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
Wahlburgers has signed a franchise agreement with Hingham Associates, LLC that will bring five Wahlburgers to the metropolitan Philadelphia area over the next several years. The franchise group is actively looking at sites and is targeting a late 2014-early 2015 opening for its first restaurant.
Luna Grill, the San Diego-based Mediterranean restaurant chain, is welcoming retail real estate industry veteran Greg Thorburn to its leadership team. Thorburn has been brought on board to fill the newly created position of Vice-President of Real Estate.
Rita's Italian Ice has awarded franchise and area development agreements for Kansas and the Kansas City area, which extends to the Missouri side of the city, to franchisees and local residents Jay Miller, Jeff Miller and Pat Reilly.
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.
Pick up a book, magazine or screen, and more than likely you'll come across some typography designed by Matthew Carter. In this charming talk, the man behind typefaces such as Verdana, Georgia and Bell Centennial (designed just for phone books -- remember them?), takes us on a spin through a career focused on the very last pixel of each letter of a font.
Astronomers believe that every star in the galaxy has a planet, one fifth of which might harbor life. Only we haven't seen any of them -- yet. Jeremy Kasdin and his team are looking to change that with the design and engineering of an extraordinary piece of equipment: a flower petal-shaped "starshade" that allows a telescope to photograph planets from 50,000 kilometers away. It is, he says, the "coolest possible science."
Puberty is an awkward time for just about everybody, but for transgender teens it can be a nightmare, as they grow overnight into bodies they aren't comfortable with. In a heartfelt talk, endocrinologist Norman Spack tells a personal story of how he became one of the few doctors in the US to treat minors with hormone replacement therapy. By staving off the effects of puberty, Spack gives trans teens the time they need. (Filmed at TEDxBeaconStreet.)
The parenting section of the bookstore is overwhelming—it's "a giant, candy-colored monument to our collective panic," as writer Jennifer Senior puts it. Why is parenthood filled with so much anxiety? Because the goal of modern, middle-class parents—to raise happy children—is so elusive. In this honest talk, she offers some kinder and more achievable aims.