Posts Tagged ‘profitability and growth’

3 Advantages to Developing Your Own Restaurant Operations Manual

July 2, 2014

It is neither easy nor quick to develop a system or operations manual for your restaurant. That said, taking the time to do so has a number of advantages and can be a critical factor in the long-term success and profitability of your restaurant. Here are three of the main areas in which the development of an operational manual will assist your overall efforts to grow a thriving restaurant business.

Developing an Operational Manual Helps Your Restaurant Get Out of the Unprofitable Start-Up Phase

Developing a system of checklists, forms and procedures early on in your business drastically reduces the amount of disorganization and chaos that occurs during the start-up phase of any restaurant. It also has the added benefit of allowing you to evaluate virtually every task and activity that takes place in your restaurant. Many find that documenting their systems and operating procedures sheds light on hidden errors and redundancies, as well as provides opportunities for increased productivity and profitability. The sooner you can put a system in place that will allow the average person to duplicate your desired result, the sooner your restaurant can grow from a struggling start-up into a successful business.

Solid Operational Systems Attract and Keep Quality People

One of the primary benefits of implementing operational systems in your restaurant is the ability to create consistency and predictability for both your employees and your customers. Having procedures and systems in place helps to attract and retain customers because they create a predictable and consistent experience that customers can count on having time and again.

Systems, procedures and policies help attract and keep quality employees because they let staff know what to expect from the get-go. If done correctly, these systems provide employees with the information and training they need to be successful at their jobs and achieve the standard of service quality you have set. Even better, when your employees are able to run your restaurant successfully by following the systems you have created, you have now ensured that your restaurant can run without you. This means more free time to focus on growing other aspects of your business and more time for a life outside the restaurant!

Having a Restaurant System in Place Enhances Value and Ability to Obtain Capital

An additional benefit of developing a system and operational manual for your restaurant is that it enhances both the value of your business to a prospective buyer (a buyer’s first question is often “What’s going to happen when the owner is gone?”) as well as your ability to obtain capital for your restaurant. For instance, if you want to expand your concept, having systems will enhance your ability to get money, manage growth and explore new opportunities while ensuring that your existing endeavors continue to function smoothly.

The development of a comprehensive operational plan for your restaurant is no small undertaking and will be an on-going process that you will continually refine over the course of your ownership of a restaurant business. There are many categories in this operational plan for which you will have to develop checklists, policies and procedures and the thought of documenting all of your restaurant’s functions can feel overwhelming. Start by working on the categories that have the most direct impact on your guests’ experiences and work your way along from there. By developing and documenting your unique business system, you increase your opportunity to take your business to the next level, expand your concept and ensure the long-term success of your restaurant. If you need help, there are a number of resources available.