If you run your own restaurant then you will want to make sure that it is as profitable as possible. This is easier said than done, because most businesses fail within the first five years. If you want to help yourself here, then you need to avoid these mistakes. Take a look below to find out more.
Theft
One of the top reasons why businesses fail is because of theft. Restaurateurs don’t often realize that they are being targeted, and over time, this can bleed your restaurant dry. An average fine-dining establishment can lose thousands because of theft. In fact, studies have shown that you can lose up to 4% of your income through theft alone. One way for you to stop this would be for you to adopt a solid POS system. This allows you to do a complete audit of the inventory you have, and how much money you have coming in. You can also invest in software that has other restaurant-focused features, so you can make the right changes to your business.
Poor Location
Location is a prime factor when it comes to your restaurant. A poor location can be fatal for your business, as you won’t be able to generate enough footfall. That being said, you need to make sure that you don’t overspend on your rent, because if you do then you are essentially throwing your money down the drain. If you want to help yourself here then one thing you can do is choose a restaurant based on your format. The rent of your location should not exceed 10% of your revenue, because if it does then it will eat into your profits and make it much more difficult for you to come out on top.
Poor Customer Experience
Poor customer experience will basically guarantee your customers don’t return. This is one of the top reasons why so many restaurants fail. The last thing you need is to have customers post bad reviews about you on their social media pages, or on review sites. This is damaging to your reputation and if you don’t remedy the issue quickly then you may find that your footfall drops. If you want to stop this from happening then one thing you can do is make sure that your staff are trained at all times. Well-trained staff will treat your customers right and they will also stop your customers from being dissatisfied. Even if things do go wrong, which they inevitably will, your staff can always turn it around and make it a positive experience if they have the knowledge of how to do so.
Inexperience
Not everyone is cut out to work in the restaurant business. While there aren’t any barriers within the sector, you do need to put the work in. Make sure that you have a solid business plan in place before you open your restaurant, and also understand your competition. You also need to deal with any staff who may be doing your restaurant harm. This could be due to them having poor customer service, but at the same time, it could also be down to them not having a passion for what they do.
