Restaurant Business Management
Cost of food and labor, inventory tracking, staff training, food production, customer purchases, and marketing are part of day-to-day restaurant management. Successful food-management measures many different goals and procedures for seamless work. Here’s how to take care of a restaurant in six steps, along with tips and advice from experienced therapists.
What Does Restaurant Management Look Like?
The restaurant management functions naturally fall into two main categories; managing the entire business life and directing day-to-day operations. The first three steps in this List – knowing costs, adjusting goals, and predicting growth – fall under the first category. The last three – maintaining performance standards, building a positive work ethic, and focusing on customer performance – are part of directing day-to-day operations.
These steps are not registered in order of importance; building a good workforce culture is as important for efficiency as finding food costs. It helps to look at them like spokes on the same wheel. A good restaurant needs to be strong in all areas to stay on track.
Let’s start with the part restaurant managers can find deceptive: statistics.
Know Your Restaurant’s Operating Costs
Several factors eat into the operating budget of the restaurant. Managing a restaurant of any size starts with knowing these costs and operating costs and how they affect your business. Cost, in particular, reflects restaurant life more accurately than any other method. Knowing how to find these numbers is essential, and it doesn’t have to be complicated. To begin with, it is necessary to see the difference between costs and costs.
What Are Restaurant Expenses?
Costs are fixed payments and must be paid regularly. Business licenses and liquor costs. Hiring and resources too. These numbers are essential to know as they may affect your long-term decisions, but your ability to control them daily is limited. Many of your expenses resulting from the deals made when the restaurant was presented or negotiated and renewed annually.
What Are Restaurant Costs?
Costs fluctuate, which means they are manageable. The money spent on things like wine, beer, food, and utensils makes up for the Cost of goods (COGS). Work is one of the regulatory costs that differ from COGS. Some restaurants prefer to track their performance in the dining room, front of the house (FOH), kitchen, or backyard (BOH), respectively. This allows for greater power to identify areas where significant improvements can be made.
Balancing Restaurant Expenses & Costs
Figuring Labor Cost
Figuring per-Plate Food Cost
To figure out per plate food Cost, you should:
- List all the ingredients:
- Cost each ingredient:
- Combine ingredient costs:
Adjust Your Operation to Meet Targets
Daily operational targets for employee and food costs often arise from owners and managers making predictable sales forecasts. Every restaurant is different, so you can decide if your individual goals are other. These numbers are what percentage of your income you can spend on purchases and for employees and turn a profit.
Some broad guidelines in the industry provide a good starting point.
- Food cost:Between 22% and 32%
- Labor cost:Between 26% and 32%
- Prime costs(food cost + labor cost):55% and 62%
It is well said that Cohen sums it up this way: “Sales fix all sin.”
Ways to Control Labor Cost
Suppose your Cost of food is in line, but your labor costs are always targeted. On the flip side, your employee standards are strict, but your food costs are on the inside. A restaurant manager can take a few steps to contribute to staff costs or food costs, in particular.
- Use Technology to Optimize Schedules
- Update Your Service Style
- Cross-train Your Tea
- Avoid Overtime and Break Penalties
- Don’t Forget Your Payroll Liabilities
Ways to Control Food and Beverage Cost
Avoid Spoilage and Spillage
Know Your Inventory Haves & Needs Each Day
Plan For Growth Using Logs and Forecasts
You now have all your expenses for food and labor. You’ve made a list of things. You have spreadsheets in spreadsheets. Now is the time to include all those numbers so that you can make effective changes and practical plans to meet future challenges.
Daily shift logs shared with managers and owners at the front and back of the house should include:
- Forecasted sales for the day
- Real sales for the day, split by food & beverage categories
- Comps plus spillage dollar amounts
- Guest counts
- Check average
- Labor costs
Use Manager’s Meetings to Identify Trends & Create Forecasts:
Weekly & monthly management meetings should review daily reports and profit and loss (P&L) statements to find trends in the restaurant. Even if only two people, a regular but small meeting of the management team is a peak time to plan and set goals for the coming weeks and months.
At these meetings, teams should review:
- P&L statements:
- Upcoming operational changes:
- Marketing strategy:
- Local Partnerships and Philanthropy:
- Forecast future sales and cost targets:
Monitor Standards Daily
Speaking with caution, it is essential to note the changes in the visuals in the restaurant and the numbers on the page. Excellent restaurant managers start to change each one with the entire flow of the restaurant. The restaurant is always functional, so daily commuting from the kitchen to the front door is a great way to catch small items such as refrigerators that strive to stay calm or burnt lights in the dining room before they become customer service; remove or lower your health department.
There are a few steps a restaurant manager should keep in mind when traveling to a restaurant:
- Local health code:
- Local fire code:
- Labor code:
- Restaurant standard operating procedures (SOPs):
Keep Your Staff Trained and Motivated
Two years ago, NRA members reported “hiring and retaining staff” as their first challenge. Good restaurant management should include strategies to motivate your employees and provide them with the tools they need to succeed. Those tools can be a comprehensive training program, flexible editing software, or something as simple as giving a standard, straightforward answer.
There are few simple ways to motivate staff and further training:
- Correct like a coach:
- Offer perks:
- Share successes with the entire staff:
Focus on Customer Service
Your employees are not the only people who need the attention of a restaurant manager. There are, of course, customers to consider. During active operations, many restaurant managers find themselves walking the circuit from the front desk to the dining rooms, bars, and kitchens as each station gets faster in service. Traveling in this way can be an excellent way for the manager to engage with all the guests and make themselves available to resolve any problems that arise during the transition or shifting.