5 Ways to Fix Your Failing Restaurant

restaurant pos

If you have been in the restaurant business for a long time, then you know that how difficult it can be. Around 90 percent of the restaurants fail in the first year. Though it is almost certainly an exaggeration. All restaurant failures are not inevitable. Understanding the working parts of the business can help you to turn your restaurant business.

Obviously I can’t say it for sure that what’s ailing your place of business.

But here are five tips which can help you:

  1. Crunch the numbers: If you are juggling with funds and money is tight in your bank account, then you might feel like to avoid the reviews of financial statements. This is a very difficult time to scrutinize the financial performance. Your restaurant can fail for many reasons like too much money going out, too little coming in or maybe both. So track the cost of sales, direction of sales and other expenses. So that you can understand and know what exactly you need to work on.


  1. Focus on food costs: The food costs of a restaurant can break or make your restaurant. It is the most important thing in profitability. So to know how much you are making on each menu item is very important to have a healthy bottom line. Based on the current supplier prices, cost out each meal and make sure that whatever you are charging for the dish should cover the cost of producing it and also have a healthy margin. The food cost should not be more than 35 percent of the menu price. However, each type of food should have a different ideal food cost. If the food cost is high, then review the supplier list and change the menu to have higher profit items.


  1. Read online reviews: If your sales are decreasing, you should find out why it is happening. Read the reviews of your customers what they think. It is the best way to get honest feedback. If you have few bad reviews that don’t mean your restaurant have a problem. But if maximum reviews are bad and have the same issues then you should fix those issues to bring your business back. There are some sites that allow to respond to reviews. So be sure to let the customers know that you have addresses those problems.


  1. Streamline employee management: The employees are the key to run a business smoothly. To have a great service in your restaurant, you need the right people with right personalities and skills. Employees, who aren’t cutting, need to be sorted, but if they don’t improve just replace them. Helping your employees and keeping moral up to feel valuable will make them happy and harder working. Make sure you are not wasting your money on the staffs. So you should keep a track of training programs, hours, food discounts and other little things. Streamlining all these jobs into an efficient, simple electronic program is the only way to keep a track what’s going on in your restaurant.


  1. Turn the Tables: If your customers are waiting for a table daily and it’s like a routine then it is a disaster. Every business has slack and busy times. It is very critical to get your customers in and back out again when the restaurant is busy. So no one has to wait for a long time. It doesn’t mean you should rush your customers, but make sure they get seated and you stay on the top of their list. Clean the table, even if you have to hire additional bussing staff. During the rush, the more tables you can turn the more sales you will make.

So managing the restaurant and paying attention to the numbers will save you from failure. Try to make a loyal following and serve them delicious as well as profitable food. You will see your bottom line will improve.