How to Increase Your Restaurant’s Profitability
With all the demands of running your restaurant, you’ve got a lot on your plate. You’re working hard each day to meet and exceed your customers’ expectations – but you also need to grow your restaurant’s bottom-line.
Your quest to increase profitability has probably hit a few snags as you wrestle with increasing food and labor costs, more competition for customers and new menu labeling requirements from the FDA. And then there’s the ever-more influential reach of social media and online reviews where a less than stellar experience can result in a scathing write-up, harming your image in the eyes of potential customers.
A good first step to grow your profitability is to examine the ways that you can:
- Increase efficiency – Ask yourself where you can reduce administrative time and how you can streamline processes.
- Increase sales – Determine which promotions are working and how you can improve the customer experience.
- Reduce costs – Figure out your areas of expenditure and see how you can reduce those costs.
In crafting a plan to achieve your profitability goals, you can focus on actions you can take in your product and workforce cost centers. Areas for improvement in your product cost center include managing inventory, engineering your menu and optimizing purchasing. There are also many opportunities to increase your bottom-line when looking at your workforce costs including improving schedules, engaging employees and ensuring accurate payroll. Analytics and technology will also help you identify areas for efficiency gains or increased sales which will improve the bottom line.
Knowing what you want to achieve and having an idea where to look to make improvements are positive actions to get started – but you can do more. At Fourth, we’ve got the expertise and solutions to help you achieve your profitability goals. Two of our solution architects, Angela Hart and Billy Waters, have written a guide that walks you through twelve ways to grow your restaurant’s bottom-line. Read about what you can do – and get in touch with us if you’d like to talk about how we can help.