Business as usual went out of business a long time ago. And hospitality businesses that do not chance with the times are risking the same fate!
No matter what business you’re in, profit is naturally linked to efficiency. And when restaurants operate on tight profit margins you’ve got to be as efficient as possible, whether that means changing FOH or BOH, or changing your ordering to reduce kitchen costs, cutting labour costs, or establishing a reservation system to prevent diners from no-showing.
There are various methods that you can use to scale your business operations and make it more productive.
One of the easiest ways to get more efficient is by installing an online booking system. These can save you time and money, and it means you’re able to take bookings 24/7. There’s no need to employ someone to answer phones, respond to emails or confirm bookings – it’s all done for you. Many restaurant’s in worldwide are now taking more than 50 per cent of their bookings online, you can literally be taking bookings in your sleep.
Prevent yourself from bleeding revenue, if a diner no-shows on a Friday night, that’s revenue lost. No-shows cost restaurants big money each year, and preventing them is a sure way to keep your revenue rolling. Secure each booking with credit card details to deter customers from no-showing. Restaurants using payment systems have eliminated no-shows completely and this is a sure way to pump up profits.
And that’s just the start. Scale your in-house activity by using technology to your advantage. Become a fully integrated business using a POS system before, during and after service, to deliver a flawless customer experience time and time again.
The industry really has come a long way. But despite all the changes, some things will never change – one thing is and always will be true, your customers are your very best asset. By developing a solid customer database, you can drive revenue and scale your business choices accordingly. Build detailed guest profiles, send targeted messages about upcoming events or specials, nurture and develop a relationship with your database, and turn customers into repeat diners.
Whether you’re a small or large venue, restaurants need to look after themselves and scalability is the way to do it.
There are and always will only be two ways to increase profits – increase revenue or decrease costs and expenses!!