Up Business in a Down Economy

Restaurant owners are used to riding out the slight fluctuations that are normal within the economy. However, when the economy takes a dive (as in recent years), the seas of commerce can get extremely choppy. Don't settle for just staying afloat. By taking a step back and revaluating your business you can still bring in a profit even in a tanked economy.

Assessing Waste

No matter how tight of a ship you run, chances are if you really look around there is quite a lot of waste in your operations. This is especially true in restaurants with an absentee owner. You should trust your management staff with your business of course, but when push comes to shove, nobody cares about your business as much as you do. When it's time to get to work on revamping operations to save money and boost profits, don't delegate.

The first order of business is suspending all unnecessary projects. Your customers will understand if the awnings don't get repainted. Meet the requirements for public safety and leave the remodeling for better times.

Take a look at your operations too. If you've been blowing off that waste oil management service guy who says he can cut your costs, find his card and give him a call, he really can do what he says. Spend some time watching your staff work. Tighten the reins to eliminate wasted product and wasted time. If your staff has a lot of time to waste, you are probably over-staffed.

Marketing

Look at ways to tighten your marketing budget while still effectively reaching the public. Discount promotions are a lot more effective at bringing people in when the economy is down. When everyone is scrambling to save every penny a two-for-one deal will bring in a lot more customers than give-away promotions.

Shift the focus of your marketing toward your "value menu" items. Keep your quality good and you deals great and the people will still come to you. Dinning out is one of the last things to be cut from most people's budgets, but they will go where they perceive the highest value for their dollar.

Up Your Appeal to the Young Audience
Start targeting young people in your marketing and promotions. Even when the economy is down, young people are more likely to spend. They don't have bills, they aren't focused on saving. They have disposable income and a great desire to dispose of it.
Get a bead on what is important to young people. Things like creating a WiFi hotspot in your establishment can bring in the younger generation and keep them in. You don't want to spend a lot of money revamping your establishment while things are tight, but you can do simple things to make your establishment more appealing and "youth friendly". Give up your muzak or adult contemporary in favor of something with more appeal to the kids.
Need some more ideas about what changes would help build your customer base of young people? Then you should take advantage of the wealth of practical information you have (and pay to have) at your disposal. Brainstorm with your young staff members. They'll value the chance to feel important to the business and you'll value the money you make from their peers.