You've been running your restaurant for a few years now, and everything is going smoothly. Customers are truly satisfied, the service is excellent, your staff is content, and you've established a solid reputation in your community.
Perhaps it's time to consider the next step. Maybe it's time to open a new location. You succeeded with the first one, so you can apply the same approach to the next.
Whether you're aiming to expand or simply maintain your current status, here are the top three observations we've made about restaurant owners with a single location compared to those managing multiple locations.
Budget and Forecast
It could be said that restaurant owners with multiple locations have the resources to employ a staff capable of generating budgets, forecasting, marketing, and more. Nonetheless, this should not serve as an excuse. Budgeting and forecasting are subjects many of us learned in grade school and can be viewed as an essential business skills.
Restaurants that fail to budget and forecast effectively are essentially operating without direction. And when you operate without direction it becomes easier for operating errors to occur and become embedded in everyday operations. For example, without a budget or forecast, let's say that your restaurant generates $80,000 in revenue one month and $140,000 in revenue the next month, how would you determine which amount is suitable for the situation or which is an outlier? Second example, let's say that your restaurant food cost is averaging 34% monthly and your alcohol cost is averaging 21% monthly, what do you have to measure it against?
Budgeting and forecasting serve as a road map to your success. Give it a try.d
Marketing
One common observation with restaurant owners who have one or two locations is their lack of significant marketing efforts. This includes a marketing plan, budget, and sometimes even the motivation. So how do they attract customers? Typically, they'll occasionally generate a post on their social media account however, their growth will typically come via word of mouth, and interestingly, this method often works but only up to a certain point.
The advantage of word of mouth is that it's free and it provides a foundation for growth, but there is usually a limit that most restaurants cannot surpass. This is why larger restaurant groups quickly embrace marketing, as they are always seeking expansion.
Paid social media offers no minimum budget and can have a substantial impact. Whether large or small, marketing is essential for growing your restaurant business.
Embrace Technology
Regardless of whether you own one restaurant or several, technology can significantly contribute to your restaurant's success. However, if you own just one location, the importance of technology might not seem as crucial.
Take a moment to think about the types of technology your restaurant currently has or lacks. The reality is that nearly all of these systems are present in larger restaurant groups, whereas only a few, perhaps two or three, are typically found in restaurants with fewer than five locations.
Point of Sales System
Online Ordering - can create an additional revenue stream
Kitchen Display System (KDS) - can help create more accurate orders and faster table turns
Self-Ordering Kiosk
Website - creates awareness and provides information
Electronic Gift cards - can create a sense of loyalty and additional stream of revenue
Loyalty Program - helps create repeat guest and drive revenue
Reservation Technology - helps optimize the customer's experience
(CRM) Customer Relationship Management System - help create customer loyalty and awareness
Employee Scheduling Software - helps manage cost and organizes labor
Inventory Management Software - helps manage cost, reduce waste and drive profits
Accounting Software - helps manage cash flow and organize reports for owners, partners, banks and government
QR Code Menus - helps expedite service and reduce the cost of printing menus
Third-Party Delivery Management Software helps create an additional revenue stream
Ultimately, you've made a significant investment into your restaurant and you're up against a number of owner-operators who vie for your customers daily.
It's time to push beyond your comfort zone and take action.
For more advice like this, explore CooksTime, the comprehensive restaurant accounting software designed specifically for the industry!
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