How to set Short-Term and Long-term Goals for your Restaurant
What is the right way to make short-term and long-term goals for your restaurant?
Whether your restaurant is a small business or large, as an owner you should always set up various short and long-term goals for the restaurant. On a regular basis, you and your manager spend time updating the financial sheet and monitoring the success. Various factors can help identify the business’ shortcomings and assist in the enhancement of the business’s success.
What really motivates the business? The goals set up, be it either the improvement, marketing, staff recruitment, etc., are the right way to boost profits and bring better customer satisfaction. The restaurant and food industry has always been highly competitive and it needs deeper planning especially to recover from the Covid-19 pandemic. It is important for every restaurateur to regularly assess and make plans to get better results.
But how and what to set? Setting clear and realistic short and long-term goals is not easy. Accurate statements and objectives need to be dealt with. Such goals must include restaurant sales, decreasing theft risk, innovation, service charges, boosting sales through advertising and marketing, and more. Here are a few goals that can help any restauranteur to begin with.
Setting Financial Goals
- Increasing Monthly Restaurant Sales
The most important restaurant business operation is the improvement of the Monthly Net Sales. These numbers reflect the fact of whether the restaurant is improving or needs to improve. The complete sales accounting will help the manager understand what the restaurant statement is per month, assisting them in gaining the performance idea.
Net sales are the total gross sales amount minus the discounts. These numbers take up much time to calculate daily. Instead of focusing on the numbers, what’s better than trying to improve those numbers. Set a Monthly Net Sale increase to about 5-10% every next month.
- Increasing Daily Restaurant Sales
The daily restaurant sales add up to the monthly gross sales. Keeping this in mind, owners and managers can add everyday marketing and promotions to improve the overall sales boost. The graph marked on the sales daily can help the restaurateur to figure out where they stand.
By checking the daily sales, quick and innovative decisions can be made. The daily graph can help in finding out the various factors that affect the day-to-day sales, and for each, discussion and corrections can be quickly implemented. Set a Daily Average Sale Increase by 5-10% per day.
Improving Staff Productivity
- Decreasing Theft Risk
There are many cases of restaurant thefts that occur among the employees. Suspicious transactions and losses are registered during closing time as well. This requires questioning of the staff members and digging around to address the theft.
With the right goal and tool to keep a check on the risk of theft, keep track of the daily restaurant transactions or unmatched sales. Create and define the restaurant policy and monitor the staff’s access in the environment. Technology can play a massive part in the monitoring of transactions, equipment, and facilities. Set a daily target of decreasing the theft risk.
- Increasing Productivity
The primary source of action and labor is through the manpower and staff that the restaurant has employed. Based on the monthly and daily restaurant sales, the labor cost and sales can help determine the number of workers required.
Suppose the labor cost is higher than the income and customers; they can staff down on certain days and vice versa. During busy business days, restaurants can staff up accordingly. This can save a lot of finance or unnecessary preparation. Set a goal to improve the labor cost by 5-7% and improve customer satisfaction with the staff.
Improving and Marketing Restaurant Menu and Services
- Testing Restaurant Services
The restaurant industry is highly competitive, and there is a number of choices for the customers to choose from. To sustain itself in the market, one needs to develop smart marketing strategies to attract customers and increase restaurant sales. And one of the most effective ways is by keeping with the trends and offering quality restaurant services.
Both employees and customers should experience a comfortable and quality environment to work and dine in, respectively. With good services and high customer satisfaction, the restaurant name can be well-known, increasing long-time customers.
- Innovative Menu Items
The restaurant menu is one of the most crucial things in the restaurant business, and it can’t be ignored. As trends change, one must keep innovating the menu as well. Menu Innovation includes analyzing the menu, its pricing, eliminating the dishes that aren’t working well, improving the design, eye-catchy names, and adding new dishes.
- Incorporation of Innovative Marketing
Innovative marketing plays an important role in increasing your restaurant sales and keeping up with the trends. Restaurant companies should make significant efforts to innovate their business activities, organizational processes, products, and services to achieve revenue and market share growth.
Set a goal in an increasing number of long-time customers, faithful staff members, and exceptional marketing methods per day and month.
In the end, what matters is the success of improving customer satisfaction and profit. By creating a good dining environment, offering quality services, and mutually respecting the staff and owner alike, the restaurant will be productive and thriving in the long-run.
Noting down the restaurant’s daily and monthly short and long-term goals can help in the growth and practical analysis in the coming years.