If you’re a restaurant owner or restaurant manager you’re probably in search of ways to maximize your restaurant operations so you can optimize your profit margins. But what exactly are restaurant operations? Do they include food purchases, inventory management, or customer service?
The short answer: They include everything. That’s because restaurant operations consist of all the activities needed to run a food service establishment. Ahead, we cover the main components that any restaurateur will need to master if they want to see their business come out on top.
Restaurant operations are the overarching umbrella that covers all the components required for the smooth running of a restaurant business. For example, food purchasing, staffing, and cleaning up all come under restaurant operations.
The standard operating processes (SOPs) will likely differ from one establishment to another. Still, the ultimate goal is to run your food service business smoothly to satisfy your customers and achieve a good-looking bottom line.
Ahead, we talk about the common components that typically make up restaurant operations. Keep in mind that these components are usually interconnected. Hiccups in any of these areas can undermine the overall operational efficiency, which will impact restaurant profits as a whole.
From food and beverage supplies to tablecloths and take-out containers, these form the restaurant’s inventory and need to be restocked regularly. Purchasing these items is an integral component of any restaurant’s operations.
Usually, either the chef or sous chef is in charge of purchasing what the establishment needs from suppliers. That said, for larger businesses like fast food chains, a purchasing department may be assigned this responsibility.
Inventory management is key to a successful restaurant. This helps to ensure the restaurateur doesn’t overorder (which can lead to food waste if perishables spoil) or under-order (which can lower restaurant sales when a menu item goes out of stock quicker than anticipated).
After the purchases arrive, another vital component of restaurant operations is to have a set system for receiving, storing, and issuing the items.
Take into account the time and day that deliveries will be made as well as the inventory method your establishment uses. It’s also best to have only one designated person in charge of receiving, storing, and issuing the supplies. This way, there will be fewer issues with inventory recording and a lower likelihood of losses to optimize the restaurant’s food cost percentage.
Given the client-facing nature of the food service industry, it only makes sense that customer service is another essential component of restaurant operations.
To measure the monetary impact of customer satisfaction on a restaurant’s profit margin, Michael Luca, an Associate Professor of Business Administration at Harvard Business School, conducted research using Yelp reviews and data from the Washington State Department of Revenue. He found that “a one-star increase in Yelp rating” increased restaurant revenue by 5% to 9%.
This proves the need to implement customer-centric best practices at your food establishment. Be sure to instill restaurant service standards in every staff member, especially new employees and part-timers. You don’t need fancy tools to achieve five-star customer experience either. It can be as simple as a cheerful greeting by the door or remembering regular customers by their names.
No matter the size of your restaurant business, stellar customer service never fails to delight your patrons and surpass their expectations. After all, word-of-mouth of positive guest experiences travels far and wide. In that sense, great customer service can turn your customers into evangelists for your brand — and it’s all free publicity.
Food preparation and cleaning form the bulk of any restaurant operations. From cooking to plating, prioritize cleanliness and timeliness to ensure food safety for your diners. After all, there’s nothing like a case of food poisoning to ruin the customer experience and create a slew of bad reviews that can decimate a restaurant’s reputation.
For that reason, keep the workstations in the front of the house and back of the house clean at all times. Besides cleaning before opening and closing, take advantage of non-peak hours when there’s less traffic through the doors. Cross-train your staff to make pitching in a breeze. For instance, bartenders who aren’t busy during the afternoon slump can help the servers spruce up the dining room in time for the evening crowd.
Running a restaurant is labor-intensive. That's why human resources (HR) is another vital component of restaurant operations. From hiring and training to scheduling and payroll, the restaurant manager oversees these processes.
Be sure to have SOPs for conducting all HR-related matters. For example, create a staffing plan to ensure there are enough employees to keep restaurant operations running smoothly during business hours. This may entail cross-training or hiring part-timers for the peak periods.
Even if your restaurant operations are running smoothly, there still might be room to improve. Consider upgrading your software technology and investing in employees to give your operations a boost.
Technology makes a world of difference in restaurant operations management. Investing in the right upgrades can help simplify your business operations while maximizing efficiency, so you get the best returns on investment.
Here are some tech upgrades you might want to consider.
Think of the POS system as the powerhouse of restaurant operations. Your point-of-sale helps you manage orders and track sales in real time. But with a modern POS, you can extend its capabilities to help you handle things like employee management and customer loyalty programs.
You might even be able to integrate with the other apps and services you use.
If you want to streamline your restaurant operations, a KDS is a convenient, electronic alternative to paper tickets. Instead of writing down a customer’s order and walking it back to the kitchen, a kitchen display system connects your front-of-house and back-of-house operations digitally. When an order is placed, it’s immediately sent to a tablet in the kitchen so food prep can begin.
No matter the size of your restaurant operations, a self-service kiosk can lighten the burden on your staff. Customers place their own orders, which are relayed to your kitchen staff’s KDS. This minimizes the likelihood of wrong orders and food preparation delays. It also allows smaller operations, like food trucks and pop-up stalls, to operate their business with a lean staff.
Setting up a self-service kiosk is easy — all you need is a tablet, Square payment hardware like the Square Kiosk mount, and KioskBuddy. Plus, KioskBuddy includes a KDS mode.
One common complaint among restaurateurs is the industry’s high employee turnover rate, which is costly and negatively affects restaurant operations.
Look into HR initiatives that promote employee engagement for a better retention rate. It could be as simple as drawing up a clear job description to attract the right talent or giving recognition when someone on your team did well.
Regularly update the training manual and brief the team to ensure everyone is on the same page. If your budget allows, offer competitive job benefits and professional development opportunities to build employee engagement and loyalty.
As the saying goes, “Teamwork makes the dream work.” For any restaurant to succeed, a cohesive, engaged team is pivotal for ensuring the daily operations run without a hitch.
Restaurant operations can seem vague, but that’s probably because the term covers various broad aspects of the business. Between purchasing and ordering, customer service, and staff scheduling, it’s the entirety of your establishment’s activities.
That’s why it’s so important to get your restaurant’s operations right if you want your finances to be in the black at the end of each accounting period. Two main ways you can do so would be to leverage restaurant technology and invest in your employees.
If you need help with the former, KioskBuddy has your back, or more accurately, your restaurant operations’ back. Start your 30-day free trial with KioskBuddy today.