While there are a whole host of challenges typically associated with running a restaurant business, those that come seasonally have the ability to complicate matters even further.
Even restaurants that have are well-established must deal with fluctuations that occur cyclically, such as availability of ingredients, consumer demand and operational costs. To plan in advance for these challenges, business owners must use accounting in Coral Gables to help them project cashflow accurately, adjust staffing levels accordingly, and expertly manage inventory.
If you’re a new restaurant owner, here are some effective strategies for managing seasonal fluctuations:
Ensure proper bookkeeping and financial planning
Seasonal changes can have less of an impact on a restaurant when bookkeeping and proper financial planning is implemented:
- Budgeting and forecasting – have a budget for peak seasons, and another for off-peak, and use market trends and historical data to project requirements for cashflow.
- Setting aside of a financial reserve – so that you don’t struggle to cover the costs of operations during slower periods, it’s best to put a percentage of revenue from peak periods to one side.
- Controlling the cost of overheads – keep a close eye on financial records so that inefficiencies in operations can be identified and improved upon.
Engineer menu’s strategically
By creating menu’s according to seasonal preferences, restaurants can entice both new and existing customers without having to raise costs significantly:
- Adjust menu’s seasonally – when certain ingredients are in abundance and affordable, design menus to take advantage of these, and rotate them.
Manage inventory effectively
Meeting demand during peak timings while reducing waste when times are slower, is only achievable through proper inventory management:
- Seasonal ordering patterns – by looking at projected demand and historical data, you can set and adjust reordering levels accordingly.
- Storage and monitoring – to keep waste down and product quality up, put first-in, first-out protocols in place along with regular cycle counting. Software and automated stock alerts can also help with inventory management.
Develop seasonal marketing campaigns
When periods are usually slow for restaurants, marketing targeted at particular seasons can boost traffic flow and attract new streams of revenue:
- Seasonal marketing – in line with local activities and seasonal events, develop targeted promotional campaigns to incentivize diners during slow periods of the year.
- Customer retention strategies – with the help of customer data, create personalized campaigns at certain times of the year, and put a reward program in place all-year round.
Be flexible operationally
Use the following techniques to control costs while still giving customers a great experience:
- Flexible staffing – with the help of flexible scheduling or bonuses for key employees, you can encourage them to cover multiple roles within the team during quiet periods.
- Modified operating hours – try extending weekend hours during the summertime, or offering discounts on deliveries during the winter. You may also wish to limit some items on the menu, or close of certain dining areas.
Diversify revenue streams
During seasonal downturns, restauranteurs with other sources of revenue may find it easier to offset their losses:
- Events and catering – curate special menus and packages for corporate functions and seasonal celebrations.
- Delivery services and online sales – an online ordering system is a must for most modern restaurants, as are delivery partnerships; both of which offer new ways for customers to engage with a restaurant.
By engaging early on with professional restaurant tax preparation in Coral Gables, and taking a proactive approach to managing seasonal fluctuations, you’ll be in a much stronger position when it comes to stabilizing your restaurant’s cashflow, reducing financial losses, and optimizing profitability.
Whether through adjustments to the way your restaurant operates, updates to seasonal menu’s, or new streams of revenue, surviving seasonal fluctuations can become an opportunity for growth, rather than just a fight for life.
