RE: Need Help With Failing Restaurant
Sun, 05/28/06 7:13 AM
first, i want to say welcome to the biz. yea, its tough, but if ya love it, ya stick with it.
you and your brother need ot sit down and crunch numbers. ihope, you did this in the beginning. the objective is to find that crucial sales figure, that pays all your bills, but leaves you eating left-overs. break down your costs into categories...food, paper, janitorial, office, beverage, alchohol, fixed expenses, utilities, required take-home, labor, insurance, e.t.c., until every check ever writne, has a place. and give us some percentages. you can shave here and there, and help make each category more streamline, which will help your bottome line. thats what your after, the almighty bottom line! i think you should be comfortable, even with 30k sales.
there are many things, you have to do at once. just when you thought you were tuckered out, you got to do more.
ok, now from a customer's point of view, why is sales slipping? is it the food, the service, the atmosphere, the price, the location, or....did something else open up under your noses, that you werent aware of, stealing your thunder?
you said you were advertising, well, i say change your venue. what ever it is, it aint working, so dont throw another penny in that bucket! advertising doesnt have to be that expensive. its summer, and kids are looking for summer work. make up flyes, coupons, lunch specials, what ever, hire a bunch of bike riding kids, and have the go door to door,to spread the flyers. also contact your local t.v. do trade offs, for advertising. they are always looking for someone to cater their sales meetings, and are willing to trade for air time...ahhhhh catering, is a way to help increase your sales....hmmm
i want to look at your payroll issue. 8g a month is exessive,imho.
last month, my wife and i did 15k in sales. our payroll was zero!
you either have some high paid staff, or they dont know how to spell the word....work.
u suggest you look at the structure of your staffing positions, as well as you menu structure. you may want to combine positions, to streamline you staff. for instance, your prep cook can double as you dish washer. or you could eliminate prep all together, and have the cooks come in an hour early, and prep. yea, that works, just ask dennys. drop the door hostess, and have servers greet and seat. even have them cashier, if you want, but i recommend you or the bro do that. last chance to find out how the customer experience was, and ask them for their ideas. they usually know why other people dont come back, you just got to figure out how to pry it from them.
i would restructure the menu as well. first, you must know the food cost of each of those 67 items on the menu. drop the highestfood cost items that are low ticket items. for instance, if you offer a dessert that is nearly 50 percent food cost, gone!
but that steak, that runs like 70 percent food cost, you gotta keep it, cause it brings in a 4 or 5 dollar profit from one plate, even though its high food cost.
also, put the items you want to sale, on the first page of the menu.
have a separate lunch quickie menu.
i suggest lunch delivery to big office buildings..
one thing i havent wrote about is thievery. watch it like a hawk. if a dishwasher, or someone takes home a few steaks, there goes your payday. keep a tight inventory, and count pizza boxes, too.
i hope this help.....good luck chris!