There will always be challenges to running a restaurant. The pandemic definitely brought new curveballs with it, but there has always been some level of difficulty. When one is dealing with customer service, inventory, supply chain, shipping, management, maintaining a building and equipment, etc. there is a lot to stay on top of in order to keep your restaurant running and turning a profit. We have compiled a list of some challenges restaurants are facing today and how you can overcome them!
1.Rising Food Cost
Inflation has hit hard and people are feeling it. Restaurants are having to keep up with the rising cost of food and employee wages which means menu prices are up as well. Over the past year menu prices have gone up around 8% and food prices in general are up 11.4%. Here are a few ways you can help your restaurant during inflation.
-Optimize your menu
Figure out which menu items are not performing well and get rid of those items. You do not need to waste time, money and labor on dishes that are not serving your restaurant’s and your customer’s best interest. You can also look at some of your more pricey menu items and see about replacing them with a similar item that is more cost effective.
-Utilize Technology
There are so many ways you can take advantage of technology that will help your business succeed. From helping streamline your workflow, to free advertising through social media and QR codes to cut down cost of producing new menus.
Remember, most customers are understanding of the fact that prices are on the rise. Also, don’t change too much at one time, do what you can to keep costs as low as possible and keep in line with the competition.
2. Finding and Retaining Quality Staff
This has been a problem for a lot of restaurants recently. While there is not a clear cut answer to solve this problem, there are some steps you can take to do a better job of finding quality employees that stick around. In our blog, “Low Budget Ways to Reward your Employees,” we talk about some low cost incentives to create a culture that helps employees feel seen and appreciated. Another important tip is to have a seamless onboarding process from start to finish. Make sure you have prepared interview questions, are ready to get them trained once the position has been offered, and ensure they know that you have an open door policy so that the lines of communication are always open. Having scheduling apps for flexible scheduling is another great perk that employees appreciate.
3. Paying For Services That Are Not Beneficial to Your Restaurant
We have raved about technology over and over again, because the benefits of new technology in the restaurant industry are phenomenal and exciting! However, with the overwhelming amount of services that are being offered, you want to be sure that these services are serving your business in every aspect. If you are paying more for a specific service than the amount that you are bringing in, it might be time to rethink it. You want to look for bundled items where you can get multiple services through one company. For example, when you find a reporting system you like, check to see if they also offer other services such as scheduling and inventory and food cost management. Look into third party delivery vs in-house delivery services, loyalty programs, as well as credit card processing fees. When you find a quality service that is helping your restaurant turn a profit and run more efficiently, you are on the right track!
Every restaurant is different and will have a different approach for overcoming obstacles, but these are a great place to start. Take time to re-evaluate your restaurant when you need to, so you can pivot and stay on the track to success.
