O'Dell Restaurant Consulting Blog

When opening a new restaurant, you are going to have to make assumptions about all your expenses and your head counts regardless of whether or not you price by gross profit. Since you will already have those assumptions, it only makes sense that you set prices so that you will collect enough markup (gross profit) [...]

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Many new owners think that running a restaurant will be easy if they’ve worked in the retail world. While all their retail skills do help, there are major differences between owning and operating a retail shop, and operating a restaurant.
These include:
In the food biz, you are also the warehouse and manufacturer of the product you [...]

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Calculating how much the food you sell costs you to sell is a very important practice in running a profitable restaurant. Knowledge is power, and knowing your food cost compared to your sales and your ideal food cost is very empowering information. By figuring your food cost percentage, you have an early warning system to alert you [...]

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That’s an important question. There isn’t enough reporting and record keeping in the restaurant business. Many chain restaurant can see by the end of the week whether they made money or not. Most independents have to wait until their account returns the monthly numbers anywhere from 4 days to 4 weeks after the end of [...]

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Question:
When you work in an excuse-driven culture, how do you change the mindset and teach others to become accountable?
Answer:
Unfortunately, the most effective method for me to implement quick changes in attitude is through forcing it. That almost always requires “executing a hostage in front of the firing squad”.
Words are the first step. Accountability has to [...]

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Slow economies have traditionally been very good for quick service restaurants. Eating out is usually the last part of the budget that a family sacrifices on. They do however change where they are eating out. Restaurants that offer exceptional value benefit from the increased consideration of value in the decision making process of a family [...]

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We currently have 60 entrees and 24 soup/salad/apps. We are known for our pizza, so we have a full pizza section which includes 6 sizes, 2 types of dough, 33 toppings, calzones, strombolis, 6 specialty pizzas, 7 sandwiches, beer, wine, and standard beverages.Which is better, 50 items or 100?
If you ask me, you need to [...]

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Will there be wine service at the party? I wouldn’t be comfortable having 1 server to serve and cocktail for more than 20 people in a four course dinner. Even then, I would want to make sure the first course was pre-set, in addition to bread, butter, coffee cups and saucers, water and iced teas [...]

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Is the cost of food and supplies less when you own a franchise because of their buying power, or the same, or even more because of kick-backs from suppliers?
The franchise I am looking at shows cost of goods to be from 34% – 38%.
This sounds a little high to me. Is this what the norm [...]

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In most cases, coupons are a path to disaster. Coupons undervalue your product, and getting customers to come in with coupons doesn’t give them a good idea of what type of value you really offer. You end up with customers that think your restaurant is a good value, “with a coupon”. Then, they wait til [...]

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