Profitability of a Restaurant: 5 Golden Rules to Maximize Your Profits

Are you planning to open a food business? Here is arguably the most important step: calculating the profitability of your restaurant. A profitable establishment, by definition, generates more revenue than expenses. It therefore has a positive result (profit). After choosing the ideal location, the right restaurant software, and a promising concept, you will need to ensure meticulous financial management of your business.

Calculate the profitability of your restaurant through financial forecasting

Will you be able to cover your operating expenses with the prices of your products?

Financial forecasting is a document that allows you to estimate the profitability of your future restaurant. The essential thing at this stage of your project is to do it with pragmatism and realism. Do not hesitate to look at the competition's figures to draw up a business plan.

Choose the right location to maximize your profits

Before thinking about attracting customers, will you be able to be visible enough?

An establishment in a sparsely frequented or unattractive area will inevitably affect the profitability of your restaurant. Therefore, it is up to you to be strategic in choosing the location of your business. Area, environment, average rent, target audience: the equation is sometimes delicate.

Have an original concept: the key to a profitable restaurant

Will you be attractive enough to ensure the profitability of your restaurant?

France has about 180,000 restaurants. Every year, no less than 13,000 new establishments open their doors. In this saturated landscape, it is obvious that profitability also depends on attractiveness. Two possibilities: play it safe or surprise.

Reduce variable costs and fixed costs of your restaurant

Have you thought about optimizing your operating costs?

Your business expenses are divided into variable costs and fixed costs. Play on all costs to improve the profitability of your establishment. There are very simple strategies for saving money without affecting the quality of your products.

Improve the profitability of your restaurant with the right selling prices

Are you generating a margin from your pricing?

For a food business, the key to success lies in the dishes that will enter the menu. The prices you set for your dishes should find the balance between expenses and revenue. It is, on the one hand, generating a decent margin on your offer. And on the other hand, taking care of the appeal that the menu has for your customers.

Easily track all your ratios in real-time, headache-free

The profitability of a restaurant is not compatible with flying blind. Instant QR Menu allows you to keep an eye on your ratios on a daily basis. With a few clicks, compare your turnover to your forecast and plan your activities to ensure a profitable business. And this is just a glimpse of what Instant QR Menu can do for you! Try it for free.