The economic down turn has caused many restaurant operators to come up with proven ways your restaurant can survive a tough economy.
Many businesses in the United States are in extreme distress because of the recent economic plunge. Restaurants have been especially affected by the dramatic increase in operational expenses and drop in customers. A recent survey showed that 54% of people preferred to eat at home rather dine out because of the economy.
Transportation costs and commodity prices have also significantly increased. In 2008 from July through November, there was a loss of more than 67, 000 jobs in the restaurant industry. As a result, many restaurant operators had to come up with ways to keep their restaurants operational. There are plenty of proven ways to ensure your restaurant can survive a tough economy.
Proven Ways To Ensure Your Restaurant Can Survive A Tough Economy
1. Re-evaluate Your Business Plan
Your business plan is the overall plan for how you expect your business to grow and how to put into use the budget you allocated to your restaurant. Revise your business plan and analyze every single detail to find out if your strategy needs to be changed.
Restaurant operators who do this more often find that in order to stay in the competition, there are certain things they have to put on hold. For instance, they may need to put on hold plans to hire, drastic redecoration and minimizing other overhead expenses.
2. Examine Your Profit And Loss Statement
Going through your profit and loss statement might show you areas where you can trim expenses. Start by analyzing your most expendable or smallest cost first. Check to see if you can cut costs on building repairs or if you can cut some of your advertising or marketing expenses.
3. Analyze Your Menu Items
Are you serving appropriate portion sizes to your customers? Are your menu items profitable? Analyze the gross profit of each item and check to see how often customers order for it. If customers like certain signature dishes or popular plates, don’t alter them because they will see this as a drop in value. If certain items are not bringing in any profits, then you should axe them from your menu.
4. Be Willing To Adjust
If your budget allows, you can adjust your menu to suit current customer trends. If your customers are leaning towards healthier, organic items, you can adjust your menu to accommodate them and also to keep up with the competition. If customers prefer to browse on their smartphones or laptops while at your restaurant, look into how you can provide Wi-Fi. Some changes are actually worth it if they can attract more customers in the long run.
5. Provide Exceptional Experience
On the list of your top most priorities should be providing quality customer service. This is one of the proven ways your restaurant can survive a tough economy. In a poor economy, restaurants that provide exceptional experience to their customers have a better chance of sticking around.
6. Get The Best Deal
Communicate with your suppliers often and ensure that you are getting the best possible deal on supplies. Although your primary concern shouldn’t be the price of food only, it doesn’t hurt to shop around for better food and beverage prices.
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When choosing a new vendor, make sure that you check references. Find out which restaurants they serve and contact them so you can get an idea of how they do business. Remember that the vendor who offers expensive products isn’t necessarily the one who provides the best products. You may find cheaper products that are of a better quality.
Apart from finding product suppliers, you should also consider leasing kitchen equipment. Leasing is one of the proven ways to ensure your restaurant survives a tough economy. It allows you to acquire equipment at a relatively cheap price without the need for a large cash outlay. You will only have to pay for using the equipment but there are some equipment leasing companies who can offer you a lease-to-own agreement. When you sign this agreement, you will be able to own the equipment after making a certain amount of lease payments or at the end of the leasing period.
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