Ron's Tip Jar/Insights - Published by Ron Santibanez   

October 10, 2012


In This Issue:

Tips and Things - Systems

Rules of Thumb - Payroll Costs

Restaurant Start Up 

Five Steps To Customer Satisfaction

How Much Does It Cost To Open A Restaurant?



 Tips and Things


In order to create and maintain a successful restaurant you must develop systems. Here are some reasons why systems can make you more successful.

  • Systems help you become profitable more quickly during the start up phase
  • Systems increase the odds you can attract and keep quality employees
  • Systems provide direction, and communicate to your staff the performance and results you expect.
  • Systems create consistency
  • Systems give you a better chance to attract capital investment
  • Systems enable your restaurant to function efficiently without you always having to be there.

With effective systems in place you can effectively evaluate your restaurant on a day-to-day basis.


Thought For The Day

Part of the secret of life is to eat what you want and let the food fight it out inside.

~Mark Twain


Rules of Thumb

 More Rules Of Thumb

Payroll Cost

Full Service - 30 to 35 percent as a percentage of total sales.

Limited Service - 25 to 30 percent as a percentage of total sales.


Management Salaries

Ten percent or less as a percentage of total sales. 


Restaurant Start Up

Site Selection - The Principles

Below are the Principles of Restaurant Site Selection. Over the next several issues I will examine each one of these principles in detail.

We begin with "Know Your Operation".

  1. Know Your Operation - It goes without saying that you must know and understand your operation. Moreover, knowing your operation is a pre-requisite to any expansion you have planned. In fact, this is the strength of the of the food business. Food operators can usually recite and compare food costs, labor costs, controllables, and uncontrollables. Numbers are traded and widely discussed. Daily tallies, transactions, customer counts, meals purchased, and, hopefully, profits fill numerous notebooks. Nonetheless, as mundane as it sounds, you must truly grasp the complexities of your operation and accurately gage your management ability before expanding or starting out. Have you done your homework? If you are entering the food industry for the first time, have you studied successful food operations, and do you feel thoroughly familiar with their techniques? 
  2. Determine Your Customer Profile
  3. Delineate Trade Area
  4. Establish Locational Criteria
  5. Analyze The Market Structure
  6. Gather Factual Market Resource Data
  7. Ensure Adequate Accessibility
  8. Recognize The Importance Of Employment
  9. Identify Generative Areas
  10. Clarify Attitudes, Trends, Habits, and Patterns
  11. Evaluate Competitive Facilities
  12. Understand Visibility and Exposure
  13. Estimate Sales Potential
  14. Evaluate Site Economics and Physical Characteristics


 Restaurants will never run out of things that can be stolen.

 We are offering a FREE Restaurant Start-Up Checklist. Just send us an email at Ron@RestaurantExperts.com and request your copy.

Additional Resources Now Available On Our Web Site:




Five Steps To Customer Satisfaction

We continue with the five steps you can take to improve your customer service.

3. Develop Teamwork

  • Spend time with your employees and lead by example
  • Listen to your employees
  • Keep employees informed
  • Include employees in solving problems and making decisions
  • Create an atmosphere of support and cooperation


How Much Does It Cost To Open A Restaurant?

The most frequently asked question I receive is, "How Much Does it Cost to Start a Restaurant?"

The answer is.....it depends. Asking how much does it cost to start a restaurant is like asking how much does it cost to buy a house. There are many variables and options that must be selected before you can attempt to come up with the answer. For example:

  • Fast Casual or Full Service
  • Free Standing or In-Line
  • Restaurant ready space or shell condition.
  • Landlord TI?
  • Hood or grease interceptor needed?
  • Size of space 
  • Interior finishes selected (options)
  • Type of furnishings selected (tables can range from $100 to $500 each)
  • Type of kitchen equipment needed
  • Menu concept
  • Liquor License
  • Staffing
  • Additional engineering needs due to facility issues

Completing a comprehensive feasibility study on a specific site or geographical location will determine the capital requirements and projected sales/profits & ROI of your concept.

For more information on this subject Click Here.


You can now read todays Restaurant Business News on our website .  


Additional "Tips" are now available on "Ron's Blog."



Follow me on Twitter @ronsantibanez. I post frequent tips and suggestions to Improve Your Profitability.


We are now featuring our booklet "How To Start A Restaurant" FREE on our web site.  

Send me an email at Ron@RestaurantExperts.com if you would like a copy of our booklet, "How to Manage a Successful Promotion." Type "Special Booklet" in the subject line. 


Visit our web site RestaurantExperts.  You can view additional tips and techniques that are regularly posted on our Profit Line Facebook page.

Click here to view our feature page on our client, Salad Republic 

Please Visit Salad Republics New Website LoveSaladRepublic.com


 We encourage you to contact us if there are specific subjects you would like to see addressed in "Insights" or "Ron's Tip Jar".

"Insights" is a newsletter discussing issues that affect your restaurants profitability delivered by Ron Santibanez. You may also view past issues of "Insights" and "Ron's Tip Jar" by clicking here.

Contact us at ron@RestaurantExperts.com

For information regarding our start-up and profit improvement services, call us at 866-903-5875. You may also reach me by email at ron@RestaurantExperts.com



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