Learn how to properly manage your restaurant

Larissa Ribeiro
Aug 29, 2021 7:17 PM

Restaurant management involves many actions that the business owner needs to be aware of. It’s essential to think about bills to pay, hire employees, customer service, inventory, finance, and so much more. To do all of this without proper control is a risk!

To help you in this process, we prepared this content with tips for you to manage your restaurant with more effectiveness. Good reading!

Steps for a perfect administration

You need to know the business well. The management of the restaurant must go through some essential steps, and you must understand each one.

1. Predictability

You need to know what the restaurant needs in terms of essential resources to run correctly and avoid setbacks. It’s possible to include inventory management, staff formation, determining the restaurant’s valuable space, and even marketing investment.

2. Analysis

This step is the restaurant’s history research. It’s possible to identify the periods of greater and lesser customer movement, dishes that were ordered more than others, most used ingredients, etc.

3. Planning

It’s time to define the order flow if the delivery method will be implemented, decide about outsourced service, and create or review the menu for selling.

Some agile techniques, such as the Lean Methodology, can be effective at this stage of restaurant management.

4. Execution

It’s time to test all your planning. That way, you can get a great perspective of all operations, task assignments, roles, etc. Document everything! That information is critical to understand if your goals are according to plan.

5. Continuous improvement

It’s essential to follow up on your restaurant’s metrics to understand when and where to improve. You can think about the improvement as part of the process update. That way, the attendance will always be more fluid.

It’s important to remember that, during the execution of each step above, changes may occur. Make sure your entire team is prepared to handle those changes. Then, it will be possible to overcome crises without compromising the restaurant’s operation.

Relevant metrics for restaurant management

As we’re talking about important metrics for restaurant management, we will leave a checklist for you to follow the most important ones and what they are for:

  • Average value per meal: The gross value of each dish when ready
  • Cost per raw material: The value of all raw material necessary to create the dishes
  • Production cost: The amount that each dish costs to be served, including employees, ingredients, and tools
  • Growth by period: High and low periods of the restaurant
  • Break-even point: Number of sales needed to recover the investment
  • Level of deliverability: Delivery time of each dish
  • Quality of deliveries: Satisfaction of the delivery service
  • Quality of customer satisfaction: Satisfaction of the local attendance
  • Equipment maintenance: Monitoring of equipment maintenance
  • Cash flow: Financial inflows and outflows
  • Commissions: Commission payments to suppliers and partners.

The ideal is that these metrics should be updated at least once every week.

Benefits of restaurant management
Well-structured restaurant management brings a lot of advantages and benefits to your business.
  • More predictability: No out-of-the-blue situations. By managing the restaurant properly, you can have more predictability about your business.
  • Service agility: When a restaurant is managed correctly, it works more quickly. This is because all processes are well aligned, and the team is engaged in their activities.
  • Cost reduction: If there’s control, there’s no waste! When you know exactly how and where your money is, you can identify whether or not there are risks. It’s from this kind of conference that you can reduce expenses in periods of low sales or crisis.

Managing any business is a big challenge. However, it’s an action that promotes success when adequately planned and worked on. Track your metrics, engage your team, and see the success of your business happen.

Did you like our tips about restaurant management?
You can learn even more about how to run your business without errors.

Get started