Preparing for the Unknown: How Restaurants Can Weather 2023

Preparing for the Unknown: How Restaurants Can Weather 2023

If you asked a random sampling of consumers what the economic outlook for 2023 is, chances are the majority would reply “not good.” That’s especially true for the restaurant industry, which has been affected by COVID-related capacity issues and labor shortages for several years now.

So that’s the bad news. What’s the good news? Industry experts suggest there’s reason to be optimistic, especially if restaurant owners consider a few key factors to protect profits and increase bottom line.

Prioritize Your Spending when Budgeting

While it is always best practice to keep balance sheets in order, it is now imperative. If your business is in debt, make paying it off a priority in your 2023 budgeting. When looking for places to cut costs, preserve anything that improves guest sentiment, and appropriately compensates staff, but get rid of any underutilized or unnecessary subscriptions, processes, and items that are draining money from your business. Take care of your guest experience and staffing needs, and the rest will take care of itself.

Invest for the Long Haul

Smart investment upfront can pay dividends later. Consider integrating systems that address business needs, such as bin management technology that minimizes kitchen waste. Other options are onboarding systems that streamline the training of new hires and reduce need for extraneous staff and off-premise ordering support that maintains a high-level of consistency.  These systems immensely contribute to guest satisfaction. Many other pain points can be mitigated with technology such as QSR Automations’ ConnectSmart^Ⓡ suite of services.

Scenario Plan for 2023

No one knows exactly how the recession will play out. Take time with your management to assess scenarios that could affect your business, and create response plans accordingly. Having a game plan and general strategies can ensure decisions are being made efficiently and not in a panic. Being transparent with your management and key players is crucial to keeping quality communication and valuing your staff’s role in the business.

Redetermine What Success Will Look Like

While Black Box Intelligence’s current research predicts that sales growth will be strong during the first months of 2023, it is expected to slow later in the year. Knowing that guests may not be able to spend as much and employee turnover is an ongoing issue in the industry, reassess what reasonable goals your business can achieve in 2023. Growth and revenue might not be as high as previous years, but this does not mean business is failing – know ahead of time what success looks like, given the circumstances from the recession. Goals may look different than they did before, but should still focus on creating a quality guest experience and valuing staff to reduce turnover.

Protect What Really Matters

Taking care of your guests and your staff are nonnegotiable. Black Box Intelligence reports that in the fast casual and quick service industry, guest sentiment towards ambiance and food are down more now than previous years. Providing a quality dining experience is the core of creating a loyal following. Reward guests who partake in surveys and respond to their reviews accordingly to provide the best experience possible. Many restaurant owners are leaning into rewards and loyalty programs for customers to show their appreciation for returning guests, and to offer a guest experience that feels personal. Now is the time to get creative in how you offer more value to your guests’ dollars.

Additionally, Black Box Intelligence’s State of Restaurant & Traffic Report shows that labor cost increases are expected to ease in 2023, but this doesn’t mean it is the time to lower competitive salaries for employees. However, there is more to valuing staff than just a paycheck – just because unemployment rates rise doesn’t mean people will stay at a job with poor working conditions. Many job seekers are looking for short term benefits, a positive workplace culture, and the ability to have a healthy work/life balance. When you take care of your team, your team will take care of guests, growing your business in every way possible.

To talk with a specialist at QSR Automations about how to protect your business in 2023, contact our Sales Team at sales@qsrautomations.com or (855)980-7328.

 

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About the Author

As Vice President of Sales & Marketing, Ashley manages the teams in both North America and EMEA, helping to expand the company’s global presence. He is a passionate advocate of improving guest experience within the hospitality sector and his teams consultative approach to business has enabled QSR to remain at the forefront of technology innovation. When he isn’t working, you can find Ashley training for cycling events in both USA and Europe, spending time with his family, walking his dog Jax, and supporting Manchester United Football Club.