Your restaurant’s success involves more than just serving delicious dishes. It requires a strategic focus on efficiency, profitability, and exceptional customer satisfaction.
With 45% of operators expecting more intense competition this year, your business needs to stand out for delivering a high-quality experience, which you can achieve through efficient restaurant operations.
From data analysis, menu optimization, inventory control, staff training, and customer service, let’s discover these 12 best practices that can enhance your restaurant operations, improve your bottom line, and build a loyal customer base.
1. Analyze your restaurant’s strengths and weaknesses
Restaurant operations management should start with a SWOT analysis. This acronym stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis can reveal issues with your menu, staff, customer service, or other aspects of your restaurant operations that you may not have noticed before.
For example, if you notice that your food preparation process is slow, you can invest in staff training to speed up service without compromising quality.
A data-driven approach through SWOT analysis and restaurant analytics can boost your survival rate by 23%.
2. Establish clear Standard Operating Procedures
Effective SOPs cover a wide range of restaurant operations, from instructions for food safety, hygiene, and kitchen cleanliness. Having clear Standard Operating Procedures (SOPs) makes sure everyone, from the FOH to the BOH is on the same page.
For instance, having a standard method for preparing popular dishes maintains consistency in taste and quality, even when you operate many branches.
Management should conduct periodic reviews of these documents to keep them relevant and effective. There should also be training sessions to make new employees familiar with these procedures and to refresh the knowledge of existing staff.
3. Invest in technology for operational efficiency
From taking orders to managing inventory, investing in technology makes many aspects of restaurant operations efficient. For instance, Cafe Gratitude saw a drop in their average order-taking time from 20 minutes to three minutes per table when they used a POS system, with the entire ordering process just around eight minutes in total.
Restaurant scheduling software is another tool you should use in your restaurant. You can scale for success through simplified labor management across multiple locations.
Andolini's, a restaurant group in Tulsa, Oklahoma, was able to manage their 300+ employees efficiently across multiple locations while reducing scheduling conflicts, which was costing them hundreds of dollars per month per location.
“We can plan out the week and not double-dip on a person,” Mike Bausch, Andolini’s co-founder, said. “And a lot of that stuff was happening, it doesn't happen anymore.”
4. Optimize your restaurant menu
A well-designed menu not only highlights high-margin items but also guides customers toward dishes that maximize profits. For instance, one way to do this is by placing your most profitable dishes at the top right corner of the menu where customers' eyes naturally go first.
When optimizing your menu, analyze each dish’s performance. Track every item’s sales and food costs to determine which dishes are profitable and popular.
For example, if a particular dish has high sales but low margins, you might need to adjust its pricing or ingredients. On the other hand, if an item is expensive to make but doesn't sell well, consider removing it from the menu.
In addition to profitability, consider the operational efficiency of your menu items. Dishes that require complex preparation can slow down kitchen operations and increase wait times for customers.
With 88% of restaurants planning to expand beyond their current menu choices, giving extra thought to menu items can help reduce prep time and costs. Focusing on high-margin items and streamlining offerings to include dishes that are quick and easy to prepare can drive higher profits and deliver a better dining experience for your customers.
5. Have an inventory management strategy
Good inventory management helps you track food usage, reduce waste, and ensure that you have the right ingredients on hand. It makes your restaurant operations more efficient and allows you to save costs.
Using an inventory management system can help you track the shelf life of perishable items and alert you when they need to be used or reordered.
Let’s say your restaurant spends $20,000 per month on perishable inventory (fresh produce, dairy, and meats). Without an inventory management system, let's assume 15% of this inventory is wasted due to spoilage, resulting in a monthly waste cost of $3,000. You can cut waste in half simply by tracking expiry dates and setting alerts for reordering.
Another good inventory management strategy involves setting par levels for each ingredient.
For instance, if your restaurant uses 500 lbs of chicken per week, setting a par level at 200 lbs ensures reordering happens before running out. Over-ordering might lead to an excess of 50 lbs per week, costing an additional $200 weekly.
Preventing over-ordering could save the restaurant $800 per month or $9,600 annually.
6. Provide extensive training to your employees
Employees perform their jobs better when they feel properly trained, with 59% showing improved performance. As such, having well-trained staff leads to a smoother workflow and better service for customers, making your operations more efficient.
Start by creating a comprehensive training program that covers all aspects of restaurant operations, including food safety, customer service, and operational procedures.
Consistent training also helps maintain high standards across all areas of the restaurant. For example, regular training sessions on food safety reduce the risk of contamination, leading to fewer health code violations.
Training restaurant employees starts with a solid onboarding program that introduces new hires to the restaurant's culture, rules, and expectations. Then, use hands-on training in the kitchen to show them how to prepare dishes and handle ingredients. Role-playing can also help them practice serving customers.
Aim to keep the training period under two weeks, because that’s what 85% of restaurant employees said they prefer.
7. Conduct regular financial analysis
Regular financial analysis allows you to make informed decisions about your restaurant's operations. For example, by tracking food costs and comparing them to sales, you can identify which menu items are most profitable and which ones need adjustments.
If a dish's ingredients are too expensive relative to its price, you might need to tweak the recipe or increase its price. This kind of data-driven decision-making helps ensure that your restaurant remains profitable even when ingredient prices fluctuate, especially now that food costs are expected to rise by 2.2%.
Additionally, closely monitoring your restaurant financial statements helps you plan for the future. By analyzing trends in your revenue and expenses, you can forecast upcoming financial needs and set realistic budgets, allowing you to allocate resources more efficiently and avoid financial pitfalls.
Implement a system for regular financial reviews to stay on top of your restaurant’s financial health. Monthly or quarterly reviews can highlight areas needing attention, such as overspending in certain categories or opportunities to cut costs.
8. Audit your kitchen processes
With regular kitchen audits, you can identify inefficiencies and implement improvements to reduce bottlenecks. For instance, you might find that certain ingredients are being wasted due to improper storage or that cooking times can be reduced by reorganizing the kitchen layout.
One effective way to audit your kitchen processes is to observe the flow of food preparation and service. Take note of areas that cause delays and identify the root problems. This could include issues with equipment placement, communication breakdowns, or inadequate training.
9. Improve food delivery operations
60% of customers order delivery or takeout once a week, which is why it’s important to have efficient delivery operations. Reduce error and speed up service by integrating your online ordering system with your restaurant's POS.
To improve your delivery operations even more, set up a designated area for delivery order preparation and pickup. This area should be clearly marked and organized, allowing staff to quickly assemble and package orders without disrupting the flow of the kitchen.
Additionally, providing clear signage for delivery drivers helps them find the pickup spot easily, reducing wait times.
10. Build strong supplier relationships
Reliable suppliers make sure your restaurant has a consistent supply of high-quality ingredients. Establishing a good relationship with suppliers can lead to priority delivery and better pricing, which is useful since food supplies and raw material purchases make up about ⅓ of a restaurant’s total costs.
To nurture these relationships, talk to your suppliers clearly and regularly. Discuss your restaurant's specific needs, preferred delivery schedules, and any special requirements you might have.
By being open and transparent, you can quickly address any issues that arise, such as delays or changes in product availability. Additionally, providing feedback on the quality of the food and services helps suppliers understand your standards and expectations, leading to continuous improvement.
Another effective strategy is to diversify your supplier base. Having multiple suppliers can reduce risks associated with supply chain disruptions. For example, if one supplier is unable to deliver a specific ingredient, another might be able to fulfill the order.
This approach not only ensures a steady supply of ingredients but also promotes competitive pricing.
11. Listen to customer feedback
Your diners’ feedback provides valuable insights into what they like and dislike about your restaurant, from food quality to service efficiency.
Actively seeking and addressing customer opinions is essential for maintaining a loyal customer base. In fact, 72% of diners are more likely to opt for a restaurant that asks for their feedback.
There are several effective ways to gather customer feedback. You can implement comment cards, online surveys, and social media polls to capture customers' opinions. You can also encourage diners to leave reviews on platforms like Yelp, Google, and TripAdvisor.
Remember to respond to both positive and negative feedback promptly. Aside from food quality, review feedback to identify common themes and areas that need attention.
Let’s say customers frequently mention slow service during peak hours. As such, you might need to reevaluate your staffing levels or streamline kitchen processes. This way, you continuously enhance your restaurant's service, menu, and overall ambiance.
Ultimately, this leads to increased satisfaction and revenue. 7 out of 10 customers admit to spending more money on a company that delivers great service.
12. Prioritize safety
36% of restaurant workers reported being injured on the job, which can affect morale and productivity. A safe environment protects your customers and staff, reduces the risk of accidents, and maintains your restaurant’s reputation.
Moreover, common restaurant injuries, such as slips, burns, cuts, and food poisoning, can lead to costly lawsuits, medical bills, and even temporary closures.
Inspect your kitchen equipment, fire safety measures, and overall cleanliness regularly. Train your staff on safety protocols as well and ensure they know how to handle emergencies.
By maintaining high safety standards, you pave the way for uninterrupted workflow, which directly contributes to higher productivity for your staff. A strong safety record also enhances your restaurant's credibility and trustworthiness, attracting more customers and boosting your bottom line.
Boost restaurant operations with these top tips
Implementing these best practices, from conducting a SWOT analysis to focusing on safety, can help you run your restaurant well and direct it toward long-term success. These strategies will not only improve your bottom line but also create a positive dining experience that keeps customers coming back.
Supplement your strategies with 7shifts, which lets you automate workflows and provide real-time insights into your business. With our restaurant management software, you can optimize staffing through predictive scheduling to match labor with demand, reducing labor costs.
Simple to set up, easy to use. Give your restaurant the team management tools they need to be successful. Start your free trial today.
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Vahag Aydinyan
Hello! I am Vahag, Content Marketing Manager at 7shifts. I am writing about content marketing, marketing trends, tips on restaurant marketing and more.