1. First check the following indicators against previous results to discover unfavorable trends:
•
Total dollar sales
Sales growth percentage
Cash flow
Earnings
Check average
Customer counts
Number of customer suggestions received
Number of customer complaints received
Employees absentee records
Employee turnover rate
Average employment longevity of quality Employees
Number of employee suggestions received
Number of employee complaints received
2. You will know that your restaurant is in trouble when:
You don't see any new customers
Your best customers don't come in as often
Your sales are flat or declining
Your customer base is shrinking
Your best employees are leaving (good wait-servers are the first to go)
No quality applicants respond to your want ads
Your discount coupon business is increasing in relation to your regular business
You need a price increase to maintain your current level of income
Nearby competitors offer your customers better value, better food, better service, greater convenience, and/or a more attractive dining atmosphere
You can't afford to repair your equipment, or spruce up your facility
You can't afford to provide the staff time to thoroughly houseclean the kitchen
Long time suppliers demand COD payments
Charitable groups stop asking you for contributions
little league teams don't want your restaurant as a sponsor
Your neighborhood is deteriorating
A road construction project restricts access into your driveway
Your energy level and/or interest level in the business has declined
You are spending more time in the office than you do in the customer areas
You are spending less time at the restaurant than you did in the past.
The business isn't fun anymore.
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