Six ways to save your restaurant in 2023

Your restaurant has been open for years. It’s your baby, and you love it. But as times change, so do people's tastes. Luckily, there are plenty of ways to get your restaurant back on track and save it from going out of business! Here are six ways to help your restaurant keep up with the times:?

Understand your operational costs

Cost of goods sold (COGS): This is the cost of your products, including labor, materials and overhead. It's important to understand this number because it affects your profit margin. If you have high COGS then it means that your food costs more than what customers are willing to pay for it--or worse yet, if you're selling something at cost or even at a loss!?

Cost of labor: Your employees make up the majority of expenses in any restaurant so understanding how much money they're costing you will help determine whether or not it makes sense for them to stay on staff as well as where savings can be made if necessary (outsourcing vs hiring internally).?

Occupancy costs: Rent is just one part of occupancy expenses; utilities like electricity and water may also be included here depending on how much space you need within the building itself (for example if there are air conditioning units throughout). You'll want this number low enough so that rent doesn't eat up too much cash every month while still maintaining quality in your offering; otherwise customers might leave due lack thereof!?

Discover sources of food waste in your menu

One of the biggest causes of food waste is improper training. If your staff doesn't know how to properly plate food, or if they don't understand portion control and proper plating techniques, then you'll end up with a lot more waste than necessary. You can train employees on this by showing them videos about plate composition or even taking them out for lunch at restaurants that are known for their presentation skills. Here are some other ways to manage food waste:?

• Offer smaller portion sizes: You can offer smaller portions of your menu items, but make sure that the price is adjusted accordingly. If you're giving customers less food for the same price, then it will be obvious that something isn't right. When looking at your menu, try to reduce portions in a way that customers don't notice. Even reducing a burger patty by 1oz can have a big impact on your bottom line.??
• Stop buying ingredients for one dish: If you have a dish on your menu that is rarely ordered, consider removing it from the menu altogether. This way, you'll save money on ingredients and won't have to throw them away when they go bad.?

Track sales daily

If you want to save your restaurant, you need to know what is working and what isn't. Tracking daily sales will give you that information.?

You can't just look at weekly or monthly numbers because those don't show the whole picture of how well a business is doing. If a customer orders two appetizers and two entrees one night, but only one appetizer and entree on another night, it could mean that they're trying out new dishes or they just aren't as hungry (or thirsty). Either way, this kind of data helps determine whether or not certain menu items should be removed from the menu entirely or altered slightly so they'll sell better in future visits.?

Reduce excess inventory

Excess inventory is a problem that can lead to higher costs and lower sales across different menu items. It's also one of the most common reasons for restaurant closures, so if you want to save your restaurant in 2023, it's important that you reduce excess inventory as much as possible.?

Track your current inventory levels closely and regularly--at least once per week is ideal. This will allow you to identify trends in sales and usage of different products so that when it comes time for restocking, you'll know exactly what needs restocking and how much product should go back on the shelves at any given time (and thus avoid overstocking).?

Watch your freebies

If you're giving away an appetizer while people are waiting to order, make sure it's something people will actually eat and that it offers value to your customers. The keys here are portioning and perceived value to customers, without those things: freebies don't always work in favor of businesses.?

Focus on what matters most

Restaurants are a business. And like any other business, they need to make money in order to survive. If you want your restaurant to be successful, then it's important that you understand how much money is being spent on operations and where it can be cut back without affecting customers' experience.?

At the end of the day, this means either reducing your costs or increasing your revenue. Everything can be boiled down to those two goals. When implementing the above strategies, think critically on how they will reduce costs so that you can focus your efforts into increasing revenue.

Add a new revenue stream to your business without impacting your current operations. Check out how Virtual Fork could work in your kitchen.