Why is my restaurant losing revenue



One of the toughest questions to answer is why is my restaurant revenue doing so badly? there is a number of reasons why;

  1. Restaurant location – Competition is a major factor; how many other restaurants are close to your location? How many of those restaurants are similar to your restaurant and menu. How unique is your restaurant compared to the other restaurants located within a 5-mile radius?
  2. Restaurant demographic – Are you focusing on the types of people in and around your neighborhood? For example; a family restaurant; do you cater to children? Did you know in some insistences children dictate where the family eats? What about sports bars? Do you cater to the younger population? Is your restaurant located near a college Better yet is your restaurant near a major sports complex?
  3. Restaurant accessibility – Is your restaurant located near a major highway with easy access to your restaurant? How large is your restaurant’s parking lot? remember you need an adequate number of spaces versus the capacity of the restaurant. if the parking lot is too small there is a good chance those possible guests may go to your competition and therefore you will lose major revenue.
  4. Training restaurant management and crew – Restaurant training should be your top priority; you cannot make an impact of great service with inadequate service. Your management staff oversees the entire restaurant crew and therefore is very important the managers are consistent with day-to-day operations. When hiring employees is very important to screen your applicants. Do the applicants have prior experience? The other flip side of the coin is just because the applicant does not have experience does not mean they might be a great fit, example; in their past employment the applicant may have been an exemplary employee, the learning aspect should be greater with that particular applicant.
  5. Systems inconsistency and execution –You should make a huge impact in this area if your employees are familiar with your rules and policies and procedures. Most restaurant systems are developed universally. Your managers should know the policies and procedures like the back of their hand and they should be held to a higher standard. You expect management to possess the owner’s mentality. You cannot hold the crew responsible if managers are inconsistent from shift to shift…A compliment goes a long way. Also, management should oversee the crew spotting infractions and correct them on the go. Another area to be concerned about is execution. How consistent are the cooks and servers? do they know your menu inside and out by memory? What about time and temperature and plating. hot food hot and cold food cold and the timing of food.
  6. Inventory inconsistency (food cost) – Are inventories done consistently? Food cost percentage is between 28% to 35%. Fast food restaurants have a food cost at the lower end of the national average and high-end restaurants will have a food cost between 30% to 35% or higher and this is associated with a higher cost of menu items. If your inventory is within a good food cost you should do inventories monthly. On the other hand, if your food cost is too high you should think about doing inventory weekly, it’s a pain in the butt to do inventory weekly. Put it this way it’s better to catch a bad food cost quickly than waiting for a long period of time and losing more revenue, the longer you wait the more cash you lose. if your food cost is higher than normal you should do your inventory again or look for inconsistencies. Also, when conducting the food cost counting it’s better to have two sets of eyes, meaning one counter and one recorder you will have a more accurate count doing this way Employee theft is concerning, are you losing large ticket items. Are managers present around high theft areas? Is your back door looked preventing possible theft? Do you have a policy about having bags, backpacks, and women’s purses near high-impact areas such, as, in the kitchen? You should have a designated area for those particular items away from those areas where food can be concealed. 70% or more is directly related to high food costs, whether it is employee theft or poor employee training.
  7. Labor cost – A healthy percentage of labor costs guideline varies by industry and your particular restaurant’s business model. Most restaurants aim for labor cost percentage somewhere between 25%-35% of sales, but that goal may vary by restaurant industry segment:
  1. 25%: quick-service restaurants with less specialized labor and faster customer transactions
  2. 25-30%: casual dining, depending on the menu and methods of service
  3. 30-35%: fine dining, depending on in-house food production and service components

While these industry benchmarks can be helpful to indicate your performance in the industry, every restaurant has different challenges, strengths, and sticking points.

8. Use of restaurant forms and checklist These resources are the best option to get your restaurant organized and ready for the rush times. There are kitchen forms, server forms, manager forms, and more. Clearly, these resources can help with your bottom line and customer service.

9. Menu – The menu items and layout are very important when it comes to your guest, you need to create your menu based on the type of restaurant and location and what your guest is hungry for, for example if you were a Mexican restaurant then you would sell Mexican food.  The menu layout needs to be eye-catching and appealing.

Resources for Restaurants

Resources for Restaurants
Information is what most people search for on the internet. If you are a restaurant it could be a daily routine.
Why use a restaurant consultant?
They provide an un-bias opinion on your business and financial’s. Overall their objective is to improve your restaurant’s daily operations and bottom line. Using a restaurant consultant will help pinpoint areas of opportunity and areas of strength.
The other reason to utilize restaurant consultants is it would be a lot cheaper, than losing a considerable amount of money on a daily basis. Just in food and labor, which can use up to 60 to 65% of your sales, and could cost you dearly when it hits your wallet. lt may cost you dearly when it hits your wallet.
Using restaurant forms in your restaurant may help improve daily operations and increase your bottom line. As long management and employees use the forms consistently and correctly, your restaurant will benefit.
Workplace Wizards Restaurant Consulting and More
Restaurant Forms, Checklists, Spreadsheets and training manuals.

Restaurant Manager

Restaurant Manager



My name is Jeffrey, I am now a restaurant consultant/owner of Workplace Wizards Restaurant Consulting and More. I spent many years working my way up the ladder. Started off as a saute cook, ending in running 2 restaurants simultaneously. In 2012, I decided enough was enough I needed to work for myself.

So many people dream about owning their own business. I wanted to be a Restaurant Consultant. I have the experience and the training that qualifies for me for the restaurant consultant position. I was employed by corporate restaurants where systems are in place and actually work. Restaurant forms are in place in most restaurants. Restaurant managers are typically in charge of implementing and monitoring the use of restaurant forms.

There are restaurant forms to organize restaurants and its shifts.  There are also restaurant forms for cash control along with forms for customer service for the front and the back of house. The use of these valuable restaurant forms will certainly boost your restaurants bottom line as long as your managers do the right things for the right reasons.

I have been in many restaurants where I never seen a restaurant manager in site. I personally think a manager who touches tables in the dinning room will form some idea if that customer at that table is satisfied or not.

The restaurant manager will typically visit a table checking for food quality and great customer service. Once a dissatisfied restaurant customer reaches the front registers, most likely they will not revisit that restaurant. Fix the issue at the table before the customer leaves the restaurant.

Do you want repeat business for your restaurant? Train your employees per your policies and procedures. Make sure the restaurant manager manages and monitors the customers and the employees. The restaurant manager need to take personal interest in the restaurant’s success. Pretend that you are the restaurant owner – “take personal ownership”.

Of course, there are many reasons why restaurants fail, That’s another story. https://www.workplacewizards.com/help-my-restaurant-is-failing/

For more great tips or information on how to put your restaurant on the map to success visit https://www.workplacewizards.com.

To view or purchase our valuable restaurant forms visit https://www.workplacewizards.com/restaurant-forms/

Workplace Wizards Restaurant Consulting and More


Toll-Free (800) 753-0657 Local (717) 475-6865

Restaurant Food Service Forms

Restaurant Food Service Forms
How is your restaurant or bar performing? Want to pinpoint the issues, then implement solutions? Don’t wait until it’s too late. Speak to Jeff today. A decrease in sales and/or increased customer complaints will affect your restaurant or bar in a negative way.
Restaurant Food Service Forms are a great way to organize your restaurant towards success. Think about it, the use of restaurant forms will help increase sales and decrease customer complaints. Getting organized before and after peak periods will certainly create repeat business.
Not all restaurant’s experience, sales issues, or customer complaint issues. These particular restaurants want to improve customer service or just improve operations.
Whatever the issues are getting a second opinion or a fresh set of eyes may take what it needs to address the issues with fixable solutions.
Call us today for your free restaurant consultation. You have nothing to lose and everything to gain.
Workplace Wizards Restaurant Consulting
Toll-free (800) 753-0657

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