Innovating the Dining Experience: Financial Strategies in the Restaurant Industry

Published by BradyRenner CPAs | February 28, 2024

Man and woman sitting in cafeteria discussing finance for the month

Welcome to the fourth installment in our series dissecting the financial strategies employed by various industries. Here we focus on the restaurant industry, which continues to grapple with the aftermath of the pandemic and the resulting changes in consumer behavior. 

The restaurant industry in our post-pandemic reality is struggling with labor shortages, increasing costs, and also real estate challenges. The CPAs at BradyRenner have years of experience with restaurants and can help those in the foodservice industry face these challenges head on without sacrificing quality of service.

Labor Shortages

For restaurants – like many other industries – a shortage of skilled laborers is a significant issue which is impacting crucial roles and posing financial challenges for owners. The labor shortage has the potential to reduce productivity and therefore profits. Heightened turnover costs are resulting in decreased profitability.

How BradyRenner Can Help

BradyRenner has a profound understanding of the foodservice industry’s intricacies and is able to offer targeted solutions to restaurant owners, addressing the challenges of labor shortages.

This includes:

  • Establishing Strong Account Processes. By developing robust financial frameworks to effectively manage competing priorities such as food costs, labor management, and facility upkeep, BradyRenner can help lay the groundwork for a more secure financial future for your restaurant.
  • Addressing Cash Management. BradyRenner can assist your restaurant in implementing strategies to navigate thin profit margins, which ensures efficient cash flow despite reduced staff. 
  • Starting Goal-Oriented Financial Planning. In order to achieve both your business and personal financial goals, you need powerful plans. BradyRenner knows the unique needs of small owner-inspired or family-run establishments, and can help owners navigate through the challenges posed by labor shortages effectively. 
  • Incentivizing Long-term Employment. BradyRenner can help address staff retention issues by reviewing current managerial practices and recommending solutions like flexible scheduling and other employee benefits.  

Cost Management

Increasing costs and labor shortages are facing restaurants, leading to a need for proactive measures to navigate these challenges. Although short-term solutions such as price hikes, menu changes, staff cuts, and delayed restaurant expansion provide immediate relief, they also risk driving away customers and negatively impacting the overall guest experience.

How BradyRenner Can Help

Restaurant owners can navigate these challenges with a proactive approach by leveraging BradyRenner’s expertise in accounting specific to the foodservice industry. 

Ways in which BradyRenner’s CPAs help restaurant owners address cost management include: 

  • Implementing cost-effective POS software for efficient online ordering
  • Analyzing sales data to focus on profitable menu items
  • Transitioning to digital menus for flexibility and cost savings
  • Engaging guests for repeat business through effective POS marketing
  • Utilizing sales data when scheduling staff

BradyRenner takes a holistic approach in addressing cost management issues and helps restaurant owners find long-term ways to solve these issues without sacrificing the quality of service and risking customer dissatisfaction. 

Lease Challenges

For restaurant owners, negotiating lease renewals can pose a challenge which impacts overall financial stability as commercial landlords are passing on expenses due to vacant spaces. This increase in lease costs can contribute to heightened overheads, impacting profitability. Restaurant owners may find themselves immersed in complex lease negotiations which affects the overall financial health of their business.

How BradyRenner Can Help

By leveraging their expertise as well as a tailored approach, BradyRenner can address lease challenges by providing strategic assistance to restaurant owners.

This assistance includes: 

  • Lease Negotiation Expertise. BradyRenner utilizes industry knowledge in order to negotiate favorable lease terms. These negotiations allow restaurant owners to navigate rising costs effectively. 
  • Facility Management-related Financial Guidance. By offering financial advice on managing facility and equipment upkeep, BradyRenner optimizes resources to mitigate the impact of increased lease expenses. 
  • Goal-Oriented Financial Planning. BradyRenner develops financial plans that align with both business and personal goals. By factoring in the unique considerations of small owner-inspired or family-run establishments, they are able to craft strategies that handle lease challenges and maintain financial resilience for your business. 

For more information on how BradyRenner can help your restaurant business thrive in the face of financial challenges, please contact them today. And now that we have addressed the ways in which BradyRenner can utilize financial strategies to solidify the financial health of businesses within the foodservice industry, please come back for the next installment in our series where we delve into the dynamic world of government contracting. Learn how businesses in this sector navigate bureaucracy and rule changes as well as find innovative ways to thrive.