Restaurants are one of the most resilient businesses in the world. Restaurant owners and employees are passionate about their work, no matter what obstacles they face. Their commitment is evident in their dedication to their craft, and their critical role in the economy, culture and communities. The current challenges, such as high inflation and unfavorable commodities fluctuations, supply-chain disruptions, and continuing labor shortages, can be complex and difficult to overcome. They are even more complicated than the pandemic. Although the industry has stabilized and future costs have become more predictable, menu prices are unlikely to decrease anytime soon because labor and food costs will remain high. As we've seen, these challenges can also be opportunities for innovation and growth.
Online ordering and delivery of food became commonplace during the pandemic. Many restaurants already offered this service to their customers but never anticipated that it would be the main revenue stream during the pandemic. Restaurants have once again adapted to consumer demand. Post-pandemic, delivery and online ordering have declined as consumers returned to restaurants. However, these options are still significant revenue sources for restaurants. There are challenges and opportunities in improving customer satisfaction, and fine-tuning the relationship with delivery services such as DoorDash regarding fees and menu information. Consider more convenient pickup options, like drive-thrus, pickup windows or incentives to encourage customers to come in to the store and collect their order, eliminating delivery charges.
Leaders can achieve success through adding value to their businesses by collaborating with professional service firms and adapting to the changing business landscape. GBQ is a leader in empowering local leaders to grow by providing exclusive thought leadership, virtual and in person events that provide them with a comprehensive understanding of the latest trends. You are invited to GBQ’s exclusive Restaurant Masterclass LIVE on 6 June if you're a restaurant owner, finance and accounting professional, or C-level executive in the industry. This interactive roundtable will discuss current events that are impacting the restaurant industry and provide valuable insights for you to succeed.
Challenges provide the chance to refine business processes, which will drive efficiency and ensure the profitability of the business model. It's not something that most people realize, but the average restaurant makes only 10% of each dollar spent by customers. If you think about it in another way, the server who earns a 20% tip is earning more than the entire restaurant. The margins are very thin and any fluctuation in cost will immediately affect profitability. As technology solutions are developed to solve certain challenges, restaurant companies have become more tech-friendly. Now, tech tools can be used to analyze data of all kinds, with a focus on the food and labor costs that account for 60% of restaurant expenses. They also encourage accountability and discipline in the business as managers have a standard to measure against. Store management in any restaurant must understand how the business operates financially, not just on an operational level. This upcoming webinar will explore the latest trends shaping the future of the restaurant industry.
The restaurant industry continues to grow despite many challenges and creates jobs for the economy. Restaurants that are open to change and invest in the professional development of their staff, as well as utilizing technology to improve their bottom lines, will experience sustainable growth and success. The pandemic was a major disruptor for the industry. It accelerated changes that were originally projected to take 10 years or more to implement. It's amazing to see how the industry has adapted and innovated to get to where it is today.
GBQ Restaurant Services, a Top 100 accounting, tax and consulting firm, has been in business since 1953. The team is ready to help grow progressive companies locally and nationally. They are committed to providing financial and tax advice and monitoring the latest industry developments.
At GBQ our mission is simple: We empower growth - growth for our people, communities, and clients' businesses. We've been a Top 100 accounting, tax and consulting firm in the United States for over 70 years. Our motivation is the results that can transform the lives of the people we work with.
*According to GBQ Partners LLC.
Dustin Minton is an assurance partner with over 20 years' experience in public accounting, including working for some of the fastest-growing restaurant chains and most respected brands across the entire industry.