FSR December 2022

YourTake BY TONY SMITH

Readyfor theNewYear 7 ways to shore up your

FOR A MORE ACCURATE FORECAST, INCORPORATE PAST DATA—NOT PROJECTIONS— INTO YOUR BUDGET.

restaurant, no matter what comes in 2023.

THE RESTAURANT INDUSTRY and economy are being buffeted by waves of uncertainty on everything from whole sale prices to labor costs to consumer spending patterns. Fortunately, there are many strat egies that owners and operators can implement in the coming weeks and months to continue to produce profit and grow in any market. Now is the time to take steps to boost your revenues while reducing prime cost. Proactively preparing your business will pay dividends in the near and long-term by providing a cushion against any unforeseen challenges. Try these seven tips to prepare your restau rant for growth—no matter what chal lenges may lie ahead. 1. Set the groundwork e pandemic led to a boom in delivery and takeaway service, and while num bers from those channels aren’t what they once were, they’re still higher than historical averages. Consulting firm Frost & Sullivan estimates that the food delivery industry will be worth $200 bil lion by 2025, up from the $82 billion it estimated in 2018. Just as they did during the pandemic, growth-minded operators should con tinue to embrace new ways to give cus tomers what they want: namely, make it easier for them to spend money. e less friction, the more likely they’ll con

tinue to frequent your place even in tighter times. Prepare now to be able to provide less expensive options when money is restricted. 2. Compare budgets and forecasts Are you comparing your 2022 forecast to budget numbers? Have you started fore casting and goal setting for 2023? If the answer is anything other than “yes,” now is the time to start. While much of the focus in a restau rant tends to revolve around the prod ucts and processes that provide guests with food and experiences, budgets and forecasts are the supporting foundation that ensures everything is moving in a positive direction. ey are the path to expanding mar gins, rising profits, better guest experi ences, and growth. Don’t just take last year’s budget and repeat; instead, use

data from multiple past years’ actuals along with your forecast for shifts in 2023 to produce the most accurate plan possible. 3. Lock in your labor strategy Labor has long been one of foodservice’s most intensely debated, monitored, and managed areas. Labor cost is the largest expense alongside food. e restaurant labor market shifted dramatically after the pandemic and forced many busi nesses to close temporarily due to lack of staffing. It’s essential to set up processes to attract, train, and retain the best staff. Simultaneously, you should be keeping an eye on real-time insights of your labor costs to empower cost control and get the most out of your team. Scheduling employees based on an accurate sales forecast is also essential.

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DECEMBER 2022