How to make a restaurant profitable

How to make a restaurant profitable

How to make a restaurant profitable

Everyone in food service would strongly agree that restaurants are a tricky business. All the details are essential when money is in line from the time of profit to the waste product to the number of watch workers.

Part of what makes a restaurant work a lot is the amount of work to make a profit. It takes the district s to ensure that food ordering, prep preparation, and execution go smoothly on any given day. All in most restaurants make a profit limit of only six and twenty percent.

Looking for more ways to make more money in the restaurant business? Take a look at these seven tips to reduce costs, bring more businesses and make your restaurant money more.

Reduce Food Costs

Understandably, the cost of food is a significant factor in restaurants. Mistakes, comps, and theft can take a big bite on the edge of your profit if left unmanaged. Prevent this by working with your food supplier to get the same cheap products from more expensive menu items (and don’t forget cleaning supplies and other non-perishable items).

With your internal staff, work to reduce errors with appropriate training to reduce waste costs. Whenever something needs to be taken out, talk about why. Also, work with your chef to control part size on items often thrown out or left by customers. Don’t be afraid to increase the number of menu items that take up the most work when it comes to it. Just make sure it matches the market.


Reduce overhead

Starting your restaurant will reduce costs in most areas. If you focus on making good hiring, training them well, and treating them well, you can run your restaurant with fewer employees, make fewer mistakes and reduce employee benefits.

Consider doing a power test to see where your space is wasting energy, like a dining room with or without a refrigerator. Closing the air leak or setting your thermostat off at night can save you hundreds of relief bills instantly.


Teach your staff how to upsell

Servers, bartenders, and front door staff should be familiar with your menu and know how to sell. Fast food restaurants do this well by constantly asking if you would like to buy a sizeable French fry or drink for less money.

In organized restaurants, your staff should always be trained to entice customers with appetizers, desserts, specials, beverages, and alcohol.


Utilize a Good POS

A sound POS management system is a powerful tool to help you reduce your operating costs. A good POS should be able to assist you:

  • Manage your reordering & inventory
  • Analyze best-selling items & make price/menu adjustments as needed
  • Evaluate waste & comped food numbers
  • Notify your staff when items are sold out or even low.
  • Manage employee costs and clocked time

All your restaurant data is stored here, so pick it up and go with it. If you see any bright spots where you are losing money, refer to them as soon as possible.


Sell Merch

Bars, cafes, and well-appointed restaurants can add extra revenue by selling items such as T-shirts, logo glasses, and more. Draw attention by thinking outside the box and make your sales an extension of your product.


Manage reordering and inventory

As mentioned above, use your POS to your advantage. If you have three things that sell like crazy, find out why. Add the same or similar items to the menu. You can also see what items are often bought together and teach your employees how to promote people in the right way.


Make sure you’re marketing.

If you don’t think you need to be on Instagram or Facebook, do so. People look to social media to learn specifically about fun hours, deals hours, events, and casual events. Also, don’t forget SEO and reviews. Make sure people find you on Google (if you don’t know what to do, talk to the marketing team).

Encourage your acquaintances and happy visitors to leave you an online review. And if you find something wrong, always respond. Create apology and kindness to make people want to come back.


The range for restaurant profit margins typically spans anywhere from 0 – 15 percent, but the average restaurant profit margin usually falls between 3 – 5 percent. Restaurants could generate more profitable, but they have low-profit margins. Profitability depends on many factors, including the size and type of restaurant and the economy. It takes an average of three years for a new restaurant to open a profit.


Top ten tips to increase your restaurant’s revenue.


As a restaurant owner, it’s easy to lose sleep over your bottom line — cutting costs and managing margins cannot be taken lightly. So while you’re doing all you can to reduce food and labor costs, consider these ten out-of-the-box options to increase your restaurant’s revenue.

  1. Get a handle on inventory
  2. Optimize your menu
  3. Host an event
  4. Secure a social media presence
  5. Sell branded products
  6. Increase speed of service
  7. Partner with popular delivery services
  8. Embrace the power of upselling
  9. Organize a workshop

Get creative with your marketing