The purpose of any business is to, of course, make money and this is done when revenue exceeds costs. In theory, it is a simple equation, but in reality, especially for restaurants and bars, it is not that simple. There are many aspects of the operations that can dramatically affect the profits like food inventory management, unaccounted sales, employee performance, customer satisfaction, food/beverage waste and much more. The good news is that there are several ways for a restaurant to increase restaurant profits by significant amounts.
Here are four of the top ways to increase restaurant profits:
This is perhaps the most important and influential way to drastically increase restaurant profits. A 5-10% increase in each transaction can have a huge impact at the end of each night. An extra appetizer, a cocktail or two, dessert or even a bottle of wine is all it takes to make a difference. Remind your employees that the restaurant and bar business is about making sales.
Communicate with employees
Keeping your employees informed of the goals is very important to motivate them to give their best performance. A brief meeting before each shift or a weekly staff meeting can go long ways towards keeping everyone on the same page and working towards a common goal.
Turning first-timers into loyal customers is very important. A Harvard study of the restaurant industry showed that increasing the number of repeat customers just 5% could increase restaurant profits by 25-125%. Great food needs to be complimented by exceptional staff to give customers a memorable experience worth coming back for.
Identify high-risk areas
Capturing all potential revenue is the key to success in the restaurant industry. However, there are various opportunities for revenue to be lost during the process. Unaccounted for sales, poor employee performance, and customer service, loss and theft are all areas that can negatively impact profits.
Glimpse provides the solution to identifying these areas of high risk. By capturing standard operating procedures through video, Glimpse provides restaurants audited reports with time-stamped images that are matched up with the pos systems for restaurants and bars. Glimpse is focused on helping to control costs and capture all revenue.
To schedule a demo or learn more about how Glimpse’s services integrate into the point of sales system for small businesses, visit https://www.glimpsecorp.com/video-auditing/.