The restaurant business model changes dramatically season to season -> And how to stay ahead of it.
Jim Taylor
Restaurant Advisor ?Author ? Keynote speaker?Award winning business strategist ? Partner at Le Crocodile by Rob Feenie
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As the calendar flips to September, the restaurant industry experiences a significant shift in its business model.
This transition is marked by changes in guest spending patterns, employee turnover rates, overall productivity, training efforts, and average wages.
Rather than being solely influenced by sales figures, the evolution of the restaurant business model in September is shaped by the behavioral dynamics of both guests and employees.
Check out how I look at this challenge differently than most right HERE .
Guest spending plays a pivotal role in driving the adjustments seen in restaurant operations as September approaches.
With the end of summer vacations and the back-to-school season underway, consumer habits shift, leading to changes in dining out frequency, menu preferences, and spending levels.
Restaurant owners must adapt their offerings and marketing strategies to align with these evolving patterns to maintain profitability and customer engagement.
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Employee turnover, another key factor, tends to peak around September in the restaurant industry. As students return to school, seasonal workers move on to their next endeavors, creating staffing challenges for restaurant operators.
High turnover rates impact overall productivity, service quality, and operational efficiency. To address this issue, establishments need robust hiring processes, effective training programs, and retention strategies to ensure a stable workforce during this transitional period. Training becomes a critical focus as the business model adjusts in September. With new hires joining the team and existing staff adapting to changing demands, consistent and thorough training becomes essential. Proper onboarding and ongoing development initiatives are vital to maintaining service standards, enhancing customer experiences, and optimizing employee performance. Investing in training not only boosts operational efficiency but also fosters employee satisfaction and retention.
Average wages play a significant role in shaping the business model shifts observed in September. Fluctuations in labor costs, minimum wage adjustments, and competitive wage rates impact the financial health of restaurants. Balancing payroll expenses with revenue streams becomes a delicate act during this period, requiring strategic planning and budget management - However chasing the % you hope to see can often make things worse.
Find out how we address that very common challenge HERE.
Restaurants must navigate wage dynamics effectively to sustain profitability while ensuring fair compensation for their staff. Despite these challenges, the evolving restaurant landscape in September is not merely a sales-related issue but a multifaceted reality influenced by guest and employee behaviors. To navigate these changes successfully, restaurant operators can turn to specialized resources like THIS .
In conclusion, the restaurant business model undergoes significant transformations heading into September, driven by shifts in guest spending, employee turnover, training needs, and wage considerations.
By understanding and adapting to these underlying factors, restaurant operators can proactively manage challenges and leverage opportunities for growth.
September is always the busiest time of the year for me, for this very reason.
Believe it or not, it is an exciting time of the year as seasonal change can be a rewarding obstacle to overcome.
Until next week.
Jim.
Passionate Culinary and Hospitality professional. Curating #meaningfulexperiences by means of #unreasonablehospitality.
3 个月Absolutely 1000%!! That business model for slaming lunch and dinner shifts (and always short-staffed) between memorial day and labor day turns into a manageable 20% less shiftload. Especially with the summer labor disappearing back to their respective schools. Nuts and bolts, of course are basically still there, but that turning a blind eye because “we’re busy anyway” - costing (everything ) also disappears??. That 12cs of tomato deliveries on monday turns into only 6cs. However, revenue stream has only decreased single percentages…..because 9-5 ers show up after work, and alcohol sales up by 20%! ‘Almost’ totally different business models.
Retired
3 个月Hmm maybe I’m old school but I feel like the basics, the nuts and bolts are always there.
Maintenance Worker at Burger King
3 个月Makes things easy
Maintenance Worker at Burger King
3 个月Very helpful!