Hard times in the restaurant business. The owners of both inexpensive restaurants, local cuisine fast food and small expensive restaurants admit the strong decline in the flow of visitors. However, what does the future hold for them? How is the situation will develop in the restaurant business? Is it possible to prepare in for the worst advance?
The first to suffer are expensive restaurants for wealthy people, with a higher average check. In many of them, the attendance significantly decreased.
Along with falling attendance average bill decreases too. People with higher incomes did not change the preferences and, in general, continue to visit the familiar and favorite restaurants, but at the same time, many of them have started to be more aware of prices.
Medium and cheap local restaurants suffer less. Now the number of visitors remains at the level of the past year. This is partly due to the outflow of a certain part of the audience of expensive restaurants.
The local fast food cuisine segment has been affected the east of all. This segment is often the most resistant to shocks. As in the whole of New York, in Brooklyn, in the last few years, the culture of eating out is only growing. And fast food as the most inexpensive manifestation of this trend is not short of visitors. Street outlets of various fast-food chains have become so familiar to the everyday life and snack on the run, that due to its low-cost and the current audience, they are unlikely to feel the pressure of the crisis. And with the competent fiscal policy even an increase in profits can take place.
However, the hard-times carry some advantages in the restaurant market. Due to the closure of the weaker players in the industry of food and waves of staff reductions in other areas of the economy, lack of personnel will be solved, which for several years has been one of the key problems of the restaurant business. The limited vacancies in other areas of the business will cause many job seekers to take a closer look at the restaurant business as a temporary cove, to endure hard times. Subsequently, some of them will remain in this area for a long time.
What can you advise restaurateurs?
Precise recommendations without knowing the details the situation at the site is difficult to give because different companies may limp different sites. Some of them have a problem with the theft. Others are suffering because of the lack of a clear positioning and more. And if before a restaurant could remain afloat with these problems, in times of crisis the existence of unresolved issues will inevitably ruin the whole business. The sooner these problems are resolved. The better are the chances of a successful outcome.
It is necessary to revise the budget for the next period within reasonable limits to minimize costs.
- Review the marketing strategy
- Adjust the development plans
- Adjust the staff. Remove duplicate items. In many companies, for example, there are several office managers, although one could easily cope with the amount of work alone. Make cuts in departments scored “overweight” during the financial well-being.
- Make adjustments to the menu in order to increase the positions with the highest margin. Output dishes that consist of products that may disappear soon so you will not have to search for replacement urgently at any price. Negotiate with suppliers. Study the situation.
- Pay attention to the control of the costs of the products and goods included not only in the so-called “A” category but take a closer look at the “B” category.
Weak players will be forced to leave the market. And the strong will focus on optimizing the processes inside the restaurant and will not expand actively. It is necessary to mobilize all resources to defend your business.
I knew from the very start that three things were needed for my success; I needed a great head chef, location, and concept. And they all had to work together.