Five Great Tips for Restaurant Owners to Survive the Recession

When I ask business owners how their business is going, I usually get the same answer: "It's okay." While "okay" may be acceptable for your breakfast or a movie, it can be the death-knell for your restaurant. The following tips can help you quickly and predictably move your business from "okay" (or worse) to "fantastic!"

Tip #1 - Make a Decision to Take Action

This is so ridiculously simple, yet you'd be amazed at how many restaurant owners will just sit around and wait for things to change, wait for something to happen. They are paralyzed by fear. They're afraid of spending any more money because they think they won't get it back. Do something. Start by following the remainder of these tips.

Tip #2 - Buck The Trends

Are your competitors offering a lunch plate for $1.99? Worse, are you? I spoke with the owner of a very well established chain of Chinese restaurants in my area recently. He is just barely breaking even. You did not go into business just to break even. Offering the cheapest meal in town may get the customer in your door today, but it will be the wrong kind of customer, and they will leave you for the place down the street as soon as that place beats your price by $0.01. Don't get sucked into a price war. You are not selling gasoline or silver, and there are much, much better ways to get customers who are willing to pay full price into your restaurant without losing your shirt.

Tip #3 - Spend, Spend, Spend

Stop trying to pinch every penny. It does nothing to increase business, and in fact it may be driving away customers. I personally have stopped going to certain restaurants because the owner's fear manifested itself in a way that affected my dining experience. Spend more on what your customers want, give it to them, and give them a reason to come back for more. If your restaurant's model allows for it, consider adding impulse items that your customers want.

Tip #4 - Add More Customers

While this one may seem obvious, I have actually had suffering business owners tell me that they do not want any more customers. Even if your customer retention is good, you MUST have a system to add more customers on-demand. This prepares you for when customers do drop off, and it helps offset any slump in sales from customers tightening their budgets. This is an entire conversation in itself, so I have developed an entire free report that details exactly how you can double your sales and increase your customer base in minimum time. Click here to request a copy of my report.

Tip #5 - Consider a "Cash Infusion"

We have been conditioned to say "No" to any sort of borrowed money. Even if your restaurant is doing "just okay" you likely can still qualify for a cash advance to boost your business. You know from your early days that you must spend money to make money. If money really is tight, a "cash infusion" is the way to go. In my report (see Tip #4) I also go into detail about how you can obtain a cash advance without a personal guarantee or credit check.

Ben Piper is the founder of Christian Financial Freedom (www.ChristianFinancialFreedom.com)