During this difficult economic climate, restauranteurs seem to be panicked and often second guessing every day decision making. From something as "simple" as staffing to actually debating overall concept change.
Operators! I agree, these are tough times. Business is inconsistent, staffing nearly impossible and meeting payroll has become a challenge.
Lets put things into perspective. The market is on a roller coaster ride gone bad, the media is only adding to the state of panic and daily cover counts seem to be rising and dropping as fast (and drastically) as the Dow Jones.
It seems like nightly, as I am trying to doze, Suze Orman's voice wakes me with her ranting to the American people about how the world is about to burn up in flames of monopoly money. No wonder why I cant sleep at night. Obviously, some of her statements make sense but Does CNBC, CNN, MSNBC, etc have to put this woman on every night as I am trying to fade into what should be a peaceful place. Hell, I can't even doze to tivo'd episodes of Oprah anymore. Suze has even invaded what used to be daytime (or night time for me) TV's "feel good" zone!
Okay, I have fallen off track a bit. Back to cover counts, staffing and protecting concepts. Truth be told, if your concept was profitable four weeks ago it is most likely (with proper financial planning) going to be profitable again. For now you just need to focus on riding out the storm.
Now I am not implying that you do not tweak your concepts. Adding light fare bar menus, dinner specials (without cheapening your establishment's image), adding tappas, plates for two and adding incentives to frequent diners are a must.
More importantly, you MUST tweak your operations during these tough times. However difficult, it is NOT impossible to maintain a break even bottom line during a business trend that has revenues down. I can remember a time when an operator told me that calculating food and bar costs is a waste of time. I thought "my god, it is the life line of your business". This could not be more true then during times when you have seen your revenues drop by 10 or 20%.
When you would normally do inventories once a month you must now do once a week. Food, labor and bar costs must be calculated weekly and adjusted weekly to keep yourself out of the red.
Then, of course, there is the dreaded word... "SACRIFICE"! I know, as operators you have already sacrificed your holidays, weekends, nights, birthdays and in many cases overall quality of life. Well, I'm sorry but it may be time to put down the glass of wine your sharing with your customers and start pouring them again. Cut your staff, lay people off. Bartend, cook, clean, wash dishes, do whatever it takes to cut costs.
I was an operator once too. It is not easy to layoff a quality line cook or cut a popular bartender midway thru a shift. Make it positive though, their is no better way to put your stamp back on every aspect of your business while showing every employee that you can perform their job as well, if not better than they can.
Remember, make your numbers work within your gross volume. Buckle up "the restaurant roller coaster" has just started out on another ride that you will never figure out. Make it work! I know you Can!
As always, feel free to email me with any questions or leave a comment.
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