While we don’t want to promote doom and gloom, a little reality is necessary on occasion, and sometimes this comes in the form of being aware of potential threats to your business. Check out the article below to make sure you know what you’re up against, and that you’re prepared for anything the industry throws your way.
Good Old Competition
Starting with the most basic and obvious, competition is a threat. Don’t underestimate it. Make sure you’re ready to stand against the competition by utilizing social media, maintaining loyal customers, keeping a consistent and regular staff, and serving the highest quality products. Building a loyal following is the most guaranteed way to keep competition at bay. You don’t need to do the most to be the best, you just need to figure out what’s best for your business and try to do that as efficiently as you can.
Minimum Wage/Pay Argument
You want to make sure you’re paying your employees enough, which can be difficult in the climate of rising wages. Mandatory wage increases may affect your profit margin, but trying to fight against these increases will tarnish your reputation and put a sour taste in the mouths of your employees. As far as the effect on your staff, no matter how invested you and your employees are, wage rises will generally equate to fewer benefits offered to employees. Increase in pay may lead to cut hours, fewer employees, and a hiring freeze.
Increase in Food Costs
Many different factors can affect food prices, and globalization and climate change are both important things to consider. Climate change can cause an increase in food costs because it can dictate the availability and delivery of certain crops. Try to start sourcing food as locally as you can to keep costs as stable as possible. Do your part to contribute to the health of our environment by making sure your restaurant recycles and uses sustainable products.
Food Trends
Is your restaurant “trendy”? While trendy can be great for right now, 10 years, or even 10 months, down the road food trends will have changed. While poke is currently a must-have, in a few years it may not be. Make sure that your menu is versatile and stable enough to stand up to the test of time.
The industry is ever changing, as is the economy. There are more things to consider beyond this list, but we hope we’ve opened the eyes of new restaurant owners to potential pitfalls and dangers down the road.
