5 Secrets to Successful Restaurant Management

Restaurant management entails a long list of challenges; public relations, staff, recruitment, inventory, ads, and sales, to name but a few. In many instances, a restaurant owner may be the restaurant’s manager which often takes a toll on them no matter how skillful s/he is.

The following are five secrets to successful restaurant management that every manager should know.

1. Know that the customer is always right

It’s the golden rule of literally any business. The way you handle difficult customers and resolve their complaints will either make them return to your restaurant or not. Make sure you hire professional customer service representatives who know how to listen, keep the customer experience positive, and solve problems creatively. A great part of restaurant management is not just to meet customers’ expectations but to exceed them as well.

Tip: Update your customer service training manual to include any changes to your menu or services.

2. Find the best person for each role

From waitstaff to kitchen staff, make sure you hire the right fit for the job. Check references and establish a probation period of at least one month before an employee is permanently hired. Your restaurant management skills shouldn’t stop at hiring skilled employees. High calibers who possess strong interpersonal skills should be given priority, especially in the restaurant business where teamwork and communication are indispensable.

Tip: Offer incentives, bonuses, or promotions to keep staff motivated to move to the next level.

3.  Find ways to get exposure

There are endless ways to advertise your restaurant. But first, be sure that your restaurant management dynamics are up for such an adventure, for a single ad may bring in a ton of customers to your place all at once. Surely, the easiest way to promote your restaurant is through word-of-mouth. However, digital marketing is the best option out there today considering the huge number of web users. Start with your website and add to it appealing photos, easy-to-read menus, and accessible promotions. Then, work your way up to social media, specifically Instagram.

Tip: For in-depth Instagram restaurant marketing strategies, check out these twelve ideas here

4. Expand sales and cut costs

This is ABC restaurant management and, basically, how you make a profit. Catering to larger or smaller events is one idea. Another is featuring promotions and discount trends. The most important thing to keep in mind is to keep your food costs low and profits high without compromising the quality of your menu or services. An interesting menu that makes customers receive value for their money should always be on the top of your list.

Tip: Switch to energy-saving light bulbs and low-flow faucets to save the environment and save on bills.

5. Monitor Cashflow

Building upon the previous point, keep a close eye on the amount of cash coming into your restaurant business as opposed to the amount going out. Make cashflow-monitoring a major part of your daily restaurant management tasks. Also, run a weekly and monthly cashflow-check to avoid financial risk.

Tip: Employ a POS system for your restaurant to track sales, cash flow, and food inventory. To learn more, click here

If you’re interested in learning more about this subject, you may want to check out our article How Restaurant Management Can Save Struggling Restaurants  

Tips for Using Coupons in Restaurant Marketing

Just like any other business, the restaurant business is all about making a profit. This greatly depends on restaurant marketing to drive dining traffic. Two ways to achieve that are first, increase the retention rate of your current customers so that they become what is known in the business as “loyal customers”. Second, grab the attention of new customers and drive them into your restaurant.

How do coupons drive dining traffic?

Coupons should be a top restaurant marketing strategy. When you offer current customers a “bounce-back” coupon, their loyalty is strengthened. As for new customers, a “first-time” coupon attracts them to choose your restaurant over the rest.

Below we elaborate on how restaurant marketing may benefit from coupons to generate traffic in addition to a few tips for their use.

1. Coupons win new customers

Some people who haven’t heard of your restaurant. Also, some potential customers may have heard of you but need that extra incentive to drop by or place an order. In both cases, coupons work and help you widen your target market. It might just be the tweak your restaurant marketing strategy needs, especially in tough times.

2. Coupons attract Internet users

Many people browse the Internet searching for new dining options. A smart restaurant marketing tactic is to have your website’s homepage show a coupon or even mention it in your website’s meta description on Google as it pops up in the search results. This gives your restaurant an edge over competing businesses.

3. Coupons grab the money-savvy

Some people are coupon shoppers who simply won’t buy anything without a coupon. It’s worth mentioning that according to a study, coupon users visit restaurants on an average of 7 times a month as opposed to 4.8 times for non-coupon users; another reason to keep coupons a part of your restaurant marketing strategy.

Tips for using coupons to drive dining traffic

1. Email your coupons

To send coupons through an email marketing system won’t cost much as you’ll only bear the cost of your email service provider.

It’s a good idea to set up a coupon strategy before you send out coupons to all registered customers. For instance, you can send out a coupon with a certain percentage of discount to current customers. Another coupon with an extra discount could be sent out to new customers right after they sign up along with the welcome email.

2. Post your coupons on social media

Go the traditional way and post your coupons on social media platforms such as Facebook, Instagram, and Twitter. You probably know that restaurant marketing heavily relies on social media ads as well. So, running a geo-targeted ad with your coupon is one good idea.

Another idea is to have the ad direct users to a landing page on your website where they must sign up for your email list to access the coupon.

3. SMS message your coupons

If your restaurant marketing plan includes SMS messaging, you may simply send your customers coupons in your text messages. Anyone subscribed to your text message marketing list shall receive the coupons. To get more people to sign up for text messaging, let them know through a social media post that upon signing up they’ll receive a coupon. It’s a win-win for everyone.

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Avoid Overspending On These 5 Things With Good Startup Restaurant Management

Launching a restaurant business starts with a well-thought menu, delicious food, and enjoyable ambiance. However, the challenge doesn’t stop at that point. The reality is that starting up a restaurant is tougher than you may think. And making money off of it requires excellent restaurant management skills, especially when it comes to cutting spending on things unnecessary.

Below we’re going to discuss five things startup restaurants spend too much on along with ways to employ restaurant management in reducing expenditure.

1. New Equipment

Restaurant owners dream of having the best kitchen equipment. And sometimes the purchasing process lures them into overspending on new, high-branded equipment. We’re not asking you to overlook quality. The point is, you can get the equipment you have in mind at lower prices by looking into second-hand options. Another trick is to look for restaurants that are shutting down. You may find real bargains there.

Ultimately, buying only what you need the most will sharpen your restaurant management techniques and help you save cash.

2. Technology

You don’t need every latest technology trend in your startup restaurant. A rule of thumb is to set a budget and stick with it. Prioritize your needs and always look for technology that will make your restaurant management job easier. You’re advised to invest in bookkeeping and point of sale systems. Moreover, an online ordering system is an investment that is cost-effective compared to the benefits.

For the best online ordering system, check out Taker

3. Sales and Marketing

It seems very tempting to overspend on sales and marketing, especially if a person is not fully aware of the consequences. The urge to rush profit may drive restaurant owners or managers to hire a costly agency or pay for expensive ads and sales teams.

The solution is to integrate market research into your restaurant management plan. Once you set your budget, try using organic reach as well as low-cost social media ads.

Also, a website blog will drive in traffic in the long run, while for a quicker approach, flyers work well when it comes to offline marketing.

4. Redecorations

Remodeling and redecorating are costly for any business. With a startup, both could be a strain on your budget. Know your priorities and decide on what is most important accordingly. Leave room in your restaurant management strategy for sensible redecorations. Some of the most affordable paint colors, lightings, textiles could create the atmosphere you’re seeking without overspending. Also, on the plus side, when you spend less on redecorations, you’ll have spare cash for emergency expenses.

5. Food

Your restaurant management skills are put to test with food management. Of course, you should be looking for quality, but that doesn’t equate to exaggerated food expenses. If you diversify your sources and build good relations with multiple local vendors, you’ll always have the chance to pick and choose what suits your budget. Things like evaluating your menu and portion size every now and then will also help you identify areas of waste and consequently save more money.

7 Common Problems to Overcome with Effective Restaurant Management

To venture into the food industry, you’ll have to expect loads of risk and competition. And to overcome both, you need to adopt a detail-oriented restaurant management style. In this article, we list seven of the most common problems restaurants face and how to handle them through effective management.  

1. The Menu

A good menu is a balanced one that offers enough options at appropriate prices. Narrow down the menu according to the theme of your restaurant as too many dishes mean too many ingredients, longer ticket times, lots of work, and more time producing orders.

To improve your menu, here are some points to consider in your restaurant management plan:

  • Incorporate real photos of some of your dishes in your menu.
  • Ensure your menus are clean and are kept in very good condition.
  • Update your menu and prices at least once a year.
  • Make sure your staff are well-oriented and briefed on all menu details and changes.

2. Customer Service

“A happy customer is a repeat customer.” Your restaurant may have it all from delectable food to a perfect atmosphere, but the key to a great customer experience is equally great customer service. Your restaurant management should ensure all staff members are dedicated to the well-being of your customer. Small welcoming and farewell greeting gestures could make all the difference.

3. Selling Point

Your selling point is why a customer should choose your restaurant over the competitors’. For you to build a unique selling point, you need to exceed expectations. A unique selling point could be food or restaurant management-related (e.g., service), but that’s a given. People look for more than food and service when dining out. For instance, it could be your restaurant’s ambiance, vibe, and how the overall experience is like.

4. Business Analysis

Handling day-to-day operations shouldn’t make you overlook the most important success factor of all – restaurant management. Keep track of the daily number of customers, ordered items, profit margin, and loss. As you break down the details, things will become clearer. You’ll find ways to stick to your budget, and you’ll make the necessary tweaks your marketing and sales plans need.

5. Recruitment and Training

Hiring and training the right employees makes restaurant management a tad easier. Hiring the wrong fits may lead to a high turnover rate and negatively impact your restaurant’s reputation. As you hire the right staff, make sure they receive updated training. The more they feel motivated and goal-oriented – whether through moral or financial incentive  –  the better their performance will be.

6. Marketing

Restaurant management and marketing go hand in hand. Most restaurants either overdo marketing or don’t pay enough attention to it. Start with the basics as in your brand identity, then set a six-month plan. Your website should be given special dedication and make sure it’s user-friendly on desktop, tablet, and mobile. Further, hire a digital marketing specialist to promote your restaurants on the web and social media.

7. Funds

This problem is the most common and the most difficult to handle. Not having enough capital may threaten a restaurant to shut down in the first year. The golden rule is to never start a restaurant without enough funds to keep it running for at least a year so that it is given ample time to establish itself. Also, effective restaurant management helps save money for unexpected costs or emergencies which proves how crucial management is to the restaurant business.

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