Why Keeping A Track Of Expenses Is Essential For Your Restaurant Biz
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Expansion 2018-05-09

Why Keeping A Track Of Expenses Is Essential For Your Restaurant Biz

It is a common misconception that providing quality food will ensure a guaranteed success for the venture, completely ignoring the other things which also define the business factor of a restaurant. As a result, these restaurants experience failure leading to a shut down.

By Jr. Writer
Why Keeping A Track Of Expenses Is Essential For Your Restaurant Biz

With restaurants and chains springing up at a high rate , a stiff competition is being built.  Of which 80 per cent of the restaurants fail in the first five years due to the lack of business knowledge. With this high a number, it is importantto work on the problem and what should be done to recover from it.

“Customer expectation has evolved drastically with time. They are looking for many other things than just the food. They want experience to be served in the form of palate by almost every restaurant,” shares Zeenat Ehsan, Co-Owner, Bohemia Café. She further adds, “Restaurants are now experimenting with their ambiance and staff other than food in order to meet their expectation.”

Labor Costs

It is very important to ensure that your employees are clocking in and out whenever they are supposed to “Most of the time, your employees end up on abusing your time that causes loss in terms of business. One should be well researched before finalizing the labor cost,” says Puneet Khurana, Owner, For God’s Cake. It is essential to make sure that you are spending the right amount on their payroll.

Food Wastes

Food wastes are a big tragedy everywhere. How much food is being wasted at the restaurant on a daily basis should be noted. You can also reduce the waste products by converting them in different forms. For example, you can create a broth by using the chicken bones and vegetable scraps.

Employee Theft

Employee theft is  a common thing at most restaurants. Staffs look for an easy meal and take advantage of it. In order to safeguard employee theft, you should have an effective system placed at your restaurant to track your food costs. Combating employee theft is one thing which can provide your restaurant with a great result in terms of business.

High Wait Times

The waiting time of a customer for getting a reservation or food is something which affects your business. Busy restaurants are considered to be profitable but it is mandatory to learn the factor which is causing the customer’s to wait. High wait times are often caused because of poor customer service.

Tracking your expenses contributes to the profit made at the end of the day. It is very important to know what is coming in and going out on a weekly basis in order to contribute towards your profit.

 

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