Quote:
Originally Posted by Vermilion Villager
The manager told me something I've never heard...or even considered.
He said "roughly 1/3 of the restaurant is completely done eating their meals, they have their checks on the table but are just visiting."
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Restaurant economics:
the entire staff and building rent are fixed costs, people are a hybrid, but there is a minimum
The revenue and associated food/drink cost are variable costs, COS, cost of service.
Profitability of the restaurant depends upon the revenue less cost of service being greater than the fixed costs. If you then figure the average revenue and gross margin (revenue - variable costs) per customer, you have to serve # of customers per day to break even. Not all days are the same, so its ### customers per week.
The key to the big days (like weekends, but less so in TV where employment rate is very low) is high turnover, quick service and quick eats and out the door to do it again, ie more customers served. So there is a balance and some timing where lingering with many open tables is no big deal on slow days.
But managing that customer flow is critical to profitability, which is why the turnover concept is critical to financial success and staying in business. . as well as keeping employees who are good at their jobs. . in TV, its more like herding cats between the elderly who eat less and socialize more, and employees who can migrate to Orlando for better pay. .