Certainly, the Coronavirus has highly impacted the restaurant industry. Moreover all businesses are facing a setback due to the Coronavirus crisis. In addition, some businesses have even been closed for the time being. Subsequently governments have also issued strict orders regarding people’s health. That is to say, they have banned dining in. In other words, they have only allowed takeaways and deliveries. However, due to this, restaurants have to suffer a severe decrease in the revenue. At this time, restaurants must not lose their sales. Therefore they should try practicing ways that shall help them lower costs.
Tips and measures to Increase Revenue & Lower Costs during the Coronavirus Crisis
In this article, the Teranoid team has come up with the ways that shall help restaurants increase revenue and lower costs while following the government orders during this time of Crisis.
- Keep track of the Sales to effectively implement Lower Costs
First and foremost restaurants should realize the intensity of the crisis. That is to say, restaurant owners should understand the panic among the people. In short, only then they shall be able to plan their strategies accordingly. Moreover, it is through this understanding of the situation that restaurants will be able to know their numbers as well. That is to say, they shall be able to know how the business is progressing or how much it is decreasing in its revenue. Therefore for this purpose, collect the data from the POS System. Consequently, see how much money you are earning during the Coronavirus crisis. Further, you should also find out the money that you need to run the business.
- Lower Costs by Making the most use of Inventory
Check the items that you already have in the inventory and pantry. That is to say, see the products that you already have. Consequently, you should calculate the value of the products you have in hand. As a result, these items can be utilized according to the current menu. Moreover, this will help restaurants with expenditure. That is to say, they can save their expenses by using the items already available in the inventory. Further, when these products are finished, you can re-order the products based on the number of customer demand. In other words, if the customers are low in number, restaurants can place their orders accordingly.
- Select the Menu Items according to the current situation
Certainly, restaurants need to create a different and limited menu for this current situation. That is to say, you should try to reduce the costs by decreasing menu items. Further, the menu items can easily be decreased because of fewer customers. Moreover, it will cost you less when it comes to ordering inventory. That is to say, you will not have to pay large amounts for excessive inventories. Therefore you can see which menu items can be prepared using the products available in the inventory. Moreover make a list of the items that are low on cost. Consequently plan your Restaurant’s menu accordingly during the Coronavirus Crisis. As a result, you will be able to increase your revenue while decreasing on your costs. Moreover if restaurants have stock of fresh items, for example, fruits and vegetables, they should think of ways to preserve these items for future use.
- Lower Costs by Discussing the Current Situation with Your Vendors
Discuss the Coronavirus situation with the vendors. That is to say, talk to them about how the current situation is affecting your finances. Also, discuss the numbers you calculated through your POS System. Further you should ask them if they could delay or reduce the payments. As a result, vendors might be able to help you financially or give credit. Further they might also give you discounts depending on the current state situation.
- Reduce Working Hours
Many restaurants are reducing their working hours, most importantly to reduce their expenses. Further because restaurants are focusing on delivering food, it is easier for them to restrict their timings. However this situation will impact the staff as well. That is to say, this will directly impact the wages of the staff members. Therefore be honest with the staff as well. That is to say, inform them of the current situation and how you are low on profit. So, ask the employees if can cope up with the situation financially.