Getting Through Your Franchise's First Years

No matter how long you've been in the industry, finding ways to effectively manage your restaurant can be a challenge. It's a sad fact that 50% of all new restaurants go out of business within three years of opening. Though there are never any guarantees, there are aspects of your restaurant you can address to improve your chances of success.

Marketing

If your restaurant is a franchise, don't count on the marketing done by your franchisor being adequate to your needs. Hopefully it is, but you will still benefit from being proactive about marketing in your community. Don't hesitate to get a little bit creative in your local promotions.

Generating excitement about your business in the community is crucial to your success. Showing an interest in your community is the best way to get them talking about you. Sponsoring little league teams, contributing to fundraisers and otherwise supporting the community will generate positive interest in your restaurant and get people talking about your business.

Service and Quality

Marketing may bring new customers through your door, but it is the service and quality they receive that keeps them coming back time and again. Repeat customers make up the largest percentage of revenues for restaurants. Equally important is the fact that word-of-mouth endorsement of your restaurant by a satisfied customer is a great marketing tool.

Therefore, consistently drill your staff on being courteous, cheerful and professional in every single interaction they have with the public. Focus on consistent food quality and timeliness. Offering superior quality and service isn't something you simply train a staff to do, but is, rather, an ongoing exercise between yourself, the management staff and the general staff.

Cost Effectiveness

Of course, it doesn't matter how well you manage your staff or how excellent your food and service is, if you aren't wise about controlling your overhead, you won't fair very well. Finding ways to manage loss is one of the most significant challenges that faces restaurant owners and managers. Nevertheless, it is a crucial component of success.

Managing costs can be especially challenging for franchise owners who are limited in their selection of suppliers. Getting the best deal isn't always an option. Therefore it becomes even more important to stress waste management in all procedures, from sanitation to food preparation. There are also a number of services available that specialize in helping restaurants limit waste in areas like fryer and waste oil management and in improved cold-storage. Though it may seem counterintuitive to think that you could actually save money by paying for a new service, many of these service can do exactly as they claim and are worth at least scheduling a free demonstration.
Value can be defined as the maximum amount of benefit for the least amount of cost. Successful restaurant ownership and management is comprised of providing the highest value of product and service to your customers while seeking out the highest value in all of your operational expenses. This is as true for the value you look for in your paid employees as it is for the value you look for in your ingredients. It all comes together to form a thriving business.