Key Success Factor 1: The number of customers attending the restaurant
One of the most important measures of restaurant success is the number of guests that come through the restaurant. Achieving a high number of diners, not only on Friday and Saturday nights but also throughout the week, is a key sign of success for restaurants.
Key Success Factor 2: Maintaining a positive customer reputation
Of course, achieving a high number of diners is easier said than done, and there is a lot that goes into achieving a busy restaurant. All parts of the dining experience must meet or exceed customer expectations. You ideally want to generate some word-of-mouth advertising about your restaurant, where customers recommend your experience to their friends and colleagues. Achieving this not only requires well-cooked meals but an overall experience that makes them want to come back and recommend your restaurant.
Key Success Factor 3: Keeping control of your costs
While it is important to deliver delicious food, it is also important to keep an eye on the costs. Spiraling food costs will quickly eat into your profit margins – making it difficult to see profitability despite a popular restaurant. Make sure you have a good understanding of the costs of ingredients and consider adjustments that can be made if there are certain costs that appear disproportionally high.
Key Success Factor 4: Avoiding waste
Another key success factor in the restaurant industry is the proportion of goods that are wasted. These are all costs that you are incurring with no payoff. While it is possible that more expensive ingredients may improve the meal, wasted product has no gain. Ensuring that you are not over-ordering or over-preparing the food can help ensure that waste does not become a hidden cost to your operations.
Key Success Factor 5: Managing your prices
Another key dimension of successful restaurants is managing the prices. While undercharging relative to the market may attract customers, it may also leave you thin profit margins. The trick is being able to identify the price that customers would be willing to pay – not overpricing the product, but also not underpricing it and taking a hit on your profit margin.
Key Success Factor 6: Sales of starters, drinks, and desserts
A final sign of such ins restaurants is a focus on selling side dishes, drinks, and other products beyond the main meal. Everyone who enters your restaurant is likely to buy a main course – however, substantial additional revenue can be obtained by also selling other dishes.