How to Increase Your Restaurant's Profit Margin
Thought you might be interested in an article How to Increase Your Restaurant's Profit Margin and thought I’d share a few points with you here. I’ve found some relevant information here so if I find more, I’ll be sure to pass it on.
Following flavor trends year to year is how many restaurants try to stay ahead of the curve with their menu offerings. As carefully as you study fluctuations in your customers' ever-changing tastes and expectations, you must do the same with market prices and costs. Knowing where you stand month to month, or even week to week, in sales and costs can help you adjust here and there to increase your profit margin.
Daily Specials
A great way to increase profits is to offer a chef's special that's creative, tempting and priced slightly higher than your regular menu items. Exclusivity along with a limited time offer can be big selling points to many consumers. You can keep costs low by using seasonal ingredients, and you can push the special with seasonality as a selling point, too.
Reevaluate Labor Costs
Mass layoffs would be counterproductive to your goal here. You want to maintain or increase revenue and give a big bump to profit. One area in which you can save on costs is labor, but you need to look closely at your day part sales. Compare tickets during a business day in both sales ticket volume and check totals. You may be making the same amount of revenue with dinner tickets as lunch, but fewer tickets overall in the evening. You can cut staff a bit in the evening and still bring in the same sales but costs will go down.
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Thanks,
Michael