A quarter of a million Lost in minutes

Over a quarter of a million lost in sales in minutes and here is why…….

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Picture yourself walking into your favorite restaurant, the person receiving guests at the front doesn’t even look up to acknowledge your arrival.?

When you approach to speak with them, they finally look up, no smile, and you can notice traces of a frown and annoyance across their face.

In this short span of time, this establishment will lose hundreds of thousands!

Let’s unpack this further:

?Culture

·???????? poor customer service radiates not just to one – ripple effect.

·???????? Customer engagement is poor and thus the atmosphere.

·???????? Employees are probably not happy - turnover.

·???????? Turnover = cost to replace and train

?Menu Averages

·???????? Customers that are not comfortable order less – who wants to be there.

·???????? High profit items reduce – sodas, drinks, and desserts.

·???????? Lower averages = lower tips = less appealing for servers to work there

?Lower Sales

·???????? Lower sales drive up labor cost as a percentage of profit.

·???????? Lower profits impacts food quality – using cheaper products.

·???????? Inability to maintain property – curb appeal drops.

·???????? Lower budget for advertising and recruitment

?Profits

·???????? Impact of 1 entrée loss per tabletop assume value of $15.00.

·???????? Average total table turns per night = 100

·???????? 100 turns per night x $15.00 = $1,500.00

·???????? Annualized sales lost assuming open 22 days per month = $396,000 lost

·???????? $396,000 is a conservative amount.

?Summary

One can plug any type of product or cost per service into this example.? I challenge you to apply it to your operations.?? How much are you losing by the minute, hourly, and yearly??

Write me back on what your dining experiences?? Great, Good, Bad, or terrible- what made them different?