Sticking with the 10%: 3 Growth Strategies for Restaurant Startups

Restaurant startups will need to reevaluate their priorities for the best chance at survival. 

Statistically, 9 out of 10 startups fail. Razor thin margins determine which restaurant startups are elevated as foundational food and service investments. And while restaurants are notoriously behind the tech-curve, finding a balance between industry tradition and industry disruption is key.

It’s no secret that the food and beverage industry is filled with ruthless competition. And the hardest part of achieving success in the startup world is putting your business on track to thrive- not just survive. It’s important to start as you mean to go on: establish your priorities and track both the good and the bad of your business by having the data and systems in place to do so.

So, are you ready to order? Here are three strategies to promote the growth and success of your restaurant startup.

Strategy 1: Consistency Establishes Efficiency 

With labor shortages and supply chain issues, it’s critical now, more than ever, that restaurant startups deliver consistency in the quality of their food, portions, service, and operation standards.

Consistency is the foundation of success within the restaurant industry. Consistent experiences massively influence a brand’s reputation in the minds of their customers. Maintaining a level of consistency across the entire restaurant will help to build brand loyalty early on. Being able to offer a level of uniformity from your dishes to your restaurant procedures is valuable. Focus on standardizing your recipes, kitchen, and services as the first step towards success.

Establish a clear connection between consistency and efficiency in your restaurant. For example, instead of running off spreadsheets, leverage your data to help build better workflows for your culinary teams.

Strategy 2: Satisfied Employees Generate Satisfied Customers 

It’s crucial to pay close attention to employee and customer satisfaction rates. You’ve invested in training your employees, but does your restaurant offer an environment where those protocols are being carried out? If you’re struggling with consistency, your employees are the first aspect of your startup to address. Getting feedback from your employees allows you to establish consistency and bring new ideas to the table.

On average, an employee will cost 1.25 x -1.4x their salary. For example, an employee on a $40,000 salary will actually cost you around $54,000 after factoring in various payroll tax costs and insurance. A more conservative payroll budget could be an option if you’re a sole proprietor or running a small enterprise with 1099 contractors- both of which are feasible options for startups.

Regardless of your scenario, the attitude and motivation levels of your employees will dramatically affect your restaurant. If your employees are not satisfied, it lowers both their morale and the quality of food and services.

Owners of successful restaurant startups ensure the satisfaction of their entire staff so they can work as a team to bring the vision for the restaurant to life. Taking consistent feedback from your employees, evaluating their responses during periodic assessments, and incentivizing good performance are foundational methods for improving employee satisfaction.

The other piece of this strategy is taking care of your customers. Delightful customer experience is a direct product of memorable customer service. Your restaurant startup should offer excellence during every interaction, including greetings, presentation of the food, experiential dining experiences, and hassle-free payment options.

To ensure that the customer is feeling valued, it’s important to show that you value their opinion by taking their feedback seriously. Actively encourage your customers to provide feedback for every level of their experience with you. Customer feedback will offer a realistic perspective of customer preferences and perceptions of your restaurant startup.

Strategy 3: Anticipate the Future

Anticipating the future has become more important as consumers have become more agile than ever. To secure success for your startup, the customer experience must expand beyond the four walls of your restaurant.

Partnerships between the restaurant and tech industries bring restaurants up to speed in the digital landscape, providing a competitive advantage as startups fight for customers that have changed over the course of the pandemic.

Recognizing this change is recognizing one of the major benefits of these tech partnerships: your restaurant startup will secure the opportunity to mold technology in a way that is advantageous to you. Considering the perspectives and experiences that come with the fast-paced world of startups, it’s important to create your brand with a digital-first future in mind.

Tech Problems Meet Tech Solutions 

Fenix Verify can offer support for each of these three strategies, allowing you to save time and money without sacrificing the future of your startup.

By consolidating services and data typically provided by multiple vendors, Fenix Verify empowers restaurant startups to make changes that mitigate risk and improve their chances of startup success. Health and hygiene audits, certified kitchen inspections, employee and customer satisfaction surveys, and mystery shopping services are among a few of the ways to gather the necessary knowledge for creating a lasting foundation for your startup. Schedule your free demo today to learn how Fenix Verify can help you stay a part of the 10%.