As a sales manager of a restaurant, you have to deal with volatile sales report that is beyond your control. Although, your aim is to reach the desired profit margin every year, but, it might happen that due to factors unknown, it has not been possible so far. In spite, of spending money on promotional strategies, your restaurant has failed to carve a niche for itself. Today, we are going to discuss four reasons why your restaurant is losing money and how you can turn the tide in your favor.
High Employee Turnover – From 2010 to 2015, employee turnover grew by 15.7%. In fact, may restaurants failed to retain the new hire. The ever increasing salary packages of the staff are having an effect on your business. The money that your restaurant is generating, you have to pay a chunk of it as salary packages. The remaining amount is not that high that you can claim to have made profits. In order to minimize this effect, you need to make sure that in addition to the salary, your restaurant is offering development aspects. The new millennia are not hung-up on high salary range as long as the exposure and the growth offered is quite good.
Long Queues Affect Business – While long queues in front of your restaurant may be considered to be a sign of success, but it can be a different case altogether. If you have slow moving staff with slow service, it will result in long queues outside your restaurant. On top of it, if the food served is not of excellent quality, your restaurant will soon lose out on loyal customers. Moreover, they will not hesitate to badmouth your restaurant. To prevent this from happening, invest in staff that are proficient in their job and come highly recommended. In fact, take part in seminars to teach your staff about the importance of prompt service with a smile on their face, always!
No Online Presence – The advancement of technology has ensured that diners have more access to dining options. As such, many food lovers are using the online food applications to search out restaurants and place food orders from there. If you wish to make the cut and edge past your competition there is no alternative to restaurant order online Your lack of online presence so far has resulted in loss. Don’t wait, anymore. Go ahead and get it installed today.
Poor Inventory Management – Most of the well-established restaurants spend nearly 25-30% on inventory management. If you lack in this department, you can well understand the soup you are in. This means you need an effective inventory tracking system. The restaurant order online software is the answer. You can keep a track of every order placed, the cost generated and the payment made. You can calculate the total cost at the end of the day or tally the entire amount at the end of the week, whatever fits your bill. In other words, you have complete control over the business generated.