Name: Syed Amir Hamza Bukhari

Roll no: 2017-BBA-100

Strategic Management
Restaurants Business
Fast food restaurants, along with fast-casual restaurants, make up a segment of the restaurant industry know as
Quick Service Restaurants (QSR). This segment accounts for more than 50 percent of sales in the entire
restaurant sector. While Quick Service was once dominated by fast food, fast casual continues to gain market
share.

Factors that are affecting restaurants businesses

Labor Costs

Are your employees abusing your time clock? This is worth a look every pay day. You want to make sure
they’re clocking in and out when they are supposed to so you aren’t overspending on payroll.

Employee Theft

You may not want to think about it, but many restaurants have high theft rates among their employees. (tweet
this). Staff see an easy meal and take advantage of it. Combat employee theft with a good system in place to
track your food costs. Take inventory often and know exactly where your food is going.

Additionally, if you offer staff a meal before or after their shift, consider keeping it to a set menu. This keeps
them from eating those items on your menu that cost you a lot to prepare.

Employee Turnover

Most restaurant owners don’t take employee turnover into consideration when thinking about profits, but it can
take a chunk out.The restaurant industry is known for its high turnover rates, so losing staff is nothing new. But,
did you know that employee turnover costs you thousands? This is because each time you have to on-board and
train a new employee, it costs you money, and lots of it.

High Wait Times

How long your customers have to wait for a table or service at your restaurant affects your profit. While that
may seem counter-intuitive because a busy restaurant is a profitable one, it pays to look at why you have high
wait times. Here are some things to look out for:

 Customers are waiting too long from the time they initially sit down to when the server takes their order.
This is dead time when no profit is being made.

 Your kitchen is slow, and people are waiting for their food. This causes a bottleneck, and your tables
don’t turn over as quickly.

 You don’t have enough staff on hand to take care of your customers. Not only does this halt table
turnover, but it creates angry customers who may not be back.

 High wait times are caused by overall poor customer service.

Accounting Issues

How is your accounting? Do you have a good system in place to track expenses, invoices from suppliers,
payroll and more? Accounting issues can affect your bottom line if you don’t have someone looking over
invoices for mistakes such as double charging and charging for food you didn’t actually receive.

Outdated Website

Potential customers are looking for you online. If your website isn’t up-to-date and mobile-friendly, you’re
going to lose business. Make sure your phone number, location and menu are front and center on your website
so you don’t lose potential customers and in turn your profits.

Steps to counter those factors

 Employee morale – treat your employees well by acknowledging their hard work with a thank you.

 Offer advancement opportunities.

 Train your employees well on an ongoing basis.

 Invest in leadership training for your managers so they know how to lead.

 Put your best wordsmith to work on a new term. If you can coin it, you can own it. And if you own a
winner, you'll strike marketing gold.

  Identify and tap into new – and reliable – staffing sources; land on hiring and benchmark incentives
(i.e., money, gifts) that get people talking.

  Deep discounts and coupons aren't always the answer, for obvious reasons, but they can boost traffic
and deepen customer loyalty. A more plausible response: innovation through automation.
  Look for “locally-sourced” ingredients, organics and main dishes centered on vegetables, which
appeal to younger customers, while adding items that appeal to the more mature crowd.