Author: Deepak Vankar

Deepak Vankar is a SEO (Search Engine Optimizer), Digital Marketer, and Content Writer. With years of working experience, he has incorporated exceptional skills.
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How To Increase Restaurant Sales And Attract More Customers?

Every restaurant owner wants to increase their sales and attract more customers. But how?

There are several ways that you can try to grow your food business and increase your restaurant sales.

For instance, you could offer a buy one get one free deal on certain days of the week or on specific food items.

You could also offer discounts for early birds, people who spend over a certain amount, or seniors.

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Another way to attract customers is by advertising your restaurant’s location in the area with flyers or posters.

You could also make it easier for people to find your restaurant by adding it to maps like Google Maps, Apple Maps, and Yelp.

You can also look for tips on renovating restaurant on budget to attract more customers.

Below we have discussed six strategies that you can use to grow your restaurant business.

Optimize Your Restaurant Menu

If you want to increase sales in your restaurant, then you need to optimize your menu. Here are some tips on how to do so:

– Include a variety of price points and options for customers.

– Make sure that the menu is easy for customers to read and navigate.

– Create a menu that is relevant to the season or time of year.

Increasing Your Social Media Presence

Increasing your restaurant’s social media presence is a great way to increase sales.

This will allow you to engage with your customers more and give them a better experience.

Social media marketing can be done in many different ways, but the most common ones are using Facebook and Instagram.

These two platforms have the largest audiences, so it is best to start with them.

You can use these platforms to share photos of your food, post specials, and promote discounts.

Increase Customer Service Speed

Restaurants that have a high turnover rate are more likely to make more money.

This is because they can serve more customers in the same amount of time.

Fast restaurant billing with the help of a restaurant billing software can also be the optimum solution to serve customers with the speed of light.

Every food business owner must look for ways a restaurant billing software can improve customer experience.

Here are some ways to serving more customers:

– Offer something new and exciting on the menu, like a specialty drink or dish. And, make sure the new item on the menu is always ready to serve.

– Let some of your staff keep an eye on the customer tables. It will help them realize what they need, which will eventually help with serving them quickly. Also, create an atmosphere that is lively, fun and inviting.

Partner With Popular Delivery Services

Online orders are great for restaurants.

They provide a new way for customers to order food, and it is easier for restaurants to manage the orders.

You an use a POS software to integrate with online delivery partners can be a great aid to your food business.

However, if a restaurant does not have a delivery service partnership, they are missing out on a lot of potential revenue.

A simple solution is to partner with one of the popular delivery services that has a strong network of restaurants in their area.

This will allow the restaurant to easily manage online orders and generate more revenue.

Try New Marketing Strategies

Marketing campaigns are the key to success for any restaurant.

You can also leverage online platforms to increase customer footfall at restaurant.

A restaurant marketing campaign has to be well thought-out and planned in order to generate the desired results.

There are many different marketing strategies that can be used, but not all of them will work for every restaurant.

One of the latest trend you can try is QR based food ordering.

Experts suggest that QR Based food ordering is the future for restaurant business and you must try your hands on it if you haven’t.

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A strategy that is often used by restaurants is customer engagement.

This strategy involves developing a connection with customers and making them feel important.

It also includes making it easy for customers to buy from you.

Also make sure you don’t let your customers wait in line for long because of any kind of internet malfunctions.

You must be having a Hybrid POS system that can manage data both offline and online.

You must be wondering what is a Hybrid POS system? It is like a normal POS software but what sets it apart is its ability to continue operations even when the internet is down.

All the data is synced automatically when the system is reconnected to the internet.

Adopt For Loyalty Program

Loyalty programs are the best way to increase restaurant sales.

They are a great way to reward customers for their loyalty and engagement.

Loyalty programs can be used in a variety of ways.

They can be used as marketing tools, to create customer engagement, or as a way to generate revenue through volume.

Final Words

Surviving in the restaurant business can be difficult at times.

But if you follow the best practices, your restaurant business will surely soar to new heights.

Keep in mind that you have a reliable restaurant management system and you are aware of the essential features of a restaurant management system, because it aids in the growth and scaling of your restaurant business.

A restaurant management system is a software that helps with the day-to-day operations of a restaurant.

It can help with everything from inventory management to customer relationship management.

The use of a restaurant management system has been shown to increase sales by as much as 25%.

This is because it makes it easier for restaurants to provide the best service possible, which in turn leads to an increase in customer satisfaction.

If you are on a hunt for getting the best restaurant management system, Billberry would be the right choice for you!

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What Are The Essential Features Of A Restaurant Management System?

You may be new to the restaurant business, and running it might be difficult at times.

A number of activities must be completed on a regular basis and that can be difficult to manage.

A restaurant management software is intended to streamline and simplify these activities for staff so that more emphasis can be directed to qualitative elements such as offering excellent customer service in a variety of ways.

We’ve developed a list of the top five features to look for when selecting restaurant management software.

All of the features listed below will help you quickly grow your restaurant business.

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Managing Menus & Orders

Making minor modifications to your menu items, descriptions, and prices should be as simple and straightforward as possible with the correct POS software.

Some food establishments sell foods that are only available for a limited period.

Food businesses that sell beverages may be affected by the availability of seasonal fruits.

As a result, it is critical to manage such goods in your food business menu in order to improve the ordering experience for your customers.

Restaurant management systems have evolved over time, and many restaurants no longer rely on waiters to take customer orders.

Customers can now order their desired item by scanning the QR code available at their table without having to install any third-party application on their device.

QR code ordering system is the new normal, and they are nearly required to be integrated into your restaurant management system.

This also eliminates paper waste and gives your restaurant staff more time to focus on other vital business aspects.

Managing Inventory

Inventory is one of the most critical aspects of any food business, and understanding how much inventory you have on hand is a must for any restaurateur.

As a result, a solid restaurant management system with inventory tracking tools is essential.

It is critical to be aware of things that need to be refilled as well as those that are about to expire.

The best RMS software includes the ability to send you vital inventory notifications.

With the help of this information, you may simply eliminate food waste in your business.

Managing Restaurant Staff

Employee management is essential for running a successful food business, and to be honest, a restaurant management software would be incomplete without it.

Both employees and business owners can benefit from the correct restaurant management system.

It is essential to make the greatest use of restaurant employees’ working hours in order to grow your business.

It is even feasible to grant only limited access to a specific person using the Billberry restaurant management system.

The business owner can manage user permissions while on the go.

To make things easier, the employer gets access to data such as employee work hours to check that the staff is working appropriately.

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Managing CRM (Customer Relationship Management)

Retaining consumers and making them loyal to your food business is one of the most important aspects of growing your business.

If the majority of your clients are unwilling to return to your food business, it simply means that they are dissatisfied with your services and will not return to your establishment more frequently.

It is essential to grow the customer base and gain as many loyal customers as possible to ensure success.

Best-in-class services and proper promotion are necessary to consistently develop your business.

This is why restaurant management software has capabilities that allow you to track your regular customers and give them updates about lucrative deals and discounts.

With the correct RMS, you can operate loyalty and reward programmes to entice return customers.

This is an excellent approach to encourage people to return to your restaurant on a regular basis and boost the amount of repeat customers.

Managing Finances

A restaurant management system can do more than just regular billing.

This includes quick billing, transaction recording, and even tax tracking.

On the other hand, if you run a food franchise business with a number of outlets, then you would require a restaurant management system that is also functional as a franchise management system to manage every aspect of your business.

This system’s extra features can help you scale up your food business in unexpected ways.

A restaurant must keep its finances in order to be successful.

To accomplish this, an excellent restaurant management software is required.

An all-in-one software that has that can accept credit cards, debit cards, and UPI payments is required.

You must be able to take payments via all of the popular payment methods used by customers, and the correct RMS will assist your business in this regard.

Your restaurant management system’s POS (point of sale) software must include sophisticated tax and sales reporting tools, which are essential for tracking the restaurant’s financial development over time.

To know how far you’ve come, you must have all of the necessary data recorded by your RMS.

The POS software you use will allow you to record numerous expenses that can subsequently be utilized to expand your restaurant business.

Using such software also reduces human error and enhances productivity.

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How To Migrate To A New Restaurant Management System Easily?

When people establish their first restaurant business, they want to hire the best resources to provide excellent customer service.

Because it is the most important aspect of running a successful business.

To be honest, a restaurant business may collapse badly if business decisions are not made intelligently.

One of them is failing to implement the proper restaurant management system.

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You may already have a restaurant management system, but what if it is not meeting your business needs?

You do not need to stick with the same restaurant management system if you believe the changeover procedure will be challenging.

We can ensure you that you may quickly migrate from your current restaurant management system to Billberry.

Our solution’s best-in-class features can help your food business survive in this competitive era.

And it’s not only about surviving; with the Billberry restaurant management system, you can thrive your food business and make massive revenue.

Why Do You Need A Restaurant Management System?

A restaurant management system is a software that can automate many of the tasks required to run a restaurant.

It can help with everything from taking orders, to managing inventory and customer information, to automating payroll.

The benefits of using a restaurant management system are numerous.

It saves time by making the process of taking orders fast.

It also makes it easier for restaurants to comply with health regulations and other government standards.

How To Migrate To A New Restaurant Management System?

Without an excellent restaurant management system, all business data becomes jumbled, and you are unable to make sound business decisions.

Business data is critical in every business, and efficiently managing it is essential since it will help you make informed decisions to grow your food business.

If your present restaurant management system is not meeting your business needs, it is critical to implement a new one as soon as possible.

Before transitioning to a new restaurant management system, keep the following considerations in mind.

Choosing The Right Restaurant Management System

You can select a restaurant management system that includes financial and report analysis tools.

It enables you to make sound financial decisions for your company.

You can simply discover whether your food business is profitable or losing money with the help of financial data offered by the correct RMS.

Inventory, payroll, business cash flow, and sales are all tracked by an all-in-one RMS software.

You will have all of the information you need to manage your business smoothly. You can invest in RMS software such as Billberry, which includes all of the essential features listed above.

Analyzing Reports Provided By A RMS

A food business can only expand if it compares and monitors real-time data offered by a restaurant management system.

The correct restaurant management system may provide reports containing information ranging from daily sales to business operational costs.

You may quickly compare your food business operations on a weekly or monthly basis with the help of the correct RMS.

Business activities such as delivery, payment, and other procedures are also simplified.

You may integrate your food business with different third-party aggregators such as Zomato and Swiggy using POS software included with your restaurant management system.

It will make it simple for your customers to order online their favourite food items from your restaurant.

Steps To Implement A New Restaurant Management System

Before switching to a new restaurant management system, it is vital to evaluate your business’s needs and requirements.

Make sure that the new RMS you are deploying includes all of the capabilities that are essential to manage your food business operations smoothly.

Also, ensure that the new RMS is simple to comprehend and use for your staff. Setting up and migrating all of your business data should be straightforward with your new RMS.

When it comes to moving all of your data with peace of mind, the Billberry restaurant management system is the ultimate option.

Billberry’s technical support staff makes the entire conversion process painless. You may simply sit back and relax while our team takes care of everything.

Support is an essential element of any RMS. Just implementing a RMS isn’t enough, reliable support is also required to run everything smoothly.

It is also important for attaining important updates.

The correct restaurant management system will assist in streamlining operations and improving the customer experience.

Always remember that there are superior restaurant management solutions available on the market.

And if your existing RMS isn’t providing you with what is needed, then it’s high time to upgrade to a more effective one that meets all your company’s requirements.

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What Is Hybrid POS System: Managing Data Both Online & Offline

A point of sale system is the most crucial technological element in a restaurant.

It has practically become a requirement in modern times to run any food business efficiently.

However, if you are not using a hybrid POS system or are unaware of what one is, your company may miss out on a lot of business opportunities.

This post will attempt to explain what a hybrid POS system is and how it can help you scale your restaurant or food business.

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A hybrid POS system combines the convenience of a cloud-based POS with the dependability of a local POS.

This groundbreaking method helps restaurants optimize income, save time and money, and provide a smooth guest experience at all times by minimizing service disruptions when the Internet goes down.

Overview of A Hybrid POS System

You might be new to the restaurant industry and maybe curious to learn what a POS system is and how to choose the correct POS system, with this article we’ve attempted to explain a POS system and all other main variables linked with it.

A hybrid POS simply combines the characteristics of a local POS system with the features of a cloud POS system to build a dependable network that does not obstruct operations when your Internet goes down.

We’re all aware that an internet connection can go down during busy business hours, and you’ll need a dependable method to deal with such problems.

To completely comprehend how a hybrid POS system works, we must first examine the distinctions between a cloud-based POS and a local POS system.

It will give you in-depth knowledge of both systems and will eventually assist you in accurately learning the full point of a hybrid POS system.

What is a Local POS System?

A local POS system can be easily connected to old computer days, when all the data was captured and stored on a single computer at a single location.

Data loss is more likely to happen with this type of system as compared to a cloud-based POS system or a hybrid POS system.

Any information created and saved in a local POS system is saved to a closed network on a local server.

Any data gathered or curated with the assistance of a local POS system can only be accessed through the POS system that acquired the data.

This eventually means that you’ll have to visit your restaurant in person to study sales data, check inventory levels, or access any other POS-related information.

In contrast to a hybrid POS system, the data cannot be accessed from another site. According to current industry norms, this type of system is considered old school.

What is A Cloud POS System?

Data is stored in the cloud using cloud POS systems.

This simply allows data to be accessed from any location by logging in using any supported device.

This means that any order information entered into one POS terminal may be seen and accessed quickly on other POS terminals or linked devices.

This makes it incredibly easy to access and evaluate vital company data, as well as make informed business decisions.

With cloud-based POS software, you can monitor your company’s performance from any location, whether it’s your house or a holiday beach resort.

What is A Hybrid POS System?

A hybrid POS solution incorporates the cloud-based POS system’s remote capabilities with the dependability of a local POS system.

The hybrid POS system combines the best characteristics of both local and cloud-based POS systems.

We are all aware that no matter how good and dependable our internet connection is, it can always go down at critical business moments.

For such situations, you require a POS solution that works flawlessly.

This means that, as opposed to a solely cloud-based system that is completely dependent on an Internet connection, you need a restaurant POS software, such as a hybrid POS system, that can keep your food business running even if the Internet connection is broken.

When an internet connection is available, the data can be combined and transferred to the cloud.

In the event of an Internet outage, data from a hybrid POS system is saved to a local server.

With this capability, you can keep your business functioning even when the internet is down.

When the connection is restored, the locally saved data is uploaded to the cloud, where it may be accessed from any location.

With the correct hybrid POS system, it becomes easier to handle the entire food business operations effectively.

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Leveraging Online Platforms To Increase Customer Footfall At Restaurant

Online ordering systems are a great way to boost customer loyalty.

It is no secret that customers are more likely to order food from their favorite restaurants when they can do it on the go.

In this article, we will share some of the most effective strategies that restaurants have used to increase customer loyalty through online ordering systems.

We will also share some tips for how you can use these strategies in your own restaurant.

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The first and foremost strategy is to get a reliable restaurant management software for offering lucrative discounts and offers.

This is a great way to incentivize customers who might not otherwise order food from your restaurant.

This is because they want the convenience of ordering on their phone or laptop rather than waiting in line at the counter or calling ahead.

Continue reading to learn the best strategies for growing your restaurant business by leveraging online platforms.

Create a well-designed website to increase online orders at restaurant business

A user friendly and appealing website can grow your restaurant business by a great margin.

The restaurant owner can create a website to increase orders, which includes the following features:

Menu

The restaurant owner can upload the menu of their restaurant on the website and make it available for order.

It makes it easier for customers to select the food item of their choice while sitting at their home in their comfort zone.

Ordering

Customers can place an order through the website and it will be delivered to them.

The order will be directly received on your restaurant POS software like Billberry and your staff can easily execute the order hassle free.

Social Media Integration

The website can integrate with social media apps like Facebook, Twitter, or Instagram to promote a restaurant’s menu items.

You can also promote short videos of your restaurant’s ambiance. This strategy is proven to attract more and more millennials.

Customer Feedback

Customers can leave feedbacks on their orders on the website.

To be honest, feedbacks can be both positive and negative at the same time.

But a positive feedback will enhance your brand goodwill while on the other hand, a negative feedback will help you improve your services and business operations.

Leveraging Social Media Platforms

A restaurant owner needs to understand how to use social media marketing in order to expand their company’s reach.

Social media platforms provide an opportunity for any food business to reach a broader audience.

There are many social media platforms that can be used to increase online orders at a restaurant.

Some of them are Twitter, Instagram, Facebook, and Snapchat.

Social media platforms provide an opportunity for these restaurant owners to reach a broader audience and promote their menu items.

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A restaurant management system can also help restaurant owners or solo food entrepreneurs with this process by providing the required tools.

You can send offers and promotions with the help of a restaurant management system to your loyal customers every once in a while.

So that your restaurant business can deep dive into your customers thoughts.

Investing in a Restaurant Management System

A restaurant management system is a computer-based system that manages all the aspects of a restaurant.

These systems are designed to make day-to-day tasks easier and more efficient.

A restaurant billing software can be used to manage inventory, take orders, and generate reports on customer feedback.

They can also be used to generate menus, track food costs, and help with marketing efforts.

The benefits of investing in a restaurant management software that offers a solid POS software for food businesses cannot be ignored.

These systems have many benefits like increased efficiency, improved customer service and better financials.

Optimize Online Ordering Management

The restaurant management system is your go-to solution for managing, controlling and optimizing the online ordering.

It can also be used to monitor the performance of the staff, track inventory and provide timely information about customer orders.

The system is designed to provide a complete overview of all aspects of the business.

It is also designed to meet all needs of restaurateurs, from those who are just starting out to those who have grown their businesses into multimillion-dollar enterprises.

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QR Based Food Ordering is the Future for Restaurant Business

Safety measures at restaurants or any other business in the food industry has become mandatory after the Covid-19 pandemic.

Following social distancing guidelines and keeping people’s health in mind has become necessary for food businesses to survive in the industry.

You will be surprised to learn how the right restaurant POS software can help restaurant businesses to keep up with the new norms and provide a contactless dining experience to their customers.

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Contactless Dining Made Possible with Restaurant POS Software

With the coronavirus outbreak, customers started to fear touching any surface that comes in constant contact with several people.

Any surface that is often touched by a person carries more chances to spread the virus.

Dining spaces are places where people like to take extra precautions because they are more vulnerable to catching the virus in such establishments.

However, features like contactless dining with the help of a contactless ordering system or a QR code menu ordering can be considered the best solution for conquering such scenarios.

A feature-loaded restaurant management system like Billberry can help you provide the safest dining experience to your customers.

With QR code based restaurant ordering, your customers have the ability to select and order their favourite item from the digital menu.

The best part is, that customers, do not have to install any third-party application on their device.

They can simply scan the QR code available on the table and order their desired food item. The orders will be available instantly on the centralized POS system.

Benefits of a  QR Code Ordering System at Restaurants

a. Less Human Intervention

Customers always prefer less human intervention when they visit a restaurant or any food business establishment.

The less human intervention also means extra spare time for your staff, which they can utilize with other activities that can grow the restaurant business like upselling and cross-selling of products.

They can also explore the POS software or a restaurant billing software used at the business to find features that they can utilize to operate more efficiently.

b. Eliminate Menu Cards

A contactless payment and ordering system that comes with the point of sale software at your restaurant not only keeps your customers safe but is also beneficial for your business.

With the help of e-menu, you have the ability to change the menu prices and edit menu items with a snap of fingers across any number of outlets of your food franchise business.

Restaurant franchise management system like Billberry is the ultimate option for the same.

c. Maintain Hygiene Standards

Personal hygiene is one of the most important factors when it comes to dining at a restaurant establishment.

Point of sale system that offers QR code food ordering system let the customers maintain hygiene standards while also enjoying their favourite food items, making them visit your restaurant more often.

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d. Ease of Mind Experience

With the entire digitized experience provided by the best POS software company, right from ordering the food to paying the bills, customers can obtain an ease of mind experience without worrying about getting contaminated by any deadly virus.

Providing customers with the best experience will surely increase footfall at your food business.

e. Eliminate the need to shout

With the Billberry captain app, anyone from the restaurant staff can easily take orders at any table.

The need to remember the orders and to write them down on paper is completely eliminated.

The accuracy of delivering the right order to the right table also increases by a significant margin.

Billberry restaurant management system offers QR based food ordering, fast billing, managing online orders, and several other amazing features that eventually brings growth to a restaurant business.

BOPIS: QR Code Based Ordering System | Contactless Food Ordering

Food Cost VS Prime Cost | A Must Know for Every Food Business Owner

Cost of operating any food business, weather it’s a franchise food business or running on the shoulders of a solo food entrepreneur, vary widely depending on where your business is established, how much you spend on raw materials, and whether you shop at a wholesale business or an independent retailer.

Some items are cheaper in bulk, while others are pricier per unit.

As a result, it all basically comes down to a few questions that cross every food business owner’s mind: What is Food Cost or What is Prime Cost of my food business?

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With this article, we will clarify all of your concerns about Prime Cost and Food Cost in relation to any restaurant type or food business, such as a fine dining restaurant, a quick service restaurant (QSR), a bakery, a pizzeria or an ice cream parlour. Let’s first dive into prime cost.

What is Prime Cost?

You’ve probably heard the term prime cost.

If you own, manage, or operate as a chef in a restaurant or other food-related business, prime cost is arguably the most critical component to keep track of, and you must understand what prime cost is.

Food and labour costs are directly intertwined to prime cost.

This phrase is commonly used in almost every industry that is involved in the producing business. The formula for calculating prime cost is as follows:

(TOTAL COST OF GOODS SOLD + TOTAL LABOUR COST) / TOTAL SALES = PRIME COST

You’ll need to refer to your restaurant food costs, part of which is provided by your restaurant management system to obtain the total cost of goods sold, and you’ll need to refer to labour costs to get the total labour cost.

So, why is prime cost so important? Because it’s possible to have a high food cost and low cost of goods sold. 

On the other hand, a low cost of goods sold and a high labour cost are both feasible.

However, we definitely want it to be as low as possible.

In principle, the more you manufacture in-house, the cheaper your cost of goods sold should be.

However, because production requires labour, the higher the labour cost, the higher the cost of goods sold.

If you buy any raw materials, such as bread or chips, that have already been produced, your costs of goods sold will be slightly higher since purchasing that stuff costs more, but your labour costs should be slightly lower.

The key is that your prime cost should be less than 60% of total sales.

People talk about 60% as a magic figure all the time, but if things like insurance, operating costs, rent, and everything else have gone up, it shouldn’t impact the prime cost.

To stay profitable, your prime cost must be less than 60%.

There are a few exceptions to this rule, one of which being operating a food business in an area where your food establishment is expected to stay open for extended hours due to the other services it supports.

Those are the few situations where you may have a prime cost of above 60% and still operate a profitable business, but in most cases, if your prime cost is over 60%, you’re not as profitable, or not profitable at all.

Your aim is to reduce your prime cost to 60% or less.

What is Food Cost?

In this part, we’ll learn how to calculate food cost and why they’re important in any food businesses.

With this article, you’ll not only discover why learning food cost is important, but you’ll also learn all of the food cost formulas and calculations that you require to run a profitable food business.

Essentially, the price of food decides your profitability.

A right restaurant management software might surely help, but it is still difficult for you to manage and operate a highly profitable restaurant or any food business if you don’t know how much the items on your menu cost and what your food cost is at the end of each month.

It’s critical to understand where you need to make modifications and changes in order to stay profitable.

It establishes a standard for food industry owners.

Also, because a reduced food cost equates to better earnings, it’s something you should keep track of on a regular basis.

It enables you to price your menu items correctly.

It’s surprising to learn that the majority of restaurant owners, managers, and chefs have no idea how much each item on their menu cost to prepare.

You may use this information to optimize your menu, a process known as menu engineering.

It’s incredible how much earnings a food business can generate by doing nothing more than rearranging items around on a menu and perhaps adding a box on some menu items.

However, you won’t be able to do so unless you know the precise pricing of each item on your food menu.

Furthermore, most individuals make the mistake of equating restaurant food cost to how much they spend on food over a period of time.

This is yet another common myth or misunderstanding.

People would simply state that my food expense is the amount of money I spent on food in the previous month.

However, this is not the case.

If that’s how you figure out how much food costs, you’ll get a lot of false numbers.

Then, what food cost really is? In your food business, such as a Fine Dining Restaurant, Quick Service Restaurant (QSR), Ice Cream Shop, Pizzeria, Bakery, and others, there are only two sorts of food costs.

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Plate cost

Plate cost is simple to understand, and everyone in your food establishment should be aware of how much each plate or other item costs.

The plate cost is calculated by dividing the cost of preparing a plate by the cost of selling it. The following formula may be used to figure it out:

TOTAL COST / SALES PRICE = TOTAL PLATE COST

Period cost

This expense is a little more complicated, but if you operate a food business, you must understand it.

The following approach may be used to calculate it:

(BEGINNING INVENTORY + PURCHASES – ENDING INVENTORY) / TOTAL FOOD SALES = FOOD COST PERCENTAGE

With the help of this calculation, you can truly evaluate if there’s an issue or where we need to change prices with the use of this detailed data split down into specific categories.

We can also determine whether a food business is profitable or needs improvement.

  • Now, there are two things you should keep in mind while utilizing the COGS formula.
  • 1. Make sure you’re comparing purchases and inventories from the right categories to sales from the right categories. If you are attempting to figure out how much liquor costs, for example, you need to make sure you’re utilizing liquor purchases, liquor inventories, and liquor sales rather than overall sales.
  • 2. Check that you’re comparing the right inventory and purchases to the right sales period.

Conclusion

Below are the list of all formulas that have been elaborated in the article:

TYPE FORMULA
PRIME COST FORMULA (TOTAL COST OF GOODS SOLD + TOTAL LABOUR COST) / TOTAL SALES = PRIME COST
FOOD PERIOD COST (BEGINNING INVENTORY + PURCHASES – ENDING INVENTORY) / TOTAL FOOD SALES = FOOD COST PERCENTAGE
PER PLATE FOOD COST TOTAL COST / SALES PRICE = TOTAL PLATE COST

Calculating prime cost and food cost have their different aspects.

Prime cost deals with labour cost on the other hand food cost doesn’t, because when you purchase already produced items directly, you eliminate the labour cost.

Although, there are differences but they both are very important to understand for every food business owner.

It will help you scale your food business along with aligning your food operations and conquering any issues that you might be facing related to your food business.

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5 Tips on Renovating Your Restaurant on Budget

The food industry has been one of the most badly-hit sectors of the economy by the Coronavirus pandemic.

With fewer people eating out, restaurant owners struggled to keep healthy foot traffic.

But now that things are looking up, with restaurant renovation practices, restaurants are getting ready and thinking of making some changes to their stores’ look and feel. 

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Some of the challenges experienced by restaurants in India due to COVID were high operational costs (65%), lower margins (54%), rental cost (52%), hiring and retaining staff (41%), and competition (22%), according to Statista’s report.

However, things are going to improve very soon as regulations loosen.

Given the constraints and uncertainty, business owners are starting to see the importance of financial management in the food industry more.

But interior design is still important for restaurants as it’s usually a strong selling point for many businesses too.

So if you’re looking to make any changes to your stores, here are some tips for restaurants to update their restaurants’ designs on a budget.

Have a Plan in Place

One of the biggest hindrances to restaurant renovation with a tight pocket is the tendency to go over the budget.

So the first step to getting your restaurant a fresh look without breaking the bank is to actually plan out your renovation ideas.

That’s where financial planning for restaurant owners comes in handy. 

Be as rigid about your vision and every nut, bolt, and nail that it will take to achieve it.

The more detailed you are about your plan, the more confident you can be that your project will not go over budget.

Design for The New Normal

If you’re thinking that things will still go back to the way things were anytime soon, it’s time to start facing the facts.

Things are never going to be the same anytime soon. So it’s best to make renovation plans around the new reality we now face. 

One important consideration to deal with the new normal is to have restaurant billing software that offers a QR code based contactless delivery and contactless ordering system at your establishment.

So a few useful ideas would be to have a waiting area for food delivery riders and to create an extra lane for deliveries if you have over-the-counter ordering. 

One trend we’re seeing in the food industry is the rise of outdoor spaces as it’s safer when trying to avoid virus contamination.

For indoor spaces, have negative air that allows the most circulation possible while still providing good ventilation and room temperature.

Incorporate Technology

COVID-19 isn’t the only factor that’s changing the restaurant industry as we know it.

Mass digitization has also been affecting businesses but in a good way.

At least that’s if you keep up with the trends. It’s important that your business becomes digital-friendly. 

In fact, social media platforms are essential for restaurant businesses.

Sixty-nine percent of diners take photos of their food before eating it. Meanwhile, 30% of millennial diners don’t go to restaurants with a weak online presence.

One tip would be to focus on creating an Instagrammable spot so you can get free marketing online when you have people post photos of your space.

You don’t have to spend a fortune on renovations. It just has to be memorable. 

On top of the visual aspects of your shop, you might also want to consider getting your business more adaptable to cloud-based franchise management system if you own a franchise business.

Otherwise, you can have a robust POS solution for solo food entrepreneurs like Billberry that can effectively manage inventory management, production management, supply chain management and more.

Set aside a budget to update your restaurant technology if you haven’t in a while when renovating. 

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Using the best franchise software or a restaurant management system that can actually help you save on manpower hours because it removes many repetitive tasks like taking reservations, checking inventory, and so on.

Moreover, it’s also proven to improve customer experience, thus building an avenue to increase your customer base.

Renovate in Phases

Practicing proper restaurant financial management means trying to look more mid to long-term as well.

So remember that you don’t have to change everything in one go.

You can always choose to renovate in phases.

This consideration is even more crucial for businesses that might have to close their shop to make changes.

By renovating in phases, you can still keep some parts of your restaurant open so that you can continue to serve customers and still make money.

You need to stay on top of your finances.

That’s why you should have accounting software in place to help handle your numbers.

Focus on Resourcefulness

Entrepreneurs know best that the key to business success doesn’t lie in one’s resources.

It relies on their resourcefulness. You don’t have to mess up your restaurant financial statements just to get a space revamp.

In fact, even with just a few creative ideas, your space could become a whole new space without having to cut corners. 

Try to visit inspiration websites like Behance, Pinterest, or other interior design websites to get ideas for interior design updates.

Work with a designer to select the best ideas that fit the theme of your restaurant without having to do any major restaurant renovations.

Creativity comes not when we have all the money in the world, but when we work to achieve the same or even a better result.

Improvement Is an Investment

Practicing good financial management in the food service industry is a must.

But that doesn’t mean we should hold on to every dollar. Remember that improvements are investments.

Whatever renovations you make could potentially bring in more customers. And with more customers, your restaurant will generate the money you spent on updates and hopefully even more.

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How to Align Operations in Food Business to Become a Food Franchise

There are many different factors for aligning your food business in order to run a successful and profitable food business, and it’s crucial to dominate each one of them to have success.

Because growing your food business is not that easy, we’re sharing with you some tips that can help your food business align operations to thrive, and stay ahead of market competition and ultimately become a profitable food franchise.

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Hire & Retain Appropriate Staff for Restaurant Business

To provide first-class service, along with restaurant management software, you’ll need to hire qualified employees that can manage restaurant operations precisely as well as operate equipment like a point of sale system accurately.

It will encourage customers to return to your establishment.

Keeping skilled personnel will make your customers feel special whenever they visit your restaurant, and this will aid in the growth of your food business.

Hiring the right staff is a crucial component of any food business, and it can also be challenging.

But if you don’t have the right people to operate your food business, your business will struggle to survive in the market.

Also, consider hiring a food consultant and a POS solution for solo food entrepreneurs to effectively streamline your business operations.

Innovating Marketing Strategies

You can’t expect outdated marketing methods to work for your food business.

You should devote your time and energy to developing and researching new marketing methods that will drive high footfall to your food businesses’ location.

Experiment with approaches that are trending in the market, such as Facebook and Instagram ad campaigns.

Introduce features like QR based contactless ordering system with the help of a POS software company and promote it on the right social media platforms.

For that you need to get in touch with a company providing POS software in India.

Billberry is the most reliable restaurant management system for food franchise business that you must get for your food business.

Moreover, after trying a variety of marketing strategies, determine which ones are most effective in helping your business develop.

Stand out from your direct competitors by providing a one-of-a-kind experience to customers with features like contactless payment system with the help of the best franchise software.

Consider changing the atmosphere and introducing new and intriguing items to your menu to entice more customers.

Word-of-mouth marketing can turn out to be a very powerful medium.

A customer’s interest in your food business is mirrored in their everyday conversations, it draws in more and more customers.

In essence, it’s free advertising that’s triggered by client interactions.

Manage Your Finances

You may be able to save costs by examining your company’s spending. As a result, you may put that money to better use.

Make sure you’re not squandering money on unnecessary equipment, spending too much money on unnecessary services, and hiring too many people that are actually not required.

Keep your finances under control and follow a strict budget if you want to grow your food business and turn your single-store business into a multi-store franchise.

Business Growth with Constructive Criticism

Ask for your customer’s opinion about your service. Ask them to fill out customer satisfaction questionnaires to get their feedback and learn why they appreciate your services.

Customers may also provide tips about how to grow and bring improvement to your food business.

Some might not like the taste of any particular product or some have might want to see more of a certain type of cuisine.

You have to pay close attention to customer’s needs. It’s the key to win customer’s hearts.

Factors to Consider Before Franchising Your Food Business

Franchisors must assess the following considerations listed below when considering franchising a food business.

Your Food Business Needs to Be Successful

It’s all about taking yourself, your brand, and the systems that have helped you build a successful business and replicating them for new franchisees.

Your company must be successful, and you must have a track record of success.

Make sure you are ready with a robust franchise management software that can effectively manage operations like production management system, procurement management system, inventory management system, supply chain management system, and more.

Your Food Business Must Be Scalable

The multiple outlets you are going to operate with your franchisee outlets must generate enough revenue to survive in the food industry.

The food business you are running must be on a stage of scalability.

Enticing new food entrepreneurs is very important to have more and more outlets for your food business franchise.

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Be prepared to provide training to your franchises so that they can offer the same unmatched quality to their customers.

A system to keep an eye on franchises for making sure they maintain quality standards and good customer service is mandatory.

Also, make sure that you can deliver the necessary products for franchises every time.

Having The Right Budget

As with any new business, launching a food franchise necessitates a sufficient budget.

You must first determine your business goals to franchise your food business successfully.

Make a list of expenses like registering your trademark, expenses on infrastructure that conveys your unique identity, and other mandatory costs that come with franchising your food business.

Moreover, don’t forget to invest in a food franchise management software. The best franchise software will let you manage the royalty fee cycle seamlessly.

Conclusion

Food entrepreneurs and startups only consider if they see no major risks by collaborating with your food franchise business.

Your food franchise must provide a solid business model that generates enough revenue and protects franchises from other associated risks.

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6 Challenges of Starting Fine Dining Restaurant in 2022

One of the most affected establishments during the COVID-19 pandemic is restaurants.

Because of some business restrictions, they were forced to shift to off-premises channels and focus on food deliveries.

Even certain services are made online, such as catering to customer orders and preferences and accepting payments at fine dine restaurants.

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According to a report by the National Restaurant Association, it would be a year or more before restaurant business conditions return to normal.

Moreover, 51% of customers admit they aren’t eating at restaurants as often as they like now compared to pre-pandemic.

These uncommon circumstances require innovative technologies to fight covid-19.

With these facts and statistics, the question lies: what are the challenges for restaurant owners?

How to start a restaurant business is a thought that comes to mind when you’re looking to start a fine dine restaurant and keep your business going this year, scan through these biggest challenges facing restaurant industry 2022.

Before everything make sure you have the best restaurant management system to back you up.

1. Going Digital

With local business restrictions ongoing and more people turning digital for their needs, establishments must strive to increase their online presence.

When starting a fine dining restaurant, make sure you have an active and accessible website displaying all your products and services.

You should also be visible on top social media sites like Facebook and Instagram.

Some businesses do affiliate marketing where another person or affiliate will promote and sell your products for a wider reach.

Influencer collaborations can be possible, but make sure you select the most suited creators.

Lastly, restaurant owners should maintain good online reviews whether on third-party sites or on their website and social media pages.

Going digital doesn’t only mean your business is visible and accessible online after starting restaurant business.

It should also have an effective digital marketing strategy to reach the right people and provide a seamless customer experience.

2. Keeping Up with Health and Sanitation Requirements

The COVID-19 pandemic has led people to be more aware of health and sanitation.

With this, restaurant businesses are also expected to abide by government-imposed health and sanitation requirements and certain restrictions. 

For example, a restaurant can’t operate without proper ventilation and disinfectants.

There should also be regular cleaning and inspection of kitchen areas, dining areas, and restrooms.

Moreover, employees are required to maintain good personal hygiene, such as frequent hand-washing, changing uniforms after every shift, and wearing proper headgears and face masks. 

Moreover, you can opt for a restaurant management system, a franchise management solution or a simple point of sale software ( Restaurant POS SOFTWARE) like Billberry that provides you the feature of having a QR Code based menu to enable contactless food ordering system.

Take the opportunity to entice your customers by providing them a safer dining experience.

3. Emphasizing on Takeout and Delivery

Familiar with Swiggy, Zomato Order, Uber Eats, and Foodpanda?

These are all food delivery services that are continuing to rise in 2022.

As mentioned above, customers nowadays prefer a contactless delivery than dine-in physically at restaurant establishments.

Sure, the actual dining experience would be lovely, but COVID-19 has changed the scheme. 

Hence, it’s essential for restaurants to shift their services to takeout and delivery.

Aside from being present on food delivery apps, you must also have an active hotline so customers can contact you anytime.

You may also assign your staff to manage all social media and website inquiries and orders. The best franchise software could help aligning such operations.

With this, you’ll be more likely to engage with your customers on all platforms.

Doing so will increase your sales and revenue and will impose a positive impression on your customers. 

4. Meeting New Customer Demands, Preferences, and Expectations

Consumers aren’t only expecting fine dining restaurant businesses to be available online, but they’re also seeking variety and new types of food choices.

This customer behavior is mostly influenced by social media—what with all the innovative and exotic dishes introduced on Instagram, YouTube, or Pinterest. Using the best CRM tools can help you understand your customers better, which you can integrate to your restaurant management tools. 

Food bloggers have also influenced the tastes and preferences of customers.

For example, most teenagers fancy South Korea’s samgyeopsal.

Meanwhile, millennials look for different coffee or milk tea flavors.

The older generations also prefer healthy dishes, such as foods with organic, vegan, or gluten-free options. 

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If you want your restaurant business to stand out, you must explore new and creative dishes.

Make them as exotic as you can while promoting health and wellness. Also make sure that your restaurant billing software allows you to add add-ons and variations according to customer preferences to your menu items.

You may focus on a particular cuisine depending on your target market, or it can be a mixture of signature dishes across different continents to add more variety to your menu. 

5. Generating Enough Revenue

One of the top challenges in opening a restaurant is generating enough revenue.

With this, restaurant owners should ensure that there’s accurate and profitable menu planning and pricing and that there should be balancing costs of providing delivery with profitability.

Inventories should also be managed well to prevent spoilages and product depletions. 

Most importantly, restaurant businesses should stick with an efficient digital marketing strategy.

Determine your target market well and promote your products and services on the right platforms.

Adjusting to increasing food costs can also be helpful to manage your overall finances and make sure you get good sales and revenue. 

6. Recruiting, Training, and Retaining Employees

Restaurant businesses may be going digital, but employees are still valuable to the company’s overall success.

Hence, you should provide proper training to your employees and help improve their customer service by investing in the best restaurant management software.

Defining “best” isn’t what’s the most popular or most expensive, but what matches your needs best. With this, your restaurant operations will be automated and more convenient. 

Investing in your employees can be a risk, but when done right, you can recruit and retain the best ones.

A well-trained team matched with the right tools and software can improve your restaurant workflow and will take your business to the next level. 

Facing the Challenges and Opportunities in the Restaurant Industry

There’s no one-size-fits-all solution to problems.

However, by looking forward to 2022 and staying ahead of operational challenges, your fine dine restaurant business can still be successful and profitable by the end of the year and in the coming years.

Just stay updated with the best tips and trends and pin your restaurant on the brand new map of business and economy.

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