Steps to Improve Restaurant Value

Steps to improve your restaurant’s value

As restaurant values continue to grow and more business listings flood the marketplace, owners will face stiff competition when trying to sell their operations in 2016. This is a good time to consider ways to differentiate your restaurant in hopes of attracting potential buyers during the coming months. (House, B. 2016)

To improve a restaurant’s management to make a better staff and attract customers should have a good attractive advertisement of the restaurant so it can attract more customers to increase its sales. And also, According to National Restaurant Association research, 79 percent of adults think technology boosts restaurant convenience, and 70 percent think it improves order accuracy. Investing in innovative consumer tools like mobile payment platforms, tableside tablets and ordering apps can help your restaurant stand out among late adopter competitors.

Technology is profoundly changing how services are delivered, and it is enabling both customers and employees to get and provide better, more efficient, customized services. The technological revolution of the past two decades has created increasing opportunities for organizations to put systems into place allowing customers to do for themselves and provide their own service. These self-service technologies enable customers to perform services on their own without direct assistance from employees (Bitner, Ostrom, & Meuter, 2000).

Technological factors these are the factors that affect the restaurants marketing, production and the workers of the establishment. Restaurants are continually developing new technologies to provide the best solutions for the market place such as Wi-Fi connections, CCTV cameras, updated website, online ordering and fast service using technology like the iPod menu and many more in accordance. K Grill should enhance its facilities, adding more staff, and by having a self-service technology to enhance their quality of service.

Way to Estimate the Costs for a Restaurant Menu

A major challenge for the restaurant industry in the twenty-first century will be the ability of restaurant managers to find a balance between appropriate product pricing and serving customers’ diverse needs. One theoretical approach that has provided manufacturing firms with a better comprehension of costs and increased profitability stems from Activity Based Costing (ABC) theory (Cooper, 1989; Cooper & Kaplan, 1992).

Restaurants continuously lower their prices to undercut the competition. A price war may be used to increase revenue in the short term or as a longer-term strategy to gain market share. The opportunity here is on how they form strategic price management (with non-aggressive pricing) thorough understanding of the competition or even communication with competitors.

Recovery Strategies for Service Failures

Service management is becoming increasingly important, as many organizations recognize that it is crucial to manage service elements in their environment in order to be competitive (Grönroos, 1994). (Silber, I., etc. 2009)

Restaurants encounter failures as for the management lacks on conducting their employees a training, giving them basic rules and regulations, or not considering their employees’ performance which turns to having a service failure by not giving customers met their expectations (Shrestha, S. 2017). This research of Silber, et al (2009), shows all the possible strategies of overcoming the failures of a service. Not only the service but also for the management to be aware of what to do in the future to improve their service.

Also new competition in the market, possibly with new products or services. Restaurant are almost like mushrooms emerging everywhere these businesses eventually become an opportunity to existing business such as Ozen Korean and Japanese Restaurant. This new competition may either be the same as the others or not, but the point here is that they are all aiming for customers.

Table 1: Functions Performed by the Independent Casual Restaurant Managers

Cornell, D. A. (2019). Managerial skills and functions of restaurant managers of independent casual restaurants in national capital region, Philippines.

The table shown above shows the statements from different restaurants who participated in the study (Cornell, D. A. 2019) and this data explains that managers utilizes skills that will help every employee to empower them by giving them proper training, understanding the rules and regulations, having a consideration of employee retention and others. It also presents how to improve restaurant sales of an establishment for the employee and owner’s income.

Also, one of the functions that should be performed is “utilizing the marketing techniques”, advertising and promote the product through social media or flyers, to update the customer on what is happening in the restaurant. Management should also promote benefits for their employees for them to stay in the company and teach them the proper and professional way of how deal with the guests and co-workers.

Berry & Parasuraman (1992) argue that organizations should consider failure as an opportunity to create satisfied customers and not as a problem and that a proper attitude leading to correct these situations will positively influence the long-term performance. (Budeanu. A., 2015) In addition to that, complaints and failures consider as a good feedback for a restaurant for them to correct all the mistakes that was shown, and a reason for the customer not to be satisfied with the service. Management should take a quick action to solve the problems right away to fix or change what is wrong either service nor the staff’s character in dealing with the customer.

• Budeanu. A. (2015). Recovery Strategies for Service Failures. Annals of the University of Oradea: Economic Science. Vol 25, Iss 1, Pp 1054-1059.
• Kincaid, C. S., Baloglu S. (2005). An Exploratory Study on the Impact of Self-Service Technology on Restaurant Operations. Journal of Foodservice Business Research. Vol. 8(3)