Over the past 18 months, restaurants such as Bennigan, Village Inns, Old Country Buffet, Bonanza, Black Angus and FatBurger have all been involved with the US bankruptcy protection. This is a rigorous evidence that the restaurant industry is not free from the current economic crisis. This crisis has left independent chains and franchise operators who would ask what to do now?
Before discussing this issue, consider what we know about today's business environment. We know that consumers spend less. In view of the lack of easy borrowing, the loss of wealth and the loss of significant jobs; consumers simply do not have the spending power they once enjoyed. As a result, we can conclude that less total cost turns into a combination of less frequent guest visits and less spending
According to these realities, there are three things for restaurant service providers to improve their survival and prosperity:
1) Improving noise
2) Adapting to market opportunities, and
3) Improve their operation.
Tuning the noise
Most people overwhelm the negative information about the economy. It's hard to turn on the media without reporting the bad news. While it is useful to keep track of industry trends and important news, it is important to avoid overcoming the pressing economic hysteria.
The fate of AIG, General Motors and Chrysler is not what it may be likely to affect. The duration of consumption of such macroeconomic concerns may be distorted. Under our current circumstances, we must devote full, focused and reasonable attention to our operations.
Adapting to Market Opportunities
In its 2008 book, Tuned In: Discovering Extreme Opportunities That Lead to Business Breakthroughs, Craig Stull describes a strong "Tuned In Process" products and services that resonate with consumers. The author believes that in understanding customers and growing demands it is better able to create the products and services that are successful in the market.
Now is the perfect time to look at the new opportunities market. It is worth considering how the needs of your guests have changed in recent months if current promotions work or if your marketing channels reach the desired customers. Hope lies in focusing on guests and potential guests to explore new ways to increase traffic and sales.
No one can afford to make profit on the table today. So, if you know what your market is and how you can reach them, the next step is to make sure your restaurant is working effectively. Provided you have identified some of your new ways to increase sales, focusing on maximum margins and cost controls to achieve better profits. Your menu, recipes, manufacturing practices, and service standards are a good starting point.
Have you recently analyzed the performance of the menu? Consider slow sales removal? Thinking about low margin items instead? Do you promote popular or popular popularity? These are just a few ways to easily improve the bottom line.
Recently, have you tested any new items for recipes and production methods? You have looked at recipe pack sizes and manufacturing routines to reduce waste. Do you manufacture smaller items more often to improve quality and reduce waste? Finally, it minimized waste related to over-dosing and service defects. I admit that these nuts and bolts in business are not sexy. However, these are the most often ignored sources of untapped profits.
Winston Churchill said, "It's a mistake to look too far, only a link in the fate chain can be handled at once." as I support the strategic approach to business, I must agree with Mr. Churchill. Such times require that we improve noise, enter market opportunities, and improve our operations.
Source by sbobet