Common Problems at Restaurant Operations
The food industry is a high-risk business proposition. You’ve got a lofty level of competition and a lot of details to perfect. According to an often quoted study, 60% of businesses fail in the first year. How do you ensure your restaurant’s success?
You can help increase your chance of success by understanding seven of the surprisingly common problems restaurants face and developing strategies to combat these issues.
Common Problem #1: The Menu
One of the most common problems restaurant owners face is the menu. A good menu is a balancing act. Do you have too many or too few menu items? Are your dishes priced appropriately? Does your menu have a coherent theme?
Common Problem #2: Customer Service
First impressions are important. Poor customer service is often a deal breaker for customers. Your food may be outstanding, your table settings exquisite and your ambiance delightful, but if your service is bad, customers will remember.
Common Problem #3: A Unique Selling Point
Are you a bakery or a bar? A diner or romantic experience? Your customers need to know why they should eat at your restaurant and not at your competitor’s.
Common Problem #4: Management
Don’t overlook one of the most important pieces of the puzzle – management. You need to know how to analyze your business to make sure it runs profitably. Many small restaurants don’t pay attention to the following items as they manage the day-to-day operation of their restaurant.
Common Problem #5: Hiring and Training Staff
Most successful restaurant owners know the importance of hiring and training the right employees. Yet, a common problem exists as many restaurants hire the wrong people and have a high turnover rate. An incompetent staff can also irreparably damage your current and future customer base.
Common Problem #6: Marketing
Many owners fail to pay enough attention to marketing making this a common problem in the restaurant world. Following are a few areas to attend to now in order to avoid the pitfalls that not-enough marketing.
Common Problem #7: Capital
Finally, we come to an area where many restaurant entrepreneurs run into big problems. This looming problem is capital, and more specifically, a lack of it. Restaurant owners need enough capital to run their business so it can fully establish itself. Owners should plan to have at least enough money to run for one year. Additionally, restaurant owners need to have enough financial resources to cope with unexpected costs and increases. Read more……
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