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7 New Restaurant Owner Mistakes & How to Avoid Them


In Part 2 of a series for new independent and franchise operators, we’re taking a look at some common mistakes that are easily made, and what you can do to avoid them in your new restaurant.

1. Poor customer service

The majority of first-time guests will give you exactly one chance, so what are you doing with that chance? Taking your customers for granted is no way to grow a new business.

 

2. No recognizable brand

Every time a guest calls your restaurant, visits your website, or walks through your front door, you have a new opportunity to strengthen a customer relationship and build your brand. The only way to control your guests’ impressions of your business is to design the experience yourself.

 

3. Not collecting customer data

If you deliver, the customer database is the heart of your point of sale system. With the proliferation of loyalty programs, even take-out and table service restaurants are profiting from building and marketing to a database of customers. If you aren’t collecting this data, you’re missing out on a serious growth driver.

 

4. Keeping quiet

If you aren’t talking, how can you expect anyone to listen? Social media can be your best friend, especially if you’re a new business looking for clientele. If you are not actively incorporating social media into your marketing strategy, chances are you are missing a low-cost opportunity to grow your business. Used effectively, social media can be invaluable. 

Read more about how specific platforms can be used by your pizzeria:

 

5. Not watching cash flow

Make sure you have enough cash to cover big expenses, like food orders and payroll, every week, along with all the other bills that come with a restaurant. If your checking account starts running into the red, it is time to look for ways to save money at your restaurant.

 

6. Making marketing mistakes

Marketing your restaurant is not unlike a science experiment: Based on your understanding of your market, your product, and what’s worked for you in the past, you build a hypothesis—and then you put it to the test, trying different campaigns and offers, different methods, and measuring the response. New operators often under-invest in marketing, or make the mistake of putting all their eggs in one basket. A couple of the more common mistakes:

 

Not rewardingloyal customers

A loyalty program drives order frequency with your best customers, and encourages new customers to try you again. By not offering some kind of loyalty or reward program, you may be missing out on a lot of business.

 

Not keeping in touch

Everyone appreciates the personal touch. A newsletter or social media conversation can help keep your brand top of mind with your customers.

You’re going to learn as you go, but by using your own business savvy, common sense, and these tips, you can sidestep some common mistakes and get yourself off to a successful start.

 


Posted on Sun, Feb 16, 2014 @ 10:02 AM.
Updated on May 11, 2021 @ 9:19 PM PST.


Tags: Restaurant Management, Restaurant Marketing

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