How Restaurant Management Can Save Struggling Restaurants

Restaurant-running isn’t for the faint of heart, and here’s why. Studies have shown that 60% of restaurants close down in their first year and 80% within their first five years. Wondering what the average lifespan of a restaurant is? Unfortunately, the answer is 4.5 years. 

Below we list some of the reasons behind restaurant struggle and how restaurant management can help revitalize a failing restaurant business.  

Why restaurants struggle

There are several reasons why restaurant businesses struggle. The top three, however, are inconvenient location, lack of expertise, and mis-hired staff.

1. Inconvenient location

It has nothing to do with restaurant management, but it may be the main cause behind a failing restaurant. Wrong demographics, low foot traffic, poor visibility, overpriced rent, lack of parking area, and having many competitors within the same neighborhood may all outweigh the great food service management you provide.

2. Lack of expertise 

This applies to all staff members, especially the restaurant owner. To become a successful restaurant owner, you need not only restaurant management experience, but also good knowledge in accounting, food preparation, customer service, and to make sure everything is working smoothly. 

3. Mis-hired staff

Hiring the wrong people goes from lack of skills to a bad attitude. Look for calibers who have the right professional skills in addition to good soft skills. Besides giving fair salaries and benefits, make sure you provide them with growth opportunities and make sure your food service management makes room for flexibility. 

How to save a struggling restaurant

Here are eight strategies to save your struggling restaurant from permanently shutting its doors.  

1. Neaten up your menu

Picking up a special cuisine and sticking to it makes your food service management job easier. Always double-check the spelling of your menu and the featured prices as well. 

2. Extend your opening hours

It may be too much restaurant management work, but it proves to be accommodating for early birds who are looking for quick breakfast or brunch options. 

3.  Use a table reservation system

A table reservation system is an integral part of a successful restaurant management system as it allows for smooth reservations and less waiting time. 

4. Build customer loyalty

Repeat customers may be your most important marketing tool. Offering them a discount or free desserts as a part of your food service management system will make them feel special. Hence, positive word of mouth. 

5. Examine your finances

As previously mentioned, solid financial knowledge makes for a great deal of restaurant management. Know your earnings and spending and make adjustments accordingly. 

6. Offer online ordering and delivery

Keep up with new technology. Consider online ordering, delivery, and pick-up options. It may require some tweaks for your restaurant management system, but it’s worth it. 

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7. Reflect on your customer feedback

Respond to customer reviews, whether positive or negative. Negative reviews help pinpoint drawbacks to be addressed later in your food service management. 

8. Use social media

It’s not enough to be present on social media. Being active is even more important. Post your latest promotions and specials. Also, hiring a team to market your restaurant on social media and Google should be a part of your food service management system.