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3 Things Every Restaurant Owner Should Know

There are three things I think every restaurant owner should know. Want to know what they are? Watch the video below, or continue reading below, to learn the one thing you can learn to avoid failure, two systems that are a must and why the basics can't be ignored.  


As a restaurant owner, there are three things I think you should know, whether you're new to the business or a 30-plus-year veteran.

So, what are the 3 things restaurant owners should know?

The number one reason for failure in the restaurant business is a lack of leadership. Just because you own a restaurant, that doesn't make you a leader. And it takes leadership to be successful. This is not meant to insult you, as a restaurant owner. But a lack of leadership in restaurants is why I teach --- and preach --- systems for everything you do in your restaurant. That includes something like counting out a bar drawer to $300 or something advanced like dollars per labor hour worked. When you put systems, your processes, your preferred way of doing things in place in your restaurant, you train people to that system, process or way, and everybody is doing it your way. That's how chain restaurants kick independents' butts. The corporate office is able to impose their will without being there because there is a system to follow for every job in the restaurant and every task in the restaurant.

Those systems make up for any lack of leadership. Every restaurant owner doesn't enjoy every aspect of the restaurant, so they pay more attention to the areas they enjoy most. For example, if you're really focused on the numbers, then the systems make sure the guest experience is covered. And vice versa. Systems force communication in all areas.

If you want to be a great leader, you have to put systems in place.

The second thing you should know as a restaurant owner is there are two systems you must have to make money in the restaurant business. Those two restaurant systems are budgets and recipe costing cards.

I get it, as soon as you heard that, you shut down. Most people hear the word budget and their eyes roll back in their heads. Recipe costing cards always seem to overwhelm the independent restaurant owner. These two systems are the two systems most independent restaurants never have in place. Why? They're hard? BooHOO. The restaurant business is the toughest business out there. These two restaurant systems are critical to making money in the restaurant industry. They're essential to running a proactive restaurant and holding your restaurant managers accountable.

If you don't have these systems in place, then you can't know where your numbers should be based on your location, your style of restaurant, your price point, your quality of product. If you don't have accurate up-to-date recipe costing cards, then you don't know what your ideal food cost is. Without this, you can't keep control of your money. Without these two systems, you're using an industry average to run your restaurant and more than likely you are FLUSHING money down the toilet in waste, spoilage and theft along with bad pricing and wasted labor hours.

The third thing every restaurant owner should know is that if you don't do Restaurant 101 right, you're going to struggle. None of the systems will matter if you don't get the basics right. That's hot food hot, cold food cold, clean, safe work environment for guests and employees, WOW customer service, incredible product and great hospitality. Why did you get in this business in the first place? If you can't execute these basics, you need to evaluate your restaurant's place in the mix, and why you're doing it.

If you would like to learn more about the importance of systems and how to run a restaurant, read our free special report, Is Your Food Distributor Screwing You? 5 Things You Can Do Now to Lower Food Cost. Download it here. Be sure to visit my YouTube channel for more helpful restaurant management video tips. 

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