4 Ways to Increase the Profits of Your Food Business
Your food business could be anything from a hotdog van to a full-blown restaurant. Either way, this is a business where it’s hard to make a profit and a business that requires a lot of man-hours to make it work.
If you’re prepared to think outside the box to make it work, this is the guide for you. We’re going to go through four great ways to start increasing the profits of your food business.
Buy Fresh Not Frozen
Frozen food is cheaper and more affordable, which is why a lot of businesses decide to opt for it. But there’s a real difference in the quality of the food. You’re not going to bring in many regular customers if you’re buying frozen instead of fresh.
Most people are discerning about the food they eat. People will be willing to pay more if their dish tantalizes their taste buds.
Start investing in quality food.
Tailor Your Equipment to Your Food
It’s unbelievable how many restaurants will invest in the latest cookers and the most expensive ovens when they’re serving a low-income community.
If you’re making basic dishes, you don’t need to have the best of the best. A basic dish is a basic dish and a state-of-the-art cooker is not going to change that.
It’s important for any business to focus on having the right equipment, but don’t blow your budget when it’s not translating to more customers on the other side.
Are Your Staff ALL Necessary?
Staffing costs are some of the biggest expenses a restaurant will ever face. You should only employ staff members when they’re contributing their weight to the business.
For example, do you run a restaurant and find that for the majority of the shift your waiters are standing around doing nothing? It’s time to cut them because you’re paying them for nothing.
Ever hear that term, “Too many cooks in the kitchen spoil the broth.”?
This applies to your business. Only employ those who’re working solidly for a full shift. Anything less and you’re not getting what you’re paying for.
Change Your Prices
Pricing is perhaps the most controversial issue in the food business. Everyone wants affordable food. Unless you’re catering to rich people, you need to be mindful of your customer’s wallets.
Most restaurant owners are scared of raising their prices because their competitors aren’t going to do the same. The truth is that this hurts everyone because then everyone loses money because as costs increase prices don’t. It’s probably the number one reason why food businesses fail.
You need to get away from the idea that food is about the price you charge. It’s about the value of the experience you provide.
Regular customers who love your place aren’t going to leave because you added a dollar onto the price of your Soup of the Day.
Focus on offering a quality experience and you’re not going to lose customers over that. Remember that people go out to eat because they want something special.
You’re not running a McDonald’s you’re running a food business.
Don’t be afraid to raise your prices if you believe your experience warrants it. It’s hard work to get success, but if you experiment with your prices you’ll find the right balance.
Last Word – It’s All About Experimentation
The food business is a tricky one and you have to be prepared to experiment. Not everything is going to work out. The number one piece of advice before implementing any of the tips within this guide is to know your customer.
Understand their demographic and what they expect when they visit you. This will direct you to which changes they’ll stand for and which ones they won’t.
But, again, it’s all about experimentation.
What have you tried to maximize the profits of your food business?