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4 Reasons Your Restaurant Operations Strategy is Failing

Owning a restaurant is a dream for many. The excitement, the planning, the grand opening…it feels like a dream. But, for many restaurant owners, a flawed restaurant operations strategy can end the dream quickly.

Restaurant owners quickly learn that operating a restaurant is hard work. The majority of new restaurant owners do not have the work ethic,
the operations strategy, or the grit, which is why the average life span of a new restaurant is only five years. Oftentimes, the signs that a restaurant is failing are ignored. Restaurant operations issues are common and trend across the country with restaurants large and small. Once restaurant owners recognize the most important pitfalls and take the proper corrective actions, they find that the success of restaurant ownership was not far
away. So, what are the most important restaurant operations failures and how can you correct them?

You Ignore Your Food Costs

Managing food costs is time-consuming and far from glamorous. Many restaurant owners assume that their food suppliers have their best
interests in mind and ignore the importance of food costs. Restaurant food spend accounts for at least 1/3 of your total restaurant spend and
ignoring overspending can destroy your restaurant’s bottom line. The failure to account for food costs is one of the top reasons for restaurant failure.

Are you consistently performing these tasks:

  • Count inventory
  • Calculate your COGS figures
  • Manage your Orders
  • Minimize food waste

Calculating food costs on a weekly basis is the best way to recognize trends, know when to ramp up marketing, or notice the need to meet with suppliers.

You Chose the Wrong Tech

The future of restaurants centers around technology. If you don’t believe it, your competition does and will leave you in the dust. Software and apps designed to simplify restaurant operations from tracking food costs, tracking food waste, ensuring food safety, and even creating checklists are creating positive habits and reducing error in restaurants around the world.

There are many software companies launching tech products that are being marketed to restaurants. Do your research and partner with technology solutions that are designed for the unique needs of restaurants BY restaurant owners. If you notice that you are using the
wrong tech, it is better to switch now rather than fall deeper down the expensive hole of unused subscriptions.

You Ignore Your Pricing

Since we mentioned meeting with suppliers, paying attention to pricing ensures that your restaurant is getting the best deal on products and ingredients. Ingredient prices fluctuate, but make sure you aren’t paying more than your competition. Pay attention to and track average pricing for your most important ingredients, paper products, and other restaurant supplies. Develop a system for tracking and and monitor it regularly. Having your tracking in order will make it easier to negotiate more competitive pricing with suppliers.

You Expand Without a Solid Foundation

Maybe your goal is to build a franchise or simply open additional locations or add a food truck to your offerings. Whatever your expansion dreams are, be careful not to pull the trigger too soon. Create a strong foundation with your existing restaurant and put systems in place before you duplicate your efforts. Opening an additional location before your current restaurant operations strategies are solidified can not only cause your second location to fail, but may result in your first location crumbling down with it.

For more information about how FreshCheq helps restaurants improve their restaurant operations strategy, schedule a demo.

Everyone in the restaurant industry is dealing with high employee turnover rates.

Everyone in the restaurant industry is dealing with high employee turnover rates. Some may be facing this problem more than others
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