How excelling in manufacturing operation can make your restaurant win great heights

Running a restaurant is a continuous journey while people can use technology to command better prices, margins and revenue growth. With an experience of running a restaurant and running a restaurant software management company, a noticeable secret in restaurant running lies in keeping a sharp focus on manufacturing operations.

Inventories accounts for the largest portion of the net assets of any restaurant business. When sales fall below forecast, restaurants are stuck with unsold inventory. Food is at a major risk to turn obsolete and gets accompanied by more falling prices, which in-turn can shrink to the vanishing point.

Made-to-order applies to producing a unit after the customer’s order is placed. Inventory kitchen also gets the information when the customers place their orders and deliver the ingredients required in the kitchen, which immediately places them into production, and waiters take away the food within hours after they're placed.

If the order has to be delivered, the system notes the time out of the entire cycle from the order of delivery. The supply chains can deliver in less time once the order is placed. Or, the system then squeezes time out and the order is placed on the table that comes on the software.

These days’ restaurants opt for POS software that improves the inventory savage and turnover, which in turns increases the cash-flow. A better cash-flow can help improve margins as well as revenue and market share.

This gives a fair opportunity to restaurants to change its inventory twice a month. Thus, restaurant can also make changes in the menu comparing and learning from the competitors and making a decision on improving margins or on cutting prices. It also provides the latest improvements ahead of other makers.

By the time a restaurant is functioning well, there comes a need to maintain it, but talking about the flip side, the restaurants often face margins depression. Even then with good cash flow at other times, they can lower prices at a time when they are not expecting multiple customers, and still run high return on capital and positive cash flow.

While you track the inventory, supposedly a dish is failing to impress the customers and there lies an option of making some changes to the recipe or even discontinuing it completely.

Every restaurant owner needs to track running costs, must sell their products at price that can pay off these costs as well as achieve the planned profit. The simplest way is to calculate velocity, which in the terms of restaurant can be the ratio of sales rupees to net assets deployed in business. This can be called a production model for the restaurants.

Taking inventory is a tedious, but a necessary task. Instead of manually managing all the management on the computer, it is now possible to save it on the POS software and manage it remotely. This eliminates steps from the process which saves time and reduces the chance of human error.

Fortunately when it comes to POS, the suppliers are proposing that a different module restaurant can opt for services for only what they require.

Author's Bio: This article has been authored by Sakshi Bhasin Tulsian, Co-Founder, POSist Technologies Pvt. Ltd.