As practice shows, many restaurants close a year after the start of work. This is due to the fact that employees and managers make critical mistakes. If you avoid them, you can expect good profits and a truly successful project.
Here 6 Top Critical Mistakes At Opening Of Cafes And Restaurants
Rapid waste of all incomes
Large spending is considered the main weakness of all entrepreneurs, especially if things were asked at the beginning. More than 50 percent of executives are fired at this moment. In this case, do not forget about the axiom “There is no money in business”. There is only client money and working capital. Financial means should not lie idle – and public catering, in this case, is no exception.
It is possible to give an illustrative example: the client comes and pays in advance corporate. Inexperienced entrepreneurs begin to think about where they will spend the money received, but this is the main mistake. While the client will not be satisfied with the goods or service, money does not yet belong to the owner. You must always remember the force majeure by the type of power outage, sanitary-epidemiological station, fire in the kitchen or the transfer of the date. The main task of skillful restaurateurs is to develop their business, rather than the constant spending on personal expenses.
Lack of structured accounting
Other critical mistakes are related to the lack of financial and grocery accounting in the institution. Do not neglect this. While the businessman does not see real figures, he thinks that everything is fine, but then there are debts, interruptions in supplies and theft. It is better to secure yourself from the very beginning and implement an automation system.
Time notebooks are already behind. Thanks to the systems, you can count on real opportunities by type of statistics, cash shifts, inventory, loyalty program and so on. Tablets and laptops become cash registers and terminals when the printer is connected to them. You can monitor work from different places through your smartphone.
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Ineffective advertising campaign
For many, this error is obvious, because if there is no advertising, then there is no big client afterward. In practice, not everyone realizes how important promotion is. A common mistake restaurateur lies in the misunderstanding of marketing and advertising technologies. If you think that it’s enough to give out a pair of flyers and turn on loud music, then this is definitely not the case. Where it is better to arrange a free party with drinks and discounts, shares – many people will come and potentially they can become permanent.
It is very important to determine your target audience and competitive advantages – what stands out from the background of other institutions. It is necessary that advertising reaches its goals. Do not load it with unnecessary information, you need to invest more sense. Advertising should give a clear answer to the question of why the client should visit your institution and how it differs from others. It will not be enough to inform about its opening, to show the menu and the interior. It is important to think through history, develop the concept.
Experienced entrepreneurs are well aware of the important role played by staff. For the establishment of public catering is extremely relevant, especially when it comes to waiters or administrators. Before opening a restaurant, such personnel must be trained. Naturally, many recruit personnel with experience, but they will need to pay a lot of money, which is not always available to beginners in this business.
An exception can be the opening of a cafe, a restaurant in a small town. Sometimes just not the right amount of personnel with experience. In this regard, the training of applicants becomes the only possible option for the formation of the restaurant’s qualification staff. The training will take a couple of weeks of time and money.
The next mistake is connected with the choice of a place for an institution. One of the key criteria by which to choose the location is considered passableness. The more people flow on the street or in the shopping center where the opening is planned, the greater the likelihood that the visitor will go inside. If a friend offers you a great place at an affordable price in the garages, then you probably will think several times before agreeing. Yes, in this case, it will be possible to save on rent, but there is a high probability that a person will not earn anything. Perhaps it is better to pay more, but also to get a good profit?
The lack of automation is another critical mistakes, because of which the institution does not develop and eventually loses customers. Thanks to the implemented software, the owner of the institution or administrator will have the opportunity to visually evaluate the effectiveness of the work of a cafe, bar or restaurant. All information is provided in an accessible form. The software will allow:
- To control the quantity and the range of the remaining products in the warehouse.
- Automatically write off the drinks and products of consumed meals for cooking.
- Obtain information about dishes sold.
- Engage in making and changing menus. This function is considered extremely important since it allows administrators to make adjustments instantly.
- Get accurate information on the movement of goods in the institution.
If it is true to use the above opportunities, it will be possible to maintain a favorable atmosphere in the institution, which increases profit. Among other things, you can now monitor the work of employees. Avoiding the above critical mistakes, the entrepreneur will surely achieve success and will be able to make a restaurant or a cafe one of the best in his field.
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