At National Restaurant Consultants (NRC), we believe that a restaurant is part of the hospitality industry, and that means people-focused business. And, a restaurant is still a business. If your business is unhealthy, you cannot provide the services your guests deserve, nor create the working environment that is best for your employees. A business needs to be efficient and profitable—and that doesn’t detract from the hospitable values we believe in.
Businesses have their ups and downs. When a business is continually in a downturn, it’s important to analyze where those losses might be occurring. Sometimes, it’s obvious: increased operating costs, lack of business; our restaurant consultants can help address those issues.
But as Nation’s Restaurant News (NRN) recently shared, there can be hidden losses in restaurant businesses that can be impacting that bottom line. It’s important to address them head-on to steady your business—and restore your positive impact on the community and your guests.
Part of working with a restaurant consultant at NRC is our operations analysis. This study analyzes your business strategies and practices, your operations, your staff, your menus—all with the goal of identifying weaknesses that inform a formulated plan to get your restaurant business on track. NRN’s list of the Top Ten Hidden Costs in Every Restaurant takes some of this into account.
The list is based on the advice of US Foodservices restaurant operations consultant, Matt Bruenderman, who said, “You’re not going to find $1,000 you can grab in your P&L (profit and loss statement), but you can find 1,000 ways to save money. Most restaurants are bleeding from 1,000 individual cuts.” Bruenderman’s list includes some of the following advice:
- Keep a budget. It seems like a no-brainer, but creating a budget and keeping a budget are two different practices. It’s easy to stray from the plan when unexpected events and costs arise. Bruenderman says that a budget is something that should be written—and rewritten—often.
- Collect data. It can be a hassle—asking for email addresses, getting customers to sign up for apps. But this information is solid gold. Not only does it increase loyalty and customer participation; it’s also a huge part of fine-tuning your brand to your customers’ needs and wants. This keeps a business on-track.
- Packaging for carry out and to go orders matters. It may seem like a simple thing, but it’s an important part of the customer experience. Bruenderman’s advice: packing containers “should maintain the integrity of your product for at least 30 minutes.”
- Employee training is crucial. This is an NRC specialty because of the difference it makes down the line. Informed, trained employees are happy employees—and happy employees work hard and stick around. Bruenderman agrees: “Inconsistency fuels turnover and more inconsistency. Employee training, manuals, policies, checklists are essential.”
- Fine tune the menu. Another top tip from our restaurant consultants, and why we always recommend our menu engineering services. A disorganized menu, a menu that is too big, a menu that hasn’t accounted for the rising cost of a particular ingredient—all of this can be detrimental to a restaurant’s success and profitability.
Richard Weil, owner and principal of National Restaurant Consultants, and the rest NRC team have worked with hundreds of restaurants throughout the country. Weil says, “The five items noted above are the tip of the iceberg for restaurant operators. Looking at your establishment from the parking lot in, and dedicating your look-in-the-mirror through the eyes o,f not only your customers, but your staff, is key to finding ways to improve your operations and bottom line.”