Why do many hospitality businesses fail to reach their full potential?
• Do you ever wonder why you never seem to have enough time to do what you really want to do?
• Do you find the business keeps you working far more than you anticipated?
• Have you ever considered why your restaurant, café or catering business seems to struggle to achieve consistency?
• Why cant you find time to work ON the business, instead of IN it?
It’s a common problem in hospitality!
• More than 200 restaurants, cafes or catering companies close down every week in Australia
• Those that are now open probably wont be around in 5 years. In fact only 5% of restaurants that open today will be operating 10 years from now.
What will you be doing 10 years from now?
• More and more competitors are opening every day, wage costs increase, cost of goods go up, staff turnover is always a problem, and you feel like you have no control? The overall average net profit (before tax) in the hospitality industry is only 1.5%.
• 95% of restaurants, cafes and catering businesses fail to reach their full potential or simply fail altogether!
How Can You Plan To Succeed?
After extensive research Cuisine Scene have found that their is 10 main reasons for hospitality businesses not achieving their full potential. Or as we like to see it, 10 obstacles to unlocking your full potential…and your profits.
1) Lack of Consistency,
2) Selecting and retaining the right staff,
3) Incorrect menu structure,
4) Ineffective and non-existent marketing,
5) Little Understanding of Key Figures,
6) Work on the business, not in it!,
7) Poorly presented concept or branding,
8) Lack of intergrated business systems,
9) Ineffective control of your POS System,
10) No Structured Business Plan.
1) LACK OF CONSISTENCY
• Most restaurants, cafes and catering companies forget the importance of constantly striving for consistency in every aspect of their establishment.
• Consistency of product, service and concept will ensure a competitive edge and more dollars in your bottom-line.
• Inconsistent product and service is the number one reason 94% of restaurants, cafes, and catering businesses fail to reach their full potential.
• Clear and thorough systems will ensure a solid base from which all your staff can achieve a consistently high level of product and service, whether your there or not.
Our Solutions
• Staff training and development
• Staff recruitment and retention strategies
• Customer loyalty programs
• Stock and cost control systems
• Systems management
• Mystery diner
• Workplace health, safety and efficiency
• Equipment and supplies
Top 2) SELECTING AND RETAINING THE RIGHT STAFF
• Are your staff just a little rough around the edges? Do your service standards seem to be lacking a little polish? Ever wondered why you always seem to recruit dolphins that turn into walruses?
• Your front line & key personal are all crucial to your business success. Attracting the right type of employee, and keeping them, is a difficult and time-consuming operation. It demands a documented and thorough chain of employment focusing on relevant issues from an attractive job advertisement through effective interviews, orientation, and development path.
• The problem of staff recruitment is present in almost all restaurants, cafes, and hotels that fail to reach their full potential. Ensuring you get the best staff means your competitor can't!
• Staff turnover in hospitality is higher than any other industry. We will show you how to beat this and give your restaurant, café and hotel the team environment that no one will want to leave!
Our Solutions
• Workplace health, safety and efficiency
• Staff training and development
• Staff recruitment and retention strategies
• Systems management
Top 3) INCORRECT MENU STRUCTURE
• This area alone would be losing you big bucks every week. Effective menu engineering gives you more profitable increased sales without changing your food and beverage costs.
• There are psychological factors that guide your guest’s decision when choosing their meals. A thorough knowledge of these factors helps you achieve a menu that really performs!
• Following some simple pricing and position ideas can double the productivity of your menu and highlights the "cash cows" that really make you money.
Our Solutions
• Menu engineering and development
• Marketing and competitive edge
• Functions, events and catering
Top 4) INEFFECTIVE AND NONEXISTENT MARKETING
• Most restaurants, cafes and hotels that fail to reach their full potential often lose $1000’s on marketing that is unmeasurable, ineffective, or too expensive. Or, the consensus is that no marketing is the way to go, our guests will come anyways!
• Brand recognition and product placement are vital to a successful hospitality business. Lets face it, competition is fierce. If you don’t know your target market well, how will you know how to get them in the door?
• We can show you how to implement a coordinated, measurable, and inventive marketing calendar full of ideas that will keep a steady quota of new and old customers coming through your door.
• REWARD your loyal customers (and recognise your staff) to ensure that you, not your competition, are the hot topic at the dinner table!
Our Solutions
• Marketing and competitive edge
• Functions, events and catering
• Customer loyalty programs
• Mystery diner
• Website, newsletter and database
• Menu engineering and development
Top 5) LITTLE UNDERSTANDING OF KEY FIGURES
• Little or no understanding of the key elements involved in establishing Key Performance Indicators as critical business controls. Who has time for that anyway?... You have to make the time righ now!
• Break even point is one of the most important success indicators you need - What are your fixed and variable costs? Other indicators include: contribution margins, yields, gross profits, wage cost %, server sales analysis, stock values, and many other important key figures allow you to know at anytime, how well your business, and its staff, are performng.
• Measure from home. Set up reliable benchmarks and access to KPI’s that allow you to measure your business’ performance without having to be there.
Our Solutions
• Restaurant start up and layout
• Stock and cost control systems
• Systems management and KPI
Top 6) WORK ON THE BUSINESS, NOT IN IT!
• Achieve what you always aimed to achieve but forgot how to get it!……FREEDOM
• Streamline your restaurant, café or catering business so it runs itself when your not there
• Allow yourself to step back and critically assess the indicators that help you determine where your business is heading.
• Trust your systems and key personnel to manage things when your not there. But ensure they know your always watching from a distance.
• Stepping out of the business will allow you to think outside the box and give you the freedom to play a major part in the strategic planning of your business and not get caught up with time consuming day to day operations. Run the restaurant, or café… Don’t let it run you.
• Cuisine Scene can assist you to re-think how you look at your business and help you get your life back. Remember success is no accident!
Our Solutions
• Staff training and development
• Staff recruitment
• Systems management
• Stock and cost control systems
• Workplace health, safety and efficiency
• Restaurant start up and layout
• Equipment and supplies
• Marketing and competitive edge
Top 7) POORLY PRESENTED CONCEPT OR BRANDING
• A well thought out concept gives an impression of professionalism and confidence. Your concept or brand should tell “a story”
• Acceptable lighting, sound and décor is critical to the success of your restaurant, café, or catering business. It is the crucial element that completes the entire experience for your guests - its not just about the food!. Consider speed of service, menu variety, menu value, first impressions, Kids facilities, & complaint handling ( surely not in my restaurant!). Remember your guests will “eat with their eyes first”.
• What does it take to give your establishment the competitive edge it deserves? Good food? Good Service? Effective marketing? Yes to all of these…………but a strong concept will tie them all together and leave your competition wondering where they went wrong? And your guests wondering what they will discover on their next vist!
• Like any story, your business needs to have “chapters”. Any restaurant, café or hotel that wants to stay in the spotlight needs to be dynamic! Their needs to be an ‘emotional connection’ on some level with your target market. Be prepared to refine (not change) your story as industry trends and clientele dictate.
• Your “brand” or “story” should be evident throughout all your marketing, advertising and premises.
* A point of difference should be experienced at every stage of your customers dining experience. Take yourself through the experience weekly. Stop and look from the customer’s perspective. Ask your self about the standard and speed of service/food/beverage. What do you see?, what do you hear?, and certainly what do you feel about the experience?
Our Solutions
• Restaurant start up and layout
• Concept branding, development and franchising
• Equipment and supplies
Top 8) LACK OF INTEGRATED BUSINESS SYSTEMS
• An important part of any successful hospitality venture and another important reason why most fall to reach their full potential. Not only is it imperative to have these systems and procedures in place but it is critical that you know how to use them
• Everything needs to be clear, detailed, and on paper. Job descriptions, checklists, sales analysis sheets, labour control reports, workplace safety security guidelines, phone script sheets, functions bookings procedures, etc. All staff must have access to it at any time, and be accountable for completing or using them. They must be regularly updated, and creating them should involve relevant staff as much as possible.
Our Solutions
• Point of sale systems and software
• Stock and cost control systems
• Restaurant start up and layout
• Systems management
Top 9) INEFFECTIVE CONTROL OF YOUR POS SYSTEM
• Most POS systems in restaurants, cafes and hotel businesses today are outdated, obsolete and not providing the speed of information necessary to closely monitor day to day operations.
• The common misconception is that they are not worth the money! That’s simply not true. A great POS System will pay for itself and boost sales at the same time. Saving you possibly $1000’s every week. Not to mention the added value when an effective staff incentive program is tied into it. Hospitality SMS (staff motivational software) is one of the best ways to analyse and compare your server sales/product mix. It will even improve your menu profitability across the board!
• Effective and easy to use POS systems integrated with your back office reports and systems will also ensure you have your critical KPI’S at your fingertips and in real times.
• Add-ons such as stock control, reservations, and labour programs will only multiply the effectiveness of your system. Cuisine Scene can show you how a cost effective POS system can manage your tables during a shift and organise your reservations to ensure your guests have an unforgettable experience in your establishment.
Our Solutions
• Point of sale systems and software
• Systems management
Top 10) NO STRUCTURED BUSINESS PLAN!
• 96% of all businesses do not have a structured business plan involving detailed systems, marketing plans, forecasts, and budgets. Essential to know where your headed and how your going to get there
• Without a structured business plan it is easy to wonder why you don’t have control over your most important source of income – your business
• Many hospitality business owners started out with a clear vision for their establishment, but simply got lost in the day-to-day operations and no clear guidelines to help them stay on track!
Our Solutions
• Restaurant start up and layout
• Equipment and supplies
• Systems management
• Marketing and competitive edge
• Concept branding, development and franchising
• Stock and cost control systems
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