Profitable Tips For All Restaurant Owners

What were the last three things you did to increase your restaurant profitability? Below profit protection is constantly on your mind, you will get hurt. Eroding margins, fickle markets, escalating food prices, rising utility rates, outrageous credit card fees, and a host of other factors eat into your margins daily, thereby reducing your ability to pay the bills, let alone yourself.

We recently consulted with a client that has not paid himself for 17 months. He called us out of sheer desperation saying, "I just can not go on working for free." The sorry fact is that there are many restaurateurs working hard for very little income, and we think it should stop.

In my profession as CEO of the leading restaurant consulting firm in the US, people rarely call me when things are going well. The kinds of calls that I receive daily are along the lines of, "Why can not I make any money" or "My food cost is through the roof" and this is the most painful one, "I can not afford to Stay open anymore, what can I do? "

Why do not you invest a few minutes into yourself right now and read over the tips below. In fact, print out a copy and share it with your friends that run an operation as well. Yes, some tips may seem obvious, but are you using every tool at your disposal to solidify and enhance your profits? Your restaurant owes you for risking your neck to get it open, so I'd like to suggest that you start holding it accounting.

1. Do not serve water automatically. Sounds simple, but water service does not increase your profits or sales. Put systems into place where you serve alcoholic beverages, coffee, tea, sodas, milk – anything but free water. Serve it upon request only.

2. Set up the dining experience on the first visit to the table. Tactfully done by the server, profitable items should be promoted, desserts can be suggested, and guests will appreciate a quick, "Run down" of the dining experience. Plus, server competency will be rewarded for taking responsibility for the positive experience that they will have. My wife's favorite server line is, "Want to split a dessert with coffee?" Not only have we just purchased a dessert that may have been too much for one of us, we've also bought 2 coffees. These additional sales make a big difference, and they're easy to execute. Having a hard time selling desserts? Encourage your servers to use this statement and see what happens.

3. Concentrate on improving product delivery systems to eliminate waste. For example, if your servers are throwing away iced tea lemons at the end of each shift, instead of at the end of the day, re-evaluate this system. By valuing everything, you may be surprised what gets thrown away. This includes portion control items such as creamers, crackers, butters, jelly and silverware as well.

4. Understand that guests dine on a budget, and be sensitive to it. Servers that sell beyond the dining budget will experience reduced tip income, and the restaurant will experience reduced visits. Ensuring that your guests come back repeatedly is much more important than increasing their check average for just one visit.

5. Selling a more expensive item does not always equate to increased profitability. Make sure that your servers understand which items are most profitable for the restaurant, and promote those. It makes no sense to promote items that may have minimal profit contribution. Tell your servers what items you want them to sell.

6. Use the best menu. Ensure that your menu is costed out properly; Current with market conditions, and designed to insure that the most profitable items are the ones being promoted. It makes sense to enlist a consultant to do this for you, as the return on investment will be immediate and lasting. This is your # 1 selling tool.

7. Work with your food vendors to insure that you are buying the right items for the menu specifications. Are you overbuying on an item that does not require top grade quality? An example would be the purchase of a # 1 quality baking potato, when a # 2 quality would suffice.

8. Buy key items in bulk. On the topic of food vendors, make certain that you are promoting menu items that you are able to bulk buy on a negotiated cost effective basis – and can sell at a premium. This simple step will quickly aid in bringing meaningful dollars to the bottom line.

9. Offer your guests a complete dining experience. This includes the sale of beverages, appetizers, salads, entrees, desserts, side items (such as a vegetable) and add-on items (such as sour cream or cheese). Make sure that you are not inadvertently missing out on the sale of key parts of the meal. Table tents, menu inserts, promotional signage, sales tracking, and staff pre-shift meetings are all ways that you can ensure that all meal parts are promoted and sold effectively.

10. Bundling meal parts together will increase the quality of your guests dining experience and maximize their dollars spend. Bundling may consist of an appetizer / salad / entrée combo or salad / entrée / dessert combo. Diners will not be surprised by the dollar value, and they can knowingly order within their budget.

11. Do not forget the grapes. Effective promotion of your wine offerings should be systematic and routine. Guests should be fully aware of the pricing and offers, both by the glass and by bottle. Wine service is a skill that every server should have.

12. Get an Operations Analysis. As operators, we frequently get caught up in the heat of the battle, and can not take the time to analyze our operation critically. Engaging a restaurant consultant to look for ways to improve service, enhance income, and reduce waste should result in immediate financial improvement. Do not skimp on this, thinking that you have your bases covered, because the food service industry changes daily. In cold hard terms, your restaurant should be a money making machine to benefit the owner (s). If it's not generating the kind of money you think it should, you must get the machine repaired!

13. Do not overlook slow day parts. If it's quiet in the afternoon, are there promotions that may make sense for you to utilize to generate more revenues during this down time? Do not tolerate your money machine sitting open, but not generating revenues. Put it to work.

14. Children's menus. Most of them are boring, and priced to reflect that. Is it reasonable to think that parents would pay a bit more for more interesting and nutritious meals? This is a good opportunity to re-evaluate your children's menu and pricing. It's dangerous to neglect this important item, as parents usually examine this menu closely.

15. Are you maximizing food sales in your bar / lounge areas? For many, it's more enjoyable to eat in a bar than drink in a restaurant. It makes logical sense to have menus, silverware, condiments and promoted specials available for your drinking guests. If they do not eat on the first visit, you will have planned the seed for them to consider eating in your establishment next time.

Simply remember that it's not what you make, it's what you keep that matters. Hopefully some of these tips will be useful. Still can not seem to make the numbers come out the way you want? It may make sense to enlist the services of an advisor to walk you through the complexities of making money in the restaurant business.

IPhone Repair Service

IPhone repair services have been developed to help you repair your iPhone when it breaks or malfunctions. Not having to pay the cost of a brand new unit is a life saver for some and allows you to keep your existing unit in pristine condition. If you compare the price of repairing your existing unit against the cost of buying a new one, you'll find that you can save nearly 100 dollars even if the damage to the unit is substantial.

IPhones are very expensive pieces of equipment but even the best electronic technologies can not stand up to continued abuse. If something should go wrong with your iPhone, you need to understand that you have options available. The many repair shops available on the Internet today can help you to get your unit back to 100% functionality. Repairing your iPhone will save you a great deal of money and help you get your iPhone back to its original condition. Many repair centers even offer a warranty with their work. The repair technicians are usually always friendly, helpful, and available to repair your iPhone no matter when it breaks. You can count on repair shops that have been in business for a long time to know how to fix your item right the first time and give you the advice and information you need to make the best decision.

Look for 30-day or longer warranty while shopping for iPhone repairs, as it may end up saving you the emotional burden of wondering if you have made the right decision. If the same part malfunctions again within the warranty period, you simply ship the item back in to be repaired again without having to worry about the repair costs.

Customer service is usually top of the line with iPhone repair companies and they will explain to you the maintenance that is going to be performed on your iPhone. Any questions you have can generally be answered right over the phone. Your item is shipped using your choice of shipping methods or the shipping carrier of preference for the repair center.

In most cases, if your iPhone has a problem, it can be fixed through a repair shop. Water damage, glass replacement, diagnostic service, housing and chrome bezel replacement, battery replacement, full refurbishment, home button replacement, headphone repair, camera removal and replacement, power button repair, volume button repair, vibrate / toggle switch replacement, ear speaker repair , Dock connector repair and more! Most parts can be fixed or replaced on your iPhone.

Do not take chances with your hard earned dollars. You will end up saving hundreds by keeping the original equipment that works and replacing or repairing what does not. Do not throw your iPhone away just because it has been damaged or is malfunctioning. Send it in, they'll fix it right!

Financial Strategies For Troubled Firms

There are strategies that troubled companies can use to save themselves from dire straits and regain their former financial success. These same sort of strategies are valuable for business owners and financial executives to understand how their firms can avoid financial turbulence and failure.

We must first realize that business failure or bankruptcy never happens overnight. Normally there is a gradual trend of financial deterioration that is sometimes exacerbated by industry troubles. No doubt in the current 2009-2010 environment the auto industry is a poster child for a troubled industry, as an example.

Naturally firms that are on the very precipice of failure or bankruptcy do not have many options or time left. It has to fix itself, or sink. No business owners or entrepreneurs want to face bankruptcy, liquidation, and other creditor issues.

Do financially failing firms survive because of a revival in products or their services, or have they in fact executed on improved financial management. This is a challenging questions, because the very financial problems that beset a firm hinder it in getting new sales, acquiring inventory, and regaining supplier credibility.

Also, lets be realistic, banks and other finance companies do not throw themselves at failing firms with financial offers of loans, lines of credit, etc. In fact what usually happens is that the company is forced to pledge some or all assets at much higher rates, sometimes simply accentuating the financial problems that were already there.

So what are the financial strategies that a firm can undertake to avoid financial failure when it has been losing sales, not generating profits, and generally traveling down a potential death spiral?

There are three or four solid strategies that can save the firm. The first is ‘ assets ‘. The second is liabilities and debt, and the third we will simply call ‘ maneuverering ‘.

Strategy 1:

Assets have value. They can be sold, re financed,, or pledged to secure new financing. This type of strategy works best when it works for all parties, the company and the lender, or the company and another firm. However lets be clear that this is somewhat of a one shot strategy. It either must work or it doesn’t. Asset maneuvers have 3 stages of success: assets can be used to get a new loan, assets can be sold, or they can, in somewhat of a worst case scenario, be liquidated.

Strategy 2:

On the other side of assets on the balance sheet is debt and equity. Debt can be structured properly to ensure the lender gets a reasonable reward, and the company is able to both repay and survive. There are too many types of debt to consider for the purposes of this article – suffice to say that creativity in debt is somewhat unlimited. A firm could issue debt, as an example, and repay only when the company is earning profits again.This would normally entail higher rates, but again, as we have stated, the transaction has to make sense both for customer and lender. A solid alternative solution is to simply re – structure existing debt at new rates and amortizations.

Alternatively to debt a company with promise can bring in new equity or ownership. This is somewhat more risk for all as dilution of ownership is usually significant when a company is failing and bring in new equity capital.

Strategy 3: A firm sometimes has to look to the outside for help. Since the owners and managers are often too close to the problem it is somewhat of a classic case of not seeing the forest for the trees. Outside consultants and industry experts can often bring a solution to the table. They have insights that management simply did not possess. These strategies include developing new sales and product strategies, bring in new management, or considering a strategic merger.

In summary, anyone who has worked through several business cycles over a number of years knows that companies can in fact be saved. Some go on to be the new super stars of their respective industry. The company must clearly uncover what the problem is, and then adapt strategies, financial or otherwise, to fix those problems

What Does ("PID") Mean in The Real Estate Industry?

A Public Improvement District ("PID") is a financing tool created by the Public Improvement District Assessment Act as found in Chapter 372 of the Texas Local Government Code. The PID enables any city to levy and collect special assessments on property that is within the city or within the city's Extraterritorial Jurisdiction ("ETJ"). A county may also form a PID, but must obtain approval from a city if the proposed PID is within the city's ETJ. The PID establishes a mechanism to finance improvement projects through the issuance of bonds secured by special valuations levied on all benefited properties. Because PID bonds can be used to reimburse the developer for eligible infrastructure early in the development process, often before the closing of the first home.

Public Improvements Eligible for PID Financing are; Acquisition of Right of Ways, Art, Creation of pedestrian halls, Erection of foundations, Landscaping and other esthetics, Library, Mass transit, Parks & Recreational or Cultural Facilities, Parking, Street and sidewalk. Supplemental safety services for the improvement of the district, including public safety and security services. Supplemental business-related services for the improvement of the district. Water, wastewater, health and sanitation or drain.

Benefits of a PID

A PID may be established early in the development process allowing the developer to be a reimbursed upon completion of the public infrastructure. Furthermore, unlike a Municipal Utility District ("MUD"), Water Control and Improvement District ("WCID"), or Fresh Water District ("FWSD"), PIDs do not require TCEQ approval, and are governed by the governing body of the City or county, thereby alleviating concerns regarding board turnover and the integrity of the board. If the city chooses to annex property that is within the boundaries of a PID, the city is not forced to pay off the assessments, and the assessments do not affect the city's debt capacity or rating.