3 Common Reasons Restaurants Fail
- Incorrectly calculating food cost – Obviously food cost plays a huge role in a restaurant budget, so when the costs are not accurately calculated, it can have a very negative effect on your bottom line. Manage food costs by learning how to calculate your gross profit margin and how to properly price menu items. It can also be helpful to include low cost/high profit margin foods that you know will be consistent best sellers.
- Bad customer service (and the reviews that come with it) – With so much competition and so many food options just an app order away, it’s more important than ever to make sure that customers have an enjoyable experience when they visit your restaurant. If they don’t, you’re likely to hear about it via online reviews or social media posts, which can be extremely damaging to restaurants. In addition to top-notch hiring, training, and operations within your restaurant, you can exceed customer expectations by ensuring that items are cooked perfectly and delivered fast. For instance, our greaseless air fryers allow you to cook large quantities of food quickly, while maintaining a high level of quality.
- Letting the books slide – Bookkeeping is definitely not on the “sexy” side of restaurant management, but it’s just as important as the menu or waitstaff. Successful restaurants constantly keep an eye on cash flow and operating costs. Get familiar with the books, and better yet, hire an accountant to keep you on track.
