Beware of These 3 Factors That Affect Restaurant Business Profits

1. Food Waste 

Take note of how much food your servers discard after each meal they provide. Your serving sizes are too large if it’s excessive. 

Furthermore, by utilizing as much of each item as possible, you may limit food waste. Make a broth using your chicken bones and vegetable waste, for example. 

Another strategy to reduce food waste is to keep track of your stock. You don’t want your chef to toss away three heads of lettuce every week because you ordered too much.

2. Employee Theft 

Although you may not want to consider it, many restaurants have significant staff theft rates. When employees see a simple meal, they can take advantage of it.

With a robust system to manage your food expenditures, you can combat employee theft. Take inventory regularly to ensure you know where your food is going. 

Also, if you provide lunch to employees before or after their shift, consider sticking to a consistent menu. This prevents them from eating the menu dishes that cost you a lot of money to prepare.

3. High Employee Turnover 

The restaurant sector is known for having a high rate of turnover. Employee turnover increased by 15.7 percent between 2010 and 2015, and many management teams struggled to re

While losing employees isn’t a new issue, the growing cost of turnover directly impacts your bottom line.

According to some estimates, staff turnover can cost as much as $5,864 per employee. With a 66.7 percent turnover rate in 2016, you may be out $146,600 per year if you don’t keep your personnel.

Fortunately, you can do a few basic things to improve staff retention. While equitable compensation is a wonderful start, many employees aren’t only concerned with financial rewards.

As millennials become a more significant part of the workforce, there is a greater emphasis on career success and personal development.

Although it may be challenging to provide opportunities for growth for all of your staff, investing in leadership training for your management team is an excellent place to start. After all, good managers keep good employees, which leads to improved overall retention.

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