EPOS Direct What obstacles will your restaurant face?
Keeping up to date with the market
As a restaurateur, it is important to identify that the market will constantly change. This means that you will have to look at the market on a regular basis so that you are aware of any developments in the market. If you were not aware of a change in the market, you may struggle to satisfy your customer’s needs. It is highly recommended for you to research projected future trends as this will enable you to predict trends in the future. This will allow you to prepare for any changes which are going to occur in the near future. You will be able to increase the competitiveness of your restaurant as you will be able to cater for your customer’s changing needs before your competitors can. However, as a small restaurant, you will struggle to generate the funds needed to carry out the appropriate research.
Do you have sufficient funds? As a restaurateur, it is crucial that you realise that running a restaurant will incur a substantial number of costs. This shows that as the owner of the restaurant, you will need a significant budget in order to cover all of the costs. Before opening your restaurant, it is recommended to ensure that you have enough money to cover the costs of your restaurant for the first year. This is because you will not be able to rely on the sales of your restaurant to cover the costs of your restaurant during the first year. It is vital for you to have emergency funds as this will allow you to cover any unexpected costs.
Do you manage your stock? As a restaurateur, one of the biggest challenges you will face is ensuring your restaurant is sufficiently stocked at all times. If you didn’t have stock, you would be unable to satisfy your customer’s needs which would severely limit the number of customers that you receive. It is crucial that you schedule your orders so that your supplies arrive before you run out of stock. It will be crucial for you to count your stock everyday so you are aware of how much stock you have left. This will be very time consuming as you will have to count your stock manually. However, an EPOS system will be able to help you with this by providing you with an automated stock control feature. When a product is sold, it will automatically be taken off of your stock. This gives you the ability to check your stock at any time. As a restaurateur, you should always have back up supplies of your products just in case your supplies are damaged or your supplies arrive late. Remember, the demand for your products will not always be the same. It is important for you to predict the increases in demand for your products because otherwise, you will not be able to supply your customers with the products they want.
Prices of Products
How much do you charge for your meals? As a restaurateur, one of most difficult decisions you will have to make is how much you will charge for your meals. Before you decide on prices for your products, you should research the prices of local restaurants. This will give you an idea of how much the local community will be willing to pay. If your prices are expensive and your competitors are cheaper, the local community will decide to eat at your competitor’s restaurant instead of your restaurant. This will severely limit the number of customers that your restaurant receives and will decrease the competitiveness of your restaurant. When deciding on prices of meals, you must consider the production cost of the meal. If you charged a price for a meal which was lower than the production cost of the meal, you would not make a return on your products. As a restaurateur, it is important to remember that you are able to change the prices of your meals at any time. If the cost of your supplies suddenly fluctuated, you would have to increase the prices of your meals in order to generate a sufficient profit. Has a new competitor entered your local area? If there was a new restaurant introduced in your local area, you may have to lower your prices to retain your loyal customers.
Understanding the Law
Do you understand the law? As a restaurateur, it is vital that you understand and adhere to all of the laws which restaurants are required to follow. If you didn’t implement procedures so that your restaurant met the requirements of the law, it could lead to your restaurant breaching a certain rule. This could lead to you and your restaurant getting into serious legal trouble..There are a wide range of regulations that a restaurant will have to adhere to. One of the most important laws is the food safety act. This requires the restaurant to ensure that all environments which are used to prepare the food are to a clean standard. If an inspector classed the cleanliness of your kitchen or food as unsatisfactory, your restaurant will be fined or even closed down. Do you pay your employees a fair wage? If you pay your employees below the minimum wage, your employees will be able to file a court case against you which would incur a substantial cost for your business. Remember, customers will find out if you broke the law which will lead to them avoiding your restaurant. Has your restaurant faced any challenges?