Growing Your Restaurant During A Crisis
It is no news that in recent years, the economic recession has been on the rise and from the look of things, it doesn’t seem like it’s stopping anytime soon. Many businesses, including restaurants, have felt the brunt of the situation, and the onset of COVID-19 further didn’t help matters. Social distancing, movement limitations and other factors have made people reduce the rate at which they dine out.
As a service provider for one of humans’ basic needs – food – restaurants will always maintain relevance. However, it is not enough to sit down, cross your fingers and hope your establishment will thrive, especially during a recession. As a restaurant owner, whether a new or old one, you must take conscious steps to ensure the survival and success of your restaurant.
Below are some effective tips you can imbibe to help your restaurant weather through the recession.
1. Pay attention to your finances
One of the worst things you can do as a restaurant owner is to neglect or be lackadaisical about your finances. More so during an economic recession. Therefore, it is crucial that you know exactly how your business is doing financially. This knowledge will give you a lot of relevant insight into things you may need to change or adjust for the growth of your restaurant. Below are some tips to help keep your attention on your finances.
- Have a cash flow statement to track all the money coming in and out of the restaurant
- Build a cash reserve
- Having an automated/ regulated payment system
- Go through your financial ledger frequently
2. Harness the power of technology
Technology is here to stay and make our lives better, and the faster you embrace it got your business, the better for you. During the pandemic, there was a drastic rise in food delivery and ordering platforms. Restaurants that had websites or apps where people could place orders thrived and made more profit. There are different aspects of technology you can embrace to further make your restaurant stand out. For example, investing in basic things like a website, app or strong WiFi in your shop can make a world of difference. Additionally, this will attract the younger crowd, who are more likely to visit your restaurant.
3. Invest in marketing and advertising
The world has gone mainstream, and you need to, too. Marketing is vital to any brand and can be a major determining factor in how your establishment succeeds. Invest in high-quality and proper advertisement, both online and physically. Print out flyers and menus about your restaurants and drop them off at restaurants or hotels. Partner with nearby inns or motels, or hotels. Maximize holiday periods.
Draw attention to your restaurant by having a big bold signboard, musical performance and so on outside the building.
Use social media too. Have social media handles and accounts on different platforms where you can display your restaurant, discuss with potential customers, etc.
4. Pay attention to your menu and environment
Even with all the marketing and technology you include, if the basics are not superb, you won’t get customers, and your restaurant won’t thrive.
People come to a restaurant to satisfy their food cravings, so ensure your service and food are great enough to get them to return.
People will always prefer quality, so you should capitalize on that. The ambiance, décor and service should also be incredibly top-notch service in order to make it more attractive to diners. Great food, fantastic ambiance, and superb service will have customers flocking to your restaurant. Furthermore, you can always spice up your menu by including something new and seasonal at intervals.
5. Practice cost-saving techniques
To get your restaurant to thrive and turn a tidy profit at the end of the day, you have to cut spending and work more on getting credits. A brilliant way to do this is by cutting down on costs. However, be careful to do it so that it will not affect your quality. Something as mundane and simple as keeping the lights in your store off when not in use can make a visible difference. Additionally, you can schedule fewer servers for days of the week that are not very busy. These simple but effective practices will help to cut down your cost.
6. Attract customers with value
People will always go to where they think they can get more value. So make your restaurants that place.
Include value-added promotions to your menu, such as free side orders when they order a special, free delivery, or a commission from every order made on the website.
7. Stay updated
The world is ever-changing as new trends keep rising. You need to stay updated in order to make relevant and timely decisions regarding your business. Subscribe to newsletters, YouTube channels or other platforms where you can get updated and relevant economic and financial information.
Wrapping Up
Recession is not exactly a walk in the park; however, it is also not the end of the world. Your restaurant business might suffer a lag due to the recession. Still, with proper planning and marketing, consistency and smart and timely decisions, you can make your restaurant pick up and record good success!
