Restaurant owners regularly ask me why they can’t seem to turn a profit in their business. Most of the time I don’t even have to review their financial reports before I answer the question.
This is because the crux of the problem often extends beyond the day-to-day challenges and runs deeper. Most of the time a restaurant is not profitable because they struggle with systemic issues within their operation.
I break those issues down into four categories: systems, which support consistency, which then support culture, which is all supported by leadership.
Table of Contents
1. Restaurant systems are the backbone of success
Let’s start with systems—the cornerstone of any thriving restaurant. Without them, chaos reigns supreme. Imagine your ordering processes in disarray—over-ordering leading to waste or under-ordering resulting in popular dishes being 86ed.
I’ve witnessed firsthand the transformative power of streamlined ordering systems tailored to sales data and seasonality. The result? A 3% reduction in food costs and improved customer satisfaction. Efficient, consistent systems are paramount to success.
2. Consistency builds loyalty with restaurant customers
Consistency is king in the realm of customer experience. A great dining experience followed by disappointment due to inconsistencies in service or food quality can drive guests away. Each interaction matters, and consistency fosters loyalty. Without it, you’re gambling with your restaurant’s reputation.
3. Culture is the heartbeat of your restaurant
Culture permeates every aspect of your operation. A negative work environment breeds discontent among team members, leading to subpar customer service and costly turnover. Cultivating a positive, supportive culture isn’t just about morale—it’s smart economics. Happy teams are stable teams, saving you money on training and hiring.
4. Leadership guides the way to restaurant success
Effective leadership is the compass guiding your restaurant’s direction. Setting standards, motivating your team, and aligning everyone with your goals are all hallmarks of strong leadership. Without it, you will struggle to figure out why your restaurant is not profitable.
If profitability eludes you, it’s time to revisit the basics. Addressing foundational aspects—systems, consistency, culture, and leadership—can yield tangible changes to your bottom line.
Unlocking profitability in your restaurant requires a holistic approach that addresses core foundational elements. Focus on systems, consistency, culture and leadership to pave the way for sustainable success.
