You’ve already heard the legend that most restaurants fail within the first year. Losing money doesn’t have to be a reality if you focus on increasing restaurant profits — without raising menu prices unnecessarily or slashing too many staff members. With smart food purchase planning and a sharp eye on non-menu costs, you can maximize restaurant profits while assuring an enjoyable customer experience.
Give Promotions on High Margin Menu Items
Dan Rowe of Fransmart works with successful restaurant franchises such as Elevation Burger and Freshii that have earned impressive profits despite rising food costs. If you own a franchise, you probably already benefit from group purchasing power — a smart play that independent restaurant owners cannot always make.
To make up the difference, Rowe suggests offering limited-time promotions on high margin menu items that provide value to the customer. Rowe also believes adjusting the menu to reflect the lowest cost foods is wise. That’s a tasty strategy, considering items on sale are likely to be in season, and therefore more flavorful.
How is your staff? Do you hear frequent complaints regarding service, or see lots of smiling and hear “We’ll be back?” If your customers are less than thrilled with the quality of your food or service, it’s time to reevaluate your staff. Even a restaurant with excellent, or at least reliably good, food will suffer if the service is rude or inattentive. Teamwork matters in a restaurant, and you should spend a large amount of your time actively supervising your staff and interacting with your customers.
If your staff is attentive and professional but you’re still wondering how to increase restaurant profits per order, consider when you’re busiest and adjust as needed. For example, if you run a restaurant in a business district that empties out at night, cutting back on nighttime hours and personnel is probably wise. Alternatively, if breakfast is busy and people line up out the door for your pancakes and waffles, perhaps adding more short-order cooks, small tables and early morning waitstaff is wise.
Payment Processing Fees
How many of your customers pay in cash and how many pay with credit or debit cards? If your restaurant is like most, the majority of your customers pay with cards. Accepting cards is a necessity in today’s business climate but you can reduce the rates you pay if you search for a low-cost payment processor.
Finding a competitive rate on payment processing is easy when you partner with Native Merchant Services. As a Native-American-owned business, we don’t pay taxes. When you choose us for your card payment processing services provider, you’ll pay the lowest rates in the industry.
You’ll also get the latest payment technologies and best-in-class customer service — which means you can increase your restaurant’s profits without affecting staffing, food quality or customer experience. For more information, contact Native Merchant Services.