If you are reading this, and you’re a restaurant owner or manager, then you know this. But for those on the outside looking in, the restaurant business is NOT as profitable as you may think. Margins are very tight and fluctuate from time to time. First off, this is the only business with a 50% mortality rate in the first year. That means half will fail. Why? One reason is that some of the people that get involved in the industry are not prepared for everything that could happen. The costs associated with running the business are constantly going up and it’s not easy to manage “The Fragile Balance”.
But even if you are an experienced restaurant operator, it seems like the chips are stacked against you. Operating expenses continue to rise at a pace much quicker than you could even consider raising menu prices. Some costs are fixed, like rent and loans, but the variable expenses are going through the roof. So it stands to reason, if the costs of running a business go up, then the product that the business sells will also go up in price. Which some think is so the owners can make more profit, but again, not true. Owners need to raise menu prices just to keep the doors open.
So what is the answer, do we just let it continue until a hamburger really does cost $20? I suggest we all come together to make a difference. Hawaii Restaurant owners and managers need to have a stronger voice, and need to get in front of the right people. There are approx. 6,000 restaurants in the State, and the food service industry makes up over 14% of Hawaii’s workforce.
Let’s start a dialog on what we can do, together….
Contact me or join in on one of our upcoming events.
The Hawaii Restaurant Association (HRA) hosts an Annual event to honor your top employees;
The HRA Employee Appreciation and Excellence Awards
March 20th, 2017 from 11 am – 1:30 pm
At The Kahala Hotel & Resort
Log on for info; https://hawaiirestaurant.org/nomination-form/
For tickets to the event: https://hra3.wildapricot.org/event-2430305
Hawaii Restaurant Association
To Join HRA: Call Holly at 808-421-8090 firstname.lastname@example.org