Business

9 Key Factors for Maintaining a Successful Restaurant Business

What makes a successful restaurant business attract more customers than its competitors? How are some restaurant startups able to thrive before and after the pandemic? Several factors determine how successful a restaurant business can ever be. Some of the outstanding elements are as follows:

1. Quality food

Why is the quality of food so important in the growth of a restaurant business? For your restaurant to get more customers through word-of-mouth advertising, you must ensure you serve only quality food. Your quality control department has a lot of work to do in this regard. 

If you are not getting much of returning customers it’s an indication that you are missing something. Oftentimes, it’s the quality of the food you serve. When a customer complains about the food quality, listen. The quality of the food you sell is one of the unique ways customers assess your restaurant. Do not sell leftover meals no matter how that could have helped you to cut costs. 

2. Location

How does location play a key role in running your food business? It’s no longer news that the location of a restaurant contributes to its success. If you check the best places to eat in Florida, New York, Georgia or California, as well as other popular states and countries, there’s one thing that stands out. It’s the fact that they are located in highbrow areas of the state or city. 

To make more money in your restaurant business, build it in the neighborhood where elites that have the purchasing power live. Beyond that, here are other important questions to answer when choosing a good location for your restaurant business:

  • What are the demographics I’m planning to serve?
  • How accessible is the location?
  • Who are my competitors in this neighborhood?
  • What is the crime rate in this area and how safe is it for my guests?
  • How visible is the new location I want to choose to run a successful restaurant business?

3. The target market

Who is your target market? Who do you intend to serve? Your choice of the target market will determine if you will offer quick, midscale, or upscale service options. Your target market will also influence the kind of meals and drinks you serve and their corresponding costs. Before maximizing the restaurant business opportunities you are going to be learning, choose a target market.

As you create a customer avatar for your business, do not forget to list out who your audiences are not. That way, you can easily maximize your online and offline marketing strategies.

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4. Stock and inventory management

It’s no longer news that your restaurant business needs stock and inventory management software in order not to run into a loss. The best stock and inventory management software will help you to achieve the following:

  • Track daily sales in your restaurant business
  • Drastically reduce employee theft
  • Keep track of stocks in the store 
  • Menu engineering 
  • Automatic recipe costing

Using reliable stock and inventory management software will help you to stay profitable in your restaurant business.

5. Staff and customer service

Excellent customer service

How you make your customer feel is as important as the food you are serving them. If you serve good food with a bad attitude, you will succeed in creating a terrible customer experience. In his words, Ray Kroc of McDonald’s said, “Look after the customers and the business will take care of itself.”

Does customer satisfaction affect a restaurant business? The answer is yes. A satisfied guest will likely spend more, visit repetitively, share their positive experiences on review sites online, and recommend your restaurant to friends, and families. Of course, all these things can’t be achieved if you don’t treat your employees well. Richard Branson was right when he said that how you treat your employees is how they will treat your best customers.

Another report from Harvard Business School shows that a 1-star increase in Yelp rating about a restaurant resulted in a 5 – 9% increase in sales. As a follow-up, New Voice Media found out that for every negative experience, 51% of customers vowed never to transact with the business again.

6. Costs

What are the hidden costs involved in running a restaurant business? Some notable costs include the cost of building, staffing, training, gas, restaurant insurance, raw materials and equipment. If the food prices go up, the demand goes down. 

To successfully manage your restaurant business opportunities, you need to choose a favorable cost. We all know how the inflation rate is biting hard on citizens leaving 88% of Americans worried.

7. Cleanliness

The food business isn’t something you should ever operate in a dirty environment. In New York, for instance, evidence of pests in your restaurant attracts a fine of $200 to $350. You are likely to get anything from 5 to 28 points. When you add that up, that will be $1,000 to $9,800. 

Maintaining a hygienic environment will not only keep you out of trouble but also earn you more loyal customers.

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8. Experience

Your years of experience in the restaurant business can help to increase your patronage. This is why restaurant franchise is a thing in the United States and all over the world. It’s easier to get the best restaurant franchise than try to build one from scratch. This is because of the years of experience already invested to master the recipes and win customers.

Experience plays a key role in maintaining a successful restaurant business. According to Aaron McCullagh, working in a restaurant for 15 years in Canada taught him confidence and task management.

9. Digital leverage

Does your restaurant have a digital presence? Do you have a restaurant website, Google Business Profile, Facebook, Twitter and Instagram accounts? Can your customer reach you online? Leveraging digital media helps to reach a wider audience.

You can as well use visual content to educate your audience about how a part of their favorite meal is prepared. Implement all the TikTok marketing strategies you know using the video content made available by your team

Emenike Emmanuel
Emenike Emmanuel is a multiple award-winning blogger, CEO of Entrepreneur Business Blog, Chief Evangelist of Ebusinessroom Ventures, and the Lead Coach of an online community of over 12,000 business owners called, The Excellent Entrepreneurs' Network. He’s here to help you start, manage and grow a profitable and sustainable business using digital marketing strategies. Follow him on Facebook, Twitter, Instagram, LinkedIn & Pinterest with this handle, @emenikeng. Telegram group - t.me/yourfirst1000 | Email: [email protected]

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