6 MUST-DOS IN FLUCTUATING MARKET CONDITIONS

Abdul Kader Saadi, managing director of Glee Hospitality Solutions, experts in the F&B industry in the Middle East, lines up his top tips to help restaurant owners and investors steer their business through the region’s shifting economy

1. Don’t panic and remember your greatest asset

When the market gets tough, some business owners think of cutting key staff positions as an immediate solution. On the contrary, at this crucial time it’s important to retain employees that are integral to the business’s success. Many times, decision-makers fail to identify these staff members. Incentivize staff by giving them a share of the profits or sales. For instance, reward the employee who sells the highest number of dishes a day, or upsells the highest number of desserts. Upselling, however, requires proper training to avoid an employee coming across as a heavy-handed salesperson.

2. Invest wisely in marketing

Some businesses are destined to crumble because they give importance to short-term return on investment. The key is to invest in marketing with a focus on long-term goals. Remember, marketing is food, not medicine. It’s not something to invest in only when things go wrong. Instead, marketing needs to be undertaken regularly to sustain a successful business.

3. Be creative to stand out, but don't create a price war

The hospitality industry is known to be competitive. As a restaurant owner, it’s more important than ever to create attractive and unique offers to stand out from competitors. Customized packages are the way to go. Simply offering a business lunch will not cut it in today’s market. Every venue has great deals on a business lunch. To stay ahead in the game, a restaurant needs to have an edge on its competitors, either by introducing a wider choice of dishes or adding healthier options, which is a food trend for 2017. Some winning features are quicker service for people on the go and faster office delivery.

4. Be open to change

Being able to adapt is not only advisable, but mandatory for businesses trying to succeed in the current economy. In the hospitality business, this applies across all categories; from casual dining startups to internationally-acclaimed finedining. The challenge lies in reacting effectively to unexpected change. Companies that survive in the long run often plan for flexibility.

5. Maintain high quality

To gain loyal customers, a restaurant must focus on consistency, both in its offerings and the attention it gives to customers. While food quality is central to success, it is the dining experience that counts. This cannot waiver, no matter how tough the market gets.

6. Manage expenses sensibly

Smart restaurateurs kick off their venture with a well-defined annual operating budget, which is separated into phases with reasonable revenue goals. When the entire team is aware of this plan, they have a clearer picture on how to manage expenses efficiently. Also, overlook the allocation of funds and assign them where you are likely to get better returns.