Running a profitable restaurant and pub in the UK can be incredibly rewarding, but it also comes with its fair share of challenges.
In fact, in 2024, 45% of operators expect competition to be more intense than last year.
To ensure long-term success and stay ahead of the competition, it’s crucial to focus on certain key aspects of your business.
Here are practical tips to help you run a profitable restaurant and pub.
Understanding Your Market
Understanding your market is a vital part of setting your restaurant on the path to success.
Knowing who your clients are and tailoring your offerings to their preferences can make all the difference.
Regular market research keeps you updated on trends and customer desires, allowing you to adjust your menu and services accordingly. Additionally, identifying and targeting desired customer groups helps attract new patrons.
Consider these actions:
- Conduct Surveys: Use customer surveys to gather feedback on your offerings and understand what they enjoy.
- Analyse Competitors: Keep an eye on nearby restaurants and pubs to see what works for them and identify gaps you can fill.
- Identify Target Groups: Determine which customer segments you want to attract and tailor your offerings to meet their specific needs. For example, if you want to attract weekend joggers and cyclists, consider increasing the focus on nutritious, health-conscious menu items.
By knowing your audience and continuously adapting to their needs, you can ensure your restaurant remains a popular choice and keeps customers coming back.
RELATED: 7 Top Tips to Maximise Restaurant Profitability
Efficient Cost Management
Managing costs is key to maintaining healthy profit margins in restaurants. Consider these suggestions on how to go about this. Firstly, build a menu with meals that carry good GPs and implement strict portion control to reduce waste and maintain consistency.
Investing in energy-efficient appliances and practices can also lower your utility bills.
And then, with labour being a considerable cost for every business, use forecasting and scheduling tools to ensure no overspending.
Try these strategies:
- Use Sales Reports and Forecasting: Leverage sales data and forecasting tools to predict business trends and plan your inventory and staffing needs accordingly. This helps in avoiding overstocking and understaffing.
- Negotiate Supplier Contracts: Regularly renegotiate terms with your suppliers to ensure you get the best prices and quality for your ingredients.
Menu Optimisation
Optimising your menu is a great way to ensure you are maximising profits.
Menu engineering involves analysing which items are most profitable and popular. Offer seasonal specials to keep the menu fresh and exciting. Highlight and promote high-margin items to increase profits.
Regularly updating your menu based on sales data ensures you always offer what your customers want. Incorporate trendy, international options to attract adventurous diners, especially when a 2023 survey revealed that about 92% of Brits sampled world cuisine, with 85% eager to try more diverse dishes.
Implement these tips:
- Use Sales Data: Identify best-selling items and adjust your menu accordingly.
- Highlight Specials: Promote high-margin dishes prominently on your menu.
Staff Management
Investing in staff training and development improves service quality and efficiency. And to ensure a happy team that is not overworked, consider implementing scheduling tools to help manage this. For example, using forecasting to schedule staff based on peak times ensures you have the right number of employees working when you need them most.
Consider these practices:
- Empower Staff with Technology: Use tools like Opsyte's staff app, which allows employees to make shift requests, set availability preferences, and request time off. Giving staff more control over their schedules enhances job satisfaction and morale.
- Regular Training: Conduct training sessions to keep staff skills sharp and service standards high.
- Employee Incentives: Offer rewards and recognition to motivate your team and show appreciation for their hard work.
By empowering your staff and creating a supportive environment, you not only improve employee morale but also enhance customer service and overall restaurant performance.
Customer Experience
Creating a welcoming atmosphere encourages repeat visits. Focus on ambience and decor to make your restaurant or pub inviting. Consistency in food and service builds a loyal customer base. Actively seeking and responding to customer feedback is another great way to continually improve your offerings and ensure your customers feel valued.
Enhance the customer experience by:
- Create Ambiance: Use lighting, music, and decor to enhance the dining experience.
- Solicit Feedback: Encourage customers to leave reviews and provide feedback.
Marketing and Promotion
Effective marketing is essential for attracting new customers and retaining existing ones. Use local advertising, social media, and community events to promote your business.
Implement loyalty programs to encourage repeat business. Host special events and offer promotions to draw in new customers.
Creative restaurant and pub promotions ideas, such as themed nights or live music, can also attract a crowd and increase sales.
Consider these findings to boost your marketing efforts:
- Set Menus and Value Meal Deals: 36% of respondents opted for these, making them a popular choice.
- Deals and Coupons: 27% of diners used these to save money.
- Loyalty Programs and Happy Hour Specials: 24% of customers took advantage of these promotions.
RELATED: Creative Pub Promotion Ideas to Attract More Customers
Financial Management
Conduct regular financial reviews with detailed sales reports to identify areas for improvement. Monitor and control all expenses to ensure they align with your budget. Effective financial management helps you stay on top of your finances and make strategic decisions to grow your business.
Improve financial management by:
- Keep Detailed Records: Use accounting software to track income and expenses.
- Review Financials Regularly: Schedule regular reviews of reports, such as a weekly P&L flash report, to stay on track.
Leveraging Technology
Technology can streamline your operations and boost profitability. Modern POS systems make order processing more efficient. Implement tools like Opsyte for streamlined invoice processing, staff scheduling, forecasting, and detailed reporting.
Enhance efficiency with technology:
- Invoice Processing: Opsyte automates invoice processing, reducing manual entry errors and saving time.
- Staff Scheduling: Use Opsyte's staff app to manage shifts, set availability, and request time off, ensuring optimal staffing levels.
- Forecasting: Leverage Opsyte's forecasting tools to predict business trends and plan accordingly.
- Detailed Reporting: Utilise Insytes by Opsyte for detailed sales reports to identify trends, manage inventory, and make data-driven decisions.
Elevate Your Success with These Practical Strategies
Running a profitable restaurant and pub requires a focus on various different aspects, such as market understanding, cost management, menu optimisation and staff management. For a hospitality business owner, this may seem slightly overwhelming. However, with the help of tools such as Opsyte, the burden is dramatically decreased.
By implementing these practical tips, you will not only enhance the profitability of your restaurant or pub but also stay ahead of the competition.
So ready to take your business to the next level? Implement these tips and tools and see the difference they make in running a profitable restaurant.
