What is the profit per dollar in a restaurant? Most owners and managers can't even answer this question right. And they wonder why staff isn't more careful with the business. If everyone understands this in your restaurant you will have a much different operation.
How a 2% increase in menu prices can make a big profit improvement in profit. And when a 2% increase in customer numbers is added, the effect multiplies. How can you apply these ideas to your business?
There have been a few studies that have looked at the affects of menu labeling/nutrition information disclosure in restaurants. Most of them, not surprisingly have had very modest results. But I have been reading about some restaurants that have seen some pretty impressive changes in sales and diner ordering habits. I thought I’d share some with you:
As most of us know menu labeling laws only affect larger chain restaurants, but I am getting a lot more clients who are smaller chains and even independents. In an industry that vigorously fought menu labeling, why now are so many operators starting to provide nutrition information voluntarily. I thought up and researched a few reasons, and now I’d like to share them with you:…
This article will be one of the most important I've ever written for restaurant owners and managers in other food services. In this article, I'm going to do something you won't see from another consultant. I'm going to share with you the exact steps of an action plan I created to help a restaurant create a food cost fitness program, along with some helpful commentary from me. These steps would be the same for liquor costs, but would focus on different employees in a different area of the… Continue
For me, these “times” have expanded the creative side of P&L management like never before. In the past, my thinking was somewhat linear when it came to food cost control- Portioning, Purchasing, Menu Pricing, & Waste Control. Now that we have entered into the Great Reset, I have had to change the way I go about thinking and doing things in my restaurant.
It was December of 07’ when I started to feel a little pain. Sales were trending down and I did not quite know why. At this… Continue
A friend of mine recently left his comfortable corporate mid-management position returning to manage and own a restaurant. This particular restaurant is one in a well-known regional chain with a quality reputation. The location is an excellent one in a growing north Dallas suburb with great visibility and an outstanding sales history. That is until a couple of years ago when a significant competitor opened near one of the up and coming regional shopping mega centers (malls and strip centers)… Continue
Most of us are familiar with the 80/20 rule, or the Pareto Effect, as it is most commonly known. The 80/20 rule has been represented in business discussion as 80 percent of production comes from 20 percent of the producers for many years. More broadly the 80/20 rule has been applied to every imaginable situation in business with amazing accuracy. Reading this complex information is fairly heady stuff, not known for light content, however a little struggling makes it more understandable.… Continue
We Have a Right to Know When Prices Increase, Before We Buy.
We wouldn’t think of charging our customers a different price than was agreed without telling them. We expect the same treatment. We will purchase products from vendors that are upfront and honest with us and we will work only with those who inform us of price changes… Continue
Added by Adam New on October 2, 2008 at 8:29pm —
One thing I'll never forgive formal culinary schools for, is teaching new impressionable would-be chefs to use a budgeted cost percentage to price food menus. Chain restaurants share an equal responsibility for perpetuating this bad practice by focusing their managers on food cost percentages without letting them in on the secret that the cost percentage is a management tool, not a pricing tool.
Though most culinary programs teach many different methods for pricing… Continue
One of the primary reasons that some businesses training programs work, and some don't, is in the method their managers and trainers use to teach new skills. This seems to be especially true in restaurants and food services, due to the prevelance of leaders without formal educations. Sorry if that offends anyone, but it's true.
While proper teaching technique is not something that comes naturally to everyone, it is easy to learn following a simple multi-step… Continue
This is one of my favorite quotes. Maybe because I'm the one who made it up.
It could also be that I love this quote because it deals with another major reason for failure in the restaurant world, and really, in every industry. Most managers don't know how to delegate. That is a simple, but true, observation from years of seeing managers and owners struggle to scratch out a profit (or more commonly not making a profit), while losing their personal lives to their… Continue
The restaurant business is tough. Everyone in it knows it. Everyone looking to get in it ignores it.
The cold fact of the matter is that opening up a restaurant may be one of the worst investments you could make with your money. That's a horrible, sobering statement coming from someone like me who's in the business of helping restaurants succeed, but it's the truth. Most restaurant fail. Oh, the failure rate isn't the "90%" you may have heard from friends and family, but according to… Continue
You know the drill - money is tight so your spouse tells you to not spend too much money. So you start 'brown-bagging-it' to work. You feel a little foolish, maybe a little humiliated, that you’re forced to do this but you have no other choice. So you make up some story for your co-workers like, 'I’m trying a special diet' so you don’t look like a cheap-skate.
Anthony’s Fish Grotto, San Diego’s oldest family-owned and operated seafood restaurant company, is embarking on an ambitious effort to rebrand and remodel its restaurants, including the North Embarcadero flagship location that houses Anthony’s Fish Grotto, Anthony’s Fishette and Anthony’s Star of the Sea Event Center.
If you are looking for capital to start or grow your restaurant, create the next 501c3, develop and launch the next app for the restaurant industry,or want to help your peers in some meaningful way, we want to know about it.
Perhaps you’ve punched out a paper doll or folded an origami swan? TED Fellow Manu Prakash and his team have created a microscope made of paper that's just as easy to fold and use. A sparkling demo that shows how this invention could revolutionize healthcare in developing countries … and turn almost anything into a fun, hands-on science experiment.
Vending machines generally offer up sodas, candy bars and chips. Not so for the one created by TED Fellow Gabe Barcia-Colombo. This artist has dreamed up a DNA Vending Machine, which dispenses extracted human DNA, packaged in a vial along with a collectible photo of the person who gave it. It’s charming and quirky, but points out larger ethical issues that will arise as access to biotechnology increases.
Privacy researcher Christopher Soghoian sees the landscape of government surveillance shifting beneath our feet, as an industry grows to support monitoring programs. Through private companies, he says, governments are buying technology with the capacity to break into computers, steal documents and monitor activity — without detection. This TED Fellow gives an unsettling look at what's to come.
What does the future of business look like? In an informative talk, Philip Evans gives a quick primer on two long-standing theories in strategy -- and explains why he thinks they are essentially invalid.