Restaurant operations and challenges faced by owners – How to overcome those?
The restaurant operations industry continues to be a difficult place for new entrepreneurs to explore business opportunities in the F&B, but by understanding common challenges and the importance of SOP’s setting by DNY hospitality, owners are able to develop unique strategies to increase their chances of success.
1. Keeping up with market trends
Before a business owner decides to open a restaurant, he or she must become familiar with the market. DNY conducts a detailed market study to know the competitors and In addition, conducting periodic research into current and projected future trends, for staying a step ahead of competitors. A comprehensive analysis of existing trends and the viability of similar restaurant ventures in the community is a good way to forecast potential revenue in each quarter.
2. Having enough capital
An area where restaurant entrepreneurs can run into big trouble is capital, and specifically, a lack of it. Not having the capital needed to run a business long enough so that it can establish itself can have a negative impact on the longevity of an establishment. Owners should be sure that they have at least enough money as a running cost to run for the first 6 months, and should have enough resources to cope with unexpected cost
3. Effective inventory management, SOP’s and Menu Pricing
Restaurant owners should keep a keen focus on managing expenses. One crucial component of keeping costs low is effectively managing inventory. Those who fail to do so may face unforeseen expenditures and supply overages or shortages throughout peak business periods. As per the DNY Systematic operations procedure setting process, People managing the inventory and menu pricing should fine tune the ordering process to limit waste and to continuously monitor fluctuating costs which impact gross profit on menu items. It is very important to know how much ingredients cost, as these expenses can fluctuate. Menu pricing should be as fluid as possible. Frequent and small increases in menu prices are easier
to sell to customers than larger more noticeable increases done infrequently.
4. Hiring and Team Building
Successful restaurant owners know the importance of having employees working for them. An employee is equivalent to the “hands” that owners might have put themselves to execute their operations from cooking, dispatching, order taking, delivery, ordering, cleaning and customer service.
An organization must be sure to have a good team in place during all seasons, but specifically during times of the year where customer volume increases, like the summer time. Placing greater emphasis on finding and training staff can reduce costs over time and enhance customer service – two significant priorities for owners.
DNY takes care of your staff hiring process by involving a reliable staffing agency with a replacement guarantee. DNY focuses on hiring the right candidate with 2 principle qualities- 1. Right Attitude 2. Right aptitude, It is now very important for the Owner to develop long lasting staff relations, encourage, incentive’s, develop a positive thought process with a positive approach.