The recipe (pun intended) for restaurant growth is a very curious thing. A brand new restaurant that opens up with an entire infrastructure and team behind it can grow steadily and successfully, but in the same market space, there are brands that seem to have their best years behind them already. Whether it’s a new restaurant or an old one, continuous growth depends on continuous efforts in the right direction.
Every business owner wants to increase sales. It’s true for restaurant owners as well. But for some, growth can come at the expense of quality. It’s easy to take a shortcut by jumping from one successful strategy to the next but learning from the ones that didn’t work out is the key here. In this journey, one should never forget what makes a restaurant really stand out.
Growth can only be sustainable when it comes to the right moment or when the restaurant is ready for it. Whether your restaurant is striving, succeeding, or failing, there are some questions you need to ask to know if your restaurant is ready for exponential growth.
Some factors may not be in control but steps can be taken to get on the right path.
Do you have a clear growth plan?
Many small businesses don’t have a clear growth path or don’t know how to evolve. Business systems are important to restaurants. Every restaurant needs to choose a growth strategy to ensure it can grow effectively and at the right time in order to be sustainable and competitive. A strategy should be designed to ensure the long-term success of the business while taking into account the market conditions and opportunities.
A successful strategy can be summed up in these simple words: its ability to attract and retain customers, ability to improve customer service, and most importantly, ability to develop new menu items that keep customers returning.
Growth issues can appear at any point in time but it’s vital to start taking action before they snowball.
Are you asking for customer feedback?
One of the most important things for a successful growth plan is to see what customers are talking about. Feedback is one of the best ways to improve a restaurant. In order to succeed, restaurants have to put customers at the center of everything they do or offer.
Customer feedback is valuable for two reasons. Firstly, it can give important insight into how they feel about the operations. Secondly, by hearing from customers, business owners can get ideas about what they need to do in order to help their restaurants improve.
Are your customers returning again and again?
A perfect restaurant system is one in which customers consistently return year after year, enjoying the specialty dishes and variety on offer. Right from the initial launch days, recurring customers is a good sign. Because when customers come back to your restaurant, it shows that they are treated well and their experience is positive. Growth starts with treating your customers right and ensuring that the experience they have at your restaurant is good.
Are you testing new ideas?
Ideas are great. Ideas are the oxygen of growth. The most successful restaurants recognize that growth requires fuel—new ideas. Trying out new things or going one step ahead of what your customers may want are great ways to start.
Although the ability to execute ideas well is another ballpark altogether, it’s a great time to get creative. Start from here: think about the capital requirements, operating costs, and profitability of your current restaurant model. Would a more efficient or cost-effective restaurant model help you reach more customers, attract new ones, drive growth for longer and increase overall profitability? Would offering another dish or creating a promotion benefit your restaurant. These are good questions to ponder upon.
Thinking of new ideas and executing them requires long-term vision, commitment, and balance.
Have you experimented with new menus?
Are your current menu offerings viable for business expansion? Are they designed to attract new customers while meeting current customers’ needs? Research indicates that customers seek out brand loyalty as a motivation to visit restaurants regularly.
If your restaurant is currently bustling, but you find yourself bored with your current menus, it may be time to shake things up. Introducing new items to your businesses’ lineup of popular offerings can attract new customers while keeping current ones coming back.
Have you clearly defined the best channels for takeout orders?
Delivering food in a fast-paced environment can be both challenging and exciting. The right strategy for growing a restaurant begins with understanding the different channels available for foodservice. This allows you to choose the channel that will deliver the highest overall growth potential. Many customers will find fast food convenient, while others will prefer more substantial options. Choosing the right combination of channels allows you to optimize your menu for both guest satisfaction and profitability.
A well-defined system of taking orders, tracking statistics on sales, and taking action when needed will help any restaurant; from the owner who only wants good food, to the manager who wants better performance from his employees.
Are you focused on growth in terms of revenue or customer satisfaction?
Restaurant owners often focus on growth in terms of revenue, but not in terms of customer satisfaction. Many restaurant owners focus on increasing their profits but ignore customer satisfaction. As a restaurant owner, it is your responsibility to develop a plan that addresses your customer’s issues and adheres to their feedback.
If you are wondering why your restaurant is stuck in the same place or even facing a downfall? Then it is high time to start evaluating your restaurant system. Restaurant growth depends on various factors and mainly on how well a system is established. It depends on whether a restaurant’s current system can handle the growth strategies or not.
While every facility will need some combination of these components, there are certain key factors that can help or hinder your efforts. Even if you have a detailed growth plan, executing it will require certain observations and quick decisions made during key periods of growth.
A well-thought-out plan will prepare your restaurant for the present as well as future growth.
