Restaurant business in not profitable overall due to turnaround time per customer.
- Amount of avg time a customer spends in a restaurant: How much time is spent ordering by the customer. How much time it saves to serve the customer. Menu Size : The smaller the time taken more will be the revenue, if smaller is the menu Size then More specific customer will visit and customer turn around will tend to least. For instance if the restaurant has only 1 dish then less l preparation time, or customer spends time and overall revenue is high, less wastage.
- Operational efficiency : Less Wastage = more profit, More customers served increases revenue and Thus profit, Increased price of product and reduced portion size also increases revenue.
- Cross selling of those specific products such as Alcohol soft drinks salads etc.
while selecting a restaurant business it should be enquired about all these, other factors customer loyalty, location advantage, further expansion may assist.
Note: Rise in the revenue per Qtr is the mist necessity for any business to operate