How to Reduce Costs in Your Restaurant.
Too often over the years, when things get tough, cutting costs is the primary objective when you hear the accountant or boss say "you must reduce costs in the restaurant".
The cost cutting often times cheapens their product and service which turns people off ... and the result often times is temporary price discounts to attract the old customers back in.
And the tug of war goes on.
Instead, having a vision will keep the team inspired, be contrary to the typical business and your offense with a strong message about your new service/product will keep the people excited.
There are methods to reduce costs without reducing the quality and service.
Phone: VOIP is quickly becoming a standard. The tracking ability for each marketing campaign has never been so readily available.
Want to learn more about how a VOIP telephone system can save you money, help your marketing dollar be more effective and get a bigger bang? www.voip-news.com is an excellent reference. They have a free newsletter and people who are knowledgeable to help you as well.
The goal: Save on utilities, increase the phone options, improve the performance of your marketing dollar with tracking every call, every campaign.
Want to reduce costs more? Sure....
Recently we had brunch at Salty's in Redondo Beach, WA. While I have dined at Salty's in the past, it was my first experience with their Sunday Brunch. They used an online reservation system http://www.opentable.com which is free to the customer. Of course the restaurant was packed full with a line out the door (even in poor economic times) and the selection was outstanding. Each item on the buffet kept us going making the good food noises... and the service was excellent. All through the restaurant, even with the wait, there was nothing but very big smiles on the guests served by an energetic helpful staff.
A moment which struck me as unique and memorable as a restaurant operator was when the waiter brought over two fresh baked scones in Fisher branded paper sleeves. They were served straight to the table, not left on buffet as a choice.
Yes, the scones were fresh, tender, tasty and appreciated. They were also filling and certainly cut back on my ability to take advantage of the outstanding choices on the buffet.
The reminder: The menu mix is decided by the restaurant owner and team. What customers respond to is left to your menu, your team, your suggestions.
Do not cheapen it with marginal products or service but use those items which are less costly as a method to enhance value (but may cost less) (we both agreed if the scones were left on the buffet, we would have passed by for the more expensive foods)
If your goal is to reduce cost of sales by 1% to 2% and you feel your controls are already maximized, consider how you might change the mix of what your guests are eating.
The buffet price per person at Salty's is $32.00 per head. I am not always a fan of buffets nor of hyped prices. In this case, it was worth every penny.
What are you offering your customers where even at higher prices will have them standing in line?
If you do have the unbelievable ready and the service is great but empty tables still exist, pick up the eBook "10 Magic Marketing Tips for Restaurants" on my website. There are simple low cost methods to make invitations.
ACTION ITEM:
- Subscribe to newsletter at www.voip-news.com.
- Evaluate your menu and the mix of what people are eating.
- Visit another successful operation to understand what people love. Don't invent, improve on what others are doing.
- Get feedback from your team. Ask them to rank their favorite products and their least favorite.
Next posting I will review the many options for online ordering. Some require no investment.
Question of the day: As a small business restaurant owner, are you more interested in taking percentages to the bank? or dollars? How do you evaluate your profit success? Percentages or dollars?
