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Own a Restaurant? How to Manage a Restaurant More Effectively

Managing a restaurant is not an easy thing to do. If it was, there wouldn’t be TV reality shows about rescuing a “fine dining experience” from the edge of disaster. Usually, this happens due to mismanagement and/or failing to be progressive in thinking and actions.

There are different ways to manage a restaurant’s cash flows effectively to avoid difficulties. In this article, we go through a few of them.

Avoid Wasting Money on Unnecessary Refits

While it’s always desirable to run a restaurant with a new décor, most places aren’t that old or dated that they need to be stripped out and completely replaced. While a restaurant makeover is fun to watch on TV, the costs run into the tens of thousands (at a minimum) and the business disruption is costly too.

Consider what can be done to improve the décor here and there without doing a complete refit. This avoids spending money that’s unaffordable in the hope that more customers will come (or return after their first visit).

Examine the Look and Functioning of the Restaurant

When working at the restaurant, it’s seen frequently enough that everything becomes “the norm.” As a result, it’s typical to fail to notice or mindlessly overlook problems. While these areas might not be directly costing the business money, it could still do so indirectly through lower customer satisfaction and poor word of mouth.


How is it rated? What do the Google restaurant reviews say about it? Avoid being in denial. Be honest with yourself about the skills of the head cook and whether changes need to be made. What about the other staff in the kitchen? Do changes need to be made there too?

Service Quality

Even if the food is consistently delicious, the reviews could mention the lackluster service. It takes too long to order; drink refills aren’t frequent enough or it’s near impossible to get the attention of the wait staff who have their head in their phones.

Décor and Cleanliness

While you may not be replacing the décor, it can still be fixed where there’s a tile that isn’t sticking down or the walls could do with a new coat of paint.

Also, be unrelenting about cleanliness. Double-check the food hygiene in and out of the kitchen and “the front of house” areas that the customers experience too. This is critical.

Know When Your Cash Flow is Suffering

When you’re reliant on cash flow to pay salaries but there’s a shortfall due to seasonally lower table covers, then it can be beneficial to take out merchant cash advances. This provides the ability to get a sum of money based on some of the receivables waiting to be received, even when you have bad credit.

When the delay in receiving card-based payments is causing difficulty, using a financial service to bridge the gap is helpful. It avoids running out of funds to pay everyone or keep up with the rent when times are a little tougher.

There are various aspects to running a restaurant that are worth paying attention to. Each makes a material difference to its smooth running to avoid financial hiccups along the way.