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Showing posts with label Cost Control. Show all posts
Showing posts with label Cost Control. Show all posts

Sunday, 31 March 2013

8 Tips for Getting the Most out of Restaurant Design




Owning a restaurant can be a stressful job, let alone facing the prospect of restaurant design. In an effort to help lighten the burden, we’ve developed eight tips to assist you in getting the most out of restaurant design.

1) Design your Concept Around Three Words


By taking the concept for your restaurant design and breaking it down into three easily digestible words, you give yourself some room to explore ideas while at the same time giving your design focus towards a set of specific goals. Words like fresh, fast, affordable, or fancy are all evocative phrases that can help give your amorphous idea a solid structure to build upon.

2) Separate Personal Preferences from Customer Preferences

Unless your restaurant is themed around you, it’s a good idea to leave any personal preferences behind when constructing your dream restaurant. You want the design to be reflective of your personality, but ultimately be about the consumer’s wants and needs.

3) Don't be Afraid to Seek Outside Help

As previously mentioned, owning and managing a restaurant can be stressful enough on its own. Having to work at the restaurant’s design as well can be a daunting task. With that in mind, don’t be afraid to hire a professional restaurant designer to help take care of aspects that you can’t be bothered with. Aside from some of the more inconsequential details, professional designers can also help with the important parts that you might otherwise not be knowledgeable in, such as the materials and specs for restaurant spaces.

4) Search for Inspirational Images

The internet is an unlimited resource for finding images online that you find to be representative of your restaurant’s design. Don’t just look for other restaurants to imitate though, be open about the type of images you find inspirational and collect them into a collage to provide your restaurant designer. This will help immensely when it comes to them turning your vision into a reality.

5) Be Specific and Communicative

Along a similar vein, be sure to keep constant communication with your restaurant designer to ensure they’re always on the right path. Don’t make them guess at your goals as that will only result in disappointment on either or both ends.

6) Keep an Open Mind

While it’s a good idea to be vocal about what you do and don’t want from your restaurant design, keep in mind that any professionals you hire are considered professional for a reason. Before rejecting any ideas, take a step back and try to see the problem from your restaurant designer’s point of view.

7) Pay Attention to Your Budget

Attempting to design a restaurant without setting up a budget in advance is a surefire recipe for future disaster. Always keep your budgets in the back of your mind when making decisions concerning the look of your restaurant. This way, you avoid any future disappointments when you realize the dream restaurant your building can’t be completed due to a lack of funds.

8) Study Available Timelines

Product delays and reselection can seriously impact the construction stage of restaurant design. Know the timelines for the furniture and other details you wish to include in the restaurant to avoid these inefficient and preventable costs from piling up.
Now it’s your turn. Any more design tips? Leave a comment below.
For more info on Ideal Software’s Inventory Management system for controlling food cost IdealStockControl

Thursday, 31 January 2013

13 Food Cost Tips in 2013

It’s not cheap to run a restaurant, but food is one of the biggest costs associated with it. It is therefore of utmost importance to keep your food costs within an acceptable percentage to avoid financial hardship and prevent having to pass on the costs to your customers. Here are 13 tips on how you can achieve this:

1) Take Inventory Regularly

Making note consistently and regularly of your food and supply inventories will enable you to maintain better control of the overall use and the costs that come with it. This is particularly important for high-cost products like meat and alcoholic beverages.
2) Price Your Menu Items Accordingly
It is important that you charge a reasonable amount of money for the items on your menu. If you do this, customers will be more likely to return or recommend you to their friends and family, helping you to maintain a generous profit. Charging too little will give you a high turnover but very little profit.
3) Control Portion Sizes
It cannot be stressed enough that you should make sure to serve foods in reasonable portions. Over-filling plates means customers are likely not to finish the food, and that excess food ends up being wasted.
4) Follow Proper Food Handling Procedures
Make sure that you keep all foods at their recommended temperatures and cook them properly to prevent contamination and avoid waste.
5) Reconsider Garnishes
Garnishes may look good but aren’t usually eaten. Choose garnishes that are less expensive or avoid using them entirely.
6) Record Food Waste
On a chart, write down foods that were made improperly, spilled or thrown out. This helps you keep better track of inventory and makes it easier to monitor costs.
7) Be Consistent
Making inventory purchases consistently helps you to keep your costs steady and keeps you well-supplied.
8) Build Supplier Relationships
Building a rapport with your supplier’s means that they’ll become familiar with your regular orders and you’ll have a better idea of the cost. Regular communication can also help you find out about food quality issues or price changes.
9) Teach Employees to Care
Once employees see how your profits can affect their paychecks, they’re more likely to take waste, portioning and food quality seriously.
10) Buy Local and In-Season
Purchasing locally produced, in-season goods doesn’t just support the local economy. It can also save you money on your bottom line by avoiding the massive costs of cross-country or international shipping.
11) Shop Around
If you don’t like the prices of one supplier, it’s good to look around for a better deal. Buying wholesale whenever possible can also help.
12) Avoid All You Can Eat
While the availability of unlimited food for a flat rate can draw in customers, it can also result in a massive amount of waste.
13) Set Menu Limits
It’s great to have exotic or classy menu items. However, offering them all the time can significantly increase your costs. Consider offering pricier items only on certain days of the week.
Do you have any other food cost tips for us all? Leave a comment below.

Let us help you control your food cost with Ideal Software’s Inventory Management System,IdealStockControlContact us Now!

Wednesday, 5 December 2012

Opening a Restaurant? Why Location is Important.


Location. Location. Location. It’s a cliche for a reason. Before you fold the napkins or add a dash of anything, you need to settle on a location. This should never be an afterthought. You can have the best food in the world and still be hungry for customers if you are not in the right location. Location is really the key to the success of your restaurant. Even if you have the “perfect” spot in mind, don’t get too attached until you do a little research first.
Here are four factors to consider on finding the correct location for your restaurant.

1) Population
Are there enough people in your area to have a regular customer base? You don’t want to rely on Census Bureau data alone. You want to check factors such as neighborhood demographics and population projections. If, for example, there is a heavily Italian population in your desired location, you’re not likely to have much success with a Japanese restaurant. One way to determine if a location is right for your restaurant is to do a site study. A less expensive alternative is to do a little research on your own. If you contact the local municipality where you want to locate your restaurant, they can provide population projections and other useful info.
2) Accessibility
Building a restaurant by a busy highway is also a cliche for a reason: it works! You may have the right demographics and population requirements, but it doesn’t matter if customers can’t easily get to your restaurant. Even if there are plenty of ways to get to your restaurant, you’re not in the clear just yet. Look at details such as current traffic patterns and projected traffic patterns to determine if congestion will be a major barrier to customers trying to make it to your restaurant.
3) Parking
So, the population in your desired location is just fine for your expected customer base and there are no major barriers to keep customers from getting to your restaurant. The next step is to look at your parking situation. Ideally, it would be best to have your own parking lot for customers. If this is not possible, you’ll want to check on the availability of public parking. Dig a little and find out how busy your desired location is at different time of the day. While crowds are great for business, non-stop crowds may not be so great for parking – especially if people are just parking by your restaurant because it’s convenient.
4) Visibility
Visibility also plays a role when it comes to location. This is why it is more expensive to locate a restaurant right in the heart of the downtown shopping district. It is great to have a cool website with a link to a Google map showing exactly where you are located, but don’t underestimate the impact of walk-in business. More customers than you might think make last minute dining decisions based on what restaurants they happen to see when walking or driving while they are hungry.
In Conclusion:
Location can make the difference between a successful restaurant and a good idea that never really got off the ground. It is all about finding the right ingredients – the right combination of a desirable location, key demographics, and available parking – when cooking up a recipe for a successful restaurant.
What has been your experience when starting your own restaurant? Leave a comment below.
For more info on Ideal Software’s Inventory Management system for controlling food cost IdealStockControl

How Much Does it Cost to Start a Restaurant?


Venturing into the wonderful world of food is an exciting journey. Not only will you be testing out new recipes and pleasing the palates of many, but you’ll also create the perfect ambiance to accompany main courses, side dishes and the like.
Now, before actually opening your restaurant, you need to figure out a budget. Questions regarding the amount you have saved, how much you’re willing to spend and what amount you want left over will factor into this decision.
What exactly is the cost of starting a restaurant though?
Restaurant Startup Costs

The Figures:
Well, according to Forbes Magazine article entitled “How To Run A Restaurant: start-Up Costs” by Maureen Farrell, the amount will likely vary from $100,000 to $300,000. A large gap clearly exists between these numbers, and you want a better sense of toward which side your budget should lean. You’ll need to consider the following factors when estimating a more firm number.
Size of the Restaurant:
How big or small the restaurant shall be is a huge factor when determining the cost. A little beach side eatery with a few plastic tables and umbrellas will cost a good deal less than a formal restaurant with seating for hundreds of people as well as a space for large wedding receptions and other celebrations. Places that are more middle of the road will, of course, fall in between the two extreme price ranges.
Types of Materials:
Speaking of plastic chairs, the materials with which furniture are being constructed is another major component of the budget. All wood tables and chairs as well as an authentic fireplace will place your restaurant toward the higher end of the estimates. Additionally, building the exterior of the restaurant comes into play. On the lower side of the budget, you would be able to have folding chairs or plastic chairs and perhaps a counter or window where people order food and then take it back to their seats.
Restaurant Essentials:
Of course, you’ll also need commercial size stoves and ovens. If you serve some sort of specialty, such as brick oven pizza, you will need to factor in the cost of that equipment as well. In order to successfully open up the restaurant, you’ll also have to hire staff and decide what their salaries or hourly rates would be. These numbers are not included with the aforementioned start-up costs, so paying employees will be an additional expense. The type of food you’re serving will certainly change the price too. Buying burgers and fries is a lot less expensive than purchasing prime rib, fresh vegetables and all of the finest spices.
Permits:
You also must consider permits when you are starting up a restaurant as you certainly cannot open up a restaurant out of anywhere. Check with the local town and with the state to find out what you need to do to open up the restaurant. Furthermore, if you want to serve alcohol at the establishment, securing a liquor license is a necessity.
Starting a restaurant is an exciting endeavor that will hopefully provide you with many profits. Before you can start reaping the benefits though, you’ll need to be fairly generous with your bank account to start building up the business in the best way possible.
Estimates for Opening a Restaurant in South Africa:
160 Seater Middle to Upper Service Restaurant Out of the Box Cost:

Kitchen equipment R475 000.00
Refrigeration R275 000.00
Storage R75 000.00
Dining area (tables, chairs) R250 000.00
Sound and sight R75 000.00
Kitchen smalls R65 000.00
Dining room equipment R80 000.00
Signage R95 000.00
Shop fitting R525 000.00
Sub total R 1 915 000.00
This excludes vat as well as wet works. These numbers are based on current prices but can vary according to the type of quality products used. Franchise groups work on a per square meter charge of between R9 000.00 and R14 000.00 per square meter.
What has been your experience when starting your own restaurant? Leave a comment below.
For more info on Ideal Software’s Inventory Management system for controlling food cost IdealStockControl

Tuesday, 20 November 2012

November 2012 Issue of Ideal Software's Niche Notes, our FoodService industry newsletter.

IdealSoftwareNicheNotesNovember2012

7 Low Cost Ideas to Market a Restaurant


Successful restaurateurs create consistent turnover as well as many customers that frequent their establishments on a regular basis. This provides the basis for sustained revenue that allows a restaurant to succeed and grow.Restaurant_Stock_ControlMany think that a restaurant that reaches this kind of success has had to put in years of hard experience, slowly building up a large customer base. However, that assumption is not always true. A number of inexpensive marketing tactics can generate a great deal of business for a food establishment very quickly.
These include:

1) Cultivate Word of Mouth Referrals

Happy customers are the best kind of advertisement. They’re free, they talk and they refer new customers to a restaurant. So encouraging folk to talk about their good experiences is definitely a must for any successful restaurant.

2) Email Marketing

Email marketing is another free or nearly free marketing tool that allows you to communicate with a large section of your client base at once. Through email, you can effectively disseminate information about special restaurant events and seasonal menus to those who have taken the time to join your email listing. As your business grows, word of mouth will spread about your special offers through your mailing list, which may lead to a larger client base.

3) Social Media Tools

In most cases social media accounts are cost-free, allowing a restaurant to create an Internet presence quickly. However, they do take time and mental work as good social media destinations need to be regularly updated with new content to keep people reading and paying attention to a restaurant.

4) Using a Loyalty Card

Many businesses have figured out that customers love to feel like they are receiving something for free. With the usual approach of having customers make five or ten purchases to gain a free coffee / meal / voucher, restaurants can generate a huge amount of return business.

5) Up-Selling

Do you want to upgrade that combo? Up-selling is a great way to generate marginal additional revenue on the same sales. People will buy a meal, however, by offering a larger meal for a bit more in cost, customers will feel compelled to buy it to take advantage of the “deal.” The cost of the food increase tends to be nominal versus the higher price charged for the meal upgrade. This is obviously only applicable to certain types of restaurants.

6) Use Coupons

Along the same lines of feeling like something was free, customers also love to take advantage of discounts as well. Coupons offer a real, tangible savings for a customer. In most cases people tend to buy more than one meal, eating with someone else, so even with a coupon the customer will bring in extra business. This option is very debatable, as some restaurateurs believe it will attract bargain hunters only, who will stop frequenting the restaurant as soon as the special is finished. Try starting off small and monitor the response.

7) Restroom Advertising

Restroom advertising and marketing tends to create cold leads mainly because people have nothing else to do but read while sitting in the restroom. Those few seconds of idle reading can catch someone’s attention with the small cost of a flyer, paying for itself and more with the first customer purchase. Combine the ads with special events, and the sales can grow exponentially with each customer’s reading.
Restaurant marketing doesn’t have to be a large, expensive affair. Good, effective marketing and advertising can be done cheaply, with very noticeable results in a short time. Smart restaurateurs combine a number of the above tools and more, spreading their nets farther to gain more customers. That in turn creates consistent revenue and sales that keeps a restaurant growing.
Do you have an 8th idea to add? Leave a comment below.
For more info on Ideal Software’s Inventory Management system for controlling food cost IdealStockControl