How To Improve Restaurant Operations: 7 Tips To Excel

Marketing 20 minute read 20th June 2023

Whatever kind of restaurant you own, your business operation will determine your success. So, to scale your results, you need to know how to improve restaurant operations effectively.

However, starting from scratch can be tricky and take longer than it should. This article will uncover seven tips to improve restaurant operations. Furthermore, you will find additional suggestions to achieve better performance. Let’s start.

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The Truth of How To Improve Restaurant Performance

This article is about tips to improve restaurant operations, and you’ll read those in a second. But first, it is essential to learn the importance of enhancing such operations.

So, let’s start with the most obvious reason; financial success. A restaurant that performs well is likely to attract more customers. This will boost your revenue and enable you to make more improvements to bring your customers back. In other words, you will improve the customer’s lifetime value.

Learning how to improve restaurant performance is vital because it helps you gain a competitive edge in this complex industry. Offering delicious food, outstanding customer service, and a unique dining experience can make you stand out. But as you grow, restaurant operations will allow you to maintain a high-quality standard for your customers.

But that’s not all. When you consistently deliver your customers the best food and service, they leave happy and satisfied. These customers are more likely to return, spread positive word about you, and become loyal to your business.

Additionally, it helps you manage your restaurant’s reputation. When your service is excellent, customers will likely leave positive reviews on social media and restaurant review sites.

This will make other people trust your restaurant, and you will gain new customers.

How To Improve Restaurant Operations: 7 Tips That Will Spice up Your Success Recipe

Surveys reveal that 60% of new restaurants fail within their first year. This shows the importance of learning how to improve restaurant operations to prevent your establishment from facing failure.

But how can you differentiate yourself and make customers choose you every time?

Read the following section and discover how to do just that!

How To Improve Restaurant Operations Tip #1: Pay Heed to Your Customers’ Voices

Improving restaurant operations begins with paying attention to your customers’ voices. In other words, their feedback will tell you how to improve your restaurant operations.

As you can imagine, the first step is collecting your restaurant data.

Encourage customers to share their thoughts. Comment cards, online surveys, and social media platforms are a few options you can implement.

The next step is to regularly review and analyze the data you collect. Look for recurring themes of issues that customers frequently mention. This analysis will help you pinpoint areas that need improvements. Working proactively in these areas is essential to enhance operational efficiency.

Additionally, when negative feedback arises, promptly address customer concerns. Timely responses go a long way in rectifying problems and increasing customer satisfaction.

And don’t forget about communication. Inform your customers about the changes you’ve made based on their feedback. This will help build trust and loyalty between you and your customers.

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How To Improve Restaurant Operations Tip #2: Never Stop Tracking

Second on this list of tips to improve restaurant operations is tracking metrics. It is an essential practice every restaurant owner should embrace.

Tracking goes beyond just monitoring performance. It provides valuable insights that enable improvements in many aspects of restaurant operations. A restaurant POS system is the most important tool in this case. However, there might be more tools depending on your goals. The metrics you need to track are the common restaurant benchmark. Here are a few metrics that contribute to smooth operations and how to calculate them.

  • Cost of Goods Sold (CoGS): Add the beginning inventory and inventory purchased during the month. Then subtract the inventory at the end of the month from this number.

  • Labor Cost Percentage: Divide the labor cost by total sales.

  • Prime Cost: This is the sum of your CoGS and labor cost.

  • Food Cost Percentage: Divide the cost of a specific menu item by its selling price.

  • Gross Profit: Subtract the CoGS from the total revenue.

  • Inventory Turnover Rate: Divide the CoGS by the average of the beginning and ending inventory values.

How To Improve Restaurant Operations Tip #3: Get a Hold of Your Marketing

Marketing management might seem out of the blue in an article on how to improve restaurant operations. But trust us. It makes all the difference.

One of the essential tasks is to review and update your digital platforms regularly. Take the time to check and refresh your website, mobile apps, and social media.

Don’t forget to accurately showcase the latest promotions, menu updates, and daily specials. This will help customers stay updated and tempt them to walk through your restaurant’s door.

Moreover, keep a close eye on your ongoing marketing campaigns. Monitor their progress to ensure they are running smoothly and effectively. This will help you make adjustments or optimizations for improvement.

Additionally, engage with customers on social media. Actively respond to comments, messages, and reviews.

But marketing management doesn’t end here. Monitor online review platforms to see how people rate your restaurant’s performance on local review sites. Also, don’t forget to stay updated with the latest restaurant trends and try to incorporate them.

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How To Improve Restaurant Operations Tip #4: Don’t Shy Away From Technology

Another tip to improve restaurant operations is to take advantage of technology. It would be unwise to resist incorporating technology into your operations.

First things first, invest in a reliable restaurant Point of Sale (POS) system. Make sure that it integrates taking orders, payment processing, inventory management, and reporting functions. It helps you reduce errors, streamline operations, and gain insights into your restaurant’s performance.

Additionally, partner with popular food delivery platforms or develop your online ordering system. This can attract a broader customer base and significantly increase your revenue.

Most POS integrates reservation, and table management features that allow you to optimize table allocation and reduce wait times. That’s essential if you want to improve your restaurant customer experience.

Furthermore, implement a contactless payment system and decent inventory management software to track and manage your supply levels. This ensures you always have all the ingredients and everything goes to good use.

Lastly, don’t forget about WiFi marketing solutions. You can gain valuable insights into your restaurant’s improvement by providing free WiFi to your customers. Here’s how.

When customers connect to your guest WiFi network, you can require them to authenticate themselves through a captive portal. This will help you build customer profiles through data that you can use for targeted marketing campaigns. Moreover, you can use the splash page or captive portal to promote new offers and share updates.

How To Improve Restaurant Operations Tip #5: Staff Your Restaurant With Top Talent

Another tip to enhance restaurant operations is hiring the right people. Because who’s at the front of your restaurant, serving the customers? Yes, your employees. So, your staff makes the most difference even if you incorporate all the other restaurant management tips.

Here’s how to improve restaurant operations by hiring top talent for your restaurant. When recruiting, prioritize traits vital for building strong customer relationships, such as enthusiasm, positivity, and humility.

Regarding the kitchen staff, seeking competent and skilled cooks who know their craft is crucial. Having experienced chefs ensures that your kitchen runs smoothly and efficiently. This minimizes the risk of mishaps leading to inventory waste, kitchenware damage, or additional repair costs.

Furthermore, who do the customers call when they have a complaint? The manager! So, they need to oversee all restaurant operations effectively. They should maintain a positive rapport with customers and other staff. This ensures smooth coordination and a harmonious work environment.

All in all, your staff is fundamental for your success. Thus, consider carefully who you hire and how you treat them

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How To Improve Restaurant Operations Tip #6: Don’t Leave the Menu on the Table

After all these tips, it’s time to discuss the menu. Forgetting your menu and letting it gather dust on the table can bore customers. They may not return if they don’t find something new every once in a while.

To improve restaurant operations, you need to spice up your menu.

Start by analyzing your menu’s performance. You can review sales data, customer feedback, and popular dishes. This analysis will help you identify which items are selling well and which may be underperforming. With this information, you can make informed decisions about menu development and changes.

Next, streamline your menu by focusing on your most popular and profitable dishes. A concise menu reduces customer decision fatigue, improves kitchen efficiency, and enhances the dining experience. Moreover, you’ll save money on supplies.

However, it is important to cater to various dietary preferences. Provide clear and appealing descriptions of each dish to water your customers’ mouths and encourage them to try more things.

These tips will help you attract a wider audience and improve restaurant efficiency.

How To Improve Restaurant Operations Tip #7: Splash Your Restaurant With a Palette Makeover

If you’re thinking, “What does color have to do with tips on how to improve restaurant operations?” you’re in for a surprise. Colors play a massive role in influencing our emotions and behaviors.

This means you can create an environment that stimulates appetites and encourages customers to indulge by choosing the right colors.

But what are the right colors? Here’s a crash course for you.

Red, white, and greens can stimulate appetite and promote overindulgence. Incorporating these colors into your restaurant’s design can be a clever way to entice customers to order more.

Moreover, beige tones and neutral colors often evoke a sense of relaxation and comfort. This way, you can create a cozy environment that encourages customers to linger.

However, choose your colors according to your restaurant’s theme and consider their psychological effects.

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How To Improve Your Restaurant Business Goals

You’ve uncovered the best tips on how to improve restaurant operations. Now Let’s dive into the bigger picture. It’s not all about serving mouthwatering food and delivering exceptional service (but hey, don’t forget about them!)

There are several goals you need to set for efficient operations. Here are some key areas to focus on when seeking how to improve your restaurant business.

Let’s start with talking about customer experience because it is the cherry on top! Your goal should be to create an unforgettable dining atmosphere where customers feel like they’re in food heaven. Go the extra mile to make their experience delightful and leave them craving more.

Moreover, develop a brand identity that resonates with your target market and leaves a lasting impression. Be bold and unique, and let your restaurant’s personality shine through.

But don’t forget about marketing because it is the secret ingredient that attracts customers like a magnet. Use various channels to spread the word.

Additionally, pay attention to the efficiency of the process. If something keeps breaking, it is due to the process itself. You’ll need to review it. Embrace technology and streamline to make things run smoother. However, get ready to make changes if necessary.

Lastly, financial performance. Your profits will largely depend on a variety of factors (including the efficiency of your operations). However, if your venue already provides value to its customers, improving the operation will allow you to scale your business.

Make Your Venue Sizzle With Customers by Improving Restaurant Operations

In conclusion, improving your restaurant’s performance is the magic touch that brings the customers reeling in through the doors. It helps you increase your sales and make a name for yourself in the restaurant industry.

So, to improve restaurant operations, listen to your customers and incorporate their feedback. Update the menu regularly and keep things exciting and satisfying with the right staff and track how things go.

When considering how to improve restaurant operations, you don’t need to change everything immediately. Approach operations in areas, and start with those that impact your venue’s performance the most.

Beambox’s WiFi digital marketing solution can help you improve your operations and attract more customers consistently. You can get reviews, build contact lists, and gather insights to create a fantastic customer experience for your customers.

Join over 12,000 venues that have already enhanced their online reputation and scaled their operations with Beambox. Start your trial today!

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