What a dynamic sector you got yourself into!

Restaurants are a lucrative business but it always comes with a lot of challenges. Fluctuating suppliers’ prices, increasing labor costs, supplies shortage, and increasing rental costs.

Almost 60% of new restaurants fail within the first year of their business. that's why, it's important to understand the challenges that come with running that business.

Whether you’re an old or a new restaurateur, you still need to keep learning about running your business. It’s a never-ending process that involves checking your inventory, keeping up with the competition, watching your expenses, empowering your staff, and offering distinctive customer service.

Success takes perseverance and an extremely committed team that is willing to exploit all their experience and efforts for the growth of the restaurant.

So, what are the key factors that maintain your success?

Keep your accounting and especially costs in check

First, you must set clear financial goals and projections for at least 6 months. Forecasted sales and revenues versus incurred expenses (both fixed and variable).

Although the economy fluctuates frequently with unexpected global rising prices and inflation, you need to be prepared for to respond to these changes. One way to do it is to keep monitoring your accounting reports generated from the POS software to detect any changes in the expenses, suppliers’ prices, or additional unjustified costs.

You need to regularly monitor food prices and labor costs. It’s important to be able to cover your labor costs for 3 to 6 months at least.

While for food costs, you can always substitute items that are increasing in price, check food waste, and resize your portion.

Market your unique selling proposition

What makes you so special?

The unique selling proposition for your restaurant is the exclusive or unique benefit exhibited by your restaurant compared to your competitors, the “extra” that sets you apart from the rest of the restaurants.

It might be a special ingredient or a special health benefit for your ingredients. You might choose to strictly use locally raised and produced meat, cheese, and vegetables or organic vegetables and fruits. Your USP might be baking your pizza differently or grilling your burgers and steak differently.

Each restaurant can have a USP that sets it apart, calls for new customers, and keeps the old ones.

London Steakhouse used the catchy phrase “you are our guest while waiting” to explain to the guests that they will receive a free glass of wine with one of three appetizers they could choose from while waiting for their ordered food.

And this was a successful USP that attracted customers and remain competitive in the market.

There are many examples of how you can create your USP and it’s important to communicate it to your customers and highlight it to them on your social media and website.

Choose your employees wisely and recognize their effort

The tremendous work and follow-up needed cannot be done by one person. It takes a team of back-of-house and front-of-house employees and a manager that fully understands their responsibilities and can be accountable for their actions.

Start by implementing a hiring process that aligns with your values and mission.

Adding a few qualification questions or requirements always gives a clearer idea of how serious applicants are in addition to their experience.

Once you have this team, appreciate them and recognize their efforts and contributions if you want to have a devoted team that best represents you.

Always check growth opportunities for your staff and set clear rules for accountability.

Leverage technology for overall performance efficiency

Technology is one of the most important success key factors. If you want operational efficiency, rely on technology and automate tasks like inventory management, accounting and reporting, menu design, and engineering.

Choosing a POS software that offers different essential features like the ones mentioned above in addition to other tools like a digital QR code menu or recipe management should be a priority for you to maintain your success and ensure your growth.

It decreases human intervention and hence errors in all the different tasks starting from securing your stock to processing accurate orders.

It’s your way to upgrade your business with less effort.

Offer a distinctive guest experience and customer service

With all the competition, great customer service and creating a positive guest experience remain a competitive edge. Make a difference from the moment your guests park their cars, enter the restaurant, be seated, and the whole visit experience including the food taste and the payment process.

Your staff should be helpful, friendly, and knowledgeable. The music and the décor also matter depending on the concept of your restaurant in creating a nice mood.

Offer off-premises service

In the era of ghost kitchens, it became unavoidable in our current world to have an online presence and offer delivery options. Social media, a website, an application, or a partnership with a third-party delivery company are all necessary for today’s world's success and continuity.

Always check your inventory

You cannot run out of stock if you want your customers to keep visiting you. Update your stock count and don’t overstock your items as well. One way to do it is through an inventory management system that automates this task and generates purchasing orders depending on previous history and the need to avoid out-of-stocking.

There is no single recipe for success especially in a changing sector like hospitality. Continuity is the result of huge and consistent efforts.