PROTECTING THE BOTTOM LINE

Making Restaurants More Profitable

  • Cleaning Costs

    Investing in the right cleaning supplies is a crucial aspect of maximizing restaurant profit, but it doesn’t mean you need to overspend. It’s necessary to maintain a clean and sanitary environment to create a pleasant dining experience and comply with health regulations. Cutting corners by purchasing inferior cleaning products may save a few dollars initially Read more

  • Creating Frequency and Buzz with Limited Time Offerings and Secret Menus

    Promotions and Limited Time Offerings (LTOs) have become integral parts of modern restaurant marketing strategies, driving both frequency and experimentation among guests. LTOs are designed not just to increase profitability but to create craveable experiences that appeal to core, lapsed, and/or new customers. By offering a unique dish for a restricted period, restaurants can generate Read more

  • Knowing Your Gross Profit

    Gross profit is a crucial measure for any restaurant, representing the difference between net sales and the cost of goods sold (COGS). It provides an insight into how much of the sales revenue is retained after covering the direct costs of producing or purchasing the goods sold. To calculate gross profit percentage, you take the Read more

  • Discounting Strategies: Balancing Profitability with Customer Value

    Discounting strategies in the restaurant industry must strike a delicate balance between attracting value-seeking customers and maintaining profitability. In a climate where inflation is driving customers to seek lower-priced food options, the challenge lies in crafting deals that resonate with different demographics without undermining the bottom line. Understanding the customer base is essential in tailoring Read more

  • Supplier Relationships

    Establishing good relationships with your suppliers is a strategic approach that can significantly impact the profitability of your restaurant. By fostering friendly connections, you may find yourself in a more favorable position when it comes to negotiating prices or resisting price increases. Such rapport can translate into real financial advantages, as well as provide access Read more

  • Staffing Needs

    Understanding staffing needs is a vital aspect of running a profitable restaurant. Unlike traditional office roles where employees might work a standard 40-hour week, the restaurant industry demands flexibility to meet fluctuating customer demands, avoid overtime costs, and cope with inevitable turnover. For example, if you have eight employees working in the restaurant at once, Read more