Common Problems That Restaurants Face #2
Do you have some of these common restaurant problems?
The food industry is a high-risk business proposition. You’ve got a lofty level of competition and a lot of details to perfect. According to an often quoted study, 60% of businesses fail in the first year. How do you ensure your restaurant’s success?
Restaurants face many common problems in their daily business. You can increase your chance of success by understanding these common problems and developing strategies to combat these issues.
Talking about all the problems is a lengthy matter. So we have initiated a series of blogs to talk about one of them each time.
This is the second blog of this series. If you miss the first one, you can it see here.
Common Problem #2:
Customer Service
First impression is important. Poor customer service is often a deal breaker for customers. Your food may be outstanding, your table settings exquisite and your ambiance delightful, but if your service is bad, customers will remember.
The key to success is happy customers who want to return again and again. To ensure your success, your entire team – from management to hostess to wait staff and busboys – must be dedicated to your customers’ well-being. Every contact your staff makes with customers must be pleasant, welcoming and accommodating.
The way you handle your customers along every step of their dining experience has an impact on whether you’ll retain that customer. If they weren’t greeted when they walked in and when they left, they might mention it in an online review. As the digital arena continues to grow, online reviews are consistently important to your success.
Common Problem #3:
A Unique Selling Point
Are you a bakery or a bar? A diner or romantic experience? Your customers need to know why they should eat at your restaurant and not at your competitor’s.
While a superb menu and excellent customer service are vital to your success, they are not a unique selling point. They are merely meeting the expectations of your customers. It is time to exceed them.
You need an original idea – something even better than great food and service. Come up with a unique reason for people to eat at your restaurant. Consider Sonic. They offer a nostalgic 50’s feeling. Burger King tells you, “You’ll have it your way.” Chipotle is known for its integrity in food.
A unique selling point offers your customers a feeling that enables them to remember you long after they are gone. Let your food, your service, and your unique selling point and identity make an emotional connection with your customers.
Common Problem #4: Management
Don’t overlook one of the most important pieces of the puzzle – management. You need to know how to analyze your business to make sure it runs profitably. Many small restaurants don’t pay attention to the following items as they manage the day-to-day operation of their restaurant:
How many customers are you feeding each day? Break it down by mealtime.
Keep track of ordered menu items. No one ordering the fish fillet? Maybe it’s time to take it off the menu.
What are your most profitable menu items?
What does it cost to make each menu item? What’s the profit margin?
Do you have a budget for labor? Are you sticking to it?
How much do you spend on labor compared to your restaurant sales?
How much loss is involved in your inventory?
Do you have sales goals? Are you meeting them?
What is your profit and loss for each week you are open?
This is all for today.
In the next blog, we will tackle some more problems.
Your online presence can increase your profits by driving visitors to your restaurant. Do you have a great website that highlights your restaurant? Is it user-friendly and enticing?
If not, or you’d like a website tune-up and refresh, contact us for your free website consultation. We’ll ensure your website works for your visitors and is the centerpiece of your marketing.
