Restaurant

SUCCESS FORMULA
 Hello, Foodpreneurs!
"It takes an army of talented and creative people to execute a
successful restaurant”

This book is completely about the subject matter

regarding the restaurant. How can a restaurant stand
out from the one million other restaurants in the
country to accumulate a market share, earn loyal
customers and stay profitable? Restaurants are an
exciting business filled with challenges and
opportunities.You've definitely come to the right
place to find out more about it, so we're glad you're
interested. You can minimize challenges and
overcome obstacles with this book. Countless tricks,
shortcuts, and secrets will be taught to you - and
they can be used right away.

Start your food journey by learning and unlearning

the concepts. This book is filled with complete
insights on how to start, run and scale a profitable
restaurant. A solid business plan helps to give your
food business direction and guidance. Lets take a
step forward.
BOOK BY

Sudhakaran & Gowtham

CO-FOUNDER OF CULINARY MINDS

Running the restaurant industry for 4+ years ; two successful franchise

outlets and a cloud kitchen. We are Engineers turned Entrepreneurs. We
started the food business with zero knowledge and experience and we
learned and unlearned the path, over a period of time, we had become
a successful foodpreneur.

The restaurant industry is quite fluid. Although it is a rich

industry, it also faces a number of difficulties. The majority of
restaurants close during the first year of business for a variety
of reasons, including fierce competition, expensive rent, rising
labor costs, food price inflation, declining margins, a downturn
in customer spending, etc. Due to the challenging
circumstances, managing a successful restaurant business is a
very difficult undertaking. However, you may learn the skill of
managing a prosperous restaurant business with careful
preparation and savvy execution.
 Objectives

START

RUN SCALE

Start: Starting a restaurant is easy and running it over successfully takes a

lot of courage, action, and passion. Make sure if you want to start a
restaurant, think of yourself and what drives you to do this. Once you
cleared this go ahead with step 1 in starting your restaurant.

Run: Once started with your restaurant, understand each principle of how
the industry works, gain insights from industry experts, and knowledge
yourself with experience. keep in mind, you need to run a show for 365
days.

Scale: This is where the experience plays a role. Trust the path will be
rough and difficult but no worries once you completed the book, you will
be equipped to take up the challenges of the food industry.
Contents

START YOUR RESTAURANT

Restaurant market analysis

 Start
Your Restaurant
 1
Restaurant Market
Analysis

This is not about execution, this is purely about the ideation part where
most people fail or realize it in a later stage that they just jumped in blindly
without any research about the industry

This chapter covered how to address modern-day food industry problems

that every newcomer and everyone in the food industry is facing. We will
give you valuable insights and efficient strategies to face the problem.

Addressing Modern

day
food industry problems

Valuable insights and

efficient strategies to
face the problems
First doubt everyone has in mind, is the industry good?

Does it have any growth potential? Is it Profitable?

The industry is certainly seeing a positive growth even post covid. The
valuation of the restaurant industry has grown 0.5 trillion rupees in the
past 2 years. The overall valuation of the restaurant industry stands at Rs.
4.7 trillion for the year 2022.

Expanding at a CAGR ( Compound annual growth rate) of 30.11% during

the 2021-2026 period.

There is a lot of potential for growth and ways of making profit, all you
have to do is follow few simple roadmap to make profits easier and grow
faster.

Restaurant 6

Valuation 4
4.7 Trillion

Positive Growth rate

2
units in Trillion

0
2020 2022
Online Delivery Platforms

The market is expected to reach Rs 1,515.17 billion by 2026.

Expanding at a CAGR of 30.11% during the 2021-2026 period.

In its most basic form, industry analysis entails examining and

understanding numerous aspects of the market you intend to target.
To create a strong restaurant business plan, it relies on studying your
market, competitors, and other industry developments. Getting ready
for your restaurant business is really vital and cannot be
compromised. Even though it appears tough, it is actually not too
challenging, essentially doable, and crucial because it will form the
basis of your restaurant business plan.
 A Step-by-Step Manual For Conducting Industry Research When
Writing A Restaurant Business Plan

Step 1

Looking at other publications and existing data is the best way to begin an
industry study. This will help you decide where to start, how to go, and
which areas to concentrate on. The only thing you should not do is give up
the idea of doing your own research in favour of second-hand sources
because market trends are extremely volatile and even the smallest
deviation can result in significant losses. In order to determine which
restaurant format is growing and the market expectations for the
foreseeable future, you should look at the trends in the food and beverage
industry for the restaurant business.

Step 2
The second stage is realising that every market has a subpart,
especially the F&B Industry, if you have merely decided to start
something in the food industry but have not yet decided what to start.
This essentially implies conducting a thorough restaurant analysis and
choosing your restaurant's format. For obvious reasons, a cafe's market
study and business plan will differ from those of a food truck or a
restaurant. Choose the area you wish to focus on, and then begin your
market research and restaurant analysis to develop your individual
restaurant business plan.

Step 3

Choose your audience before determining where to operate a

restaurant. The core of your market research and industry analysis is
your target audience. Every choice you make, from pricing to menu
design to interior decor to suppliers and rivals to restaurant location, will
be based on the people you will serve.
Step 4

Choosing the site of your cafe, restaurant, or business endeavor is part

of the locational analysis in a restaurant business plan. It's important to
realize that just because one kind of site has worked for someone else
doesn't mean it will work for you too.

Growing markets or campus areas are wonderful places to start since

they have a lot of foot traffic, but before you base your business plan on
a successful location, evaluate why it has worked in the past. You must
conduct a thorought investigation of the eateries in the neighborhood,
as well as the types of patrons who frequent them. If you want to
operate a fine dining family restaurant, a university campus that gives
assured foot traffic may not be the best place. You need to conduct a
thorough restaurant study to determine what kind of restaurants are
present and the kind of patrons who frequent the region. An inexpensive
and comfortable establishment can struggle in a wealthy neighborhood,
where residents prefer upscale restaurants and are willing to spend
more for them.

Step 5
There are several restaurants in the area, and it is possible to conclude
that given the similarity of your concepts to those of your competitors,
there isn't much to differentiate you from them. In such a case, a crucial
component of your restaurant business plan should be restaurant study
and competitor analysis. Speak with your rivals to learn what they do
and don't do. The limitations are significantly more important. Take note
of the way they handle the simple things, such as the menu they create
or the prices they set for certain items. Analyzing your competition may
lead you to your USP.
Step 6

As part of your analysis, consider current industry changes, trends, and

impending or anticipated changes. This will give you opportunities to
obtain an edge over your rivals and give you direction as to where the
industry is headed.  Consult with the audience before making these
choices.

Now let's jump to the most important part of this study, the roadmap to
success. You may want to start any type of food business be it a small
kiosk or a fine diner , an own brand or a franchise. This roadmap
guarantees success, we have designed it using our experience in the
industry. This teach you specific strategies which make you achieve
the ultimate goal , which is success & profits.
 2 Ideation

Ideation is a tricky phase, it is a phase where most questions arise in your mind
and most of you will have the same question in mind.

Franchise
OR

Startup
Which path to choose? Which is safe? Which is more profitable?
These would be the most common questions Now let's split in a better
way for you to understand and come up with a good decision. Both have
their own pros and cons now we are seeing the pros of both the business
options
 Franchise
Let's see the pros of a franchise with an example. You are interested in
taking a franchise like Belgian waffle

What are the positives?

The first thing is the track record, their name, success story, and their
reputation as a brand that will be the most eye-catching thing for you to
take up the franchise.

Now that you've signed the deal, a good and established brand does all
the fieldwork for you. Give you an option of locations to open your
business. They will support you with designing your ambiance, deliver all
the materials required and guide you on the execution part, but all this
comes at a cost. Your outlet will be ready to run in a matter of weeks.

The next thing is your supply chain, it is the backbone of the industry. To
run any kind of small to the big business you need a proper supply chain.
What franchises have is an established supply chain. They have a trusted
network of vendors and suppliers with them to provide you with stocks to
run your outlet.

The final pro of choosing a franchise is the operational support. They will
provide you with Standard operating procedure and will train your staff
to follow the staff get trained in recipes, customer handling, and few good
brands train the sales and marketing staff also to
the staff and stakeholders.
 Startup
Now you have decided to start your own brand

Less investment- The heading speaks for itself.

"LESSER THE INVESTMENT, QUICKER THE ROI"
The most important thing you should keep in mind. The actual profit of a
business happens only after you take back the capital you invested. Invest
wise, do not invest too much on items that have no operational importance
and no resale value. Brands will demand to shell out the investment in every
aspect which you cannot refuse but if it's your brand you are the boss, you
can always re-invest as you earn.

You own a brand- Now this is the most eye-catching factor. Once you are
established into a successful business and make handsome profits there is
always an option of expansion at a minimal cost. Once you expand to a
considerable amount of outlets you either franchise your brand or continue to
bootstrap on your own. But always remember first to establish your business (
the standards, ROI plan, supply chain) then venture into expansion.

Flexible strategies- Running any business needs strategy, an industry like

F & B is sensitive to consumer demand hence it requires fresh strategies every
now and then. Let's see an example; Now I own a franchised cafe that sells
Asian food, the brands focus is mainly on Asian food. Over a period of time
people get used to it and trends change, now most of the customers in my
area have catch up to the trend of burgers. Now my outlet receives feedback
from more than 50 % of people to add burgers in my menu.
 Startup
Now, this is where the problem is if you operate a franchise outlet you
have to forward this request to the head office or corporate, they will
validate if it's possible they conduct trials and add it to the menu. In most
cases, they won't as they specialize in a different cuisine.

Now if the brand is yours the process is simple. First, validate the request,
and check if the request to add a burger is minimal or repetitive. If it's
repetitive, conduct atrial and add it to your menu.

Menu expansion is not always advisable but if your menu is dimensional

you have to R&D to improve it periodically

Another example is marketing strategy. If you run your own brand you can
always develop a strategy that is preferable to your locality and budget

HIGHER PROFIT MARGINS- This is the ultimate goal . you may be fueled
by ambition or desire to earn. Profits will be the one that drives you quicker
to that ultimate goal. If it's your brand you can cut the ROYALTY costs.
Every brand charges a % of royalty which eats into your profit margin. You
can plan your finances flexibly every month if its your own brand but its not
the case if you own a franchise store
Now to summarize
The franchise requires money and the startup requires time to build it
slowly

Always remember business involves learning and unlearning.

Learn new things and unlearn the things that hold you back and start
from scratch.

Now we have seen the pros, you would have got a small idea about
what your cons will be for both options.

Take a minute and think and write three pros why you want to start a
franchise or a startup brand on your own.
 Franchise
Points to remember

Proven track record

Ready to run
Well established supply chain
Operational support

A franchise requires more amount of

MONEY
 Startup
Points to remember

Less Investment
Developed into a brand in the long run

Flexible strategies
Higher profit margins

A startup requires more of

TIME
3 Location

Find
the
right
Location
Restaurant industry is a location dependent business. To find the right
location follow this direction rule.

NEIGHBOURS,
LOCATION COMMUNITY, LOCATION
ANALYSIS IT PARKS ANALYSIS

VARYING HIGH
CROWD BASE W E VISIBILITY

LESS
COMPETITION

 High visibility- Main roads, shopping areas, beaches, etc.

Less competition- High visible areas have high competition but there are
areas in cities where there is market potential but the competition is less.
The areas which are developing and have good infra development will
have great potential..

Varying crowd base- Has a good amount of crowds like students, office
goers , family audience etc. When you have a crowd base with a wide
range there is a great chance of success.

IT parks- Having IT parks, gated communities, colleges in your locality is a

major advantage. If the concept is right, people who work/live there are
your target audience. With the potential audience within your reach,
marketing your product /outlet becomes easier. 5 mins

Target Demographic
A target market or target demographic is a particular group of
customers to whom you market your products. Specific traits, such age,
gender, or income level, determine demographics. The greatest
demographic representation of how your firm might be impacted by a
certain location is created by the intersection of all of these variables.

Age Gender

income level
Now based on your investment and your vision you have to choose the
type of business whether its a café or QSR etc., let it be a franchise or
your own startup.

4 Layers of
Restaurant Types

FINE DINIING CASUAL DINING

Investment 40-60 Lakhs Investment 25-35 Lakhs.
Space above 2000 Sq ft Space above 1500 Sq ft

CAFE QSR
Investment 20-25 Lakhs Investment 10-12 Lakhs
Space 1000-1500 sq ft Space 500-1000 sq ft

 FIN E DININ G

C A S U A L DININ G

CAFE

QSR
 STRENGTHS
PHY What do you do well in your community?
RA What unique resources can you draw on?
G
O
EM
D
G
YIN
UD
ST CEPT WEAKNESSES
RENCES & CON
REFE
MENU P What could you improve? Where do you
stand out from others?

SWOT REST
AURA
NT T
REND
S OPPORTUNITIES
What opportunities are open to you?
What trends could you take advantage of?
CO
M
PE
TI
TO
RS

THREATS
What threats could harm you?
What is your competition doing?

Strength- Your location will be your major strength, food business is

location dependent and your sales depend entirely on the location.
Hence conduct a thorough study on your demography and maximize
your strength.

Weakness- Most food businesses fail due to a weak menu and concept.
Always plan your menu efficiently. The menu should contain a surprise
element, balance the menu with fast-selling items as well niche products
to cover all the customer bases and stand out from your competition.
Always conduct R & D and keep improving your menu and maintain your
food quality by following high standards.

Opportunities- The everchanging restaurant trends always throw a lot of

opportunities your way. You must be reactive to grasp that and turn it into
business or proactive to create a trend. For example during covid times
when dine was banned many leading brands came up with the concept of
DIY kits (Do it yourself burger /pasta kits) Where they supply all materials
to make the product at your home. Similarly always look out for trends to
catch hold of it and include it in your menu or be one step ahead and be a
TRENDSETTER. Introduce any unique food item or a usual food item
served in a unique way , promote it on your digital medium(insta page)
and make it a viral trend.

Threat- The final step is to analyse your threats/ competitors. How are
they functioning?How do you want to compete with them? What
strategies do they use to cover the customers ? etc. Analyse them and
devise a strategy on how to stand apart from them. How to be different
from them. Offer a difference experience say in menu or ambience or
experience to the customer for them to choose you instead of your
competitor
Milestone four

Niche
Something different, something particular, something new for the consumer

Everyone here is familiar with the competition in the food industry.

How many outlets do you feel are present in your current locality, in the area
you live in

So a locality in tier 3 city has 100-400 restaurants online for a 5 km radius So

a locality in tier 2 city has 500-900 restaurants online for a 5 km radius
Locality in tier 1 metro city has 1000-1500 restaurants online for a 5 km
radius

Now we have realized the scale of the competition we are facing, how to
compete with them?
How to better them?
How to stand out?

Establish a niche market

What is a niche market????????

Always consider your restaurant locality as a market where multiple

restaurants operate and they are your rival stores.

Now consider the customer is a person who visits the big market area and
sees all the restaurants displaying their product(i.e your menu, ambience ,
offers etc).

You have to attract the customer to your place and set up a customer base
of your own, by serving them different items in a different way. CREATING
YOUR OWN COMMUNITY in that locality with a strategy different from others
is your NICHE
How to choose a niche market

High Income
Low potential
competition

niche
market

Market
demand

Less competition- Competition is healthy but overcompetition destroys

businesses when you are in an establishing phase. Even though you may
seem to do well, well established players can always overcome your
strategies by investing heavily in sales and marketing if need arises.

So always aim for less competition while choosing a location , setting a menu
by keeping a few items which are in demand but rarely served in your locality.
All together give a customer a new experience from your competitor.
High income potential- High income potential is linked to 2 factors, 1 is your
locality and 2 is your product. The area you choose should have a proper
market, do a field study of how many outlets are there, what type of crowd
are present in the area. Your potential customers(schools, colleges, Tech
parks )etc.

These factors should go hand in hand with your product(i,e) menu. Your
menu should be in such a way that it caters the audience of your locality. The
pricing should be set in such a way that both you and the customer feel
satisfied. The income potential of your locality and product should be high

Market demand- While you conduct a field study look for clues about what
the customers in a particular area want but they are unable to get it. Suppose
your area is filled with Chinese restaurants but there is also a good
population of people who crave for continental food but don't have
considerable players who offer continental food. You can consider setting up
a menu with continental food items. That's how you satisfy the market
demand

So when you tick these 3 boxes Low competition, high income potential and
market demand you have successfully planned to set up a niche market
 Why Niche
A niche product / business gives you great visibility. It creates a
community of consumers who become your patrons/regulars. Once you
start to have a regular customer base there is no looking. Cater them
efficiently , your business develops automatically.

Now let's see an example

Examples of Niche

CHAI KINGS DUNKIN DONUTS TACO BELL

USP: Premium Tea USP : International Donut USP: International
brand brand Tacos brand
PRODUCT
BRAND
IDENTITY
BRAND

MULTIPLE
MULTIPLE
PRODUCTS
PRODUCTS
MULTIPLE

PRODUCTS

 BRAND
PRODUCT IDENTITY
BRAND

vegan icecream icecream

dessert parlour

This is one small example which will clear your doubts if you have any.
Vegan ice cream parlour has become a dessert parlour

Create a niche product in your menu

Creating a niche product doesn't mean the product is entirely new.

It just needs to cater your audience's needs
Make your brand well known because of the product and establish a
customer base

Now using your brands base introduce new products and make the
customer buy
 Milestone five

Realistic Financials

Finance handling is a vital part in your day to day restaurant operation

REALISTIC
FINANCIAL
METRICS
 02
01 03

food
COSTS

management technological
COSTS COSTS

The 3 major costs food businesses face is

Management cost also known as operational cost, Food cost, Technological

cost

Handling these 3 efficiently guarantees you minimal loss and maximum

profit.
 management
COSTS

Staffing cost - 15-20%

Rent - 10-15%

Gst - 5%

Electricity & misc - 5%

Owner's Salary

You can also take salaries as founders/owners apart from profit as a result of
your every month's hard work. It is advisable as it gives you the extra push to
work even harder and smarter.

You can also skip the owners salary percentage form your monthly
management cost/operational cost

Now if you own a franchise outlet you will have an additional cost called royalty
which you owe the brand for using their name, recipes and other inputs, it
should be paid to your brand monthly/weekly. Royalty percentages vary from
5-15 %
 food
COSTS

Food cost should be between

*Including wastage

28%- 35%
Next major part to which your have to allocate your monthly revenue is your
food cost

Including food wastage, your food cost should vary between 28-35 % 28 %
for small kiosks, tea brands and 35 % for fine diners etc.

Food costs should be managed very carefully, always keep your food cost in
check and make sure it falls in between the suggested percentage.

Monitor the food wastage manually and also employ technology which we
will see how to do it in the upcoming phase
 technological
COSTS

POS
Digital Media 10%
Internet & Phone
Third Party
on total sale

Final cost is technological costs

The costs that covers your technology/digital expenses like

POS
Digital media marketing
Internet
Third party aggregator costs(swiggy and zomato)- For every order that you
receive through online aggregators you owe them a percentage varying
between 20-28%.
 REALISTIC FINANCIAL METRICS RESULTS ARE INDICATIVE

RESTAURANT FINE- CASUAL STREET

CAFES QSR KIOSKS
FINANCIALS DINING DINING FOOD

TOTAL
100% 100% 100% 100% 100% 100%
REVENUE

FOOD,GAS &
PACKAGING 25% 30% 25% 40% 60% 70%
(COGS)

GROSS
75% 70% 75% 60% 40% 30%
MARGINS

RESTAURANT
45% 45% 45% 40% 25% 15%
EXPENSES

PROFIT 30% 25% 30% 20% 15% 15%

Now lets see a realistic example of how efficiently split the revenue , cover
the expenses and make profits

Before , moving, take a picture or note it down of this table

Now let's take 2 most famous restaurant types a casual dining and a QSR
Let's do a bottom up approach like reverse engineering

For a casual diner to make a profit of 25%

COGS-Cost of goods sold is nothing but food cost
Restaurant expenses- includes the management cost and tech costs
EBITDA- earnings before interest, taxes, depreciation, and amortization/profit
before taxes

Why street foods have high making cost % is that their pricing is low and the
supply chain is not as good as others. They may buy raw materials at a
higher price. But on the other hand their operational expense is low and to
their counterparts it is high as they may employ more people, have a
premium ambience , higher rentals etc
Always follow the percentages prescribed in this table to make a profit and
be successful.
 REALISTIC FINANCIAL METRICS RESULTS ARE INDICATIVE

RESTAURANT CASUAL QSR IN

CD IN RUPEES QSR
FINANCIALS DINING PER MONTH RUPEES
PER MONTH

TOTAL REVENUE 100% 9,00,000 100% 4,20,000

FOOD,GAS &
PACKAGING 30% 2,70,000 40% 1,68,000
(COGS)

GROSS MARGINS 70% 6,30,000 60% 2,52,000

RESTAURANT
45% 4,05,000 40% 1,68,000
EXPENSES

PROFIT 25% 2,25,000 20% 84,000

Example with actual numbers

Let's do a bottom up approach like reverse engineering.

Start looking from end column profit

So to earn the mentioned revenues from the mentioned models you must
have ample space as we mentioned and at least 40-50 covers in the outlet

Next main thing you should focus is your menu pricing

Menu pricing is the most vital part in your financial and restaurant operation
How to plan and set your pricing depends on these factors

Pricing your menu correctly is so vital as your revenue, profits , and restaurant
margins depend on it.
 INDIRECT COSTS

BOUNDARY
PRICING

DIRECT COSTS

MENU PRICING

VOLATILE FOOD
COSTS
SERVICE COSTS
Now let's see what exactly are these deciding factors in menu pricing

Restaurants set their pricings using a simple formula and consider a couple of
factors to set the menu price

The first factor we should take into consideration is the type of service,
consider a juice shop that employs fewer people, with minimal to no
ambiance, and a big café with more employees and premium ambiance.

The operating cost of a café higher and hence higher menu pricing

Second is the quality of raw materials used. And their cost

Using these factors they calculate the menu pricing
 Two ways to calculate food costs

STREET FOOD, KIOSK

TYPE 1

Making cost + Desired Gross Margins = Price

90 +50% = 135
making cost selling cost

avg food cost 70%

First formula is little inefficient way to calculate the menu pricing

Lets see first method to calculate the pricing, this is how mostly small kiosks
and street food vendors do it

Let's say a it costs 90 rs to make a sandwich , now what the owner simply
does is, the owner just decides that they need a gross margin of at least
50% in order to take care of their expenses and make a profit.
You have to just add your food cost to the desired margin to come up with
the price of the item.

Always the food cost of kiosks and street food should fall within 70% , to
operate efficiently

Now this method to calculate is inefficient as food costs wont fall within 70%
always when there is inflation in prices etc, but they will make a profit since
their operating cost is less due to no or less ambience, less staff etc.
 QSR, CAFE, CASUAL OR FINE DINING

TYPE 2

Making cost ÷ Desired Food Cost Percentage = Price

90 ÷ 30% = 300
making cost selling cost

avg food cost 30%

Lets see the second formula , a more efficient way to calculate

let's take a casual dining restaurant.
The average food cost for a casual dining should be at 30%

Now let's take a bowl of pasta, it takes 90 rs to cook that bowl of white sauce
paste, if you want to maintain the food cost at 90 rs which is 30% you have to
set the price of that pasta at 300 rupees in this case.

Likewise just calculate the making cost in rupees and divide it by 30% which is
your average food cost percentage to set the price of a particular item
Use this method to keep your food cost controlled and to gain a good
margin to run your outlet and make a profit

Same product but different pricings, it is decided by what type of outlet

you run, at what level you operate, what crowd you cater and what are
your goals.

It also depends on the investment, the higher the investment higher should
be your menu price. There is no point in investing high and keeping your
menu price low.

When there is an imbalance between your investment and menu price the
ROI takes time and your operational finance takes a hit ultimately leading
to a struggle in keeping your outlet afloat.

Recipes
Recipes are your backbone. Whatever concept you choose , always make
sure the recipes are top notch.
Always use good quality products, follow standard ops procedure to ensure
recipe consistency. Keep in mind that if you serve quality food your
customers will return and you can always price your menu items higher if the
quality is upto the mark.
Hire a well experienced chef to take care of your kitchen operations . Hire a
well trained and qualified team ,do not compensate on staffing as they are the
backbone of your restaurant.
You can always hire good consultants to do the menu planning for you and
conduct periodical R&D
For franchises all these will be done by the brand itself , so your time will be
saved on that.

If you still feel that planning a menu and setting recipes and SOP is difficult,
you can buy our recipe sheet in our website. This could save a lot of money &
time.
 Next part in financial metrics is INVENTORY MANAGEMENT

Keep track of your stock inflow and outflow

Stock Inflow STOCK Stock Outflow

AVOID AVOID
UNDERSTOCKING OVERSTOCKING

Use technology to track inventory

TRACK and consumption patterns

STAFF
Manually assign staffs to track inventory and
to avoid malpractices

Inventory management is nothing but handling your stocks/raw materials for

food
Handle the inventory in an effective way to minimize food waste and
maximize profits

The first thing to keep in check in inventory is the stock inflow

Avoid understocking, don't wait until your products go out of stock to order.
Calculate your usage and inventory and predict your order cycle, implement
technology to track your ordering next

Next part of inventory management is tracking the stock.

Invest in technology to track your stocks accurately. There are a lot of All in
single software with POS billing which helps you to track your stocks,
calculate food costs, profit margins, etc.
It is wise to invest in tech for operational support and marketing than to
invest in interiors

The final part of management in tracking the usage/outflow

Avoid overstocking, order stocks only when it is needed and the quantity of
the order should be proportional to the sale.

Finally, appoint a staff member to overview your inventory.

 Follow standard operating
procedures of inventory system

beware of fluctuating stock costs

increased food cost means lesser profit

and longer ROI period.

Follow SOP , set a standard for your outlet. Train your staff on customer
handling, recipe consistency, stock handling etc. These contribute to the
Standard ops procedure.

Be aware of inflation in stock cost, inflation may happen due to various

factors, climate, govt policies etc . So always check the cost of your
purchase and plan your purchase. If required you can anytime revamp your
menu pricing if the stock costs become higher. For a franchise all these
decisions will be solely taken by your brand.

Increased food cost means lesser profit and slower return of investment
 Customer
retention
THROUGH MARKETING

LOYALTY WALLET PROGRAMS

HOW IT WORKS