With the end of the month of June approaching, it’s time for restaurants to evaluate six months of business performance and implement strategies to reach year-end goals for 2013.
January through June has been a challenging time in the restaurant industry. The first quarter was impacted by payroll tax increases and rising gasoline prices that impacted consumer spending. April through June showed a modest recovery, but rising commodity cost continues to nip away at the profitability of restaurants in 2013.
As we move into the second half of the year it is time for restaurant operators to evaluate performance against goals that were established at the beginning of the year. Outlined below are five key strategies for improved performance and effective restaurant marketing:
1. Manage your business data from your Point of Sale (POS) System – There is a wealth of information as it relates to menu item performance, server productivity and labor management. In your review, you may even uncover situations involving theft or fraud.
2. Perform a menu engineering analysis – Clearly identify what your most popular menu items are and evaluate the potential to improve their profitability. Commodity cost have increased so be sure to take into consideration each menu items contribution to profitability.
3. Review your inventory management process – Are standards set to manage your inventory? For many restaurants, waste is one of the leading impacts on profitability.
4. Review your customer acquisition programs – What are you doing to drive new customers into your restaurant? Are you taking advantage of new marketing strategies such as social media to reach new customers? Are you participating in community programs that give you exposure to potential consumers? Do you maximize additional revenue strategies such as catering or takeout business? These are all additional opportunities to increase revenue and build your customer base.
5. Server training effectiveness – The coming back to school and holiday seasons represent key opportunities to impact the revenue of your restaurant. Are your servers prepared to create a positive guest experience for your customers? Are they creating opportunities to increase your average check? Implement a training program in late August or early September to keep your servers performing at peak productivity.
With over 30 years of experience in the food industry, CORE Restaurant Marketing’s mission is helping restaurants improve their revenues. To learn more about how CORE Restaurant Marketing can bring value to the restaurant industry, download the Free White Paper “Key Drivers to Restaurant Profitability”.
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