Why Cutting Costs Shouldn't be Your Default Tactic.

Read time: 3.5 minutes

There has never been a more challenging time than what restauranteurs are facing in the current climate.

Economic uncertainty can be stressful and worrying for founders, do you continue to grow or do you buckle down and build reserves in case it gets any worse?

This week, we are going to focus on building value because, in these times, I see so many operators default to the bad habit of slashing costs, but by doing so, you often risk your long-term success.

I shared a list in my post yesterday of ways to improve the experience of your key stakeholders and I want to focus on three of the most important on that list.

If you want to check out the post, follow this link ----> 98% of restauranteurs default to the wrong methods

Analyse Trends

Analysing trends is critical for restaurant businesses as it helps them understand their sales patterns but so many don’t look at their business this way.

I advocate for always looking at 13-week and 13-month trends as they show a more comprehensive picture of the business's performance compared to shorter timeframes.

These trends help identify seasonality in sales, highlight any slow periods, and identify opportunities for growth. Additionally, longer timeframes provide a more accurate representation of overall business performance, as it helps account for any fluctuations and provides a clearer understanding of the underlying trend.

By analysing both weekly and monthly trends, restaurants can make more informed decisions about staffing, menu offerings, and marketing strategies which helps you stay ahead of the curve.

If you don't know how to start to analyse trends, send me an email at, [email protected], and we can review your current data together.

Listen To The Stakeholders

By gathering feedback from all parties involved, the business can better understand its guests' needs and preferences, identify areas for improvement, and create a more positive work environment for employees.

By considering the perspectives of all stakeholders, restaurants can make data-driven decisions that improve the guest experience, increase team morale, and drive business growth.

Review - The Importance Of Continual Innovation

Continual innovation is crucial for the growth of any restaurant business, and reviewing action plans involving the team is a critical component of this process.

It is important not to be too precious about ideas that do not work and to approach these challenges as opportunities for growth and improvement. The ability to be flexible and willing to pivot strategies as needed is crucial for adapting to the ever-changing needs of customers and the market.

See how we help other brands focus on brand strategy by checking out these case studies ----> Visit our website

It is important to always look to build value every day for your guests and your teams, it can be easy to default, especially when times are tough, but by continually looking at the innovation and experience, of your guests and your teams, you will create loyal fans who will drive your business alongside you, creating a much stronger foundation for growth.

Thanks for reading, until next Monday.

Scot ???

Enjoy reading this week's newsletter? When you are ready, I can help you in the following ways.

1. Check out my online resources where you can find my online course 'Write The Perfect Business Plan' as well as some helpful templates that can improve your business ----> Check it out here
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