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Top Five Mistakes Restaurant Owners Make

Our restaurant consultants are often asked, “What can I do to improve my restaurant and make it more profitable?”  

One of our missions is to assist failing restaurants and turn them around; but we can also help healthy restaurants get better. Over the last five to ten years we have helped nearly 100 restaurants improve their operations and profitability. Our consultants are such experts we can guarantee our results. 

Because we have experience with such a broad range of many different clients, our consultants have identified common issues that lead to poor performance, across the board. Here are the top-five mistakes we see in failing and healthy restaurants, things that can be corrected to turn a bigger profit.

  1. The menu is not a selling tool. A menu shouldn’t just be a list of food—it is the most important piece of real estate in your restaurant. It is a sales tool that should be designed for encouraging guests to purchase particular items.
  2. Many restaurants try to be all things to all people. Many of our clients often tell us, “We cannot remove that item from the menu because several of our guests will be upset.” But practices shouldn’t be upheld for just a few. If you have regular customers who like a particular dish, you can offer to make it for them without keeping it on your menu.
  3. The menu isn’t budgeted. Many restaurant owners are baffled when they can’t control their food costs; but the fact is, they haven’t analyzed the actual costs of specific menu items.You should have a budget for your menu, with a clear understanding of the specific costs associated with each item.
  4. There is no recipe or presentation documentation. When budgeting a menu, keep detailed records of, not only what is in the menu item’s recipe, but also what is required for the plate presentation. You cannot cost it out and determine a menu price if you do not really know what is on the plate.
  5. Menus drive labor costs. When you know labor costs are high, it makes sense to look at your labor. But what’s on your menu drives the labor required to make and deliver the food to guests. 

These are just a few of the items we run into. Contact us to see how we can make your restaurant more profitable. We guarantee our results, so you have nothing to lose.

Photo by stekelbes.