3 Key Tips for Management of Restaurant Success

Many people believe the management of restaurant operations is one of the most difficult challenges one can undertake. In fact, some individuals quote the myth that 90 percent of all restaurants fail in the first year. However, the facts aren’t that grim. A university study cited in Bloomberg Business shows that in the first year, approximately 25 percent of such startups shut down, and only 60 percent fail over five years. Other studies back this conclusion. Striving for Success While that failure rate still seems high to those unfamiliar with success rates of all small businesses, it destroys the myth. In other words, the risks and opportunities for entrepreneurial restaurant ventures are on par with other such business launches. The management of restaurant ventures does represent unique challenges, however. While there are a number of basic rules and guidelines one should follow, here are three important tips to increase the chance of being one of those successful operations: Cash flow is king and should be managed closely. While all businesses must manage cash flow, this is especially critical for restaurants because so many vendors must be paid cash on delivery. Additionally, an unusually large number of employees and wait staff will deal with cash, and controls are required to keep that cash handling under control. Food safety should be a top priority. The reality of regular inspections and a host of regulations make management of restaurant food handling procedures a daily concern. Even a minor health issue or violation can destroy a restaurant’s brand. Make social media a priority. With the interactive nature of social media, no restaurant manager can afford to ignore their online presence. Not only is social media a powerful marketing tool, it can be a major problem if ignored. Restaurants have always depended on good word of mouth buzz, and social media is word of mouth on steroids. It also makes it easier to spread bad reviews, and just a few of those can also wreak havoc with a restaurant’s business. Management of restaurant businesses are never easy, but following a few basic tips can make a big difference.