Financial red alerts can quickly lead to closure and bankruptcy. The restaurant industry is one where even the slightest red alert going unresolved can lead to disaster. Restaurant profit margins are often very tight, so it can be difficult to overcome some of the financial issues if they persist too long.
Average bar revenue varies from one establishment to the next, but there's one thing that can boost average bar profit margins - proper management. Bar sales offer a higher profit margin than food sales at restaurants, and there’s little overhead involved in the operation.
If you want to know how to make a bar successful, there are a few ways to increase profit.
The catering industry is worth $52.3 billion, and 64% of that goes to a restaurant catering. People are now spending more money on restaurants than groceries, so that figure will only increase in the coming years.
If you haven’t done so already, now is the time to add catering to your restaurant’s list of services.
Some restaurant owners don’t know how to control the cost of food properly. They put prices on entrees and appetizers, don’t track profit margins correctly and have no clue about the whole food cost control thing.
But wholesale prices are rising. Tariffs are also hitting some foods, especially avocados, very hard. If you don’t have controlled spoilage measures in place, it’s time to start implementing some.
It may not be the most exciting part of the restaurant planning process, but it’s a vital one: insurance. Every restaurant needs insurance, and this is one area you do not want to skimp on.
Restaurant insurance will protect your business from a wide range of issues, including broken equipment and liability lawsuits. But what type of insurance will you need? How much will it cost? How can you compare insurance companies?
Restaurants may be in every city, but unless you’ve been in the business, you probably overestimate how profitable a restaurant could be. Sure, a restaurant may be packed, but that doesn’t mean that they’re making money.
In fact, there are a lot of myths about owning a restaurant, average restaurant profit and the percentage of restaurants that fail. Which of them can easily be debunked?