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Restaurateurs know that running a successful restaurant isn’t just about serving delicious food. It is also about managing finances effectively to ensure a healthy cash flow. Whether you’re a new restaurateur or a seasoned pro, increasing cash flow is a constant priority.
Here are four tips to help you boost your restaurant’s cash flow:
1. Optimize your menu to increase sales.
Don’t just look at your menu as a list of sumptuous dishes. It should be utilized as a strategic tool for driving profits. Analyze your menu to identify high-margin items that sell well and consider promoting them more prominently. As well, evaluate underperforming items that may be dragging down your profits and either revamp or remove them.
Dana Krook of TouchBistro advises restaurateurs to categorize their menu items as stars (items that yield both high on the profitability scale and are also highly popular dishes), plowhorses (dishes that might have low profitability but they rank high in popularity), puzzles (the plates that appeal to only a certain few, but are highly profitable) and dogs (dishes that have both low profitability and low popularity). “Knowing which item fits into which category is essential for the placement of each item on your menu,” she insists.
2. Control food costs.
Food costs can significantly impact your restaurant’s bottom line. Keep a close eye on inventory management to minimize waste and ensure that you’re getting the best deals from suppliers. Consider negotiating better prices or sourcing ingredients locally to reduce costs. Implementing portion control and standardizing recipes can also help control food costs without compromising on quality.
“A plate filled with your best entrée and favourite sides looks great on its way to the table,” notes Dan Holt of Hitchcock Farms, “If it’s more than most customers will finish, reconsider portion sizes. Many restaurants use portion spoons and scales to determine exact amounts for individual servings. The practice can be time-consuming, but it holds down food costs, especially in large operations.”
3. Offer special promotions.
Promotions and special offers can attract new customers and encourage repeat business, helping to increase sales and cash flow. Consider running promotions during off-peak hours to boost traffic during slow periods. Loyalty programs and discounts for regular customers can also help build a loyal customer base and drive revenue.
“Pizza chain Hell Pizza famously served up a restaurant promotion where customers could order any pizza, and opt in to their ‘Pizza Roulette challenge’,” informs Adam Guild on Owner.com, “Tongue blistering, one slice of that pizza would be doused with a chilli sauce they claimed to be as hot as police pepper spray. Now it doesn’t have to be that extreme, but it gives you an idea of what gets attention.”
4. Apply for a merchant cash advance.
For many years, Synergy Merchants’ unique merchant cash advance program has been helping restaurant owners to maintain better cash flows. To learn all about how our program can help you to boost your cash flow, please don’t hesitate to call us at 1-877-718-2026 or email us at firstname.lastname@example.org. You can also apply online for a free, no obligation quote!