IF YOU WANT TO INCREASE SALES – READ THIS
Is your restaurant too busy?
Do you have more sales than you can possibly handle?
Are you making way too much money?
Is your spouse complaining that you are bringing home too much money?
Are your cooks and waiters complaining that they are making too much money?
OR – do you have the opposite problem, and you want or need to increase your sales.
Hey It’s Peter Harman The Food Guru here with your weekly Pep Talk…
My goal is the teach restaurant owners and managers like you, to focus on Eight Basic Fundamentals that lead to a better life and financial freedom.
I have NEVER heard anyone complain about having too much money!
I have heard people complain that they – eat too much, drink too much and work too much… but never that they are making too much money.
Mothers tell their kids things like, you are NOT going to bring another cat into this house… or you are not getting any more candy –
BUT I’ve never heard anyone say – YOU ARE MAKING WAY TOO MUCH MONEY – GET ALL THAT MONEY OUT OF HERE!
AND – I’ve never heard of a restaurant that went out of business because – THEY MADE TOO MUCH MONEY!
Today we are going to talk about SALES and SELLING. Today we are going to talk about sales in your restaurant.
HERE’S THE BIG QUESTION:
Are your waiters or servers complaining about how much money they are NOT making?
Are they talking about the day when they can get a REAL JOB and earn some real money?
Do you want or need to increase sales in your restaurant?
Would you say that increasing SALES is one of your goals?
Then, that begs the question - How much time do you really spend trying to increase sales?
Today’s PEP talk is going to be real short because I don’t want to water down my central point… Here it is…
I THINK WE CAN ALL AGREE THAT WE want MORE MONEY.
MORE MONEY TO LIVE THE LIFE OF OUR DREAMS.
MORE MONEY TO REWARD OUR PEOPLE, so they can live the life of THEIR dreams too.
I bet if I asked all the people who are listening to this podcast what their top three goals are, one of those goals would be to earn MORE MONEY!
With that in mind.. here’s the big question…
HOW MUCH TIME DID YOU SPEND YESTERDAY – TEACHING YOUR PEOPLE TO INCREASE SALES IN YOUR RESTAURANT? HOW much time did you spend last week, working on training your people to increase sales? How much time did your managers spend – training your staff to increase sales..? SERIOUSLY – SALES ARE - the life’s blood of your restaurant.
How do sales work in your company or your restaurant, or your store?
I imagine you have one or two types of restaurant. Quick serve or full serve. Quick Serve means customers come up to a counter and order and full serve is when the waiter or server takes the order at the table. Either way it’s the same thing…
YOU need to train your staff to SELL…
Do you have counter people, servers, waiters or do you have a SALESFORCE?
Do you have ORDER takers or SALES PEOPLE? There is a big difference between an order taker and a SALES PERSON. The order taker takes the order and runs off. They sell the absolute minimum possible to each customer that they wait on. WHAT – did he just say that an order taker SELLS THE MINIMUM... YES I DID. Here’s how you can do it Better
I’m going to give you some actionable steps that you can take starting today – right now…
#1 take out your P&L statement.
Write down your sales, either for the month, the quarter or year to date.
Then, Write down your cost of goods, your labor cost and your other cost for the same time period.
Then, subtract your costs from sales – this is your profit.
Then, calculate the percentage of sales for each expense category – cost of good, labor, and other. Now let’s imagine that you are running 33% in each of the categories. That means your expenses are 99% and your profit is 1%. Hey, don’t laugh, this is the fact in 86% of all restaurants in America.
My goal is to help you get TWO 10% Sales increases.
Here’s an example… Imagine that your restaurant has:
$1,000,000 in sales
$330,000 cost of goods -33%
$330,000 labor cost -33%
$330,000 other cost -33%
$990,000 total cost -99%
$10,000 profit -1% - Just CUT THIS LINE OR I can re-do the whole thing.
That’s not so good, so let’s set a new goal. A 10% sales increase.
Here’s how you get there and it’s a lot easier that you think.
START HAVING A SALES MEETING – EVERY WEEK!
I’m not talking about your dining room manager having a sales meeting. I’m talking about YOU the owner having a sales meeting. I’m talking about YOU - I'M TALKING TO YOU!
TEACH - YOUR PEOPLE HOW TO SELL…
Have a meeting with your service staff and SET A NEW GOAL.
Challenge them to increase their average check by 10%.
Teach them to do TWO SIMPLE things.
#1 - Sell an appetizer to every table.
#2 - Sell a second drink to every table.
That’s all you have to do. Don’t get complicated. Just start with those two simple things. The truth is that our people are confused and they don’t know how to sell. They are trying to sell appetizers, entrees, desserts, coffee drinks, and on and on… Let’s simplify the selling process and focus on two things APPETIZERS AND the second Drink!
IT IS UP TO YOU - to put in the time an effort necessary to accomplish the goal. We become what we think about. So start thinking about increasing sales. Get your people to think about start thinking about increasing sales, with two things, appetizer and the second drink. That’s all.
Let’s see what happens when we add 10% to our sales.
Remember our example we started with a million dollars in sales:
A 10% increase will move Sales from 1 million to - $1.1 Million
Cost of goods will stay at 33% – It increases to $363,000.
Labor cost stays the same $330,000 but the percentage will drop to 30%
Other cost stays the same at $330,000 and the percentage will drop to 30%
Our total expense becomes $1,023,000 only -93% of sales
AND our profit jumps from $10,000 to $77,000 profit -7% Now that’s exciting!
That’s a 600% Improvement. Just by doing TWO things.
Sell Appetizers – Sell the Second Drink.
If you want to keep this going – here’s what you do.
Keep track of how many tables your waiters sell an appetizer and second drink to.
Then, Chart your average check by each waiter. Post the results with the waiters name - in order with top sales on top and lowest sales on the bottom.
Reward the waiters who have a 10% sales increase.
Now if you want the second 10% sales increase. Here’s are the steps.
HIRE a SALES MANAGER – and BUILD A SALES FORCE!
Stop advertising for waiters. Start advertising for SALES PEOPLE…
Start thinking of your servers as Independent Sales Contractors who earn a 10-20% commission.
I’m serious, you must change the game and change your thinking. You need to teach your people how to use bumps, ad ons and suggestive selling techniques. Please know this - The thinking that got you here – will not get you to the next level. You must SPEND TIME ON THIS – You must TRAIN – Train and Train your people to SELL…
If you actually do this – YOU will see another 10% Sales Increase.
Your sales will grow to $1,200,000.
Your cost of good will stay at 33% - $396,000.
Your labor cost should stay at $330,000 and the percentage should drop to 27%
Your other cost will stay the same at $330,000 and that percentage should also drop to 27%.
And your profit will grow to $144,000 profit -that’s a 12% PROFIT!
Now that’s a big difference. We went from $10,000 profit to $144,000 profit by spending time on a very important matter – increasing sales.
If increasing SALES in your restaurant is important to you and your restaurant
Then, you must– SPEND TIME - working on it.
Start thinking about this… BECAUSE - We become what we think about all day long.
My Name is Peter Harman, I am the Food Guru. My goal is to start a restaurant revolution where every restaurant owner and manager and chef who joins us has the information they need to earn a 10% Profit, create financial freedom and live the life of their dreams.
If you really want to turn your restaurant and your life around in the next 90-Days, here’s my four step Plan.
1- SUBSCRIBE TO THIS PODCAST This weekly pep talk will keep you on your toes and give you inspiration to keep moving forward.
2- BUY MY BOOK I have written a book called Restauranting 101, it focuses on Eight Basic Fundamentals and it has the power to change your life and as luck would have it - it's available on Amazon today. This book will catapult your knowledge into the top 5% of all restaurant owners. Be sure to get one for yourself and for each of your managers. Most people who buy this book are coming back to buy FOUR more…
Then, after that you can come to food guru . com and…
3- SIGN UP FOR A FREE CONSULTATION: We will have an in depth discussion about you and your restaurant, if we agree that I can help you, we can move to step four… which is…
4- ONE ON ONE COACHING: We all need a Coach… as a restaurant owner you need SOMEONE TO TALK TO, someone who understands your struggles and can hold you ACCOUNTABLE for the results. I want to be your coach…
Think about this opportunity for a second… What are you waiting for?
Are you waiting for someone else to step up and make it happen?
Or are you ready to take the bull by the horns and kick some ass?
When the student is ready… The Food Guru will appear…
This week your homework is to TRAIN YOUR SALES FORCE…
See you next week.