Bad and Struggling

Restaurants are closing all over America and it might be something different than what you are thinking? Is it poor food? Bad Finances, or is it something greater than all of the above?

What if it was determined by the CULTURE of our restaurant. That’s right I said CULTURE. 

Bad culture is what is plaguing the industry and leading to the mass exodous from the industry. 

-        20% of all restaurants in your market

-       Some are already dead and just don’t know it, merely zombies going through their week, only providing just enough sustenance to get through to the next.

-        Ultimately they feel like they are living in a literal hell

Symptoms

-       Losing money or at best barely breaking even

-       Owners working long hours in restaurant

-       Do not know what customers want

-       No clue on menu profitability (not knowing your numbers)

-       Few systems in place

-       No consistency in marketing

-       No formal training or further education

-       No hiring systems

The owners are stressed, overworked, broke mentally physically and financially, and are consumed in pride and ego

Toxic Culture Traits

-       Gossip

-       Drama

-       High Turnover and Call Offs

-       Poor Sanitation

-       1-3 Star Ratings

-       Prime Costs at 65% or more

-       Cliques

-       Employee Entitlement

-       Excuses

-       Staff is mostly low performers

-       No leadership or management

-       PANIC MODE!

The Team Runs Your Restaurant THEIR way

Below Average Restaurant WANT to focus on : Product

What they NEED to focus on: SYSTEMS

You most likely need a restaurant coach. If you really had the mindset and capabilities, you would have already fixed your problem

Bad restaurants make poor hiring decisions: Hiring for Desperation produces poor results

-       Comments on Estelle

Action Plan:

-       Find where the bleeding is. Perform a cost analysis on menu, labor, and fixed costs. Find where the money is pouring, and plug the drain, 

-       Establish high standards. Raise the bar to what you will not tolerate

-       Quality recruiting is your new life and your livelihood depends on it. 

-       Get rid of toxic staff. They are a cancer to your Brand

-       Get a mentor, business coach, or consultants. 

Donald Burns drops a great truth bomb in the next chapter he says:

“Restaurants become better when the people in them become better people”

He is not only talking about the bad apples of our staff, but ourselves. We have to become the best versions of our selves. 

It is a tough economy that seems to get tighter and tighter by passing week. Food costs are increasing, labor costs were already through the roof, yet some how we are expected to make a salary from the fruits of labor?

it seems like all we do is work away. We forget sometimes that the most important part is making sure we are making enough to afford our own lifestyle. Setting pricing can be tough and relies on many variables. 

Post Covid restaurant business is very difficult for many operators. We are fighting rising food and labor costs, utilities, and rent and we are combatting that with more hands on work around the restaurant. We are washing dishes, cooking on the lines, running food, and then the night is finally over we are too exhausted to fulfill our duties as owners or management. We want to provide a blueprint for a 30 day focus on your establishment to increase your profitability so you can have the funds for more staff, renovations, or simply , more money for you as the owner to enjoy our business.

1. Menu optimization: Analyze your menu to identify high-profit margin items and popular dishes. Streamline your menu by removing low-performing or low-margin items. Highlight and promote your most profitable dishes and consider introducing new items with higher margins. Additionally, regularly review ingredient costs and negotiate with suppliers to ensure you're getting the best prices.
 2.Efficient inventory management: Implement an inventory control system to minimize waste, spoilage, and overstocking. Monitor ingredient usage, track inventory levels, and establish par levels to optimize your purchasing and reduce food costs. Consistently review your suppliers to ensure you're getting the best deals and consider purchasing in bulk when it makes financial sense.
 3.Cost control and expense management: Scrutinize all expenses and identify areas where you can reduce costs without sacrificing quality. Look for opportunities to optimize labor costs, such as cross-training employees, scheduling efficiently, and monitoring staff productivity. Analyze utility bills and explore energy-saving initiatives to reduce overhead costs. Additionally, negotiate with vendors for better pricing on supplies and services.
 4.Upselling and suggestive selling: Train your staff to effectively upsell and suggest additional items or higher-priced options to customers. Encourage them to highlight daily specials, recommend popular dishes, and suggest add-ons like appetizers, desserts, or beverages. Well-executed upselling techniques can increase the average check size and boost revenue.
 5.Focus on customer satisfaction: Prioritize exceptional customer service to enhance customer satisfaction and loyalty. Provide training to your staff on proper etiquette, attentive service, and handling customer complaints. Happy customers are more likely to return and recommend your restaurant to others, contributing to long-term profitability. 
6.Optimize table turnover: Efficiently manage table turnover to serve more customers and increase revenue. Train your staff to provide prompt service, streamline order-taking and delivery processes, and implement reservations or waitlist systems to minimize idle tables. As a chef I always go back to the kitchen. I call it the Heart of House. The kitchen is the pulse that runs through the restaurant's veins. I want my kitchen driving ticket times and speed of service. I want my servers to have push to work more efficiently knowing that their kitchen is going to pump out the food in 8-12 minutes max, minus a well done filet. Is your menu set up that way. 
7.Business to Business should be a key element of your business. If you are interested in how to develop a Business to Business sales, I have a link below for our episode from a few days ago to help you along with your business 2 business development. 
8.Monitor and analyze financial performance: Regularly track and analyze key financial metrics such as food and labor costs, gross profit margin, and sales trends. Utilize restaurant management software or POS systems to generate reports that provide insights into your business's financial health. This information will help you identify areas that require improvement and make data-driven decisions to increase profitability.