Opening a restaurant can be a risky venture, and as many as 55-60 percent of restaurants fail within a year of opening their doors. Unsuccessful restaurants often unwittingly make the same mistakes. As a restaurant owner, how can you avoid the common pitfalls of the industry? Awareness is key, so today we would like to discuss the common business mistakes of restaurants so that you don’t make them.
No Unique Selling Point
Of course, your restaurant has to have good food and good service, but what else can draw customers into your doors? You might have quite a bit of competition with other delicious, friendly establishments, so how can you set your place apart? What kind of emotion do you want your customers to feel when they are in your place of business? You need to make some kind of an emotional connection with your customers so that they keep on coming back.
You may think that you are saving yourself money by opening a restaurant in a less-than-ideal location, but you’re losing out on money big time. The reason is that good restaurants in bad locations rarely, if ever, make it past six months of business. You want for your restaurant to be located in the most accessible part of town for customers.
Too Many Items On Menu
By adding a large amount of items on your menu, you might think that you are accommodating your customers. However, when menus are too large, customers feel overwhelmed. Nobody wants to feel as if they must read through a novel in order to decide what to eat. When menus are too large, customers must sit for longer periods of time in order to make a decision, and they could be spending longer amounts of time at your table.
Marketing is a key component to building your business because your restaurant can’t make money if people don’t even know that it exists. Digital marketing is particularly important because most people these days search for places to eat using Google or some other search engine. The website for your restaurant should be easy to read from a desktop, laptop, tablet, or smartphone. Investing in online marketing is a wise start to your new business.
Not Understanding Food Expenditures
You must analyze your food expenditures on a weekly basis to make sure that you are not spending more than you can afford. You also want to make sure that you are pricing items on your menu correctly to avoid any further loss. Make sure that you are also keeping track of your food sales as well.
Avoiding The Business Side
You could be an excellent cook, but that doesn’t mean that you should own a restaurant. If you are absolutely terrible with the business aspect of your company, then you need a partner with the appropriate skills or you need to hire the right people to help you. Someone will need to keep track of invoices, food and labor expenditures, track credits, and review schedules.
If you are opening a restaurant, then contact Americard Payment for your mobile POS system and other payment processing systems.