The Risks In Running A Restaurant
We have plenty of experience working with restaurant owners, and we can tell you that running a restaurant is hard work. The risks involved in running a restaurant are enhanced by the fact that the profit margins are very slim. If you want to reduce your chances of being put out of business by a bad break, then it is important to know thw most common risks restaurant owners face each and every day.
A Damaged Reputation
All it takes is one disgruntled customer to post a bad online review of a restaurant and the other disgruntled customers seem to come out of the woodwork. A restaurant’s reputation is its lifeblood, and a bad reputation could put a big dent in business. You need to understand how to protect your business from bad publicity, and have the right vehicles in place to offset any potential losses.
Fluctuations In Business
At any moment, a huge party could call your restaurant and reserve enough tables to expose your overworked servers. Then there are those times when you maintain your normal inventory of ingredients and bad weather for the week causes a serious drop in business. At that point, you are facing the very real possibility of thousands of dollars in food going to waste. Whether you need to have staff on-call or help with inventory affected by unexpected circumstances, the fluctuations that affect a restaurant can be costly.
Inventory Supplier Changes
You have been getting your fresh produce from the same local farm for years because of their consistent pricing and high quality. Then one day you get an invoice that shows a 20 percent price increase across the board for all of the produce you buy. When you run a restaurant, daily changes in vendor pricing can be fatal to your business. It is important to protect against these supplier changes and avoid damage to your already thin profit margin.
The Hazards Of Doing Business
In the restaurant business, employee turnover and unexpected health inspections are two things that can devastate a bottom line. What do you do when your regular chef calls 10 minutes before his shift to say that he is quitting and leaving the state? How do you handle a health department citation that forces you to close down for the night? These are the real risks restaurant owners face, and they are risks that must be accounted for in some way.
Many restaurant owners start their businesses because they have a love of good food and enjoy serving the public. But it does not take much for a restaurant business to find itself in deep financial water that could cause the business to close its doors for good. Our experts know how to help restaurant owners prepare for risk, and we can help make sure that your first taste of adversity does not close your doors for good.