4 Tips for Restaurants that are Struggling
/The restaurant industry is facing significant challenges, with statistics from the often cited Ohio State University study revealing that over 60% of new restaurants close within their first year, and 80% shut by their fifth year. The COVID-19 pandemic, rising operational costs, and shifting consumer preferences have only exacerbated these struggles. Common reasons for these closures include poor financial management, lack of innovation, and inadequate marketing strategies.
In this blog, Certified Vegan Hospitality Consultant Renee Molenda explores actionable tips and strategies to help struggling restaurants navigate these challenges and find a path to success. Here are her 4 tips:
Simplify your menu.
Your menu should be no longer than 2 pages to help customers not get overwhelmed by a plethora of choices. Try being excellent at a few things because nobody is good at everything. Additionally, having fewer ingredients and using them across multiple dishes causes less waste and keeps costs down. Remember the KISS method (Keep It Super Simple). Keep your menu simple, straightforward, and devoid of unnecessary complexity, but also find the balance between being just complex enough that customers aren’t likely to be making those dishes at home regularly. We go to restaurants not just for convenience, but to be wowed by a meal and get something we can’t easily execute at home.
Manage your money.
There are several steps you can take to be an excellent money manager as well as to attract business. First things first, hire an accountant. This will help you know your financial standing and make taxes and payroll easier. You should always be reviewing your finances as well, but an accountant will help be a second set of eyes who can catch errors and help with complex tax situations. Next, make sure your pricing covers your restaurant’s bills, employee payroll, allows for savings for scaling and reinvesting into the business, helps to provide a 6mo-1yr cash cushion if you did not start out with one, and most importantly pay yourself a living wage because you’re the boss and you deserve to be happy doing what you love, or why do it at all? Lastly, stop worrying if your prices are too high. Hold the unwavering belief your food is amazing and worth it because you’re good at what you do and you will attract the right clientele. You got this.
Label your menu.
“Clear is kind.” Having a clearly labeled menu is good etiquette and makes it easier for guests to order efficiently. Many people have allergies and labeling the menu eliminates back and forth from the table to the kitchen and speeds up the ordering process. Vegans often get the final say in choosing a restaurant because they know where they can eat and usually the group lets them decide due to their alternative dietary preferences. When your menu is labeled clearly and up to date on your website, it lets customers know they can eat there before they walk in the door.. You don’t want to miss out on groups of people everyday over a small omission like not having a well labeled menu. Faster service = earning more money. Here’s a sample menu key to follow that covers your bases, however we encourage you to get customized menu support so you can determine the labeling system that works best for your menu.
Promote your business.
Customers won’t know you exist if you don’t promote your business. Instagram, Facebook, and Google ads are helpful so people know you’re out there. Update your website regularly to allow for better search engine optimization which helps your restaurant place higher in Google searches. Be sure your business hours and address are easy to find across all platforms so guests can find you. When sharing photos of your food, don’t forget to promote your vegan options as well if you are looking to attract this additional customer segment.
We know the restaurant industry is tough right now, and we want your restaurant to flourish and thrive. If you would like a consultant to take a look at your menu and provide feedback, we offer menu support that can take your menus to the next level. Click here to learn how we can help.
This article was written by Certified Vegan Hospitality Consultant Renee Molenda, of Flourish Vegan Consulting, based in Los Angeles, California, USA.
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