Running a Restaurant in a Recession;

One of the hardest things to do is to run a viable restaurant when everyone is cutting back on spending. There are many things out of a manager’s control (such as rent, advertising in some companies, salaries, etc.). Here are a few things that chefs or managers can focus on;

1.) Watch what you buy. Just like everything else, we need to watch what we are spending money on. Shop around between purveyors to see who has the best prices each week. Often, it will change on a weekly basis. If you pay too much for something, that comes right off the bottom line. We keep inventory as low as possible, meaning we keep just enough food in house for service for that day and the next.
2.) Receive well. Check prices and weights when the food comes in the back door. You could loose big time if you do not pay attention to this. Check quality as well; send back anything that is not up to standards. Caesar salads will cost you twice as much if you have to throw away half of the case of romaine because it is wilted.
3.) Control costs. Keep hourly staff to a minimum. Managers work the line and expedite, open and close. Put off equipment purchases, unnecessary repairs. Watch water use, electric, heat. Utilities can sneak up on you very quickly.
4.) Analyze. What are your most profitable segments? Least profitable? Does that late night menu actually cost you money to produce because you need to keep a cook around for two extra hours? Right now, the restaurant needs to be working well whenever the doors are open. Cut or stall extra hours and menus that will cost you money.
5.) Motivate. Staff is under a lot of stress too. Run contests, assure people that their jobs are safe (unless they are in danger of being terminated), tell staff that you appreciate them. One thing that we are doing is baking and giving the staff goodies to take home and enjoy over the holiday break.
6.) Get out there. Keep your restaurant on people’s minds, advertise, have events, do PR, stay connected. Now, more than ever, you need people thinking of you and your restaurant when making a dining decision.

These are not fun times to be in the restaurant business, that is for sure. Anyone not in the business may not understand how slim the margins are in good years. In bad years, it is hard just to stay afloat. Streamlining operations and running an efficient property will help get you through and be more profitable when times are better.

Cook well, eat well, live well and Happy Holidays everyone!