The best restaurants in Maroochydore have a lot going for them. Since restaurants play a major part in everyone’s lives, these food establishments have to work double-time to keep up. First, they need to always meet (and exceed) their clients’ expectations. More so, restaurant owners have to think of innovative ways to maintain regular profitability.
In this article, we delve more into the latter. Since profitability is a crucial component in keeping many businesses afloat and thriving, it has to be discussed a little bit more. Income generation and sustainability dictate a restaurant’s staying power. Therefore, the mechanism behind such a concept must be made clear, which this article wishes to impart.
How do restaurants make money?
More than anything else, people have to understand the concept behind how restaurants make money. Their profit-yielding activities, initiatives, and efforts must be fully grasped to know its intricacies.
This is how restaurants make money
Markup will always remain a variable part of the entire profitability equation. Depending on their in-depth feasibility study, everything on the menu is marked up a certain way. As such, the markup amount they impose becomes their profit.
However, this is easier said than done. There are different factors to consider before arriving at the right markup price. These are some of the factors:
Price comparison and analysis
It is imperative that restaurant owners and managers have to lodge a successful price comparison study against their direct/close competitors. Whether the business is solely a dining facility or offers function rooms in Melbourne, this step should not be missed. Knowing the price range of direct competitors gives good leverage as to how much markup percentage is acceptable.
Customers now are more meticulous. They go deeper than just supporting a restaurant only because of how good their dishes are. Truth be told, the price either makes or breaks their support. If they see other restaurants with good food, generous serving, and better price point, they are most likely going in the opposite direction. Unfortunately, this is a lost opportunity.
Fair and just pricing
Forget about the concept or notion that high markup automatically equates to high profitability. On paper, this does look pretty obvious. However, customers will know if the menu items are priced too high. If they find this out, their support is most likely going to be won by other restaurants with reasonable pricing.
Make sure that the markup percentage is not too high that customers and potential clients are sure to be thrown off and/or intimidated. Don’t ruin the chances of winning new customers for lunch in Maroochydore because of costs that rival fine dining restaurants (when the restaurant doesn’t belong to such a category). Stick to the range that is acceptable in the category the restaurant belongs to.
Ways to achieve a profitable restaurant
Now that the principles behind a restaurant’s profitability are discussed, the next step is to figure out how to make it a stronghold and beacon of incessant earnings. Here are some of the resounding ways to make a restaurant constantly profitable:
Role identification and effective hiring process
More than anything else, business owners and their management teams need to know the scope of their roles and responsibilities. Upon deciphering the roles of every member, determine other designations that need to be filled externally. Having clear-cut and defined roles of everyone in the organization significantly reduces the risk of getting overworked and burned out.
When people are overworked and/or understaffed, their productivity is severely affected. As such, it hinders the chances for better productivity. Therefore, it is vital to have all these designations fulfilled and achieved before officially opening the restaurant. A harmonious and seamless organization rids it off with stress thereby giving everyone more time to think of income-generating initiatives.
Excellent front-of-the-house/wait staff
Yes, first impressions definitely make a big impact. An outstanding and superb front-of-the-house crew is essential to draw people in. These members of the team have the ability to interact and communicate with guests. Their ability to charm and connect make it a little bit easier for customers to be reeled in.
Well, it goes without saying that such a tactic is a good way to contribute to the overall profitability chances of the restaurant. Once customers are inside the establishment (thanks to the work of the front of the line team), all other elements should work together to keep them completely satisfied enough to come back for more. This is where the wait staff takes over.
The wait staff should be charming, presentable, and friendly. More so, all servers should be experts on the menu. Note, it’s not enough to answer customer queries. They also need to entice the customers to try some bestsellers and other recommendations. Expertise combined with charm sprinkled generously with excellent customer service is one of the factors that make guests stay loyal for many years.
In connection with the previous point, both wait staff and front of the house must be well-trained and experts in everything about the restaurant. But, should the training just be centered around them? Definitely, not. No one is exempted from receiving training and development sessions. From the owners down to the entry-level staff (whether the front of the house or behind the scenes), everyone gets trained.
Here are some integral training sessions for every designation:
- Critical Thinking Skills
- In-depth Profit and Loss
- Leadership Skills
- Conflict Management
- Inventory Management
- Change Management
- Food Safety
- Presentation Skills
- Coaching and Mentoring
Entry-level to senior staff
- Continuous training on a restaurant serving applied principles and concepts
- Communication Skills
- Personality Development
- Equipment training
- Kitchen basics
- Food safety and food waste
- First Aid
- Table cleaning and orderliness
- Customer Service
Enough knowledge on how restaurants make money and essential ways to be profitable serve as a guide for those who wish to enter the business. These pieces of information provide budding business owners a firm grasp of what it takes to run and operate restaurants regardless of their size.
As they say, observation is also a form of learning. Aside from the points provided in this article, it is also a good idea to take cues from the best restaurants in Maroochydore. Observe how they welcome guests, offer menu items, the intricacy of service standards, immaculate interiors, and an efficient payment system. These factors help inspire and aspire to uphold such impeccable standards.