Sticky Note

Sales Don’t Yield Success

A common misconception in the restaurant business is thinking that a busy restaurant with high sales is a profitable restaurant. This may be true in some cases but it’s not always the case.

Just because a restaurant has good sales and seems popular does not mean it’s profitable.

Some statistics show that 90% of all restaurants will fail in their first year of operation but not all 90% of the restaurants will fail because of poor sales, many of them will fail due to inadequate management.

There are a lot of responsibilities that are involved with management; not performing just one of them correctly can turn a money maker into a for sale sign.

Some of the many responsibilities a manager has include ordering food and supplies, inventory, checking in orders, invoicing, scheduling, dealing with the guests and much much more.

With all of this going on it’s easy to forget about something that may seem unimportant like checking in your food order or filing an invoice correctly.  These are the things that will without a doubt come back to bite you.

Take for example your truck order; you may not have checked it in because you were busy with something else, but 2 days later you discover that you were shorted a box of lemons.  These lemons won’t likely be replaced by your food distributor because the delivery was signed off on. The cost of the lemons is now your problem and it’s going to show up on food cost.

Maybe the next week you couldn’t find time to review your schedule and then mid-week you realize you’ve overscheduled labor by $300.00.  Even if you start to cut back now you won’t be able to recoup all of the labor dollars by the weeks end.  There goes more potential profit down the drain; and the possibilities go on and on.

In a nutshell, it doesn’t really matter how busy the restaurant is, if procedures aren’t followed you’re going to loose out on the bottom line.  Whether its in food cost, supplies, labor or any other of a long list of possibilities, your profit will suffer.

These are all things that will play a huge part in your restaurant's success or failure and no amount of sales can cover up these problems for long.

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