Rosser Reeves a pioneer in television advertising pointed out that to work, advertising had, to be honest. The product being sold had to be superior, no amount of advertising could move inferior goods. Advertising is not able to create demand where it did not exist. e.g.: If you try to sell hamburgers right across from a McDonald it might not work. To promote inferior products would only increase the number of people dissatisfied with the restaurant. To be effective with flawed products will accelerate the destruction of the brandBRAND. It’s a waste of money to claim uniqueness if it doesn’t exist. This is important because fortunes are made from repeat business. The money would be better spent building a meaningful advantage into one or several food items or even specialty drinks before launching a costly advertising campaign for your promotion. Continue reading

A seasoned restaurateur just opened a new restaurant, unfortunately it’s a disaster, Why?

The premises: This fellow has opened several restaurants in the Los Angeles area. His last operation was in business for more than 30 years and very successful it closed for following reasons:

Lease was coming to an end, the landlord as usual was very greedy and came up with  an imposible lease. The health department closed the place for vermin infection [not a very good medal to add to the restaurateur’s blazon.]

Although a very knowledgable restaurateur he made the same mistakes as a newbie will do. Continue reading


I recommend chicken soup

I recommend chicken soup

Is this a good business? Follow those ten rules by which you have to abide with to find out.

The 10 Commandments:

Commandment #1 – Purchase the Past, Assume The Present, Buy For The Future!

  • The past financials help determine the purchase price but, they will give you a guarantee of the future income.
  • The future is up to you. You must evaluate the business for what you will be able to do with it.

Continue reading

Food to go is bigger and bigger


Cooking up a surprise

Cooking up a surprise

Sales of togo are steadily increasing, the forecast among professionals is a 15 to 18% of restaurant sales within 2018.

Unfortunately restaurants do not keep a close look at how orders are processed and annoying mistakes are rampant. In order to make this niche of your restaurant a profitable source of income you have to tie up the process of FOOD TO GO to your CULTURE.

We started to talk about Culture in a previous posting. There will be more on Culture coming soon. Continue reading

The Options

How much money do you need to start your dream restaurant?

There are two options:

  1. Start from scratch
  2. Buy an existing restaurant

Why should you buy someone else’s joint when you can create your own concept and be the top dude with your own kingdom?

Option 1

If you start from scratch you will need cash to do the following: Continue reading

There are different ways to look at numbers.

On your financial report whether it’s daily, weekly or his monthly P&L, add a column with each number on the report expressed as an amount per guest.

For example, if you serve 1,200 guests last week and beverage sales were $2,800, the average beverage sales per guest would be $2.34. Hourly labor cost of $3,400 would be $2.84 per guest.

What would be the advantage of looking at your financial reports this way? Continue reading

Tuesday the 14th is Valentine, turn a slow night in one of the busiest of the year.

What to do?

  • Promotion. Hopefully you have build up your database use it. Send your newsletter advertising this great event
  • Get rid of most of your 4 tops.Replace with 2 tops [that’s when it was wise to set up your table tops to be polyvalent]

Continue reading