You may have aspirations to open your own restaurant or even already have one in business. While operating a successful restaurant is every restaurateur’s dream, the facts are quite grim. A poll shows that roughly half of restaurants go out of business within the first three years. About 70% of restaurants are forced to close their doors after the first 10 years. The reason most businesses fail is due to a combination of factors though it mainly includes the inability to attract enough customers and failure to properly manage the finance. If you are truly determined to make your restaurant successful in the long run, then you need to have a solid restaurant financial management plan in place.
If you are new at setting up a restaurant business, then it is highly recommended that you hire a restaurant consultant. This is an expert who will walk you through the steps to getting a restaurant open and in business. This includes renting out a facility, meeting all safety codes and other mandates required by the state and all the other complex logistics, which can be a real head spinner for someone opening a business for the first time.
Most important of all, you will learn a thing or two about restaurant financial management. This is absolutely critical for success and it entails far more than just marketing and getting enough customers to stop by.
Purchasing the food is one of the major points when it comes to finance. Since the prices of meat and produce fluctuate on a constant basis, owners need to be particularly careful about where they choose to buy the food on their menu list. Other factors include the wage you pay to your employees and cooks and whether you offer any work benefits. Wages should be competitive to ensure that you retain competitive employees. Additional factors include taxes and whether you borrowed money to get your restaurant started.
While it is true that most restaurants are ultimately unsuccessful, your restaurant does not have to become part of the statistic. To ensure your best chances of success, contact a restaurant consultant to have a restaurant financial management blueprint set in place. This ensures that you make more than you spend and are able to make enough revenue to remain open. Having a successful restaurant ensures that you are able to provide the best dining experience to your customers.
A Restaurant financial management plan is necessary for a restaurant to be successful and remain in business for many years. Speak with a restaurant consultant to have a restaurant financial management plan implemented in place.