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  Nation's Restaurant News has reported that more than 5,500 restaurants closed in 2009. NPD's fall 2009 stats reflect a "weeding out" of the poorest performing restaurants. The Northeast region was especially hard hit, with a 0.6-percent drop in restaurants.

Restaurant owners who have managed their establishments through years of success may be inclined to dismiss or ignore a decline in sales. While short-term losses may not indicate a significant problem within the business model, longer term losses or the failure to meet expenses and payroll are always indicative of a problem that needs immediate attention.

Too often, the actions instinctively taken-- cutting prices, increasing advertising and coupon specials only serve to further decrease profitability. In turn, nervous managers may find themselves cutting corners-- a decision that invariably leads to fewer satisfied customers. Even the most experienced of restaurant owners can fall into the trap of allowing a once successful business to slowly stagnate while their customer base moves on.

A restaurant consultant brings ideas, change and a fresh approach. An effective turnaround assures quality service, reduces waste and increases traffic. While the costs associated with a turnaround consultation are inherently high, the costs of inaction are far greater. If you believe your restaurant might benefit from a turnaround consultation, please feel free to contact me for additional information.

- Chef Benjamin Daymon

 
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