It's has been estimated that up to 90% of independent restaurants fail within their first five years, while in that same time frame over 90% of franchised restaurants are still in business." The question is WHY? Why are the failure rates for independent restaurants dramatically higher than those of franchise operations?

The answer is really quite simple: Franchise operators start out with a "system". A tested, refined, and proven way of doing business. A systematic and reliable way to select a site, design the restaurant, inspect the produce, grill the filet, train the hostess and so on.

Independent Restaurants On The Other Hand ...
Conversely, the vast majority of independent restaurants start with no such system, at least one that's been tested and proven to work in the real world. Hence, just about everything that's done is an experiment to some degree. If something doesn't work right the first time, chances are good the result will directly or indirectly have an immediate, negative impact on customer perception, actual experiences or both.

Make too many mistakes, turn off too many people and an independent is out of business and it can happen almost overnight. It's not uncommon to watch an independent operator with a promising concept open their doors to standing room only crowds the first 60 days only to see them turn off enough customers to be out of business 6 months later.

While you may not be able to do anything about the lack of a proven operating system when you opened your restaurant, the good news is that if you're still in business, you must be doing something right. The question is how much better could your business be doing if you and your staff started evaluating all those things that are done in your restaurant, to find ways to do even just a few things a little better.

High Return Activity
This type of activity is getting to work "on" your restaurant and not "in" it. It's the kind of high-return activity that may not benefit you immediately, but if done right, can pay off big time for you down the road.

You start the process by questioning everything that's being done in your restaurant and asking, "Why do we do it like this?" You'll quickly learn that many of the things going on in your restaurant don't make sense and it will be obvious that there's got to be a better way to get the desired result. You'll also learn that many of the things that are being done have just kind of evolved. Nobody ever questioned it before, "it's just the way we've always done it."

Developing Your Own Operating System
Although developing your own unique operating system is not an easy task, it's next to impossible to build a successful restaurant without one. Operators that take the time, the effort to involve their staff and consciously determine how they want their restaurant to operate enjoy some huge advantages over those that don't.

• An operating system will help your staff know your operating standards and the results you expect.
• An operating system helps you deliver food, beverages and service to your guests in a consistent and predictable manner.
• An operating system will give you a better chance to obtain capital to expand your concept and enhance your ability to manage growth.
• An operating system will give you a better opportunity to franchise your concept.
• An operating system will improve the odds your restaurant can function without the you being there.
• An operating system will enhance the value of your restaurant when you sell it.

A restaurant operating system usually contains the following sections or categories of functions:

• Menu and Recipes
• Kitchen Management
• Dining Room Management
• Purchasing
• Personnel Management
• Training
• Cleanliness and Sanitation
• Safety and Security
• Financial Management
• Equipment Management
• Facilities Management

Our member's Toolkit will provide you with scores of resources including ideas, procedures, forms, manual templates and checklists to help you start the process of developing your operating system, your way of doing business. As an owner, developing your restaurant's own unique operating system is your best shot at building a more successful restaurant "and" a business that doesn't depend on you being there all the time.

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