Ironically, Limited Time Offers (LTOs) have been around for a long time in the restaurant industry, and that’s because they can yield impressive results. By offering a special menu item or deal for a short time, restaurants create a sense of urgency in their customers. This can increase excitement and drive foot traffic for new and existing customers. It’s all about boosting sales. When executed properly, LTOs really work.
For those not math inclined, the words may seem intimidating: restaurant inventory turnover ratio. But it’s important to stay on top of your inventory and manage your expenses to make sure your restaurant is profitable and thriving. You don’t need to be trained in accounting to understand the math behind this important value. If you’re responsible for the day-to-day operations of a restaurant, read on to understand more about the your restaurant’s inventory turnover ratio.
Restaurants are dynamic businesses with many moving parts. Effectively managing the operations of these businesses takes a special balance of skill, planning, and tools. Staying on top of your COGS, improving customer satisfaction, and improving your margins is as much about streamlining operations as anything else. Check out these 5 ways to improve your restaurant operations and improve your efficiency.
Customer loyalty is changing as connectivity and accessibility make it easier than ever to find more alternatives. For restaurants, this means that it’s even more important stay in front of the customer with creative marketing strategies that maximize brand exposure. Traditional advertising can be expensive, but thankfully that same connectivity have opened up several creative alternative to supplement your traditional advertising. So, what avenues for marketing prove the most meaningful and effective?
Establishing a restaurant is an exciting venture and one of the most rewarding businesses we know. A passion for food, commitment to customer service and a secret recipe or two will get you in the door. But restaurants are dynamic businesses with many moving parts. Potential restaurant owners need to consider everything from creating a new menu, to obtaining licenses, to figuring out the right kind of real estate to invest in. Be prepared to set your restaurant up for success with these 5 tips to make sure you’re covering the basics prior to opening your doors.
A strong economy and low unemployment are great for potential job seekers. However, there’s a flip side to a robust economy. For restaurant owners, this environment can make it challenging to find labor. As large companies such as Amazon, Walmart, and Target raise wages to retain and attract workers, restaurants must compete in a shrinking talent pool. This is especially true for finding younger seasonal workers to cover busy months in the restaurant industry.
Restaurant patronage has been shifting in recent years with an increasing demand for delivery services. Currently, 25% of all off-premise orders are for delivery. Keeping up with this demand may mean jumping on the bandwagon. Implementing delivery means either establishing an in-house service or using a third party. These third-party services are incredibly convenient, but there are pros and cons to consider. Some argue that restaurants shouldn’t do everything by themselves; use the services and focus on the business of making food…
Restaurants are becoming more reliant on technology by the day. Artificial Intelligence, or AI, is leading the way on this front, simplifying tasks at all levels of the restaurant’s operations. AI is not something in the distant future. It’s here and being used by millions of customers. This technology is growing by the day and some examples have become almost commonplace in the restaurant industry.
The Internet of Things (IoT) has promised to make radical changes to the way the world operates, everything from connecting your shoes to the Internet to personal alarm clocks synced with traffic apps. In restaurants, the IoT developments have already begun making changes to the employee and customer experience, and many more changes are on the horizon.
Recycling is not a trend or buzzword being tossed around, it’s a growing expectation for restaurants and their customers to assess their environmental impact and help reduce waste. In today’s conscientious environment customers will go out of their way to support companies that recycle. Aligning with their values improves the business relationship and creates brand loyalty for customers.
It’s an exciting time in the restaurant industry as more advanced technologies continue to improve efficiency and customer experience. At the forefront of this technology is the addition of machine learning, an application of artificial intelligence that enables many utilizations of robotics, chatbots and other tools. Machine learning happens when a computer system can learn and carry out specific tasks based on experiential learning.
In the United States and Canada, minimum wages are rising. By 2022, it’s estimated that 17% of Americans will live someplace where the minimum wage is $15 an hour. If you’re wondering how your restaurant can handle these changes, you’re in luck. Being creative and strategic about operational decisions can help you find ways to absorb the impact of these higher wages.
Market forces and wage secrecy can contribute to a potential pay gap between genders, but that’s not the whole picture. To understand and address this potential issue, we need to broaden the scope of the conversation. It’s about disproportionate unemployment, facilitating home/work balance, and the demographics of advancement. Fortunately, many companies are recognizing the issues and making changes to reduce the inequality. Here are 4 key steps restaurants can take to make working conditions fairer.
Food service is only one part of a restaurant’s business. Arguably the biggest aspect of a restaurant’s success is customer experience, because going to a restaurant is not just about food quality. It’s also about how the customer feels at all touchpoints of their journey throughout the restaurant. There’s no doubt that technology is only improving that customer experience. Today’s climate and demographic changes, such as the millennial consumer, are increasing the demand for that technology in restaurants
Restaurants know the importance of securing the privacy of their customers, because they have a history of safeguarding personal information. Now, a new law aims to protect consumers even further by protecting the personal information that companies, including restaurants, collect and disseminate.
From ghost restaurants to Augmented Reality, the restaurant industry is pushing boundaries to incorporate technology at a fast pace. These changes improve efficiency, reduce costs, and increase the restaurant’s profit margins. Stay ahead of the game with a look at this year’s most exciting technology trends.
Big data is transforming the way we live and work, and the restaurant industry is no exception. Restaurants have embraced big data—data too complex to be processed by traditional software— to uncover market trends and customer preferences. From curbing food waste to tailoring customer menus, this data is altering the way the restaurant industry operates.
Opening any business has some level of risk, and franchises are no exception. Restaurant franchises have strong brand recognition among their customer base which may insulate them against the ups and downs of the industry. That doesn’t mean there is room for complacency. Better management of franchise operations can increase profit margins and provide the right support system for success.
As restaurant operators navigate the challenges in the market, rising labor costs continue eating away at the industry’s already low profit margins. Learning how to manage these costs more effectively is now more imperative than ever. Restaurant owners and managers must be creative and innovative if they want to maximize their labor potential and minimize this this expense. To stay ahead of the curve they will need to embrace organizational change, new technology, and other opportunities that are brought by the changing workforce. Here are 5 creative ways to minimize labor costs in the food industry:
Inventory is one of the greatest assets in a restaurant and must be managed effectively for managers to maximize profit margins. When you’re busy handling the day to day operations of the business, like staff management, customer service management, and cost controls, it’s not easy finding the time to reevaluate processes that have been in place for a while. Nonetheless, it’s vital that you prioritize some time to evaluate areas that are more vulnerable to errors. Here are 4 common inventory mistakes many restaurant managers make: