19 Effective Fast Foods Management Tips

Effective Management Tips: The often cited statistic of three out of every four restaurants fail in the first year is an indication that while many restaurants open, few have what it takes for long-term success.

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To Help Your fast foods grow, One reason so many new restaurants fail to thrive is a lack of planning. Opening a new restaurant is only the beginning.

Knowing how to manage a restaurant’s finances, day to day problems, customer service, and training staff are all part of managing and helping your new restaurant to grow.

Owning and managing a fast food restaurant is a small business concept with numerous start-up and expansion options.

Prospective owners can choose to take over an existing business, build a fast food restaurant from the ground up or buy into a franchise, which will provide instantaneous name recognition.

Owning and managing a fast food restaurant is much like any small business ownership in which research and planning are crucial for success.

1. Get the management approach

 Decide which of the three approaches to fast food restaurant ownership you want to pursue and conduct feasibility research about start-up and operating costs.

2. Develop a business plan.

A business plan outlines each step of your business start-up and helps you estimate costs, project revenue and determine your target market.

Secure all necessary business licenses and operating permits required by your city, county or state.

3. Inquire at your local health department

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Inquire at your local health department about regulations concerning the food service industry in your city and make arrangements for required licenses and permits.

You will also have to undergo health department inspections before opening and periodically while your business is operational.

4. Find a suitable location

Find a suitable location for your fast food restaurant that is in a visible, high-traffic easily accessed area that is not inundated with similar restaurants.

If you’re buying a franchise, assistance in this area will be provided for you.

If you’re building from the ground up, a licensed general contractor who specializes in restaurant construction can be of assistance.

If you’re looking for a building site or an existing restaurant, a licensed and reputable commercial real estate professional can provide you with information about purchasing availability.

5. Secure start-up funding.

Consider applying for a loan with a bank that promotes small businesses or contact the Nigerian Small Business Administration to learn about small business loan programs.

6. Purchase all necessary equipment

Purchase all necessary equipment including ovens, stoves, fryers, refrigerators, booth and table seating, cash registers and fixtures.

 Find reputable food and beverage vendors and order food inventory.

Open a business bank account and establish a payroll and accounting system.

7. Hire and train staff

Teenagers are often hired to work in fast food restaurants but most need flexible schedules because of school attendance.

8. Ensure your fast food restaurant meets health codes

Ensure your fast food restaurant meets health codes at all times regarding cleanliness, food temperature, storage facilities and employee hygiene.

Employ a purchasing manager to ensure that you always have adequate amounts of food on hand, but not too much that you are subject to spoilage and waste.

9. Provide employees with ongoing training

Provide employees with ongoing training in customer service and conduct periodic customer satisfaction surveys to look for ways to improve your operation.

10. Manage Your Restaurant Finances

The biggest problems many new restaurants face is around finances.

Making sure to borrow adequate capital will help you get the front doors open but it won’t sustain a restaurant over the long run.

The key to managing finances in a restaurant is knowing how to spend and where. It is also important to know what to do when problems arise, to keep them from escalating.

For example, understanding how to read a profit and loss statement and analyze daily cash flow will help to identify problems early on and allow you to take the necessary steps to keep your restaurant on the road to success.

11. Market Your fast food

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While it would be nice if you’re new restaurant was so successful that you needed to worry about advertising, few establishments have such luck.

While you may not have to advertise like you did when you first opened, it is still important to market your restaurant.

Look for ways to remind customers of how awesome your restaurant is, and entice them to come in for dinner.

Building a solid social network through sites like Facebook and Twitter as well as a restaurant website, are inexpensive ways to market your restaurant.

Periodically running print or radio ads around the holidays and other special occasions are a good way to bring in business without breaking the bank.

Catering services are another way to reach a broader customer base.

You already have the resources for feeding large parties of customers, why not offer to cater parties, wedding, and other events.

You can increase sales and market your services at the same time.

12. Maintain Your Restaurant Menu

Your menu is the calling card of your restaurant. It is why customers return.

As your restaurant grows, it’s important to maintain your menu, periodically review which items are selling well and which aren’t.

Don’t be afraid to update your menu, keeping customer favorites and trying out new dishes.

Reviewing your menu also allows you to update prices, to keep your food cost in line.

13. Offer Good Customer Service

Good food will lure customers into your restaurant, while good service keeps them coming back.

In a business where the customer is always right.

How you handle customer complaints and show customer appreciation are important for building a strong clientele.

There are many types of promotions that will show customers how much you appreciate their business, such as happy hour, two-for-one specials, and various seasonal promotions.

14. Keep Restaurant Resources Handy

There are many books, television shows, magazine and websites available to help restaurant owners manage day-to-day operations.

There are entire TV shows, like Ramsey’s Kitchen Nightmare and Restaurant Impossible dedicated to turning failing restaurants around.

There are many publication and websites that offer advice on everything from updating menus to going green at your restaurant.

Books like “Managing Restaurants For Dummies” are a great way to make sure you are doing everything you can to keep your restaurant on track for success.

15. Revamp Your Restaurant Menu

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Take a closer look at your restaurant menu.

Are there certain menu items that aren’t moving? Is your food cost correct?

It may be time to trim down your menu and remove pricier items, like shellfish or prime cuts of beef and offer less expensive items that will appeal to customers on a budget.

Remember, a bigger menu isn’t always better.

16. Don’t Cut Advertising

Advertise and promote your restaurant through mediums including social media, television, radio and print advertising. Consider partnering with schools or sponsoring sports teams to draw in large groups of customers.

Advertising can quickly eat up extra cash from any restaurant budget. However, a recession is not the time to cut out advertising.

While you don’t need to do a full scale media assault, with radio ads

TV commercials and a print campaign, you should budget out enough for newspaper ads and keep your website updated.

Needless to say, if you aren’t using social media to promote your restaurant, you should be.

17. Watch Your Payroll

Look for ways to trim your payroll.

If Mondays nights are typically slow, do you need as many servers? Or a host? If you employ a general manager.

They can fill in for a bartender or host, since they are on salary anyway.

However, be wary of cutting back too much staff at the risk of sacrificing customer service.

If you have a new restaurant, don’t make any sweeping changes to your staffing schedule until you see patterns arise after a few months of business.

Only run a skeleton crew on Monday nights if Monday nights are consistently slow.

One, two, even three weeks in a row doesn’t mean that business won’t pick up especially if you incorporate some restaurant promotions (up next).

18. Offer Restaurant Promotions

Two-for-one specials, coupons, early bird dinners are all great ways to lure in customers during a recession.

Offer them the most bang for their buck.

Restaurant promotions can range for a nightly happy hour to an annual customer appreciation day, with drink and dinner specials.

Take your promotions online, utilizing social media.

Check out how these restaurants used Instagram to increase sales through online promotions.

19. Take Small Steps to Save Money

Your mom had the best advice when it comes to saving money.

Don’t waste electricity, water or food.

There are many small ways that restaurants can save money.

From installing low-flow faucets to purchasing energy efficient appliances.

Not only are some of these steps good for your budget, they are environmentally friendly as well.

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All of the above tips are things you should be doing. Restaurants need constant monitoring.

Taking the time to make sure your restaurant expenses are under control will help circumvent problems in the future.

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