Across the restaurant industry right now, profits range from 0 to 15 percent, according to Toast, and profits between 3 and 5 percent are most common. That doesn’t leave much wiggle room for making errors or adapting to industry changes such as the rising demand for off-premise dining. Operators have to be continuously creative when it comes to finding and mining sources of revenue, whether from new products, services or partnerships. (Note the current fervor around restaurant brands partnering with Beyond Meat, with Subway and Hardee’s being just two of the latest companies to tap into the meat substitute’s popularity.) Restaurant Nuts suggests operators consider options such as joint ventures – for example, partnerships with grocery stores to sell your products can help you promote a special offering while lowering your sales and marketing expenses. Or, as All Food Business suggests, you can partner with a corporation to offer expense accounts, business dinners, client programs or events that can generate income. You can align with a business or charity whose mission complements yours if it helps you to expand your audience, offer a special event you wouldn’t be able to offer on your own, or tap into resources (such as technology or delivery capabilities) that benefit both parties. Within your business, building out a catering menu can help you make the most of your food costs (and minimize waste) while serving lucrative off-premise and corporate customers. Depending on your business, there may also be opportunity to offer retail products like clothing or take-home versions of signature sauces that your restaurant is known for.
Want to win over customers? It’s not about having mouth-watering new specials or transforming your marketing strategy. It’s all about your operations. (At least that seems to be the trend based on recent performance results of a number of major brands.) As reported in Restaurant Business, brands including Dunkin’, McDonald’s, Starbucks and Wendy’s have prioritized operational changes over menu innovation in recent months. Wendy’s has focused on eliminating tasks and training employees to improve speed of service. McDonald’s continues to experiment with automation and has held competitions to find ways to serve guests faster. Dunkin’ has streamlined its menu and changed the layout of stores to improve flow of operations. As for Starbucks, third-quarter same-store sales increased 7 percent and store traffic increased 3 percent, due to what the company says is its focus on simplification – reducing the tasks that need to be completed in-house and shifting employees’ focus to guests. How can you simplify your operation – both with and without technology – to deliver better service?
Does your restaurant have creative ways of sharing what you do best — whether it be inventing new dishes or surprising guests with unexpected pairings or presentations? For years, operators have used Restaurant Week offers to bring guests in during slow periods, attract people who wouldn’t normally visit and test new menu ideas — but the event needs some reinvention. While it can be profitable for operators, many say that Restaurant Week turns off regular clientele, can be costly to manage and has grown to include so many restaurants that it is difficult to stand out in the crowd. In place of Restaurant Week, operators are coming up with more experimental concepts. Upserve reports that “Off Menu Week,” a joint effort between Resy and Capital One, is taking off in six food-focused cities ranging from Los Angeles to Chicago to New York. Participating restaurants will serve dishes that may appear on a future restaurant menu, off-menu items, or one-hit wonders that didn’t make it to the menu. Bloomberg reports that participating restaurants could offer such experiences as having guests try a dish with a selection of wines designed to draw out different flavors, or demonstrating different approaches to making sushi. The goal isn’t about showcasing signature dishes or trying to attract guests looking for a good deal — it’s about providing a behind-the-scenes experience visitors will remember.
Operators typically consider restaurant technology options with an eye toward improving the guest experience or boosting the efficiency of front- and back-of house teams. But it just might help you attract and retain employees too. A recent Deloitte study found that 74 percent of millennials indicated they want technology to be part of their workplace. It doesn’t have to cost operators a lot either. The Rail reports that even free tools like What’s App and Google Groups can help, as can more-targeted paid apps like HotSchedules and RedEApp. Streamlining communication, assigning tasks, shift scheduling and switching, and managing employee payment via tech are all important, though even the quality of your wifi can make a difference to employees looking to log on during breaks. Before a new employee even joins you, tech can help you manage the talent pool more effectively. Tools like RoboRecruiter, for one, which has a multilingual platform, use an online chatbox to automate messaging and help you sort and engage your candidate pool.
What’s your challenge? Whether you need help developing recipes and concepts, analyzing food costs, fine-tuning purchasing, planning a marketing campaign or managing another aspect of your business, we can provide guidance tailored to your needs. Contact Team Four at firstname.lastname@example.org or 888-891-3103 for more information.
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