10 Ways to Safeguard Your Profit

What were the last three things you did to increase your restaurant profitability? Unless profit protection is constantly on your mind, you will get hurt. Eroding margins, fickle markets, escalating food prices, rising utility rates, outrageous credit card fees, and a host of other factors eat into your margins daily, thereby reducing your ability to pay the bills, let alone yourself. Why don’t you invest a few minutes into yourself right now and read over the tips below. Yes, some tips may seem obvious, but are you using every tool at your disposal to solidify and enhance your profits? Your restaurant owes you for risking your neck to get it open, so I’d like to suggest that you start holding it accountable. 1. Don’t serve water automatically. Put systems into place where you serve alcoholic or milk--anything but free water. Serve it upon request only. 2. Set up the dining experience on the first visit to the table. Tactfully done by the server, profitable items should be promoted, desserts can be suggested, and guests will appreciate a quick, “Run down” of the dining experience. Plus, server competence will be rewarded for taking responsibility for the positive experience that they will have. 3. Understand that guests dine on a budget, and be sensitive to it. Ensuring that your guests come back repeatedly is much more important than increasing their check average for just one visit. 4. Selling a more expensive item does not always equate to increased profitability. It makes no sense to promote items that may have minimal profit contribution. Tell your servers what items you want them to sell. 5. Use the best menu. Ensure that your menu is current with market conditions, and designed to insure that the most profitable items are the ones being promoted. It makes sense to enlist a consultant to do this for you. 6. Work with your food vendors to insure that you are buying the right items for the menu specifications. 7. Bundling meal parts together will increase the quality of your guests dining experience and maximize their dollars spent. 8. Don’t forget the grapes. Effective promotion of your wine offerings should be systematic and routine. Guests should be fully aware of the pricing and offerings, both by the glass and by bottle. Wine service is a skill that every server should have. 9. Children’s menus. Most of them are boring, and priced to reflect that. Is it reasonable to think that parents would pay a bit more for more interesting and nutritious meals? This is a good opportunity to re-evaluate your children’s menu and pricing. 10. Are you maximizing food sales in your bar/lounge areas? For many, it’s more enjoyable to eat in a bar than drink in a restaurant. It makes logical sense to have menus, silverware, condiments and promoted specials available for your drinking guests. Simply remember that it’s not what you make, it’s what you keep that matters. Hopefully some of these tips will be useful. Still can’t seem to make the numbers come out the way you want? It may make sense to enlist the services of an advisor to walk you through the complexities of making money in the restaurant business. About the Author: Kevin Moll is president of Restaurant Consultants, Inc., a worldwide hospitality consultancy. He has 34 years of leadership experience in the industry, is a published author and recognized authority on foodservice matters. His firm specializes in startup ventures and turnarounds, and offers troubleshooting services for those wishing to make more money. http://restaurantconsultantsinc.com/ Contact: Kevin Moll Restaurant Consultants, Inc. 1-800-961-6005 http://restaurantconsultantsinc.com/