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Home FoodserviceMaximizing Foodservice Sales

Maximizing Foodservice Sales — Why Restaurants Fail & Succeed

A Cornell University and Michigan State study of startup restaurants over a ten-year period concluded: After the first year 27% of restaurant startups failed; after three years, 50% of those restaurants were no longer in business; and, after five years 60% had gone south. At the end of 10 years, 70% of the restaurants that had opened for business a decade before had failed.

These can be discouraging numbers but they are nowhere near a 90% failure rate in one year, something a restaurant celebrity once blurted out on TV. More interestingly, another academic study found that 81.4% of all small business failures result from forces within the control of the owners/operators of the business.

In many cases, restaurants fail because they simply aren't efficient. The food normally drives the concept of a restaurant. Once that decision is made, then store layout, construction, equipment, staffing, vendor relations and menu decisions can be made, along with a hundred other critical decisions.

Two of the most important factors in a restaurant's success are food quality and consistency. The quality of the food must be good every time. The right foodservice supplier, therefore, is a critical contributor to sales volume because customers come back if they like what they eat, and they'll probably put up with a few operational growing pains—for a little while at least.

Frozen prepared foods add to the efficiency and safety of a restaurant. When prepared by a quality supplier, like Windsor Foods, ease of preparation increases and prep time decreases considerably, since the frozen entrée or appetizer has already been cooked—just heat and serve. Windsor's nine USDA-approved production plants and twenty-seven production lines across the U.S. are equipped to handle both large volumes and extended varieties of frozen prepared foods for restaurant foodservice.

Once the menu is established and patrons are coming in the door, the wheels of the operation need to turn effortlessly to maximize sales. Throughput is a sales-building concept measured by sales per hour and is best applied when the house is full. A full explanation of "Throughput" can be found in the article by Kim Zimmerman Floren on the Hospitality Trends, Maximizing Throughput: Six Steps to Increase Top Line Sales.

She defines the Throughput formula as:

Throughput Target = Seating Capacity X Seating Efficiency X Table Turn Times X Per Person Average
For example, if you have 125 seats in your restaurants and your seating efficiency is 90%, the table turn time is 1 hour on average and your per person average sales is $15.00, you are generating $1,687 per hour.

Throughput Target: 125 x .90 x 1 x $15.00 = $1,687 per hour

If every restaurant owner and operator could manage throughput and provide high-quality entrees and appetizers, drinks and deserts to their patrons, the overall success rate of the restaurant business would soar.

As an award-winning frozen foodservice manufacturer, Windsor Foods pays close attention to the operator's need to maximize foodservice sales while putting a high value in the quality and consistency of their products. They are prepared to do their part to stand behind owners and operators and assure them quality food items on which they can build their business—from a full selection of appetizers, barbecue and chili to gourmet-quality Mexican, Asian and Italian cuisines.

The food may drive the concept of the restaurant, but managing throughput and serving a consistent, quality product will make concepts into realities. Contact a Windsor Foods broker today at www.windsorfoods.com/locate.html and let us help maximize your foodservice sales as well as your reputation.


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