Control Costs and Build Sales Revenue to Ensure Success

In this competitive environment of the hospitality industry, it is no longer enough just to have the best food on the block. Careful attention to the actual elements of running your restaurant business is essential to ensure continued success. Two of the most important business elements on which to focus your efforts are controlling costs and building sales revenues.

Cost controls do not necessarily mean cutting and slashing your budget, but rather understanding what each item served to the guest should cost, and then insuring that the food quantities and labor required to produce and serve it are in line with your budget. While menu pricing depends partly on what the market will allow, consideration must be made to making a fair profit. This is where an added part of cost control comes into play–understanding what your business is being charged by its vendors.

On the other hand, generating sales is an integral part of continuing your business success. This is done by making sure your current customers remain loyal, repeat customers along with attracting new guests from your competition. One of the best ways to achieve this can be done simply by paying attention to the small details of each customer’s dining experience. A satisfied guest becomes a powerful salesperson for your business.

* To determine customer satisfaction, consider asking your guests to rate your restaurant on a scale of 1 to 10:
• Ratings of a 9 or 10 mean that this guest is a “promoter” of your restaurant.
• Middle ratings mean that this guest is “neutral” to your restaurant and is likely to try your competition.
• Low scores indicate trouble. These dissatisfied guests are not likely to return and have a potential to sway other customers from trying your restaurant.

In addition, attracting new customers can involve tweaking your marketing tactics. Understanding where your future customers are and reaching out to them with the right message is a powerful way of attracting new guests. "Be My Guest" gift card promotions might be the deciding factor on a busy family’s dining decision. This type of a program allows the guest to choose what they enjoy eating, increasing the likelihood of a positive dining experience.

As you consider ways to increase your business's sales, be careful not to overlook your existing customers. Have your staff suggest complementary items that will enhance the guests' dining experience–it’s a win-win for both . Also, consider rewarding your most loyal customers. Identify repeat guests and make them feel welcome each time they visit to keep your restaurant at the top of their dining establishment lists. You, your managers and your staff can make a loyal customer's day by simply greeting them by name and telling them it is good to see them again.

By paying close attention to controlling your operational and food costs as well as pleasing new and repeat customers, you are taking a good first step toward continued success.

*For more information on this concept, check out Fred Reichheld’s book,” The Ultimate Question.”