One of the biggest reasons why restaurants go out of business is because they don’t have a well-designed budget. Having control over your business expenses, inputs, and services is the only way to get ahead in this highly competitive industry. If you’re looking for ways to improve your budget for the New Year, check out these seven tips to get you on the right track.
Understand Your Food Costs
Getting to know your operational costs and being able to estimate them properly will help you maximize your profits in the new year. To do this, you need to get your books organized, have well-controlled inventory, and study the reports so you can forecast your sales, realistically.
Hire The Right Staff
A major drag on your budget can be staffing costs. Having too many staff or unproductive team members can be a big waste of your money. Start off the new year with a review period, and look for ways to better use your staff. By hiring an efficient inventory manager, top of the line chef, and dedicated servers, while cutting back on the excess staff who are rarely on your payroll, you can improve your performance and profitability.
Know Your Customers
If you haven’t yet started surveying your customers or spent time looking at the turn over rates, the new year is the perfect time to start. Knowing what your customers like or don’t can help you improve your business. Catering to your audience can help you attract more customers and keep your repeat clients coming back.
Get An Online Presence
If you don’t yet have a website or social media page, make this a priority in the new year. The first place people go to look for restaurant information is online. If you’re not present there, you will be losing business. Don’t miss out on the opportunity to advertise your specials, connect with your customers, and showcase your menu.
The new year is also a great time to test out some new specials. Customers love getting a deal, and specials are a great way to generate some foot traffic during otherwise quiet hours. Just remember to track how the specials perform so you know which ones generate the most profit.
Fix Cash Flow Issues
There’s no better time than now to do a full business operation review and fix any cash flow problems. This may involve looking at your suppliers and see who is shorting or overcharging you or adjusting inventory issues.
Get An Inventory Management System
The days of excel sheets and paper invoices are long gone. If you haven’t yet switched to an inventory management system, you could be losing profits to your competition who has. Just imagine how much more money you can make if you could cut your ordering time in half and boost your team’s overall productivity.
When you need a powerful and easy-to-use restaurant management software, look to Optimum Control. Our software solutions will help you save money, get control of your inventory, organize your staffing and create an effective budget for the new year. Explore our services today!