News flash: Consumers do not feel super-excited about spending money with you right now.
That’s not so much because of the current economy, but because of their concern about the future economy.
One set of numbers I never thought I’d look at would be the University of Michigan Surveys of Consumers, which I understand to be the mother of all consumer sentiment research.
The survey shows that, across all demographics and political lines, people currently agree on only one thing: they’re concerned about inflation and the possibility of losing their job.
In that kind of flat market—when guests are counting every dollar and dissecting every restaurant experience—do you still just do the same old thing?
More Guests, More Profit
In our business, people are able to live fantastic lives only knowing two or three of the 10 things you really need to know. But they then become stuck when they don’t tap into those new skills and understanding.
As a result, they often replace ownership hours worked for actual output—spending that sixth and seventh day at work when they could be doing something else.
In a way, that has created my business—because I come in and put in all the missing pieces.
The whole key to growing guest count and profit now involves mastering the areas that do not come naturally to you, to realize economies of scale.
You provide better experiences for your guests. You rely on business practices behind the scenes and develop people. Then turn that revenue into a more-than-acceptable level of profit.
People I Have Met Lately
Recently, I have met a lot of operators I can help, who:
- Can raise revenue and management capability and retention over their tens of millions of dollars of volume and critically acclaimed concepts. They have had to figure out leadership and systems by themselves because they grew with the company, without mentors or role models to tell them what the industry had already figured out.
- Will only be able to build more restaurants when they stop feeling frustrated since their managers run shifts but don’t seem to be able to lead or inspire. Raising up these managers will mean they can grow with confidence.
- No longer think their profit level works just because it has always been that way, because since they’ve never compared theirs to other similar operations. They’ve started to think about retirement and have been jolted by reality when realizing the valuation they want must be supported by higher profits.
- Figured out that a service and menu upgrade and a compelling effort to boost positive reviews will raise their Google and Yelp scores—ones that currently stop people from dining in their restaurants.
Just Pick One Thing
In a flat market, more than ever you must master the areas that do not come naturally to you. Then things really take off.
What one piece could you tackle—something that might at first seem impossible in a flat market—that would significantly improve your business?
