Running a restaurant or bar is no easy task; running a successful restaurant or bar is an extremely difficult task. From management to food preparation to customer service, every aspect must not only work in unison but work efficiently to provide a great overall experience for each guest. Running a restaurant or bar doesn’t need to be about reinventing the wheel, the key is to learn from other’s mistakes and to improve upon aspects that can make or break an experience. Here are some of the most common mistakes that can happen during the operation of a restaurant or bar that can not only take away from your guest satisfaction but severely impact the profit margin, which can make or break the success of your establishment.
Unique Selling Point
There are a lot of physical aspects that dramatically help influence the success of a restaurant. Location, food, theme and so on all help determine what makes a restaurant unique. One of the most common mistakes, in the development phase, is not making sure your restaurant has that unique factor that will drive people through the doors. Whether it is distinctive dishes, a full menu of specialty cocktails or a wide range of craft beers, the atmosphere or the location, figuring out and focusing on the selling point of your restaurant is crucial for long term success.
The next extremely common mistake is developing too large of a menu. This often stems from the idea of trying to meet the wants of each customer that comes through your doors. Being an independent restaurant or bar provides a unique challenge of crafting a menu of food or drinks that will appeal to a large range of customers but also be financially responsible. Don’t get me wrong, there are some things that your menu should have, or drinks that you need but trying to stock and prepare something for everyone is just impossible. You cannot please everyone, and if you try, quality and profits will suffer. After figuring out your selling point, craft your menu around it and the clientele you are trying to target. It is ALWAYS better to do a smaller menu exceptionally well, rather than a large menu mediocrely.
Arbitrary Pricing Strategy/Invoice Changes
Too often do owners and managers price their menu items on a whim. Every ingredient has a specific cost, and the price of the items should reflect that. Arbitrarily pricing items is a quick way to put yourself out of business and not knowing your food and beverage costs is no excuse. Take the time to price everything out and figure out the profit margins you need to obtain to be successful. Also, inspect each invoice from food and beverage orders to catch any increases (or decreases) in costs. The food and beverage industry has volatile pricing and changes happen frequently. Your prices should reflect any such changes to keep your profit margins.
Food waste and overstocking are two of the biggest profit killers in the industry. Tracking inventory should not be a monthly task but instead done on a weekly basis. The more accurate your inventory stock is, the more efficient your ordering can be. Running out of key items is a cardinal sin as well as allowing overstock to go to waste. Proper bar inventory management is almost more of an art rather than a skill and should be treated with respect.
This aspect pertains more towards the bar operations but food portioning and waste can still be an issue on the restaurant side. Various factors can contribute to this detrimental mistake such as glass size, tap spout, improper training, POS mistakes or poor employee conduct. As mentioned above, each product that your bar or restaurant serves has a cost, and if the proper procedures are not met, spillage/portioning can ruin a restaurant or bar.
At Glimpse, we help turn unidentified risks and mistakes into profit that revolve around process compliance and human error reduction. By providing video analysis of audited beverage transactions, Glimpse identifies high-risk areas and provides reports to management that underline unaccounted sales with an image trail. Most often, management may be unaware of such areas and how significant their impact can be to the costs and revenue of their bar or restaurant. Let Glimpse help you capture more profit and increase your chances of success in a highly competitive industry. To learn more about the solutions we provide, visit https://www.glimpsecorp.com/video-auditing/.