This is the perfect time to set new financial goals for your restaurant.

November 24, 2021 by No Comments

The future is uncertain. We have seen this through COVID-19 and other variants over the last few years. It is important, and perhaps more so than ever because of economic uncertainty, for restaurants to set new financial goals that will help a prosperous future.

It is time to learn from the past and use them as a guideline for achieving your future goals. These are why modern economies require you to set new goals and provide tips on how you can achieve them in your restaurant.

Now is the right time to set financial goals.

The impact of the COVID-19 pandemic upon the restaurant industry was profound. The massive wave of resignations, layoffs and closures that followed the spread of the global virus could not have been predicted. Even though the economy has started to recover, it is important to evaluate the damage and impact on the landscape.

Let’s begin with some amazing statistics showing what has happened in 2020 and 2021.

  • The sales were $240 billion lower than the pre-pandemic estimates.
  • One hundred ten thousand restaurants were closed temporarily or permanently, and some even for good.
  • 40% of operators have added technology to their business processes.
  • Reports indicate that staffing levels are 20 percent lower than normal.
  • The industry saw a drop in employment of 2.5 million.

Restaurant owners have made changes to their menus and organizational structures to adapt to this environment. There has been a massive shift to tech-supported delivery and quick-service models. Restaurants must support customers and a workforce that is currently at the forefront of a public healthcare crisis. You must set realistic and achievable goals to ensure food safety and worker safety in this environment.

How do you determine what your goals should be?

Setting new goals for your restaurant.

Each restaurant’s business model and resources will be different. However, the basic principle behind every restaurant is revenue. This doesn’t necessarily mean the same thing in a post-pandemic economy. Even though there is still a lot of demand, it is not as high as it once was. People don’t want the risk of going out anymore, especially when their finances and health are at stake.

What does this mean for healthy business growth? How can you set goals that are meaningful for you?

These strategies can be used to measure and achieve ideal growth in a Pandemic Economy.

Integrate innovation with your goals.

You’ll need to first think about your financial goals and what your restaurant should look like. What does it mean to you and your customers? What type of services would you like to offer?

It would be best to bring convenience to your customers by coordinating investment budgeting and integrating new service methods. This could include integrating a mobile app or delivery service. Alternately, you might consider making changes in your dining area to encourage social distancing. However, this could incur additional costs but may be more cost-effective than the experience you are trying to provide.

Identify your ideal situation, make the necessary compromises and align your goals with your investment strategy. The nature of the innovation will determine your return on investment (ROI). A marketing investment should bring you a 5 to 1 revenue-to-cost ratio if you do your job well.

Collect customer feedback and other data.

Analyzing customer data and feedback is the best way to establish new financial goals. Let it guide your restaurant’s future direction. This type of analysis is essential for growth. It allows you to identify your strengths and weaknesses and then provides actionable suggestions to improve.

To better understand your customer base and needs, use all digital platforms available to you, from social media to reservation apps. Your ability to communicate with your audience and cater to them is the key to consistent growth and increased revenue. So, revamp your customer service approach.

Search for new revenue streams.

You’ll find interesting data in your analysis about niche markets, growth categories that aren’t expected, customer behavior trends and many other things. You can also find new ways to make money for your company out of this data.

Popeyes is an example restaurant chain that used good marketing, niche menu items, and customer behavior to generate $400,000 more per restaurant. You can use these insights to create new revenue streams. You can then set goals to break into new markets.

Use SMART.

The SMART method is helpful when setting financial goals. SMART is a goal that’s:

  • Specific
  • Measurable
  • Attainable
  • Relevant
  • Time-based

These descriptors should be used to describe the goals that you set for your restaurant. A goal to increase revenue is not specific or measurable, even though it may be possible. However, a goal of at least 4 percent more gross revenue in 2022 is all that matters.

Set SMART goals to provide a framework for measuring success through specificity.

Consult a financial professional.

A consultation with financial professionals is necessary to set realistic financial goals for your restaurant. Experts can help you establish clear, attainable budget limits for your restaurant budget.

Discover the wide range of experts available. For example, accountants can help with bookkeeping and auditing to create realistic business goals. A finance expert can help companies manage cash flows. These professionals can help you set the right goals for your company by consulting with you and creating a team.

Financial success is possible

These tips will help restaurateurs reevaluate their business as they navigate the market. The expectations and experiences of guests are different than they used to be. You can thrive in this new normal by using data, feedback, expert assistance, and other resources to help you set goals for the future of dining.

 

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