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How to run a Profitable Restaurant?

As per the report of NRAI the restaurant industry will grow at a rate of 10% by 2021. So this is a huge potential for business for existing as well as budding restaurants. However, there is also a problem to make a successful business in restaurant. We know several restaurants are struggling for their restaurants or some have shut down due to high labor cost, inflation of food price, decrease in margins and few others. Now let’s see how to run a successful restaurant business.

How to run a Successful Restaurant Business

If you want to keep your business thriving and running successful restaurant, here are some awesome tips to follow:

1. It’s about the USP

Give a solid reason for customers to visit your restaurant. Your USP could be your signature dish, a star chef, price, interiors and staff uniforms. All successful restaurants have been known to have a strong USP that draws customers to the outlet.

2. Choose your Location Wisely

Location for your restaurant plays an important role in restaurant’s success. Market research should be done before you finalize your location. Identify your potential customer base and choose your location to target them.

3. Chase your Inventory

Your inventory need not to be well stocked, but it also should be run like a machine. You should maintain an inventory sheet may be daily, weekly or twice a week depending upon the size of your restaurant. Make a list of fast and slow moving food items during peak and non peak hours. You should keep your inventory in check to run a successful restaurant business.

4. Train your Staff and Keep Them Happy

It may create a negative impact to customers if your staff is dressed shabbily. This is how you can manage your staff:
· Clear allocation of duties and instructions for each activity such as serving tables, dish washing, table cleaning, kitchen cleaning, inventory management, food purchasing, invoicing, etc.
· Train your staff to make the guests feel welcome through a smile, polite behavior, and neat dressing.
· Your staff should also know how to handle emergency situations (fire, electricity outage) and customer complaints.

5. Remember Customer is King Always!!

There may be times when your customers are not happy with their experience at your restaurant. They may communicate their displeasure through the feedback form, on the spot complaint to the wait staff/manager or posting a negative review on social media. You can’t afford negative publicity. Make sure that you promptly address the issue by talking to the customers and understanding their grievances. Do not hesitate at all in apologizing and rectifying the mistake immediately.

6. Keep your license in Place

There are several statutory and regulatory compliance that restaurants need to follow — shop & establishment license, food business operator license, food standards & safety act, employee rights act, etc. In case you do not adhere to the legal rules and regulations, your restaurant has a high risk of closing down.

7. Don’t be Ashamed to Scram ‘I am the best

The restaurant business is a game of showmanship. If you don’t advertise who you are and how good you are, your restaurant will witness empty tables on most days. Develop a robust marketing strategy to create a buzz about your restaurant. The social media is the most powerful marketing tool — post a picture of your special dish, customers having a great time, special events or chefs. If your budget permits, you can print advertisements in newspapers, distribute flyers or create a radio jingle offering discount coupons.
Lastly, nothing could beat your own critic review of your business. Just step into the shoes of customers and find out what is so great & not so great about your restaurant. If the bias clouds your judgment, conduct surprise audits or invite mystery customers. That should work and help you in running a successful restaurant business.
Hope you liked the blog. If you are looking to give franchise or want to take franchise SelectDine is here to help you. Also we provide services for chefs, helpers, menu designing , market research for restaurants/cafe. Visit our website or call us to know more about us.


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