How to Scale Your Restaurant Business in Less Than a Year With 3 Easy Steps
Few small businesses in the restaurant industry have the opportunity to grow quickly. But if you can implement the proper steps, you can see significant growth in just one year.
Keep reading to learn four easy ways to scale your restaurant business. By following these tips, you’ll be on your way to increasing profits and enhancing your customer base in no time!
What Kind of Scaling Are You Aiming for?
Success isn’t the same for all restaurant owners. For some, the goal of opening a new restaurant is all-encompassing. But for entrepreneurs who are already established in the restaurant industry, expansion by adding more services like catering or delivery can help them reach customers easier while remaining profitable.
Revenues from online delivery are expected to rise. As a restaurant business owner, you should consider including online ordering in your business if you’ve not already done it.
Scaling up also means spending more money. You might be reluctant to start investing in new goals, but getting a restaurant business loan can help you overcome initial financial struggles.
Find out what steps you need to take to scale up in less than a year through these 4 easy tips:
1. Remember to Be Patient
Several questions need to be answered before you can grow your business and turn it into a successful restaurant. These include, “Are we in the right position?” and “What will happen if we expand into new services or locations?”
Other questions you need to consider include:
Are Your Cash Flows Positive?
As a business owner, you want to ensure that your margins are as high and wide-ranging as possible. That’s why understanding financial resources like profit margin are so important!
The more menu items or locations you add on top of your current count, the more significant revenue potential. But each new item or new location also comes with its own set expenses, so you need to know how to keep track of your revenues and expenses.
How Busy is Your Restaurant?
Are you finding it challenging to keep up with customer demand? Is your current business model insufficient for the number of customers coming through each day or week?
If yes, then expanding into another location could be an answer. Many successful restaurateurs do this over time, and if they can make a success out of such little resources at first - there’s no reason why you won’t too!
Do You Have Loyal Customers?
Introducing new services or locations can be a huge step in growing your business. Loyal customers will become the most vocal of all advocates for you, and they’ll do everything possible to bring their friends with them!
These people are like unofficial brand ambassadors that can help you grow your brand awareness. So ensure to use them as your referrals.
Do You Have Experienced Staff?
Scaling a restaurant business doesn’t just take money. It also takes time! Three in 10 restaurant business owners cite staffing as their major struggle, and if you’re one of them – it’s NOT the right moment to scale up your team.
Food quality becomes an issue if you have inexperienced kitchen staff who don’t know how to cook complicated dishes. Your workers’ skills should match their tasks, so don’t consider overwhelming them with more complex menu options than they can handle.
Ensure you have the right people lined up for promotion so you won’t have to deal with deserters. The last thing you need is an employee who leaves your business at the peak of its expansion. If you’ve got all the answers to the above questions, then it’s time to take a step forward.
2. Find a Suitable Location
This step defines explicitly “scale” as opening a new restaurant. The importance of market research when scouting real estate cannot be overstated; location matters in this industry more than anywhere else!
When looking at potential properties, involve knowledgeable brokers and lawyers so that your perfect spot fits within budget without compromising quality or safety concerns with any local codes/ordinances.
Before making purchase decisions, ensure to finalize leasing agreements regarding property features like equipment use.
3. Streamline FOH and BOH Operations
FOH, meaning Front of House, refers to the front of the restaurant or the client-facing areas like the bar or waiting area. In contrast, BOH is an acronym for Back of House and refers to the non-client facing areas like the kitchen. New restaurants often struggle with opening, so they need to make sure everything runs smoothly from the moment they open, including hiring and training staff as well as an inventory-stuffed kitchen ready for action.
This is where technology comes in! Choose an integrated point of sale system that can grow with your business. The best systems have even more functionality, like the ability to create custom floor plans and notify kitchen staff when orders are running late – all this without compromising customer experience across locations!
And if you’re opening up a new location using the same POS in each restaurant means employees will be able to move quickly between stores while delivering consistent service quality every time.
With all these things taken care of by computerized precision tools like point automation systems software - you can save money on labor costs.
Scale Your Business Faster
Follow these three simple steps if you’re looking for a quick and easy way to scale your restaurant business in less than a year Besides ensuring you have a professional team and implementing technology, remember always to keep your clients and their needs a top priority. In the end, your customer loyalty will contribute to your overall success.
And don’t forget to reach out to our lending experts at Select Funding for the push you need to get your business where you want it to be. With our help, you can achieve success in no time!