How to turn your restaurant into a big business in 2021

The challenge of managing a restaurant

Although the owners of restaurants constantly exhibit these characteristics, it is no secret that many of them run into strong challenges when trying to convert their restaurant in a successful business. Quite simply, the problem is that they need to focus more on their role as "boss" and less on being a grocer or a cook.
But to stop doing it is difficult, since if the owner is caught in the operations Everyday, you can lose sight of the strategic effectiveness of marketing, finance, and operations, which ultimately influence profits
In this article we will tell you how to “promote yourself” for the position of “Chief Executive” (JE) of your restaurant. You will see how to keep the big goals in focus and create a system that will ensure that your restaurant It will work the way you want it to, without the need to attend to every detail personally.
How JE, usted will BEST capable for take the best strategic, which will be reflected in sales, will create efficiency, and will manage resources in a way optimum
Know “how to handle a restaurant" at the It's enough
Many people who open a restaurant do not fully understand the role they must play as the owner. They are convinced that managing or executing operational functions in a restaurant is all that is necessary to create a profitable operation.
Take for example the cook who opens a "bistro" or a restaurant manager who gathers his money and creates his own concept. They are convinced that because they know "how a restaurant works", they know how to build a successful business. This could not be further from the truth and is the fatal mistake behind the lack of success in many restaurants. If the owner spends all of his time running the restaurant, he will either overlook or not give adequate time and attention to the things necessary to manage other equally important aspects of the business.
The more a restaurant depends on the owner, the work of the owner will focus on the operational details of the restaurant, increasing the risk of failure. When the owner cannot separate himself from the day-to-day activities of running the restaurant, he generally won't be able to do those things necessary to run the business.
The great lesson of Ray Kroc, founder of McDonalds
You may wonder what a restaurant owner could learn from the man who created the McDonald's empire. What could you have in common with a major corporate that serves millions of customers a day in more than 30.000 restaurants all over the world?
From the point of view organizationalYou may not have much in common with McDonald's, however Ray Kroc's ingenious approach and guiding principles are not only relevant, but provide gems of wisdom that every restaurant owner must know and apply.
Krok's leadership and business sense helped McDonald's become the chain of restaurants largest in the world and make many people a millionaire.

First, work "in business"

When Ray Kroc tied up the "base" contracts for McDonald's franchises in the mid-50s, he didn't go to work "in the restaurant." He worked "in business".
For Kroc, the first McDonald's restaurant was a model or prototype that could be replicated repeatedly in cities and towns across the country. Instead of rolling up his sleeves and working at the first McDonald's, he began the process of analyzing every operational function of that restaurant from shopping to cooking to cleaning.
Without changing the essence of the concept, he made adjustments and proceeded to develop a comprehensive system of procedures with standards, itself a system.
After Kroc completed his first objective, building a "complete set of instructions" for the operation of a McDonald's restaurant, he then moved on to the next phase of his plan. He was now able to demonstrate to others, in this case "his partners," how to run a McDonald's restaurant in a systematic and proven manner that virtually ensured success.
He understood that he wasn't just selling hamburgers and fries. In fact, their main product was the business, the McDonald's franchise. Your main customers would not be the people who bought the hamburgers, but the people who would pay for the right to own and operate a McDonald's restaurant.
In order to convince business opportunity seekers to choose a McDonald's over any other business, he had to make the best business opportunity available. His competition was not other restaurants, but any other business opportunity

Second, "the system" is the solution

To have any chance of realizing his vision of a company with hundreds or even thousands of hamburgers, Kroc knew that every restaurant had to function in exactly the same way. He required each new owner to attend the corporation's Hamburger University, to learn the "McDonald's system." Upon graduation, each owner knew exactly how a McDonald's restaurant works.
Why do more than 40 million people go to McDonald's every day? They don't go there to get the  kitchen  thinner. No, they seek consistency and predictability. They know exactly what they are going to get no matter which McDonald's they visit. And you can only create consistency and predictability, the two most important factors in any business, with a good system.
Running a business by system is not only applicable to the franchise model, since it is applicable anywhere and you have to work by systems to operate a successful restaurant, because there are so many variables and functions that need to be executed in the same way, all the time. With each customer and time without a system, it is almost impossible for employees to create a consistent and reliable experience for their customers over and over again.
With a work, a restaurant becomes a valuable asset in its own right because it has the ability to produce consistent results and to do this with or without the constant and direct involvement of the owner. By the way, when was the last time you saw the owner of a McDonald's license work at the restaurant?
In contrast, many restaurant owners never stop working "in" their restaurant. They are the first to arrive at the restaurant, which of course is understandable and necessary, but if they remain in this role for months or years after a reasonable period of time, the business (and the owner) will suffer.

Running a restaurant from a Chief Executive's perspective

Every restaurant has three important areas that must perform well to reach their potential for success.
Of operations: They include all those functions that are necessary to prepare and serve the products to your customers. It includes all those activities that occur every day in the kitchen, dining room and at the bar.
Financial: The financial functions are concerned with safeguarding cash, accounting, treasury, control of costs as well as operational and financial disclosure.
Marketing: Marketing puts the restaurant right in the public mind. Includes public relations, advertising, promotions and projection of the correct image.
Now, think about how successful your restaurant could be if you gave due attention to each of these three areas. Imagine that operations were able to consistently provide products and services in a way that met their highest standards.
Do you think your restaurant would be more successful if you had that level of organization and attention in each of these three areas of your business? Insurance? Well then what is the problem?
The problem is that the only one who organizes or performs all the functions is ... who? Clear! the owner.
And the owner is already working 70 hours a week or more running the restaurant. Most of them are buried in day-to-day operations, doing whatever needs to be done to get ahead.
If you focus your attention on the three areas we have mentioned, it will give you a highly advantageous position, not only to the owner, but also to the business. Now the owner will pay attention to other "strategic" functions of planning and taking actions that will affect the business, not today, but in the future.
But if the owner is more involved in the operation of the restaurant than as a CEO, he is nothing more than an “Owner's Employee (ED)”.
A primary way to go from being an ED to a JE is to develop and run a system. In business, a system is a series of detailed procedures and is often called an "operations manual." This document, which tells how a restaurant should operate, will give the owner the best weapon to reduce his intervention in the daily management of the restaurant.
In addition, developing an operations manual will help you create one of the most important assets of any restaurant: consistency.

Benefits of a  work:

It will help you get out of an unproductive phase quickly: Quickly reduces the disorganization and confusion generated during the start-up of any restaurant.
It will attract and maintain quality employees: People want to work for companies that are organized and serious about what they do. This means creating a system for recruiting, interviewing and selecting personnel, and at the same time supporting new workers with their job descriptions, training manuals and a company policy manual.
It will give direction: A system communicates to your staff the performance and results you expect, in addition to providing your people with the information and training necessary to be successful.
Create constancy: A system allows your employees to repeat an operation, that is, create a constant experience for your customers.
It will give you a better chance of raising necessary capital: Imagine trying to create another restaurant without having a system in its original location. Growth without a system has led to the disappearance of many very good restaurants.
It will work without the owner being there all the time: It will give you the opportunity to separate yourself from the everyday details and allow you to take your rightful place as the owner.
It will increase the value of your restaurant: Businesses that are owner-dependent are worth less than businesses that function well without owner intervention. Prospective buyers want to know "what is going to happen when the owner leaves?"

What to include

The restaurant operations manual will generally cover the following categories:
  • Menu and management of the kitchen.
  • Management of the dining area.
  • Management of the bar counter.
  • Administrators of the staff.
  • Purchases and inventory.
  • Employee training. Cleaning and sanitation area. Safety.
  • Marketing and promotions. Financial and commercial management.
  • Material handling. Maintenance of facilities. 
Article published by Jim Laube founder and President of RestaurantOwner.COM. He has a career of more than 25 years in the restaurant business as a waiter, bartender, restaurant manager, CFO controller of a regional restaurant chain. In recent years, he has been a director of hundreds of independent restaurants in the US and Canada, especially in areas related to profit, control and financial management.
I am a dreamer and in my dreams I believe that a better world is possible, that no one knows more than anyone, we all learn from everyone. I love gastronomy, numbers, teaching and sharing all the little I know, because by sharing I also learn. "Let's all go together from foundation to success"
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