Know Your Food Cost Percentage. Know Your Restaurant Profits.
Calculate Food Cost Percentage
Online delivery sales reached new heights when many people sheltered in their homes early in the coronavirus pandemic. This surge became a game-changer for the restaurant industry. Right now, restaurants are capitalizing on this growth by diversifying their approach. Many are venturing into exclusive delivery services, and others are opting for ghost kitchens dedicated to fulfilling online orders.
In this blog, we have compiled a 6-step checklist to launch your restaurant's online ordering system without breaking the bank.
Taking your restaurant digital opens doors to a broader audience and boosts sales.
If your restaurant is already online, you must focus on integration with a robust online ordering system and effective management. You can turn your simple online presence into a revenue channel with the right approach.
Though setting up an online ordering system might appear challenging, it's definitely within reach and affordable with the correct strategy. The initial step is to choose from two options. First, you can choose first-part delivery systems like OneHub delivery or a third-party delivery service—like Postmates, GrubHub, or Uber Eats.
Anything you select, this checklist will guide you through launching your online ordering without cost.
Creating your restaurant profile on the delivery app is the first step in setting up online ordering. Keep your focus on making a solid first impression. Your profile must be potent enough to create a lasting impression.
Include high-quality images of your dishes, your team, and your dining space to give customers a taste of what to expect. Your profile should highlight what makes your restaurant unique.
Make it clear. This detail helps you connect with your customers on a personal level. Here are some practical tips to create an impactful restaurant profile:
Choosing pickup and delivery options is essential for customer convenience. Ask yourself, what works best for your operation and your customers? If you have the capacity, offering both can cover more ground.
For pickup, ensure the process is smooth. Think about designated parking spots or a separate counter for online orders. Decide if you'll use your staff or partner with third-party services for delivery. Each option has its pros and cons. Using your team keeps the customer experience in your hands, but partnering with delivery services expands your reach.
Whichever you choose, clear communication is critical. Set realistic wait times and keep customers updated on their order status. Use these tips to optimize pickup and delivery options:
When creating your restaurant's online or QR code menu, focus on making it irresistible to your customers rather than simply listing the dishes.
Start with clear, concise descriptions. Each dish should tempt the customer to try it. Include high-quality images whenever possible. People eat with their eyes first, and a great photo can turn a maybe into a definite yes.
Price each item accurately and ensure the menu reflects your current offerings. Organize your menu into sections like appetizers, mains, desserts, and drinks. This makes it easier for customers to browse and decide.
Adding an online ordering button to your website or social media page invites your digital audience to engage with your services. This button should be front and center. You want it to catch the eye of anyone visiting your page. The easier it is to find, the faster your customers can start ordering.
The process should be straightforward. Customers click the button, choose their items, and checkout without hiccups. Make sure this button links directly to your menu and ordering system. Test it regularly to ensure it's working smoothly. A broken link means lost orders. Lastly, utilize the features of social media platforms to add direct ordering links.
Choosing the right order-taking platform is like picking the best ingredients for your dishes. It needs to fit your restaurant's unique flavor. Look for these features:
When you get the order process right, your customers will notice. And they'll thank you with repeat business.
Now, start accepting orders and deliver a stellar experience with each one. For this:
Last but not least, keep improving based on feedback and performance.
Now that you have the detailed checklist, getting your restaurant online is just a few clicks away. Remember, the simpler your order-taking process, the higher your order value and the more the repeat orders. People value user-friendliness, and easy ordering entices them to order more from your restaurant.
OneHubPOS can help you step up the ladder. Our all-in-one POS and kiosk software solutions make order processing, payment security, and daily operations management effortless. Book a demo today to learn more about our solution!
Federal law allows including only employees who customarily and regularly receive tips. This typically excludes back-of-house staff like cooks and dishwashers. However, some states might have different regulations.
Tips are typically collected throughout the day and pooled at the end of the shift. The pool is then distributed among eligible employees based on the chosen method.
In some states with allowed tip credits, employers can take a portion of the minimum wage based on tips received by employees. This essentially allows employers to pay tipped employees a lower base wage.
Non-compliance can lead to fines and penalties from the Department of Labor, wage-and-hour lawsuits from employees, and employee morale issues.
Tip sharing is voluntary. An employee might choose to share some of their own tips with colleagues. Tip pooling is a mandatory system where all tips are collected and then distributed among eligible employees based on a predetermined method.
No, managers and supervisors cannot participate in the tip pool.
There are no standard percentages by law. However, 15-20% is a common tipping range for good service in the USA. Tip pooling eliminates the need for individual tip calculations.
Tip pooling can be beneficial for restaurants of all sizes. It can foster teamwork, ensure everyone benefits from good service, and simplify tip distribution.
Yes, tip pooling is legal under federal law (FLSA) with some key restrictions. However, some states might have additional regulations. Always check your state's Department of Labor website to ensure compliance.
Pricing is a balancing act! You need to cover your costs (including the food cost per portion) while offering a price point that feels valuable to your customers. Consider factors like competition, target audience, and the overall dining experience you create.
Food cost calculators are great for initial estimates, but consider restaurant management software for ongoing success. This software tracks inventory, automates cost calculations, and generates reports to identify cost-saving opportunities.
Absolutely! Many online food cost calculators can handle various cuisines. Look for tools that consider ingredient types, portion sizes, and even regional pricing variations.
Consider your food cost percentage your restaurant's financial fitness tracker. It's the total cost of recipe ingredients divided by your total menu sales. Ideally, calculate this regularly, like weekly or bi-weekly, to monitor profitability and adjust pricing or portions as needed.
The standard costing model is like a recipe for consistent pricing. It uses historical data and market trends to predict ingredient costs, allowing you to budget, purchase, and maintain profit margins even when prices fluctuate.
Food cost per portion is the actual cost of creating a single serving of a dish. It considers all ingredients, including spices, garnishes, and even waste! This number helps you understand your profitability and set menu prices effectively.
Diksha, a seasoned content marketer, brings hands-on experience in website management, social media marketing, and branding. Her expertise drives efffective and results-driven digital strategies.
