If you listen to the news, you know that the restaurant industry continues to grow. So why do so many foodservice businesses struggle?
If things are so great and business is booming, why are so many not making the profits they should? It’s rather simple: balance! That’s the view of Donald Burns, a leading authority, author, and restaurant coach. He further elaborates…
“On one hand, it is a business of emotions. Passion, service, hospitality, pleasure, indulgence, and entertainment are common emotional drivers. It’s also, however, a business of control. Stock, systems, attention to detail, precision, and consistency are all needed to make a foodservice business last. These two elements need each other to survive. The problems come when you focus too much on one and not the other.
“Here are five common areas that will eat away at your profits:
1. Bad Pricing Strategy
When you match other food businesses as far as menu items and then try to lower your pricing to undercut theirs, you lose. Your business is now a commodity. You might get business in the short term, but those quick sales are not so great when you look at the bottom line.
You don’t want to compete on price. You want to stand out on value.
2. Bad Delegation
Many restaurant owners get stuck working in their business instead of on their business. It’s easy to get drawn in and get trapped there. You want your business to be successful, that’s understandable.
It’s as simple as this: Your business will not grow until you focus on the things that can grow your business.
3. Bad Hiring
We know that getting the right people on your team is important. Who you allow to interact with your customers is one of the critical decisions an owner or manager makes. Sometimes, it’s not the person you hire that hurts your business… it’s the one you don’t fire.
4. Bad Controls
Most business owners know what they should do.
If you know there is something you should do in your business to improve your bottom line and you are not doing it, then you need to turn that should into a must! Drop the excuses as to why you cannot get those things done.
5. Less than 100% Commitment
When failure is an option, there is a lack of commitment. Businesses will never see the profits they want until the owner makes a commitment to do whatever it takes to succeed. Then do whatever it takes to make it happen.
Simple, but not always easy.
