Why Your Restaurant Profits Are Inconsistent

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Why Your Restaurant Profits Are Inconsistent

Are you tired of seeing your restaurant's potential profits slip through the cracks? Whether it’s due to inefficiencies or high costs, it’s time to take control. In this video I am tackling the challenge many restaurant owners face: inconsistency in profits. Understanding why your restaurant’s financial performance fluctuates can be the key to unlocking steady, reliable growth.

A critical aspect often overlooked is accountability. When accountability is missing in a restaurant’s culture, everything from financial targets to basic operational procedures can start to slip through the cracks. Without someone responsible for each part of the process, issues go unnoticed until they become major problems.

Consider a scenario where a restaurant had a great month followed by a sudden drop in profits. Upon review, it was found that inventory management lapsed, causing excessive waste. Schedules were created based on intuition rather than budget, and customers started noticing the restaurant’s decline in cleanliness due to neglected checklists.

Here’s where accountability plays its part. If each shift had a designated person responsible for inventory checks, discrepancies would have been caught much earlier. If schedules adhered to the budget, labor costs would have remained in line. And if each shift ensured checklists were followed and completed, customers would have continued to enjoy a clean and welcoming environment, increasing the likelihood of their return.

So, how do we fix this?

Regular restaurant financial reviews
Regular restaurant financial reviews are crucial. Start with having a restaurant budget. This means not just looking at your profit and loss statement at the end of the month but analyzing your numbers weekly using a weekly prime cost budget variance report. Ordering and scheduling should be done on budget, and these reviews should be conducted weekly, if not daily. Structured reviews led by specific team members ensure everyone knows their responsibilities.

Restaurant employee training
Proper employee training ensures your team understands their roles and feels empowered to act when things go awry. Continuous training programs help maintain high standards and operational consistency.

Clear sales performance metrics
Set clear performance metrics for your restaurant. Everyone, from your head kitchen pro to your servers, should know what success looks like in their role and how they directly impact the restaurant’s profitability.

I encourage you to take these insights and put them into action. Implement regular financial reviews, enhance your training programs and establish clear metrics for accountability. This isn’t just about avoiding losses; it’s about creating a pathway to consistent profitability and success.

Be sure to visit my YouTube channel for more helpful restaurant management video tips.


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