgeted Expenses vs Actual Expenses

  • Inventory budget vs actual spending

  • Labor budget vs actual labor cost

  • Other controllable expenses

Engage with your non-management employees

Your employees at every level are the backbone of your restaurant, and its success depends on them. For this reason, we recommend that owners consider an annual or semi-annual virtual or in-person meeting with all non-management employees.

This meeting is not just about employee grievances, but the focus should also be on insight sprinkled with some employee appreciation. During this meeting, your employees can share their feedback on what might help the restaurant run smoother, feel-good stories about guest experiences, or stories about situations that didn't go as planned.

Your employees' perspective will very likely be different from the managers' perspective because they spend the most time with the guests. In other words, your employees can be a treasure trove of information, but it's up to you to take action and seek it out.

Your technology could be costing you money

Cutting corners on technology just to save a few dollars upfront is without a doubt one of the costliest mistakes made by restaurant owners today. Whether you decide to go with the least expensive POS system, avoid the KDS and handheld, or go with the least expensive accounting software, those decisions can have a real impact on bottom profits and topline revenue.

If you aren't taking advantage of these tech solutions, then you're probably leaving money and profits at the door.

• Online Ordering & Delivery

• Customer Loyalty Programs

• POS systems with KDS and Handhelds

• Accounting software for Restaurants with Inventory Management

• Employee Scheduling and Budgeting

• Reservations and CRM that helps determine customers' preferences and visit history

Summary

Embracing the start of a new year can be an exhilarating experience, filled with opportunities for personal growth, fresh beginnings, and the chance to set new goals. To truly make the most of this time, it's essential to approach it with intention and enthusiasm.

Our tips are designed to guide you in creating a roadmap for success, helping you to not only envision your aspirations but also to take actionable steps toward achieving them.

By focusing on key areas such as improving your financial performance, driving revenue and engaging with your staff, you can transform your restaurants year like never before.

Remember, the choices you make today can significantly influence the experiences of your restaurant tomorrow.