9 Key Elements Of A Successful Restaurant Business

common traits successful restaurant business

Unlike the slow-cooked, simmering cauldron of delicious gravy cooked to perfection, there is no recipe for a successful restaurant business. There is no hard and fast rule to make a restaurant a success, but with keen observation and careful analysis, one can identify the qualities of a good restaurant, and from those, we derive the key elements of a successful restaurant business. We went to great lengths to identify these critical traits of successful restaurants and compiled them in a listicle for your benefit. Read along and thank us later.

Distinct Features Of A Good Restaurant Business

Successful people don’t do different things; they do things differently. The same saying stands true in the case of restaurants as well. The characteristics of a good restaurant do not differ from regular restaurants, successful restaurants recognize these characteristics and work accordingly. Read below the top 9 key elements that are considered features of a good restaurant business.

1. Understanding Of The Restaurant Business

So many restaurants open each year and close down within the first year itself. In the case of independent restaurants 25% restaurants shut down within the first year of operations to be exact. This happens because of zero understanding of the business. Most first-time restaurateurs have no business acumen and jump into the restaurant industry because it looks lucrative from afar. A restaurant business, like any other business, needs to be run efficiently after considering all the factors.

Operations are an essential part of the restaurant business and require experience and understanding to manage them. You should be able to compare food costs, labor costs, gross margins, and profits. If you are a first-time restaurateur, do thorough research before you open your outlet.  The ability to take smart and often tough decisions is a pivotal point in the restaurant business and a key element of a successful restaurant which we often tend to ignore. From haggling with the vendors to managing the staff, and executing restaurant operations; you need to have a clear understanding of how the business runs.

2. Great Food

great food is key of a successful restaurantThis one is a no-brainer: a famous restaurant is known for its food, and great tasting food is a vital feature of a good restaurant.  No matter what you do, if the food at your restaurant is not great, people will not return. This is why delicious food is a key element of a successful restaurant. The food which you offer does not even need to be exclusive or unique. If you can make the same ‘red sauce pasta’ taste better than your competitors, your restaurant will automatically flourish. Successful restaurants boast of a great chef, who produces delicious food for customers. Restaurants are often known for a particular signature dish that draws customers to the joint.

3. Location

Yes, the location of the restaurant matters. A lot. So much so that the location of a restaurant is counted as one o the features of a good restaurant. Even with the same food, the same hospitality, and the same staff, the success of franchise outlets can be widely different. A restaurant business located in a popular area is bound to see a better footfall as compared to the one found in a remote area. You must decide the location after considering the restaurant concept and the target audience. Read a detailed guide on how to choose the perfect restaurant location here.

4. Smart Menu Planning

A smartly designed menu can do wonders for your restaurant. A smartly designed menu can do wonders for your restaurant.  A well-designed menu draws the attention of the customers to the high-profit items and boosts sales. A well-designed menu is one of the most crucial characteristics of a good restaurant. If you look carefully at what a successful restaurant does, that a relatively less busy restaurant doesn’t, it is often the menu designing. Even if the items that are served at the two outlets are pretty much the same, chances are the famous restaurant has efficiently tapped the menu to draw profits. Read how to design the perfect menu for your restaurant here.

5. Guest Experience

Excellent customer service is an inherent trait of a successful restaurant business. Customer service constitutes the entire customer experience, right from the politeness and helpfulness of the staff, to the service—how soon the food arrives, the price of the dishes, restaurant ambiance, etc. Effective customer engagement also plays a vital role in improving the overall customer experience.

A polite and helpful staff leaves a deep impression on the minds of the customers. No matter how good your food is, if the customers are not treated well, they will most certainly never come back. This article will tell you how to pacify even the toughest of customers and keep them happy and coming back for more.

6. Owner’s Involvement

The owner’s involvement is one of the most underrated parts of restaurant management. Depending on the restaurant manager becomes inevitable in the case of multiple outlets, however, even then the owner must oversee all operations. Now restaurateurs are using mobile analytics to keep a track on their restaurant business. You don’t need to be physically present at your restaurant to monitor the daily sales, total footfall, etc. You can use POSist’s Cockpit app to gain complete control over your restaurant

7. Marketing

One of the key elements of a successful restaurant is a successful marketing plan. Yes, marketing is important. No, word of mouth is not enough. Yes, there are some legacy restaurants out there which do not spend a penny on marketing, yet are flourishing, but they are rare cases. Even big brands like KFC and Dominos spend a ton on marketing. Marketing is one of the essential key elements of a successful restaurant business. In its most basic form, marketing is of two types- Online Marketing and Offline Marketing.

digital marketing  is considered to be the effective way to reach out to customers1. Online Marketing-

Online marketing or digital marketing is considered to be the more popular as well as effective way to reach out to customers. It primarily consists of social media marketing, email and SMS marketing, and a thriving online presence.

Read a detailed article on how to do online marketing for your restaurant here.

9 Offline Marketing Strategies for Restaurants That You Should Not Miss2. Offline Marketing-

Hosting events, local advertising, distributing pamphlets, etc. are some of the ways of doing marketing for your restaurant offline.

Read how to do offline marketing for your restaurant here.

8. Partnerships

Now, there’s no set rule to this, but it is generally seen that restaurants owned in alliance tend to flourish.  As a first-time restaurateur, it would be great if you can find a seasoned partner who already has a few restaurants in his kitty. This would not only reduce the risks of loss but would also enable you to learn a thing or two about restaurant management. Once you understand the industry and various restaurant operations, you can open your venture.

9. Staff Satisfaction

Behind a successful, well-functioning restaurant there is a team of efficient and loyal staffBehind a successful, well-functioning restaurant, there is an efficient and loyal team. A happy staff is a productive staff. If employees are not happy, their dissatisfaction is almost certain to be reflected in their work. Hence, one of the key characteristics of a good restaurant is that it invests in staff satisfaction just the way it invests in customer satisfaction. The duties in the restaurant industry are extremely tough; working tough hours, and catering to grumpy customers with patience is a difficult task indeed. On top of this, if your staff is not happy with their work conditions, and their remuneration, then their dissatisfaction is likely to reflect in their work.

Restaurants are now also offering Employee Stock Option (ESOP), which offers them the option of buying shares of the company. This is a great way to instill the feeling of ownership in the employees and encourage them to perform their best. Giving your staff Employee Benefits and overtime also helps improve staff satisfaction.

We hope you found this article useful and helps you run a successful restaurant business yourself. Think we missed something? Do let us know in the comments below!

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