Restaurant statistics aren’t very pretty for potential restaurant owners. After all, around 60% of new restaurants go under in less than a year. The five-year stats on new restaurants are even more dismal with a nearly 80% close rate.
Of course, you want your restaurant to beat the odds and thrive. That means you have a vested interest in running a restaurant as well as you can. Worried you might not know everything you need to know about how to run a restaurant?
Keep reading for our quick on running your restaurant successfully.
Don’t Overspend on Trivial Things
Yes, you will spend a lot of money getting your restaurant up and running. That doesn’t mean you can’t play it smart. Your front of house should look great. Your back of house should look functional.
Don’t drop a bundle on fancy shelving or high-end decorating in the back. You can get by just fine with plastic shelves in most places. A basic neutral color on the wall works just fine too.
Get Your Marketing Game in Order
No business lasts long if the word doesn’t get out to the paying customers. If you hate marketing, you must still do the best possible job that you can with it.
Focus on differentiation. What makes your restaurant different and more desirable than your competition?
Leverage social media. Get your social media profiles up and running as fast as you can. Focus on image-heavy sites like Facebook, Instagram, and Pinterest where you can show your food.
Get a Handle on Business Essentials
Managing a restaurant well is about more than food. It’s a business. Even if you bring in a pro to deal with restaurant management, you still need a working knowledge of the business side to contribute.
For example, you need at least a passing understanding of the relevant HR regulations in your state or city. You must understand how profit & loss statements work, along with some basic bookkeeping, so you can understand the finances.
Never assume that someone else will provide you accurate information. Know the business side so you can double-check the critical facts.
Reduce Costs
One of the deadliest threats to your business is rising costs, which are common in the restaurant biz. Look for ways you can reduce costs wherever possible, such as:
- Leveraging efficiency-enhancing software
- Adjusting menu pricing to reflect food costs
- Reduce turnover by hiring solid, competent employees
These three basic tips can help give you an edge over your competitors.
Running a Restaurant Well
Running a restaurant well is, unfortunately, about a lot more than just offering good food. It’s a business. That means you must understand how running a business works to understand how to run a restaurant.
That means getting a handle on everything from HR and bookkeeping to marketing and industry hiring best practices. It also means constantly looking for ways you can manage costs better, either through price adjustments or efficiency improvements.
Need some more business advice or just want to keep up on the business news? Take a look at our Business section.
