Here are a few ways to prevent your restaurant from failing
Opening up a restaurant isn’t an easy feat, and keeping one open is even harder. According to a study performed by the Ohio State University 60 percent of restaurants fail after a year of business, and 80 percent fail after five years. It’s easy to exist under the naive fallacy and think “well, my restaurant won’t fail,” but the reality is that if you choose to undergo the business venture of opening up your own restaurant, which includes a franchise location, the odds of it succeeding aren’t in your favor. However, that doesn’t mean that you’re destined to fail.
Restaurants that fail seem to fall into the trap of poor management and irresponsible business practices. We developed our restaurant management app to help restaurants and franchises succeed; in the process, we’ve come across a few things that thriving restaurants practice on a daily basis. Here’s what Workpulse has come up with:
Consult Experts if Possible
It’s commendable that people with no experience in the industry go into this venture blindly with the hope of raising a new restaurant from the ground, and seeing it flourish. Unfortunately, it’s the amateurs who are most likely to see their restaurant fail. But note that just because you’re inexperienced, you don’t have a death sentence written on your forehead.
One way that you could make up for your lack of experience is to hire someone who is successful, or who has advised successful people, as a business consultant. They’ll help you with planning and execution. Most advisors know by heart what makes businesses fail, and they can surely help you avoid those downfalls before it’s too late.
Focus on Employee Retention
Restaurants rely on their staff to keep them up. The waiters interact with the guests to make sure their time is enjoyable, the chefs cook up the dishes that make the restaurant stand out, and the dishwashers make sure all of the utensils and dishes are spotless. The happier your employees are, the better they’re going to do their job. Additionally, you want to have employees who stay with you for years; the more experience they have at your restaurant, the better they’re going to be at their job.
Be flexible with schedules, take time to get to know them, and reward them for commendable work. We at Workpulse endorse treating your employees well, especially when they’re doing so much for the restaurant. We’ve developed our employee gratification app, Wow, so that managers and owners can shout out to and reward employees who are showing great work!
Nobody is going to remember, or take notice of, a restaurant that doesn’t stand out. As a restaurant owner, you need to be mindful of this and to do your best to set your establishment out against the rest. Some people do this by decorating the place with an interesting theme; others do something unique with their dishes. Whatever you decide to do, make sure it stands out in the best way possible. A restaurant with a tasteful flare is better than another boring one that lacks personality.
Engage with Customers
Seriously, your guests are your most important asset! While you don’t have to bow down to them to make sure your restaurant stays afloat, you should find ways to appreciate them whenever possible. Be kind and considerate, listen to their requests, and be tactful. Guests like to feel welcome when they’re dining out, and that’s not a hard thing to accommodate! In the age of the internet, online reviews can make or break a restaurant. Make a guest’s visit memorable by making sure the food is fresh, the waitstaff is kind and prompt, and that their complaints are addressed as soon as possible. You can’t expect to get everything right at all moments, but you can take the time to consider any issues with their time spent at your restaurant.
Our app, GiSMo, is made specifically for their purpose and can help maintain happy guest relationships. GiSMo allows you to view and respond to complaints in a timely fashion by simply logging into the app, opening up a complaint, and responding to it! It’s so easy and it helps to keep reviews stellar!
Keep Your Eye on the Budget
When running a restaurant, you need to make sure that the income outweighs the output…obviously. This is near impossible to do in the first few months of business because how can you track income if you’ve never had income? You need to be careful with your budget and make adjustments to lower how much you spend. However, make sure not to cut the quality of the products you offer, your employee’s wages, or cleaning essentials!
Best of luck in the restaurant industry! If you’re careful enough with what we mentioned, then you should have no issue succeeding! Of course, also be sure to download our restaurant management apps to help the process even more!