Business ideas and monetising new concepts

How do I increase turnover?

Asked by Paulette Contessi
My turnover isn't paying bills.

5 Answers viewed 433 times with 2 subscribers

Voted by: Steve Osborne

There are countless ways to increase your turnover, however, turnover can never be relied upon to pay your bills. Profit is what is required for that.

So ask another quextion about how to generate more profit and be spacific about what you are doing (or apparently not doing) to generate same.

Comments : (1)
I own a restaurant, I can't decrease my staff any further without it hindering service, we keep low stock levels & there's nothing we can do about rent, after 7 months we've hit a wall, our weekly turnover is stagnant & for a new business we were budgeting a 5% increase monthly but it's just not happening.
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I own a restaurant, I can't decrease my staff any further without it hindering service, we keep low stock levels & there's nothing we can do about rent, after 7 months we've hit a wall, our weekly turnover is stagnant & for a new business we were budgeting a 5% increase monthly but it's just not happening.

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Brian Bijdeveldt at Profitkoach
Voted by: Sarah Irwin Steve Osborne
Paulette, Your problem can be caused by varied factors. Are you marketing and promoting the business consistently? Have you approached other businesses to form referral agreements? Are you keeping in touch with your existing clients and offering deals and special theme night packages? If you can't do this yourself (and you have some budget to allocate) get a marketing expert to help you set up a marketing campaign to start pulling customers in. If your business model ensures you can make a profit then more revenue is a good thing! Develop packages and up sells anchored by basic dishes. Without more info it is hard to give you a better answer...good luck. Regards, Brian Bijdeveldt
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Ideal home Owner at Ideal Home Storage
Very nice
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Greg Rogers Founder and CEO at REthink HQ
Voted by: Steve Osborne

Hi Paulette,

Having owned and operated a restaurant myself I can certainly identify with your problem.

The previous replies are good ones and should be looked into, the biggest challenge in providing any feedback though is the lack of detailed information.

This is the first point I always request of clients. Get armed with as much detail (information) as possible, when you have this then you can make informed decisions and choices.

I suspect your initial problem is not having enough information to ask for help that is more defined than simply 'how do I increase turnover'. Baseline data is the key!

Information for you, right now, is to quantify, do this by making everything measurable.

How many days are you trading? Breakfast, lunch dinner? What is the average spend for each service time?

What are you food costs? Wage costs? Rent as a % to turnover, you make the comment that there is nothing you can do about the rent, I would respectfully suggest this can only be answered accurately when the question is actually asked.

What is the value of the 5% monthly increase you are looking for? Is it simply more customers X the average spend? If so this will mean a different course of action as opposed to perhaps investigating starting a breakfast or lunch service.

You have hit a wall after 7 months, does this mean that you were achieving your 5% increase prior? If so have you stopped doing something, can you do more of what was working?

I agree that simply reducing staff levels to the point that it affects service is pointless, no or bad service = no customers. Is your staff mix and rostering balanced?

It may seem I have compounded the problem by asking questions rather than offering solutions but if you haven't gone through an exercise like this, then any answer is more akin to throwing a dart blindfolded. You might hit the target, you might not. The biggest problem is that you won't know either way!

I wish you all the best in whatever course of action you take and I acknowledge your courage in putting it out there for help...always a big first step to overcoming a problem.

Cheers

Greg

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