How to Save a Failing Restaurant: Step by Step Tips
Running a successful restaurant is notoriously difficult. There is a high failure rate and many complicated issues to deal with. Many people who open a restaurant for the first time find themselves sinking. The restaurant could start to fail and the reason might not be clear. This is when you have to start taking action to rescue the establishment. Here are some step-by-step tips to save a failing restaurant.
Look At Your Hours
Start by looking at your hours. You might be closed the hours when most people want to eat at your restaurant. Analyze your expenses and see if you can try opening for longer hours or later into the night to be available for new demographics.
Approximately 60 percent of restaurants fail in the first year according to some studies. Excessive spending is one reason why. Stop and reassess the vendors you are using. Look for lower-cost options. If no options are available, then attempt to negotiate a better contract or rates.
Improve Table Turn Times
The restaurant industry makes $632 billion dollars a year and you need to capture as much of that as possible. Try to improve table turn times in your restaurant. This means getting people up and out of the restaurant efficiently to make room for more customers and more revenue.
Look For Trends in Reviews
Go online and into local papers to look for reviews. Put out survey cards at tables. Look for trends in the reviews. If you notice a trend, then take action immediately to rectify the problem. This can make a large difference when your restaurant is failing.
Think About Modifying the Menu
Although it is difficult, take a hard look at your menu. Look at what people are ordering and what is being left behind. If things are really bad, then think about modifying the menu. Add more variety or more of the items that people seem to enjoy the most.
Ramp up Community Advertising
Your restaurant might be failing because no one knows it is there or what you offer. Increase your community advertising and marketing efforts. Be aggressive and use low-cost local techniques like flyers, people on the street and ads in newspapers. This could potentially bring in a large number of people who are just discovering your restaurant for the first time.
Hold Special Events
A final step is to hold special events. You could have theme nights, discount nights or nights where there are games or live music. Special events can draw in people who might never have otherwise come into your establishment. Try to choose events that match your brand and appeal to the local residents. A couple of good events could make the difference and save your restaurant.