No matter the type of restaurant that you run, the simple truth is that challenges in the food industry never leave. Restaurant challenges can take many forms, from people to supply, but they always seem to come at the worst time. Orders miss the one thing you need most, people call out on the busiest days, and equipment fails — fortunately, there’s a way to solve each problem that we face.
Today, we’re examining common restaurant problems and breaking down how to solve them — let’s dive right in.
Common Restaurant Challenges and How to Overcome Them
Common restaurant challenges generally take on of a handful of forms:
- People problems
- Food challenges
- Safety issues
Each shows itself in a different way and will need to be treated differently because of this. Luckily, each issue has a solution — you just have to take the time to address it properly.
High Employee Turnover
High employee turnover is an incredibly common issue in restaurants around the world. In part, this is due to the nature of the job — it’s difficult, its hours are often rough, and it’s seen as a temporary job by many for that very reason. But another major part of employee turnover comes from the environment that you create and how well you pay people to be in it.
Put simply, restaurants tend to not be enjoyable work for all but the most dedicated of people. They can also breed a highly toxic environment if not properly managed, leading to a constant cycle of frustration and dissatisfaction. So, what’s the solution?
Ensure that your staff feels heard and is able to communicate, pay them competitively, and treat them like people. While this may seem obvious to some, the reality is that to many others, it’s the first time they’ve heard this advice. If you struggle with high turnover, consider whether it’s because of pay or the environment in which employees are expected to work.
Rising Food Costs
Food costs have risen year over year since the pandemic, that’s no secret. Everything that we use has gotten more expensive to some degree, from produce to poultry. While this has created an obvious barrier to some restaurants, the unfortunate reality is that restaurants as a whole have two clear solutions to this issue — raise the cost of menu items, or change them.
One such example that’s impacted countless breakfast joints around the States are eggs. Since 2019, they’ve over doubled in price (with some areas seeing a near 4x increase in price) — but a breakfast diner can’t just stop serving eggs. So, the solution? All menu prices rise to accommodate the increase in price for their most used ingredient.
Other restaurants have seen an increase in the price of chicken and beef, leading them to find other alternatives. Some restaurants have switched to meat alternatives like Beyond, while others have altered their recipes or the cuts that they use.
Maintaining Consistent Quality
Consistency is a constant struggle for even the best of restaurants. Once recipes have been established and portions nailed down, it all comes down to training. Even the best chefs will take time to adjust and may find difficulty with one specific dish or technique — the solution is training. When they’re doing well, train them on a new technique or dish; when they’re doing poorly, train them on the things they need to improve.
Managing Customer Expectations
Customer expectations are a tricky beast to manage. We always want them to have high expectations because of past experiences, but we also don’t want them to feel deceived. Ultimately, this all ties back into consistent quality and, in turn, training. By ensuring that every plate and drink goes out identical to every other, we allow customers to build their own expectations — but keep them grounded in reality.
In other words, provide consistent service, and customer expectations will be where they need to be.
Should you find a guest with excessive expectations (e.g., table service in a fast-casual restaurant), don’t be afraid to gently correct them. While customer service is the name of the game, you shouldn’t break your back to carry them where they want to go.
Health and Safety Compliance
Health and safety compliance is arguably the most important part of our job in food service. Our guests put their health into our hands each time they eat with us, and that’s an incredible amount of trust to have placed upon you. Because of this, many chefs take following health and safety regulations very seriously. After all, those who don’t tend to not stay in the industry very long.
With that said, though, there are ways to ensure that you remain in compliance with local regulations. Namely, familiarize yourself with health, safety, and labor laws for your area. Once you know them by heart, get to know your local inspectors; often, they’ll have guidance to offer for those who ask. Beyond that, though, you’re going to work with them a lot — so being friendly with them can’t hurt.
Financial Challenges in the Food Industry
Beyond the restaurant challenges mentioned above, there are two common financial issues that restaurants will face — high operating costs and poor cash flow.
High Operating Costs
High operating costs are a sign that something has gone wrong in your chain of command. Either inventory and waste are getting out of hand, or labor has blown up. The former requires that you audit your inventory and ensure that your kitchen isn’t wasting more food than expected. The latter, on the other hand, requires a bit more time.
If labor is the issue, you’ll need to do a bit of experimentation to see how you can cut down on labor without hamstringing your operations. More often than not, this leads to an “early off” system for chefs and FoH to be cut early when not needed. Other times, it leads to downsizing in staff or a change in hours — but it can’t be left unaddressed.
Cash Flow Issues
Cash flow issues almost always stem from a lack of capital to sustain the restaurant. Generally, you’ll want to have a “war chest” locked away with enough money to easily pay for labor, rent, utilities, maintenance, and food costs for six months to a year. If you’re having to borrow money or short suppliers, it’s time to look at downsizing and restructuring your business.
Operational Challenges in Restaurants
Restaurants can also face operational issues, such as inventory hiccups and technological gaps. Let’s see how to address those, shall we?
Inventory Management
Inventory management is a beast of a task that you simply cannot avoid in restaurants. More often than not, you’ll have a minimum of four suppliers between produce, protein, alcohol, and dry goods, and that can get out of hand very quickly. If you’re noticing an uptick in ordering costs or an overabundance of stored goods, there’s a simple solution — par lists.
Build a list that shows where every single item that you order should go, and how many you should have on hand at any given point. From there, flesh it out with suggestions on alternatives should something run out, contact information for reps, and ordering hours.
Inefficient Technology Solutions
While technology is intended to make our lives easier, it can often have the opposite effect. If you’ve recently introduced new technology, you may find that it can create some hiccups. Servers can go down, cables can fail, and people can forget to plug things in — what matters is how you handle it and train your employees appropriately, instead of leaving them to figure it out.
Marketing Challenges in the Restaurant Industry
Standing Out in a Crowded Market
Every restaurant nowadays has social media, and many more have email lists and newsletters galore. In order to stand out in your marketing, you need to do something different.
While the way that you approach it is up to you, as it should reflect your business, a great place to start is with photography. Don’t be yet another restaurant with blurry photos of poorly-plated food; take the time to plate things up pretty and take multiple high-quality pictures. Once you’ve got a good library of media, get them on social media and start a conversation.
And conversation is important, because it helps stand out. Once you have visual appeal, you need engagement — which means you need to interact with your community while it grows. Post videos, respond to comments, and host events whenever possible; you’ll see the difference.
Attracting and Retaining Local Customers
Local customers are great, but local regulars are the name of the game in restaurants. Regulars are the lifeblood of small businesses everywhere, so ensuring that you attract and retain locals is crucial to your long-term success. The best way to do this is with consistent, high quality food and service.
Beyond that, though, hosting events and finding reasons to get the community out and in your restaurant is the best way to build a local following. Support local charities, host events for local groups and sporting teams, or throw watch parties for major sporting events — what matters is that you’re doing something.
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