What could be the most important and hardest part of having a restaurant business?
Owning a restaurant is expensive. You need capital, you need to pay expenses for rent, labor is high, taxes, insurance, all kinds of stuff that goes into the restaurant industry.
If we are not making money, and every month, we are losing money, sooner or later, we are going to run out of gas and we need to close our doors.
It is a vicious industry, many restaurants don't make it because the stats are outrageous, and it's heart-breaking.
Money is indispensable. It is the most important and hardest part of having a restaurant.
You are in business, this is a restaurant, we need the money to sustain everything and whatever money we have, we need to keep most of it.
So how can we make sure that we take care of our finances and we gain more money and lose less?
Here are 3 things that you should always keep in mind:
1. Be obsessed with numbers - We need money to run everything in our restaurant.
That is why it is critical to be obsessed with our numbers, whether it's labor, whether it's food expenses or equipment cost, there is every dollar going.
The profit margin of the restaurant is not the highest so you need to be focused on the numbers.
Keep track of every number, document and study them and find ways to improve them when necessary.
2. Have a profitable marketing strategy - We are not generating money, we are not sowing seeds, who is going to do that for us?
We need to be marketing our restaurant effectively.
For instance, in our restaurant, we use different marketing strategies such as email marketing, text message marketing, and social media marketing.
Our goal is to create top-of-mind awareness among our customers for them to remember us by keeping in touch with them.
A well-planned marketing strategy will help you promote your restaurant to meet the needs and demands of your customers.
A good marketing strategy makes your customers understand why your restaurant is better than the others which can obviously lead to more sales.
3. Focus on money-generating activities - Restaurant owners and managers must dedicate lots of time in money-generating activities.
Activities that are going to produce money over and over for us. One of the most effective ways that we do in our company is getting involved in different activities in our local community.
We actively participated in different community groups and business organizations. For instance, we joined the Chamber of Commerce.
We attended multiple business network meetings around the town figure out those that are suitable for our business goals.
We also head to different gatherings in our community such as parades, political meetings, school activities, etc. so we can be more visible to the public.
Your restaurant needs community involvement simply because by doing so, you become a good influence on the people and thus attracting more customers and growing your profit.
Money is the primary thing that we needed when are starting our restaurant business, and it is still what we need to keep it going.
And if we run a successful business, money is what we ultimately gain. We always need to think of ways on how we can have a profitable restaurant.
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