In this article we look at 7 common mistakes made in the Restaurant trade.
Planning to open a new restaurant? Keep in mind the competition is tight. In the UK alone, there are more than 31,000 full-service restaurant locations.
Surviving isn’t simply about offering amazing food. You’re still managing a business and this requires you to scrub off bad habits or out-dated methods to compete. If you want to become an effective restaurant, you need to avoid common mistakes.
If you’re ready to learn what to avoid, read on.
Common Mistakes that Make Restaurants Fail
Failure is a common concept in the restaurant industry. After all, about 60% fail within their first year while 80% fail before their first half-decade. If you’re a new business, you need to ensure that you avoid the pitfalls made by unsuccessful restaurants.
Here are seven common mistakes you need to avoid at all costs:
1. Poor Location
It’s an accepted fact that a good location is what makes a restaurant successful. It’s easier to get business when you’re located near consistent and heavy foot traffic. If you’re guaranteed customers during breakfast, lunch, and dinner, all you need is a good menu and excellent guest experiences.
Your business becomes tougher to handle if you’re located on a quiet street. The suburbs aren’t the best places to have a restaurant business, either. The rent might be lower, but the location won’t help you recover the costs.
The odds are against you if you find your business in a bad location. Whether it’s off the beaten path, hidden in a corner, or away from where the people are.
2. Lack of Good Marketing
Another thing that makes things worse is the lack of proper marketing. Your location problem can become unmanageable if you don’t start a marketing campaign. Your aim is to make a loyal customer base that will come back from time to time.
In this digital age, you don’t have any excuse not to have an updated, user-friendly website. You also need social media presence since it helps you engage with your followers. That would allow people to know about your events and reward programs.
3. Lack of a Good System
You need to understand that your restaurant is something more than a place that serves great dishes. It’s a business that requires regular bookkeeping, inventory management, and secure payment options. Doing things old-fashioned, relying on pen and paper, isn’t going to cut it.
You need to get with the times. Use a powerful POS system you can access even when on your phone. Utilize a comprehensive but easy-to-use database to track sales, inventory, and transactions.
4. Slow Enforcement on Lazy or Incompetent Management
All your employees should act as a support system for one another. They need to have an understanding of the type of roles they play to keep your restaurant functional and profitable. It doesn’t matter whether it’s the kitchen manager checking your inventory or a waiter ensuring that food won’t spill.
If you don’t have this culture at your restaurant, it’s most likely your managers’ fault. If you don’t address this problem soon, your business isn’t likely to survive. That’s why you need to look for the signs of poor management before it’s too late.
Managers with poor communication skills and mishandle guest complaints should go. But first, you need to tell them outright that they aren’t doing their job. That might make them more incentivised to improve and secure their position.
5. No Attention to Customers and Customer Reviews
A huge mistake is not listening to your customers’ feedback. A lot of restaurants that fail in this area often think that online reviews are their enemies. There are legitimate complaints and compliments on these websites that you should take into account.
Use bad reviews to make the situation right, despite the fact that you weren’t in the wrong. Put more time thinking about what the majority of your guests say about your restaurant. Check what they find great about the food, atmosphere, and the staff while reading the criticisms as well.
If a large number of customers comment about the same thing, it’s probably time to make some tweaks. That way, you’ll improve your guests’ experience. You don’t need to make grand changes—make small ones over time to keep your customers with you.
6. Lack of Seriousness in Hiring and Staffing
You can’t offer high wages or consistent hours for your employees. But with that said, you can still find hard-working, committed people for your business. As a matter of fact, most successful restaurants get only the best.
You must take the time and effort to hire the best people around. This will give you fewer worries about the consistency of the guests’ experience. Otherwise, you’ll end up getting people that don’t have any idea of the type of image you want to give your customers.
Remember, poor decisions when hiring often comes from desperation. If you don’t make it a point to keep your hiring and staffing process serious, it will backfire. You’re more likely to get people who don’t show up on time or have lacklustre attitudes.
7. No Attention to Changing Business Climates
Right now, the main influencer for cultures and businesses are Millennials. They’re the ones who dictate the newest restaurant norms, leaning towards fast and casual services. They’re passionate about all things related to technology, and you need to embrace it.
If you don’t stay current, you’re bound to lose customers you’ll otherwise gain by embracing and adapting.
Avoid Common Mistakes Today!
These are the most common mistakes you’re likely to encounter if you’re running a restaurant. It’s important to avoid these pitfalls and adapt to the constant change in the restaurant industry. Don’t hesitate to try out new things, especially if it’s something that can make your business better.
One thing you need is an amazing POS. If you’re looking for the right technology for your restaurant business, get in touch right now and we’ll help you out.