Restaurant management system

Everyone knows that restaurant business success depends on many factors. What are they? I’ll tell you.

You have opportunity to read the best tips from world famous restaurant business brands and their story of success in previous article. Here I want to continue the narration about success tips. I consider the most outstanding is McDonald’s fast food restaurant. There are a lot of reasons why it is so outstanding, but the main which is highlighted in previous article is strong management system. Strong management system is a key to success door. McDonald’s fast food restaurant doubled income thank for strong management system.

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Bear in mind, that strong management system do not appear overnight. As a rule you have to build it day by day, brick by brick in order to effectively run the business, supervise employees and satisfy customers. Let’s investigate strong management system in terms of McDonald’s fast food restaurant and others. From the very beginning it was family restaurant business with 200 thousand dollars income per year, that was pretty good for yet another restaurant business, which sells burgers. Once they changed working, and they almost doubled their profit to 350 thousand dollars per year.

To get more profits you should analyse customers flow, profit from each menu item, most popular and profitable menu items etc, as McDonald’s fast food restaurant did, to make sure your restaurant business pays off. Well-handled management system will help you best. Talking about management system I don’t intend smth complex. Management system is set of items you have to account to make your restaurant business bring profits.

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As Ray Kroc quote says (he is McDonald’s founder): 
 “The two most important requirements for major success are: first, being in the right place at the right time, and second, doing something about it.”

Ray Kroc quote says about doing smth and improving business and the best thing, which helps you is management system, because when you analyse circumstances in your business, you know what you should do and how act.

So, what is management system? This is the system, which generally includes detailed information about success in restaurant business. So, what kind of information do you have to account and get from management system?

#1 Amount of profit from each menu item, list of most popular items and items, which no one orders.

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When you decide to open restaurant business, the very first thing you do is menu. You know, this is the first thing which will work for you in restaurant business. Management system will regulate all incoming data and you’ll get clear average numbers every day/week/month/year. So, when you see how much profit you have on each menu item and which are the most profitable, you may dispose of all unprofitable or unpopular items and particularly those, which no one orders and leave just best-selling ones. This is short description of McDonald’s fast food restaurant winning formula. McDonald’s fast food restaurant lessened their menu to 10 best-selling items and doubled their profit within year.

#2 Amount of customers you feed every day.

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Management system also should depict the approximate number of customers per day. Sometimes restaurants have so many customers, that waiters can’t handle them all, so for this reason you can hire more waiters or change system to self serving. For example McDonald’s fast food restaurant had such experience, changed system to self serving, as a result, they fastened the customers service and reduced prices from 30 cents for burger to 15 cents for burger (because they had no need to pay waiters anymore), so McDonald’s fast food restaurant became cheap restaurant, and attained more clients. 
 In order to run a successful business, the managing costs are critical. These include labour, food and waste. Keeping an accurate record of all costs and losses can better help managers budget future funds and protect profits.

#3 Products supply and consumption tracking. Average product need calculation.

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Opening the door of the restaurant, you promote quality food, for this reason your restaurant business have to conform to the quality. So, you should find reliable supplier with quality product. Average product need calculation and on time delivery is also task for management system, which tracks product supply and consumption. McDonald’s fast food restaurant food quality is one more prominent thing. As the Ray Kroc quote says(he is McDonald’s founder): “We provide food that customers love, day after day . People just want more of it.” You know, your cheeseburger in Los Angeles McDonald’s fast food restaurant will taste exactly the same as in Paris McDonald’s fast food restaurant. Even if you don’t have the other restaurant, your food should taste the same as yesterday, or even better.

#4 Daily/ weekly/ monthly reports.

Within the first couple months you’ll get the average numbers, which depict clear picture of your restaurant business success. Daily reports help you to track the situation and feel the slightest changes, so you can react instantly. Reports will help you to find out strong business sides and choose the means of your further restaurant business development. So, by reference of management system reports, you can build the restaurant business plan. 
 So, you can indicate if there is a problem, before the problem gets out of control. For example, a daily business review can help you pinpoint if labor is too high on certain nights or if your food cost is getting out of control.

#5 Observe restaurant business from guest’s point of view.

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The other one grave point for restaurant business is guest’s point of view. No matter that you’ve got good food and customer service in your restaurant, you did not do any good if you do not have satisfied customers. Clients are your kings, because they bring you profit. If the guests are happy, you will be happy too. But how could you know if your guests are happy? Management system should include customers quiz. There are hundreds possible ways to quiz customers. You can put the quiz into a bill or also you can place it on your website or in your restaurant mobile app, also you can suggest discount for each opinion to encourage clients. Collect all customers comments and you’ll get an independent opinion. So, you can use these comments to improve restaurant business.

In fine

Restaurant business success directly depends on well-handled management system. As a result you have an opportunity to account many points and use findings to rise up your business.

Finally one more Ray Kroc quote: 
 “You’re only as good as the people you hire.”

So, you should account not just numbers, but also your stuff working. Competent stuff and strong management system are 2 key points to successful restaurant business.

Read more about how to build an automate restaurant management system in the next article.

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