A Tough Business…..

There are few small businesses that are easy and those with a lot of competition add an extra dimension of difficulty. Restaurants are among the most difficult for several reasons. The facility and health requirements are constant demands, and by that I mean a place can be all set to go for the day and the/a stove goes out. That can create all sorts of turmoil.  Health inspectors can show up unexpectedly and maybe the temperature for the hot water in the sinks isn’t correct. It may seem like a small thing, but can cause problems.

The simple fact is restaurants have to price within a narrow band of similar restaurants and managing inventory is difficult, especially if you want to promote “fresh”. That aspect means potential for spoilage which equals higher operational costs. Labor is of course a huge headache because again that is one of the major costs and turnover is common. Hiring good staff can pose problems, and keeping them even more so. Anyone who has ever spent time as a waitress/waiter knows this and anyone who experiences poor service does, too.

We have a local restaurant/lounge which is attempting to “transform” and it will be interesting to see what happens. The new manager is quite pleasant and means well, but there are a number of obstacles to overcome. One of the aspects is potentially mutually exclusive target markets. There may not be as much disparity as initially appears, so I will hold off judgment until I see how things progress. The menu at the moment is quite limited which is generally a good idea going back to inventory and quality management. Of the four items our group sampled, three were good and one was questionable. Again, the actual “transformation” will include new menu items, but having something that works well in the meantime is a basic step. I always hope the best when someone has a vision, is willing to take a risk, and works hard. We shall see.

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