Owning and running a restaurant is never easy, but the following financial tips will help if followed before things go too far the other way financially.
Time Management and Location
Before you ever open you have to take into consideration where the restaurant will be located and when it will be open. Consider whether the location is better for only being open for lunch or dinner, or if there will be enough business for both. Be sure wherever the location is that it is convenient for customers to come try it out. If they have to go through a lot of trouble to get there they are less likely to come.
If you are downtown next to several office building, then lunch time might be booming. If that same location is deserted at night, do not waste money opening at night.
It sounds obvious, but customer service is really a huge income producer. Serve good food with a good attitude at a good price and they will come, and they will spend money. It is also very important to keep everything clean. No one wants to keep eating somewhere with mold or bugs.
Take Advantage of Small Business Loans
Entrepreneurs often forget that they can take advantage of small business financing for small business growth. If you see a need for expansion or if there needs to be some updating, a loan can be a good thing. Consider alternative lenders as well as credit unions, as well as banks, to be sure you cover all your options. Companies like Biz2Credit can help you get the best rates.
Stay on top of inventory. Be certain to not order too much and to always have enough so as to not run out. It helps to keep the menu simple by doing a few dishes really great instead of trying to serve a huge variety of mediocre quality dishes. Also, ordering fresh food a few times a week rather than ordering frozen a couple of times a month can help with inventory issues. This “just-in-time” system works well for many chain restaurants and it can work well for you.
Also, be sure your price items properly. There is a fine line between making a profit and pricing yourself out of business. There is also a balance that needs to be had between charging enough to cover expenses and not charging enough to provide quality. Find the balance.
Hire staff that knows how to handle a restaurant, or train them well. There is nothing that kills a great dining experience more than a waitress, kitchen manager, or front manager that does not know what they are doing. It can result is chaos, and few want to dine in chaos.
Keep these tips in mind and you should be able to provide a great dinging experience, which results in customers, and customers are where the income comes from.
This article was submitted by Faith Stewart, he has a BBA with a major in accounting and spent 10 years working in the various aspects of accounting and finance before pursuing her passion for writing.