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

October 3, 2012


In This Issue:

Tips and Things - Why You Need A Weekly Budget

Rules of Thumb

Restaurant Start Up 

Five Steps To Customer Satisfaction

How Much Does It Cost To Open A Restaurant?



 Tips and Things

Why You Need A Weekly Budget

1. Provides hours worked guidelines for staffing.

2. Provides Short-term and long-term guidelines for purchasing.

3. Provides a quick method of evaluating management.

4. Assists in detecting possible employee theft.

5. Establishes a basis for implementing discounted sales programs.

6. Provides quick financial results for evaluating any new discounted sales programs.

7. Monthly and/or annual budgets are difficult to quantify into useful information for managers.

8. A One-week period is a natural accounting in a restaurant.

9. Because of the high volatility if restaurant sales and costs, you need to have budget information weekly to accurately monitor results.


Thought For The Day

  The number of servers working at any given time equals the number of stashes of food and drink hidden around the dining room, servers station, and kitchen..  

Rules of Thumb

The development of any restaurant requires a careful look at the financial projections. With that in mind, here are a few more Rules of Thumb:

Paper Cost

Full-Service - 1 to 2 percent as a percentage of total sales

Limited- Service - 3 to 4 percent as a percentage of total sales

Payroll Cost

Full-Service - 30 to 40 percent as a percentage of total sales

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

A education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't.

~Anatole France


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.

  1. Know Your Operation
  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


There is a difference between delegation and abdication. Never turn anyone loose unless they have been thoroughly coached or they may panic and fail.


 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

In the next three issues of Ron's Tip Jar/Insights, we will look at five steps you can do to improve your customer service.

1. Analyze

  • Know your customers and what type of dining experience they expect when they walk through your door.
  • Do a walk-through of the physical layout of your restaurant from your customers perspective.
  • Do a walk-through of the typical customer transaction from begriming to end.
  • Focus on areas of improvement. Make a list of things that need to be changed and ask your employees for suggestions.

2. Train

  • Take adequate time to train your employees to do the job you hired them to do.
  • Train employees step by step how to interact with customers, including how to make a great first impression, project a positive and upbeat attitude, communicate effectively, and build relationships with customers to make them want to return.
  • Train your employees how to serve your customers. Focus on greeting customers and making them feel welcome, handling the ordering and serving process, and ending the transaction in a way that ensures the service experience has been exceeded.


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



Copyright 2012 Profit Line Consulting, Inc. All rights reserved.

We encourage sharing "Insights" in whole or part if copyright and attribution are always included.

Profit Line Consulting, Inc.