• How Often Should You Change Your Prices?

    9/3/13  |  By: Doug
    Every restaurant that seeks to maximize its profitability ought to think carefully about its pricing strategy.   In particular, they need to think about how often they plan to change their prices.   There are pros and cons to frequent price changes, so restaurants need to consider both sides of the equation before determining how frequently they’ll plan to change their prices. Arguments For Frequent Price Changes: 1    Frequent changes allow...
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  • Restaurant Equipment Auctions Can Save You Money

    12/20/12  |  By: Doug
    Equipment costs can be very expensive for every restaurant owner, large or small. By taking the time to participate in restaurant equipment auctions, you can save a substantial amount of money on the professional kitchen equipment you need the most. The High Cost of New Restaurant Equipment New restaurant owners are often overwhelmed by the price of new kitchen equipment. Professional restaurant equipment such as ovens, grills, coolers and freezers are all very costly expenses of...
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  • How to Calculate Food Cost Percent

    12/12/12  |  By: Doug
    There are three basic food cost calculations that every restaurant should be using. Knowing how to calculate food cost percent will help you increase profit, become more efficient and better control your business from the bottom up. Below, we will examine Potential, Maximum Allowable and Actual Food Costs. Actual Food Cost Calculate Actual Food Cost by adding the cost of opening inventory and purchases, then subtracting the cost of remaining inventory and dividing that number by...
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  • How to Choose a Great Real Estate Agent For Your Restaurant

    5/16/13  |  By: Doug
    You own a restaurant and business is booming. It’s time to expand and open another restaurant at another site. You know that finding the right location can mean the difference between success and failure. But did you know that you can hire a real estate agent to help you find that perfect site, and that you can do it without spending a penny? Using a real estate agent to help find and lease a new location may be the single best investment you’ll ever make. After all, how...
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  • Finding Franchise Restaurants for Sale, Part II

    3/4/13  |  By: Doug
    Finding a Candidate Once you have settled on a concept or two, take advantage of the power of the Internet. As you begin the process of finding an ideal candidate, you can search for franchise restaurants for sale and learn a lot simply by using a search engine. Unless you are just tied to a certain geographic location, a national search is very educational and indicates general market trends.  You many wish to contact a local and/or a national business broker that specializes...
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  • Is Leasing Restaurant Equipment a Good Idea?

    4/18/13  |  By: Doug
    Whether it’s fine dining or casual, a restaurant requires a lot of equipment. If you own a restaurant, you will need to spend substantial money on a variety of equipment, including chairs, tables, grills, dishes and coffee makers. Instead of spending thousands of dollars on restaurant equipment, you may wish to consider leasing it. Leasing restaurant equipment can substantially reduce the upfront cost of opening a restaurant. Here are some issues to consider when thinking of leasing...
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  • Five Pricing Mistakes You Must Avoid

    2/26/13  |  By: Doug
    Pricing the items on your menu involves maintaining a delicate balance between two critical objectives:  Providing your patrons a sense of value  Maximizing your gross profit per customer While there is no single pricing strategy that assures you will achieve both objectives, you can approach that goal by avoiding some of these very common mistakes. Pricing Comparable Items too High There are likely some items on your menu similar to or identical to...
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  • Creating a Small Restaurant Business Plan, Part VI

    1/18/13  |  By: Doug
    Establishing Financial Goals Financial planning is not the most exciting part of starting a new restaurant, but it is something that we all must do. Each component of your small restaurant business plan feeds into your financial goals. When you have finished the plan, your financial goals should show a profit. Moreover, the profit must be large enough to provide a reasonable return on the capital invested in your small restaurant. The Initial Investment The first item that we...
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