Four Common Mistakes Made by Restaurant Owners That You Do Not Want to Copy!

After working with hundreds of restaurants we've had the opportunity to study each one including the tendencies of ownership. In our findings we've noticed these four common factors from owners that we suggest you do not copy.

Tunnel vision takes over their vision

Sadly, it's not unusual for restaurant owners to seem entitled and occasionally narcissistic regarding the creation and management of their restaurant, but more often than not, they are neither.

Possessing a vision and the enthusiasm to bring your concept to fruition can be one of the most thrilling achievements, yet at times, that passion can lead to tunnel vision.

Tunnel vision is when you can only see what's right in front of your eyes.

When owners develop tunnel vision, it usually means they shut themselves off from new ideas or ignore warnings that their concept might not be feasible or has a low chance of success.

Owners often snap out of tunnel vision when their restaurant begins to struggle, but avoiding tunnel vision in the first place can help prevent costly issues later on.

They have unrealistic expectations for their general manager.

A new owner often faces the challenge of opening a restaurant with little to no experience in its operation.

When this challenge arises, the most straightforward solution is for the owner to hire someone experienced in running a restaurant. This is typically where unrealistic expectations start.

Far too often restaurant owners focus on their vision for front of house, but they fail to realize that profits are made by their vision for back of house.

Building a successful restaurant requires a team and not just one person. You'll need:

1. marketing to help drive sales

2. technology that helps create efficiency, organize operations and identify problems.

3. a general manager to help with team building, training and guest satisfaction

4. accounting or bookkeeper for reporting

5. and an owner to oversee it all and hold leadership accountable

They devalue or fail to understand the value of technology

Do you really need technology to run a successful restaurant...... absolutely not!

Restaurants throughout the world will thrive because mom-and-pop are at the restaurant 7 days per week with their loyal customer base who keeps them in business each and every year but unfortunately, this will only work up to a certain level.

Top reasons why restaurant owners shy away from technology.

1. Cost

2. Lack of understanding

3. Feels like too much work

4. Too complicated

5. The perceived benefits aren't significant enough

Top reasons why restaurant owners should adopt and utilize technology

1. Restaurants will lose an average of 7% of their revenue on inventory waste and shrinkage. Using the right inventory software can help reduce this cost significantly.

2. Research shows that the average restaurant will lose around $150k per year due to employee turnover. This is primarily due to advertising for the position, training the staff, mistakes and reduced guest satisfaction.

3. Restaurant marketing technology that helps drive revenue includes things like technology for loyalty programs, online ordering, website, communicating promotions, customer feedback loop, and special events.

4. Increase revenue with faster service, fewer mistakes, and faster table turns by utilizing a POS equipped with handhelds, KDS (kitchen display system), reservations software, mobile ordering and contactless payment.

Not spending money, doesn't mean that you're not losing money!

They have a vision but lack a goal

After establishing your restaurant, impressing friends and family, and gaining some media attention, what comes next?

For many, the following step is to start managing your restaurant. No major objectives, no overarching vision—just dive in and do the work. However, remember that restaurant owners with specific goals are more likely to grow and succeed.

Goals often play a crucial role in determining how you manage your restaurant. With clear objectives, you're more inclined to consider all aspects of your restaurant's performance, not just the top-line revenue.

Moreover, your goal doesn't have to be purely professional or business-oriented. For instance, your aim might be to build a new house funded by your restaurant, to launch a chain of restaurants, or simply to achieve profitability (note: impressing friends and family is a bonus, not a goal).

Ultimately, it doesn't matter what your goal is; just have one and strive towards it every day!