Restaurants are more volatile than your teenage child's mood swings. Restaurants come and go, fail and succeed in the blink of an eye and often over random, tiny things. For when your restaurant's going down, Monster has some signs that will tell you. And what to do after, too.Knowing the signs and figuring out the indicators is essential, and so is taking correcting steps to save it, or to move on if needed.Here are the signs your restaurant is past its prime.
1. You have the need for only one busboy working the dining room instead of three.
2. When the cook gets fired, the owner starts to cook. This probably means there is not enough money to properly staff the restaurant.
3. Look closely at the turnover, especially that of wait staff members because they rely mostly on tips.
4. Owners seem to have given up on the business.
5. Menu choices haven't changed for a long, long time.
6. The number of glassware/silverware needed is shrinking fast.
7. Corners are being cut to make ingredients last longer and save money.
8. Restaurant opening hours are dwindling slowly.
So now that you have figured out your restaurant, what is next?
Here is what you should be doing.
If you are one of the wait staff or servers and you depend on tips for the bulk of your earnings, your salary will probably plummet because you are dependent on the food quality and service. This means it is probably time to move on.
If you are a server, your tips are directly dependent on the quality of food and service; if both aren't in your favor, your earnings likely will plummet. "If you are no longer able to make the money you deserve, it's time to move on," Cohen says.
If you are the owner, and there seems nothing left to salvage, there is no other way. You have to close shop, but remember to ease your way out, say experts.
Don't just show up one day and announce a closing. Scale back first. Reduce number of shifts and opening hours, and then gradually close. This gives your employees a chance to prepare themselves and also look for other jobs.