Control Costs and Increase Profits In Your Restaurant

Start Planning for 2013 NOW If You Haven’t Already….


cutting costs in your restaurant

The end of the year approaches and what a year it has been!! The economy is still in the dumps, although there has been some rebound in some parts of the country, most restaurants and food establishments are still not back to where they were a few years ago.

With the end of the year close it is now time to start planning for next year, in fact if you have not already done so, you should start now and I do mean now!!

Forget what has been and start to visualize how you are going to grow your sales and cut your costs for the coming twelve months. It is a new start and hopefully you will get a kick over the holiday period to help you put away a bit of money for promoting your business.

What do you plan for? Let’s assume you have done a complete budget for next year. Sales, costs, maintenance, recruitment, etc, etc. Now comes the planning for how you will achieve the sales and costs budgeted.  We all know that the two ways to ensure your business is healthy financially is to…. Grow Your Sales and Control Your Costs.

Sales growth comes from service and product excellence as well as marketing your business to keep existing customers and gain new ones. Sounds pretty simple but we all know that it is not. Trying to find time to run your business, worry about staffing issues and all the 1001 things that it takes to keep the doors open all fill your day from start to a very weary finish.

I suggest you take the time away from your restaurant business, even if it is one day to spend planning your strategy on saving costs and growing your business. Get someone to cover for you. If you have never let anyone look after your business before, then it is about time you started!! Sometimes it is necessary to spend time working for your business rather than in the business.

Decide on three major projects that will help you achieve these goals for the first half of the year, one long term or ongoing, one medium term and one short term. Plan to start them all by the end of January and ensure they are monitored to gauge their effectiveness. The sales growth part should start with the next six months of LSM campaigns and the budget for each. The cost control part is dependent on your circumstances but I would strongly suggest weekly stock takes and cost percentage reviews as a priority if you are not already doing so.

Still a bit lost as to what to plan and how to go about it?

I can help! I have just completed a guide “50 Ways to Control Costs and Increase Profit” and it is currently available for Kindle. Click Here to get your  Kindle copy.

In the next 10 days the book will be available for PDF download from this website with some very interesting and helpful bonuses such as:

  • A free copy of my LSM ebook
  • A Cost Control Worksheet to help you track your savings
  • An Excel worksheet Break Even Analysis
  • 50 Ways to Control Costs workbook to help you plan which of these great ideas you are going to implement

Both of these guides and the additional tools are perfect for planning the year ahead and assisting you in making the profit you deserve.

Good planning and a Happy Holidays!

Rod Smith

ROC United Diners Guide 2012 – Eye Opener!

This past week a new study was released by the Restaurant Opportunities Center who surveyed 4300 workers for their 2012 National Diners Guide. The survey has brought to light some shocking facts about the wages, sick leave and general he working conditions in many franchise restaurants in the USA.

As a long time restaurant operator one might think that I would side with the corporate franchisors or individual franchisees who chose to adopt a policy of no pay for sick days, “minimum wage” or the painfully low tipped wage of $2.13! Having spent many years in different countries with a range of wage rates, strong unions, weak unions and other factors affecting the hourly worker; it saddens and repulses me that in this wealthy country our service workers are forced to work for a “minimum wage” well below the poverty line.

Chick-fil-A vs Eat More Kale

Several months ago’ I wrote a blog about Chick fil-A and the support that the founder of the company gave to various groups that were aligned with anti-gay movements and the damage it was doing to the brand image.

The purpose of this post was not to take sides but was about the damage the bad press can do to the franchisees who have invested large amounts of  money into a business they thought had their best interests at heart.  In other words, keep your personal beliefs out of business especially when you are talking about the livelihoods of decent hardworking people.

Well, the boys at Chick fil-A are at it again. This time they have rolled out the big legal guns and gone after a small businessman by the name of Bo Muller-Moore. Muller-Moore, a silk screen artist was asked by a kale farmer friend to print three t-shirts that said Eat More Kale to give to family. A few weeks later the farmer told Muller-Moore that people had been asking about the t-shirts and a small business developed. Muller-Moore says that this was more about supporting local kale farmers  than anything else but it did manage to make enough money for him to set up a small silk screen business.

Local entrepreneur does good?

Not as far as Chick fil-A is concerned!! Their legal eagles are after this small Vermont silk screen artist. Too close to “Eat mor chikn” they say. It will confuse their customer base. They have to protect their copyright and their intellectual property.

Chick fil-A must think their customers are not very bright. Can’t tell the difference between chicken and kale? A hint. Kale is green and it’s a vegetable. Chicken is neither of those things.

Leave the guy alone the phrase “Eat more xxxx” has been used for a variety of things over decades not just chicken. Sometimes big companies should use common sense rather than a big stick when dealing with other people. I am sure if this artist made a million t-shirts with “eat more kale “ printed on them it would not hurt Chick fil-A sales by one cent. Maybe they should learn from this artist. He’s promoting a product that is good for you….. and at least he can spell.