If there are any data screenshots that we can use from the dineout/inresto app with actual numbers we can plug them in under each example given below
The restaurant business is a demanding and complex undertaking. It’s pertinent for every restaurateur to delve deep into the nitty-gritty of the craft to successfully run a restaurant. Just like every other business, a restaurant business also has certain performance metrics that a restaurateur needs to determine and evaluate to get a better picture. These parameters will help you identify the shortcomings. And it would further enhance your future decision-making process.
A restaurateur must have clear and definite short and long term goals and objectives. The short and long term goals must include increasing the monthly and daily restaurant sales figure, decreasing the risk of theft, improving employee productivity, innovating on the top-selling items and testing the service charges. Moreover, back your goals with real-time, accurate data analysis to correctly assess the performance of your restaurant business. Proper management from grass-roots levels will boost your sales, resulting in increased profitability.
7 Examples of Short-Term and Long-Term Restaurant Goals
These seven short-term and long-term restaurant goals will help you achieve your targets and augment performance indicators like positive cash flow statements, reduced prime cost, optimised RevPASH (Revenue per Available Seat Hour), etc.
1. Increase Monthly Net Restaurant Sales
The monthly report of the net sales of your restaurant is the most important of all the analytic parameters available. A proper accounting of the total sales will help you understand the profit and loss statement at the restaurant. The sales report is definite to give you an idea to correctly forecast your business performance. Hence, you can appropriately fix targets based on the present trend and climb the ladder of success. You must set a reasonable target in accordance with the current sales figures.
The term “net sales” means the gross amount of sales minus the applied discount. It is a time-consuming and gruelling task to check each and every receipt and bill. Therefore, it is imperative to store all the physical data online that will grant you easy access to the number at any point in time.
You must take into account the location, the type, and the past records of your restaurant to set your targets. The goal here is to increase your monthly sales gradually. For that, you must track the applicable key performance indicators that will prove to you whether your business is performing in tandem with your goals. Key performance indicators; like sales every labour hour, sales per head, revenue generated in a fixed tenure and table turn time; are all-pervasive as they indicate a restaurant’s financial status, customer satisfaction levels, variable and fixed cost ratios, etc.
2. Increase Daily Net Restaurant Sales
Regularly checking on the daily net restaurant sales might consume some of your precious hours, but it helps you make and take unique and swift decisions. Analysis of the sales figure for a few days will portray light on the impact of promotional campaigns on the same. The analysis is also important to highlight the dip in daily sales if any. Thus, you will be in a position to figure out the factors that might have caused the dip. Immediate corrective measures will help you to carry out a quick check.
In the short run, a few inputs are variable while others are fixed. Tie-ups with other types of businesses or professions like artists can sometimes increase your sales as customers will be drawn to witness the unique blend. If such promotional jigs work, then a restaurateur can decide to opt for such options from time to time or even continue them as long as it is resulting in positive marginal sales.
3. Monitoring the Risk of Theft and Employee Productivity
Data regarding the daily sales will give you an idea of the day and the time when your restaurant remains the busiest. This helps you direct the staff accordingly.
Data related to labour reports help you improve labour cost percentage. It also gives you an inkling regarding the retrenchment of staff or hiring of staff. The productive wages are taken into account while calculating the prime cost. Staffing down will reduce the prime cost of your business.
Issues regarding theft are a common occurrence that is part and parcel of any business. But with the right tool in your hand, you can keep a check on it. The systematic data analytic tool with a comprehensive sales data record will help you notice unwarranted transactions in real-time. Carrying out a transaction trend analysis at ungodly hours when the restaurant would probably be closed or vacant might give you a hint of fraudulent activities; like bill generation during off-hours and unmatched sales & inventory consumed; taking place inside the restaurant.
4. Improve New Avenues of Revenue
Structured and established marketing strategies like loyalty and gift card programs prove to be very useful in augmenting revenue if used efficiently. The loyalty programs are tools utilised by the restaurants to satisfy the customers and keep them hooked. These act as assets to the restaurants for enhancing their future profit figures. Studies reveal that a good percentage of adults prefer to dine in at restaurants with complimentary loyalty programs.
These programs can be made interesting with exciting rewards-schemes like gift cards that will entice the customers more. Another way is to hold a competition among your servers as to who will sell the most gift cards.
5. Improve the Menu Items
Menu engineering is an effective way of increasing sales and reducing food cost. The way your menu is designed and structured has a considerable impact on the minds of the customers. Menu engineering needs expert minds as it is not an easy task. Restaurants need to capture this data for doing their analysis. You need to have complete knowledge about the menu items and the customers’ reaction to each of them. An efficient feedback system and use of solutions like inresto feedback will ensure timely recording and reverting to the feedbacks. You also need to see the profitability ratios related to the menu items.
The focus should be to bring such items to the forefront that is popular. This is sure to elevate sales by catering to popular demand and production at a lesser cost. Thus, profit margins can be elevated. An attractive menu goes a long way in streamlining the food items you want to increase the sales of. Your main intention should be to highlight those items and add eye-catching descriptions underneath. A study reveals that a short and compact menu keeping the “Golden Triangle” in mind works best.
6. Test New Menu Items
An introduction of a new menu item may or may not work in your favour. To keep pace with the current market trends and popular demands, a restaurateur often has to add a new item on the menu. At times, the owner or manager of a restaurant might feel the need to innovate and experiment. It’s a gamble that might augment the net sales.
The best way to find out is to compare the average net sales per individual menu item before and after the introduction of the new item. If the monthly net revenue of the new item is more than the average, then the gamble has paid off.
7. Test Service Charges
Without a satisfied staff working for you, it’s impossible to run a successful restaurant business. Your employees are the backbone of your business. They must be kept happy. You must resort to better staff scheduling and a satisfactory pay scale. Restaurant labour costs must be kept in check at the same time. Many restaurants, in addition to regulation of tip services, are adopting service charges for all classes of employees. Such practise keeps the staff satisfied by the addition of extra incentives in their salary credit. Moreover, employers can meet the minimum wage target with ease.
The above pointers are sure to keep the restaurant owners have a clear mind regarding their short and long term goals. You are sure to get the assistance of inresto in effectively collecting data and help you carry an effective analysis check.