PROTECTING THE BOTTOM LINE

Making Restaurants More Profitable

  • Gross Sales versus Net Sales

    Gross sales and net sales are key metrics that restaurateurs must grasp to effectively manage their finances. Gross sales encompass the total revenue without any deductions, painting a broad picture of income. However, this number can be misleading without considering the net sales, which factor in specific deductions such as discounts, returns, and allowances.  Net Read more

  • Guest Frequency Composition

    The guest frequency composition in a restaurant is a delicate and essential balance that significantly impacts revenue and profitability. Understanding this composition and striving for an ideal mix can help in creating targeted strategies to maintain and grow your business. Maximizing profits in the restaurant industry requires a keen understanding of guest frequency composition and Read more

  • Pricing Models: Finding the Sweet Spot

    The art and science of pricing in the restaurant industry is a complex yet essential aspect of achieving success, involving a delicate interplay between psychology, economics, market trends, and customer behavior. Finding the perfect balance between what the customer is willing to pay and what the business needs to make a profit isn’t merely about Read more

  • Lapsed or Very Infrequent Guests: Triage Opportunities

    Lapsed or very infrequent guests represent a segment that, at one point or another, connected with your restaurant but has since drifted away. Whether due to a change in location, financial constraints, a negative experience, or simply evolving preferences, these guests are no longer active contributors to your revenue. However, this doesn’t mean they are Read more

  • Engaging with Local Communities

    Engaging with local communities is not just a noble endeavor but a strategic business move that can significantly boost a restaurant’s profitability by increasing foot traffic. By forging connections with schools, churches, universities, hospitals, and other local businesses, restaurant operators become integrated members of the community, rather than isolated entities. Reaching out to these establishments Read more

  • Navigating the Necessary Evil: Raising Prices in the Restaurant Industry

    Raising prices in the restaurant industry is an unavoidable and often complex process referred to as a “necessary evil.” As restaurant operators grapple with wage and food inflation, they must find ways to pass along these increases to customers to maintain profitability without alienating them. Determining the right time to adjust prices is a delicate Read more