Why can a busy restaurant still lose money?
Strong sales do not guarantee profitability. Common causes include poor pricing, uncontrolled waste, excessive menu size, inaccurate inventory, inefficient scheduling, unprofitable delivery channels and weak cash-flow management.
- Pricing without recipe cost
- Ignoring waste
- Overly large menu
- No inventory counts
- Poor labor scheduling
- Ignoring delivery profitability
- Confusing cash with profit
- Focusing only on best sellers
- Not reviewing reports
- Inconsistent customer experience