Source: http://yourbusiness.azcentral.com
“Having a great menu and a big marketing budget might help you attract customers to your restaurant, but it might not be enough to keep your doors open,” Sam Ashe-Edmunds. In order to maintain profitability and achieve overall success with an independent restaurant, there are many more significant factors that outweigh a great menu and a big marketing budget. Furthermore, in this article titled Key Success Factors For Restaurants from yourbusiness.azcentral.com, Ashe-Edmunds argues that managing your costs, developing a marketing strategy, meeting legal obligations, maintaining sufficient cash flow, and developing a unique brand are all the essential factors to restaurant success. Edmund and the source he has provided us with have proven credibility as the author has a great deal of experience and background in writing and lecturing. He is an internationally traveled sport science writer and lecturer. He is sure to be an expert in such business related topics as he has extensive experience and background on these topics.
It is essential that restaurant owners establish their costs and overhead and create a plan for setting prices that include a profit for the business. Edmund makes a good point when he deliberately states, “It doesn’t matter if your tables are full every breakfast, lunch and dinner if you sell meals for $10 and they cost you $11 to serve.”Here, Edmund is arguing that there is no sense in creating great dishes in the restaurant business if you are going to end up losing money in the end. The author moves forward in advocating the importance of marketing in starting up and maintaining a restaurant. Edmund makes a strong point in noting that, “Don’t rely on word-of-mouth or paid advertising to get customers to your door. Many non-chain restaurants depend on a low-cost mix of ads, promotions, sales, coupons, social media and public relations to keep customers coming.” It s essential here to notice that restaurants cannot rely on the most common forms of marketing, yet they need to branch out and do everything possible to get the word out about their business.
Finally, the author moves forward to address his last three main points about success factors for restaurants. Edmund works to emphasize the fact that creating a unique brand for a restaurant is essential in getting the name out there and maintaining a name for itself. Edmund puts forth great emphasis on the fact that, “It’s imperative that you give people a specific reason to come to your restaurant and that you communicate that unique benefit. Don’t try to be everything to everyone or you might end up being nothing to no one.” In this case, Edmund is showing how restaurant owners must develop a name for themselves by providing that unique service or meal that no other restaurant provides and will make the customers want to come back and start talking. Next, the author expresses the importance of managing your legal obligations as a restaurant owner. Edmund warns, “If you feel a call to the health department will bring unwanted scrutiny, you might be hiding something that can eventually shut you down.” If this is the case, you are basically setting yourself up for failure for no reason as you could easily figure out what needs to be done in order to meet code or inspection. Lastly, Edmund argues that restaurant owners must establish a solid cash flow in order to achieve success in this demanding business. Edmund notes, “You will have bills you need to pay before you sell your meals, and maintaining proper cash flow will help you stay open.” Here, it is important to understand that there will be many expenses for the owner and it is essential that he or she establishes a substantial cash flow with a bank in order to assure bills will be paid on time and the restaurant doors will stay open.
Future Research Question: How does location and demographics play a part in the overall success of a restaurant?
