Get the Most Out of GrubHub Online Ordering
So you’ve implemented Grubhub online ordering to bring more orders and greater efficiency to your restaurant, but are you doing all you can to capitalize on your investment? Your Grubhub partnership comes with an array of best-in-class technology and tools to grow your business and reach new diners.
Here are seven tips and tricks on how you can make the most out of your restaurant’s Grubhub partnership.
1. Launch promotions
Did you know that restaurants can run their own promotions on Grubhub? Whether the goal is to introduce a new menu item, increase ticket sizes or generate loyalty, promotions catch the eye of value-driven diners. You can tap into loyalty tools to encourage customers to place repeat orders to receive an exclusive reward. The best part? Promotions can be added, changed or removed as you, the restaurant owner, see fit. Experiment with promotions and loyalty tools on Grubhub, and your diners might be checking out your menu more often to see what new offers are available that day.
2. Encourage online ordering through Direct
Modern diners flock online to get their next meal. Digital ordering and delivery have grown 300% faster than dine-in traffic since 2014. These days, diners expect their favorite restaurants to offer online ordering. That’s why many restaurants are turning to Direct, a commission-free online ordering platform. Direct is a branded online ordering platform that can integrate with your existing website. You can customize it to match your restaurant’s look and feel, and access customer data to improve sales. The best part? You won’t pay any additional fees whatsoever — all eligible Marketplace restaurants can join Direct free of charge.
3. Optimize delivery
According to our Grubhub data report, 63% of surveyed consumers report increased frequency of third-party restaurant delivery orders compared to pre-pandemic. Better yet, 90% of surveyed consumers expect increased usage going forward. Offering delivery at your restaurant is essential to capturing this demand.
Grubhub’s restaurant delivery service is perfect for restaurant owners who want professional, knowledgeable delivery drivers but don’t want to deal with the operational overhead of managing a delivery program including scheduling, insurance and tip-outs. For those who do delivery themselves, your Grubhub Account Advisor can help you optimize your fees, minimums and delivery zone to ensure you are attractive to local diners.
4. Streamline point-of-sale operations
Did you know that Grubhub can integrate with your restaurant’s point-of-sales (POS) or ordering system? Grubhub works with all kinds of technology providers to help streamline a restaurant’s ordering and fulfillment operations. Restaurants can increase efficiency by simplifying order throughput to a single system. This integration can help restaurants increase efficiency, update multiple menus in real time and streamline employee training. Streamlining your technology reduces clutter and makes managing your restaurant easier.
Check out what POS systems you can integrate with Grubhub.
5. Analyze your diner data
With online ordering from Grubhub, restaurant owners have detailed access to their order data. Through dedicated, secure accounts, restaurant owners can access their restaurant sales data from a tablet or computer. The customer insights dashboard gives insight into the online ordering habits of specific customer groups. Metrics such as month-over-month order volume allow owners and managers to review the restaurant’s performance, spot trends and identify new opportunities for growth.
6. Promote your online ordering link
Now that you have all the tools you need to process online orders, the last step is to spread the word. One of the best ways to reach customers directly is through social media. Creating and maintaining Instagram, Facebook and even TikTok accounts for your restaurant is a great way to get your cuisine in front of interested customers. Make sure to add a link to your restaurant’s online ordering site like Direct, Grubhub or your website to your social media bios.
You also want to make sure your restaurant is searchable on the web. Creating a website for your restaurant if you don’t have one, or optimizing your website to include a way to place an order is essential in establishing an online presence. 77% of consumers reported they are likely to visit a restaurant’s website before they dine in or order takeout and delivery. Including your online ordering link on your website can prompt customers to place an order. If you claim your restaurant on Google Business, you can customize what link diners are directed to when they look up your restaurant.
Grow your restaurant with Grubhub
At Grubhub, we understand that running a restaurant doesn’t come with a recipe. That’s why we are always looking for the best solutions to help restaurants grow. Whether you use Grubhub for delivery and pickup, or have customized your Direct site to get more commission-free orders, there are many ways you can get the most out of your Grubhub partnership. Is your restaurant not on Grubhub yet? Partner with Grubhub today to reach new customers and grow your business. Sign up now!
Boost deliveries and test new menu concepts with virtual restaurants
The pandemic changed the way customers order from restaurants. Offering delivery and pickup has become essential for restaurants to stay competitive, shifting the way we understand restaurant growth. This change has also led to the rise of a new type of restaurant: virtual restaurants.
Virtual restaurants have become one of the biggest growth opportunities in the industry. The virtual restaurant market is estimated to reach $1 trillion by 2030, proving this type of business to be a reliable avenue for growth. Virtual restaurants can launch in about a quarter of the time of a physical restaurant, saving you time and money.
Read on to learn what virtual restaurants are, then be sure to download the checklist to understand exactly how you can experiment with a new brand of cuisine while growing your delivery sales.
Demystifying The Virtual Restaurant
Also known as virtual kitchens, ghost kitchens or delivery-only restaurants, the virtual restaurant concept is actually quite simple.
They are delivery-only operations that accept orders solely online—through apps and websites like Grubhub. With no need for a brick and mortar location, the restaurant only exists online.
Restaurateurs can launch a virtual restaurant to experiment with a new menu concept, brand a subset of existing menu items or capture unique customer demands for particular food in the market. In this way, restaurants can open up a whole new “restaurant” without any additional expenditure on staff or rent.
Since all orders are placed digitally and delivered, customers don’t know (or care) that the restaurant is “virtual.” They may even be excited to try new concepts if they are put out by their favorite local restaurant. Their only concern is that the food tastes great, is easy to order and is delivered to their door.
Paving The Way To Your Own Virtual Restaurant
So what goes into creating a stellar virtual dining experience? Take a look at these steps you can follow to launch your own virtual restaurant.
Step 1: Choose Your Cuisine
Your menu can expand your existing offerings or be based on a subset of items from your current menu. You can even test out an entirely different concept—one that may even be completely different from your physical restaurant. With the data provided by Grubhub, you can even pinpoint what type of food customers are searching for, but not finding, within your delivery boundaries, and create a menu that fills that gap.
Once you’ve decided on what type of cuisine you want to serve, the next step is to engineer your menu. Explore how competitors price and market their cuisine, look into local diners’ ordering habits and decide how you want to source ingredients. You’ll need to compile data to calculate food costs, identify contribution margins and determine what menu items are likely to sell. After you’ve evaluated this data, the final step is to create menu prices. These prices don’t need to be set in stone – you should evaluate your business during the first few months of operations to optimize your menu.
Step 2: Create Your Brand
Now that you know what you want to sell, you need to brand your restaurant to build customer recognition. Your brand should reflect your virtual restaurant’s cuisine type and niche. Spend time deciding on brand assets like a name, logo, theme and photos – these things will be the first things diners see when they order from your restaurant.
Use your branding to convey your restaurant’s identity and distinguish it from competitors. Make sure you have a good understanding of your target customers before you finalize branding to ensure that your restaurant’s theme will resonate with them.
Step 3: Develop a delivery strategy
Virtual restaurants cannot function without delivery. Your virtual restaurant’s delivery fleet should be professional, timely and efficient. Because your restaurant doesn’t have a physical storefront, your drivers are the ones who will interact with customers. Ensuring you have the best drivers can make sure your brand is represented well.
Grubhub delivery can help take work off your plate by handling out-of-house services for your virtual brand. Grubhub delivery allows restaurants to expand their delivery boundaries and reach customers in a timely manner, giving diners real-time updates on their progress. Our fleet of over 300,000 drivers are experienced and professional, equipped with the right tools to make sure your cuisine reaches your customers.
Step 4: Launch Your Virtual Restaurant
So you think you’re ready to launch your virtual restaurant? Before you start cooking, make sure you have enough inventory to support your virtual restaurant staff. Your staff should be trained on how the virtual kitchen will operate, and you should have a plan on how your virtual restaurant will work in tandem with your brick and mortar location if applicable.
Launching your virtual restaurant is as simple as publishing your menu online. You can add an online ordering link to your restaurant’s website to start. Want to get your restaurant in front of eager diners instantly? You can list your virtual restaurant on a third-party delivery platform like Grubhub to get access to 33+ million customers. Listing your restaurant on Grubhub Marketplace makes it easy for customers to place an order right from any device via an app or online platform.
Grubhub partners also get access to Direct, a commission-free online ordering platform that is completely free to use. With Direct, you can list your virtual restaurant’s menu online and easily manage restaurant info from your existing Grubhub account. Direct can also integrate into your existing website, giving customers an easy way to place an order. And the cherry on top is that Direct collects customer data that you can download for free and use to better target your marketing efforts. Learn more about how Direct can help your virtual restaurant grow.
Step 5: Market your virtual brand
A virtual restaurant isn’t subject to the same street recognition as brick and mortar restaurants. Restaurants that don’t have a physical dining room need to put in extra effort to make their presence known. Simply creating a website isn’t enough to generate a customer base. You need to market your new brand to potential customers to make them aware of your offerings.
Your marketing strategy should be holistic – covering web, email, social media and good old fashioned word of mouth. Your restaurant’s website should contain all the necessary info about your brand, featuring the menu, hours, delivery method and how to order. Modern diners use social media to explore new cuisines. Create social media pages for your restaurant on popular platforms like Instagram, Facebook and TikTok to share your creations. Once you start getting customers, collect their emails so you can send them announcements, deals and promotions to prompt them to place an order.
Just because your restaurant doesn’t have a physical location that customers can visit doesn’t mean you can’t connect with your local community. Old fashioned forms of marketing like fliers, signs and press announcements are a great way to make your presence known to your neighborhood. You can even partner with local businesses to cater an event to grow awareness of your brand.
Finally, encourage your customers to leave reviews about your restaurant on your website, Google Business page or on Grubhub. Reviews are a great way to legitimize your restaurant, especially when you’re just starting out. Plus, positive reviews can serve as free marketing for your restaurant.
Making A Virtual Restaurant Work For You
There are many exciting advantages to opening a virtual restaurant in addition to your physical restaurant.
- Obtain High Rewards For Low Investment. Virtual restaurants are efficient and save money because they grow your business without increasing overhead costs.
- Grow Delivery Sales. You can open up new channels of revenue using the same amount of staff, space and resources by operating one, or multiple, virtual restaurants out of one physical kitchen.
- Reach New Customers. By branching out with a new concept, you can reach an entirely different customer base.
- Innovate and Lead. With little risk, you are free to experiment and test out what works to create successful concepts and satisfy needs in your particular market. Also, being able to change your menu on the fly without updating printed menus or signage allows you to be flexible and creative.
- Increase Digital Presence. By living online, your brand will get valuable exposure through the Grubhub website and mobile app.
Whether you want to increase delivery sales or experiment with a new restaurant concept, a virtual restaurant can help you reach your goals with low risk and high rewards. Learn more about opening a virtual restaurant. Ready to reach new customers and grow your business with Grubhub? Signup today!
How to start a restaurant
Opening a restaurant is a dream for foodies everywhere. As an owner, you enjoy full creative control over the menu, food quality and customer experience. Before you start a restaurant, however, it’s important to understand exactly what goes into the process.
So sit back, untie your apron and dig into the steps for opening a restaurant.
Steps to open a restaurant
Opening a restaurant is both exciting and complicated. From getting licenses to planning a menu and buying kitchen equipment, each phase requires patience and attention to detail. Use these steps to organize your plan of attack.
1. Decide on a restaurant concept
Your restaurant concept is the central idea or theme of the business. Typically, it involves two core elements: the cuisine you offer and the environment in which you serve it.
Popular cuisines include:
- italian
- Indian
- mexican
- chinese
- American
- sushi
- vegan
- BBQ
- Pizza
Once you know what kind of food you want to serve, it’s time to design the environment. Some common style and size options are:
- Diner
- Fast food
- fast casual
- Counter-serve
- Sit-downs
- ghost kitchen
- Fine dining
- Café/bistro
- Coffee shop
- Pubs
To crystallize your concept, summarize the idea into a sentence. For example, “a small fast-casual café serving espresso drinks and elevated comfort foods in a cozy setting.”
2. Build a restaurant business plan
Write a restaurant business plan that describes your operations, analyzes the market and identifies the target audience. It should also lay out the structure of the organization and make financial projections.
A well-researched plan is a roadmap for opening a restaurant — you can use it to guide every important decision, from choosing a location to setting the menu. Potential investors will use the plan to determine your potential for success.
When you’re opening a small restaurant, the business plan can be less complex. You might include fewer details about the organizational structure and focus primarily on the target audience and competitor analysis.
3. Secure restaurant funds
There’s no getting around it: It’s expensive to open a restaurant. Many owners need to seek funding to help cover the costs of rent, furniture, decor, equipment, insurance, licensing and labor.
Some common funding sources for restaurants are:
- Business loans
- Business lines of credit
- Financial support from family and friends
- External investors
- Crowdfunding
- Grants
Restaurant startup costs can vary considerably based on size, type, and location. One survey of restaurant owners reported that average totals range from $175,000 to $750,500. Another report estimated startup costs ranging from $95,000 to $2 million.
Owning a restaurant can be profitable. However, since profit margins are tight — usually ranging from 3% to 5% — you must control factors such as inventory tracking, ingredient selection and food waste.
4. Find a restaurant location
Location is one of the most important factors in a restaurant’s success. It determines everything from public perception to the customers you’re most likely to attract. A restaurant that’s highly visible and set in a convenient location may have an easier time than one that’s hidden away on a back street with no parking.
As you evaluate locations, consider these factors:
- Price
- size
- Layouts
- Available parking
- driving distance
- Proximity to public transportation
- Visibility from the sidewalk or road
- Ease of access
- Existing kitchen facilities
Think about your target audience, too. Where do they live? Will they walk or drive to the restaurant? What kind of environment do they prefer?
Use audience insights to guide your property search. If your goal is to be the local date-night hotspot, for example, you might prioritize a property with a beautiful view or an intimate vibe.
5. Obtain restaurant licenses and permits
Every restaurant needs a license; it demonstrates to customers and officials that you know how to operate legally and safely. Restaurant licensing requirements vary based on your location and business and may be required by city, county, state, or federal regulations. Common licenses and permits include:
County/city
- Business license
- Food service license
- Food handler’s license
- Building health permit
- Certificate of occupancy
- Sign permit
state
Federal
6. Create your restaurant menu
Work with your chef to craft a menu. Most menus fall into five categories: static, cyclical, fixed-price, du jour and à la carte. As you choose dishes, consider these factors:
- Alignment with restaurant concept
- Popularity and competitive advantage
- Most important ingredients
- Ingredient availability and seasonality
- Prep time and complexity
- Costs and profit margins for each dish
- Food allergies and dietary preferences
When you come up with a short list of dishes, consider menu pricing; set prices that are acceptable to your target market but still enable you to make a profit. If certain items are too expensive for the restaurant concept, eliminate them from the menu.
At this point, you should have a final list of dishes. To design the menu, follow these tips:
- Separate dishes into categories.
- Allow plenty of white space.
- Highlight priority meals with bold fonts or graphic elements.
- Indicate items that are safe for allergies and dietary restrictions.
- Write applying descriptions.
- Take beautiful photos for your website and delivery menu.
7. Find restaurant equipment and food suppliers
With your menu in mind, find suppliers that can deliver the necessary ingredients on your required schedule. Build community and gain a competitive advantage by working with local suppliers to source high-quality foods with short delivery times. Other options include national wholesalers, catering suppliers, and commercial butchers, farmers, and fishmongers.
Then, purchase the necessary equipment for the restaurant. At a minimum, you’ll need appliances and furniture for:
- Food preparation
- Foodstorage
- Foodservice
- Guest comfort
- safety
- Cleaning
- trash collection
Equipment is a big investment, but you can buy used items to save money without sacrificing functionality.
Technology is another important consideration; it helps you market the company, process orders efficiently, and capture more delivery business. Most restaurants need a point of sale (POS) system, printer, cash drawer, payment processing technology, kitchen displays, and a mobile ordering system. Grubhub can streamline your tech stack — it integrates with many POS systems, so delivery orders flow right through to the kitchen.
8. Hire restaurant staff
Place job postings in local newspapers, on online job boards, and in social media groups. You can also reach out to professional contacts for referrals, especially when it comes to manager and chef candidates.
The number of employees you need depends on the size of the business. At a minimum, you should hire:
- general manager
- Chefs and/or cooks
- Dishwashers
- Hosts
- Bartenders
- Servers
- bussers
- Janitors
In small restaurants, the same people may fill several of these roles. Large or specialized restaurants may need additional staff members, such as a food and beverage manager, executive chef, pastry chef, sommelier and kitchen manager.
Onboarding is paramount for a new restaurant. With thorough orientation and training, workers can do their jobs with confidence and create a positive experience for customers. This is a great time to establish company values and traditions that minimize employee turnover: respect, fair and flexible scheduling, continuing education, staff safety and an inclusive environment.
9. Create a restaurant marketing plan
Marketing is critical for a restaurant startup. Done successfully, it builds a buzz and gets local customers excited to try your food. A marketing plan helps you stay on task and build brand awareness, even amidst the chaos of a grand opening. This document maps out your marketing strategy — what you want to achieve with your promotions, how you’ll do it, and how you’ll know it’s successful.
As you build a restaurant marketing plan, include these items:
- Description of the target audience
- Competitor marketing analysis
- Marketing objectives, such as building brand awareness or increasing foot traffic
- Marketing activities that achieve your objectives, such as social media campaigns or marketing emails
- Metrics to track the performance of marketing activities
For modern restaurants, a website is the most important marketing tool. It’s the core of your web presence; customers will visit to see the menu, look at photos and find opening hours. To drive additional business, consider adding a branded online ordering website with Grubhub Direct.
10. Host a grand opening
There are two phases to a restaurant opening: the soft opening and the grand opening.
During a soft opening, you invite a select group of people to try your restaurant. It’s a great time to get your staff up to speed, refine your operations and experiment with a trial menu to see how customers respond to different dishes. Before your soft launch, you should have a menu with prices, all necessary equipment and trained kitchen and front-of-house staff.
After you implement the lessons from the soft launch, you can plan the grand opening — the first day the restaurant is open to the public. Make sure to build excitement with advertisements, social media posts and influencer marketing. Create a sense of occasion by offering special treats to the first customers, setting up a photo background or planning live entertainment.
Invest in tools to grow your business
Getting to your restaurant’s grand opening takes time and effort, but the results are rewarding. With careful planning and an organized approach, you can set the business up for long-term success. Grubhub is here to support restaurant growth. Our solutions like professional delivery, direct online ordering, POS integration and virtual restaurant support can help get your new restaurant in front of eager customers. Want to learn more about how partnering with Grubhub can benefit your business? Try Grubhub free for 30 days.
This New Hotel on Long Island’s North Fork Has 200 Feet of Beachfront and a Heated Saltwater Pool
Hotel Moraine, North Fork’s newest boutique hotel, is all about family-friendly relaxation — and stunning ocean views from every room.
Courtesy of Hotel Morraine
North Fork, the 30-mile peninsula parallel to the Hamptons, is a food and wine lover’s paradise (there are more than 60 vineyards in the area). But the region, which is also home to many farms nestled among sunflower fields, craft breweries, and quaint oceanfront hotels, has also been a magnet for travelers seeking a quieter and more laid-back escape than what its more famous neighbors across the bay offer . And North Fork’s newest boutique stay focuses on exactly that — providing guests of all ages with a tranquil setting to relax, recharge, and explore.
Hotel Moraine, located in the historic village of Greenport on the Long Island Sound, is a 20-key property that debuted on June 5.
Courtesy of Hotel Morraine
Courtesy of Hotel Morraine
The two-story hotel, nestled on three beachfront acres of lush greenery and verdant lawns, draws inspiration from the North Fork’s farmhouses. The lobby, with its high ceilings and large glass walls, is reminiscent of a barn and houses the reception area, a shop and a bar serving everything from coffee and pastries in the morning to cocktails with freshly squeezed juice in the evenings. From there, guests can transition to the heated saltwater pool and covered deck with fire pits and unobstructed water views. Salads, lobster rolls, kid-friendly fare, and a curated selection of local wines (the property’s owners are behind Croteaux Vineyards, a nearby rosé farm) are on the poolside menu.
All 20 rooms come with water views, high-end decor touches, like custom rugs and cabinetry, spa bathrooms with soaking tubs or walk-in showers, Anatome toiletries, Bellino bed linens, plush Kassatex robes, and soothing coastal-inspired colors.
Courtesy of Hotel Morraine
Courtesy of Hotel Morraine
Guests who’d like to stay active can head to the hotel’s gym, swim in the ocean (the property has 200 feet from beachfront), or get a stand-up paddleboard and explore the coastline from the water.
Greenport’s main drag is lined with vintage boutiques, antique shops, and family-owned restaurants, all within a short drive from Hotel Moraine. No car? The hotel has an in-house car for local drop-offs and pickups.
Courtesy of Hotel Morraine
Nightly rates at Hotel Moraine start at $350, and you can book your stay at hotelmoraine.com.
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Read the original article on Travel & Leisure.
How to Recruit New Restaurant Staff
Delicious food is only half the battle in building a successful restaurant — you also need exceptional employees. Restaurant staff are responsible for providing high-quality service, humanizing the business and embodying the values and personality of the brand. With a finely honed recruiting and hiring process, you can build a high-performing team.
What restaurant positions do you need to fill?
Every restaurant has different hiring requirements; your staffing needs will depend on the size of the restaurant, the type of service, and the average number of customers. Counter-service restaurants typically require fewer employees than traditional eaters, for example. An average casual restaurant might need 1 server per 5-7 tables, 4 kitchen workers and 2 support workers for each shift.
Some of the restaurant staff positions you may need to fill include:
- restaurant manager. The manager ensures the restaurant runs smoothly. They hire staff, manage finances and maintain the staff schedule. In many cases, they interact with customers and handle complaints.
- Food and beverage manager. In some restaurants, this manager oversees the ordering process for food and drinks. They typically collaborate with bartenders and chefs to ensure a careful inventory balance.
- executivechef. This chef is in charge of the kitchen. They oversee the menu, manage inventory, supervise kitchen staff and ensure each dish is up to par.
- Cooks/chefs. These restaurant employees are responsible for making the food. Prep cooks prepare the ingredients and workstations, while head chefs, sous chefs and line cooks handle most of the cooking.
- Bartenders. Bartenders make and pour drinks, clean glassware and ensure the bar is stocked.
- hosts. Hosts greet customers and guide them to their seats. They also take reservations, answer phone calls and maintain a waiting list.
- servers. Servers take orders and educate customers about menu items. In many restaurants, they also handle payments. They may also serve food and refill water, although some businesses hire food runners or expediters for those tasks. Servers typically make a special minimum wage that’s supplemented with tips.
- Busser. A busser is an employee who clears tables and brings dishes to the kitchen.
- Cashier. Cashiers handle money. At fast-food restaurants, they may also be responsible for food preparation.
- Dishwashers. These workers run dishes and utensils through industrial cleaners as they come into the kitchen, ensuring cooks and front-of-house staff have a supply of clean options.
Fine-dining restaurants usually have more staff members working at any given time. That’s because each person has a specialized and limited role. In addition to the general restaurant staff, you might also need a sommelier, a maître d’ and a pastry chef. High-end restaurants often have a larger hierarchy of chefs, each with distinct roles.
Importance of a Skilled Restaurant Staff
A skilled restaurant staff is the element that takes a restaurant from good to great. After all, your employees play a big role in the customer experience. Every employee, from the manager to the dishwasher, plays a part — hosts ensure guests are seated efficiently, the chef provides excellent food and the bussers keep the tables free of empty dishes. Servers are particularly important; they set the tone for the meal, making diners feel welcome and anticipating their needs. If something goes awry in the kitchen, an experienced server knows how to communicate the situation and maintain a positive vibe.
Capable restaurant employees also contribute to the back-end functionality of your business, keeping operations running smoothly. Tables are flipped quickly between guests, the dining area stays clean and food quality stays consistent.
If you focus on hiring and training skilled workers, it can create ripple effects that extend through the business. When everyone is pulling their weight, employees can focus on their own responsibilities instead of covering for others. The resulting positive atmosphere can help reduce employee turnover. In fact, the National Restaurant Association has found that 17% of employees quit because of workplace culture.
Tips for Recruiting New Restaurant Staff
When you’re hiring restaurant workers, it’s helpful to develop a set of best practices. An established set of standards creates a more consistent experience for the hiring manager and the new employees. A few practices to adopt are:
- Write job descriptions that are detailed but not overwhelming.
- Use a realistic job preview to communicate positive and negative aspects of each position.
- Be transparent about the pay up front.
- Design an onboarding practice that integrates each new restaurant employee into the company culture.
- Train restaurant staff thoroughly before they start working.
Once your hiring practice is set, use these tips to refine your recruitment and hiring strategies:
- Expand your reach. Ask the HR team to post job openings in more places. Include a mix of popular hiring methods, such as digital job boards and print publications. Don’t be afraid to post job flyers on community bulletin boards — it’s an effective way to reach job seekers when they’re visiting the local coffee shop or grocery store.
- Consider soft skills. Look for workers who have strong soft skills, such as personal communication and conflict resolution. Then, you can train them in the necessary hard skills.
- Move quickly. Keep the hiring process short and sweet; it demonstrates respect for candidates’ time and reduces the risk that applicants will take other job offers while they wait.
- Anticipate hiring needs. Ensure your restaurant is fully staffed by starting the hiring process as early as possible. This is particularly important if you hire seasonal workers, since competition for talent is higher during the busy season.
- Ask for referrals. Chances are your employees know other people in the restaurant industry. Ask them to refer strong candidates, and provide a bonus if you hire a referral. It’s a great way to find talented workers and recognize your employees’ contributions.
Challenges of Hiring Restaurant Workers
If you run a restaurant, hiring challenges are inevitable. Employee churn is one of the biggest issues; the restaurant industry is notorious for high turnover. In fast-food restaurants, the monthly turnover rate is 144%.
Every time an employee leaves, your management team must spend time and money hiring replacement staff. That’s not always easy in 2023; the ongoing global labor shortage is making it harder to find qualified restaurant workers.
Once you hire restaurant employees, your next challenge becomes retention. If you can find ways to keep workers longer, it cuts costs, saves time and creates a consistent experience for customers.
One way to boost job satisfaction and retention is to build an order-management process that makes employees’ lives easier. That’s where Grubhub can help — the platform integrates with your POS system, empowering workers to do their jobs more efficiently. When they’re spending less time on technology, your team can focus on preparing delicious food and providing top-notch service.
If you’re curious about how Grubhub can support your restaurant’s hiring and retention, as well as the customer experience, get started today.
What you need to know about restaurant accounting
Restaurant accounting is a uniquely complex process. Financial transactions pass through a variety of employees, including hosts, servers and bartenders. With all these inputs, a comprehensive accounting process is a must for restaurant owners — it helps you maintain accuracy, stay legally compliant and maximize profits.
Importance of efficient restaurant accounting
Restaurant accounting is the process of recording, monitoring and analyzing a food-service company’s financial transactions. A solid accounting system tracks the restaurant’s finances, providing a clear picture of the health of the business.
Efficiency is critical, especially in the restaurant industry — restaurants often operate on tight profit margins, so every dollar counts. Accurate records help you manage cash flow and calculate the cost of goods sold. That way, it’s easier to make smart decisions about vendor selection, inventory management, menu development and menu pricing.
The transactions at your restaurant involve a variety of unique factors, including tips, sales taxes and sales of non-food items such as gift cards. As you track your finances, you’ll also need to monitor information such as:
- Daily sales
- Payroll costs
- Inventory costs
- Food costs
- Money owed to suppliers
Historically, restaurants used pen and paper to manage their books. Today, most businesses use accounting software to save time and increase accuracy. Some programs even integrate with your point-of-sale (POS) system.
Restaurant accounting methods
Whether you handle your own bookkeeping or work with a restaurant accounting services provider, it’s important to select and stick to a specific method. Most restaurant owners use one of two accounting methods:
- cash accounting. With this restaurant accounting method, you record income as soon as you receive the cash. Similarly, you record expenses as soon as you pay for them.
- Accrual accounting. This strategy requires you to record income when the transaction happens, regardless of when you receive the funds. When you order goods or services, you record them right away — even if the money hasn’t left your account.
Because diners typically pay for their food costs immediately, cash accounting is a popular method of accounting for restaurants. It’s well-suited to smaller businesses; this method tracks money as it flows in and out, making it easier to monitor cash flow.
As your restaurant grows, accrual accounting is a better option. It’s more complicated, but it provides a more accurate picture of your finances. The IRS requires you to use this method if you carry inventory or if your gross receipts for the previous three tax years were more than $26 million.
How to do bookkeeping for your restaurant
An efficient and accurate restaurant accounting system creates a foundation for long-term success. Whether you’re opening a new restaurant or revamping existing bookkeeping procedures, use these steps as a guide.
- Select the right POS system and restaurant accounting software. The best accounting software for restaurants includes programs that connect directly to your POS system. Your daily transactions will flow into your financial records in real time, so you don’t have to spend time transferring data manually. This strategy also reduces the risk of human error. You might choose restaurant-specific programs such as Restaurant365 and MarginEdge or stick with familiar platforms such as QuickBooks or Xero.
- Track sales. Set up your restaurant accounting software and POS system to record sales each day. Every evening, run a sales report that breaks down food and beverage figures. You can also track other KPIs, such as top-selling items, high-performing services and sales trends for each day of the week. This process helps you identify problems, manage sales tax compliance and discover opportunities to increase profits.
- Record accounts payable. Record the money that your restaurant leaves for things such as food costs, inventory management, delivery fees, grease-hauling services, and advertising. Before you pay each bill, review the invoice for accuracy. To make sure you don’t miss due dates and incur late fees, it’s helpful to set aside time every week to settle accounts.
- Pay your employees. Record and disburse to payroll, paying close attention to tips and required state and federal taxes. Most restaurant owners must manage employment taxes for income, Social Security, unemployment and Medicare. You can handle the process yourself or outsource it to a payroll company to ensure you hold the correct amount and deposit the funds on time.
- Create a chart of accounts. This tool provides a top-level view of your restaurant’s assets, debts, revenue, equity, and expenses. You can customize it to include the cost of goods sold (COGS), or the amount of money it costs to make the dishes on your menu. This information helps you plan inventory and adjust the menu.
- Run and review financial reports. Reports help you understand how your restaurant is doing financially. While the specific reports can vary, most restaurants benefit from analyzing the sales report, profit and loss statement, cash flow statement, balance sheet, and inventory management report. Review your reports on a quarterly basis, and make sure to provide them to your tax services company when you pay income, employment, and sales tax.
- Set up a reconciliation process. About once per month, compare your financial reports to the records your business produces: POS sales data, bank statements, loan documents, payroll records and credit card statements. Make sure the two sets of data match; if they don’t, it’s important to find and correct the problem. Your restaurant accounting software is likely to have built-in reconciliation tools to speed up the process.
A partner that understands your business
Accounting for restaurants takes time, but it’s an essential part of a stable and successful operation. To make sure your delivery orders are flowing directly into your POS system and accounting software, partner with Grubhub — it integrates with top POS brands and offers convenient payment options to streamline your financial processes.
What you need to know about tip pooling
Tips are an integral part of the restaurant industry. They motivate employees to provide exceptional service, creating an experience that brings customers back time and again. For employers in many states, tips can also make up the difference between the server minimum wage and the federal minimum wage. If you’re looking for ways to distribute tips more fairly among employees, tip pooling is one option.
What are the tips for pooling?
Tip pooling is a practice where restaurant employees put all or part of their tips into a communal pool. The employer divides the total funds among eligible workers, either equally or using a predetermined ratio. This method is an alternative to tip sharing, where servers and bartenders voluntarily hand over part of their tips to other employees who help with service but don’t receive tips.
As you might guess, tip pooling can be a polarizing tipping method. It’s usually beneficial for employees such as bussers and expediters, but servers who tend to receive higher tips may find the practice unfair. And if certain employees work harder than others, either in perception or reality, tip pooling can create conflict among the staff.
For some employers, tip pools are the most sensible option. Take coffee shops, for example — multiple people are involved in taking orders and making drinks, but customers only tip once. By pooling tips, everyone receives their fair share. The same goes for any counter-serve restaurant where cashiers and kitchen employees work together to prepare orders.
Tip pooling is less common in traditional table service restaurants, but that’s not out of the question. As an employer, you might use this method to promote a collaborative rather than competitive atmosphere. If you’re currently using a tip credit system to satisfy minimum-wage requirements, you can still use a tip pooling system as long as you stay compliant with any applicable laws.
How are pooled tips calculated?
The way you calculate pooled tips depends on local, state and federal laws. All restaurants are subject to the Fair Labor Standards Act (FLSA), which allows employers to mandate a tip pooling arrangement for staff members. If you take a tip credit, the FLSA only permits your tip pool to include employees who traditionally receive tips. When you pay a minimum wage for all employees, you can also include non-tipped workers such as chefs or dishwashers. According to employment law, employers, managers and supervisors may not accept money from a tip pool.
The tip pooling method and timeline you choose also affects the calculation. If you pool tips for each shift and distribute them evenly, the process is simple. Add together all the tips at the end of the shift and divide them by the number of employees working. If the tips total $1,000 and you have 10 employees, each person will receive $100.
When you choose a percentage or points-based system, the process is slightly more complex. Imagine you have two servers that receive 40% each, a host that receives 15% and a busser who gets 5%. For a shift with $1,000 in tips, each server would get $400, the host would receive $150, and the busser would get $50.
Federal tip pooling law requires you to distribute the tip pool by payday at the latest. For card tips, you’re permitted to deduct the credit card company’s transaction fee percentage — unless doing so pushes the employee’s compensation below the minimum wage.
At tax time, your employees must report 100% of the tips they receive. The IRS also monitors employee tips as a percentage of your restaurant’s income. If tips make up less than 8% of your gross receipts, you must make up the difference and split it among tipped employees.
Tip pooling methods to try
Tip sharing is rarely a one-size-fits-all solution; as an employer, you can customize the process to fit your operations and employee preferences. Keep in mind that tip sharing doesn’t require you to pool 100% of tips. If servers and other tipped employees are good at the prospect, consider creating tip pools from 20% to 50% of the total gratuities.
Common tip-splitting methods include:
- Even distribution. The tip pool is split evenly between all employees. This method is useful for bakeries, fast food outlets, coffee shops and counter-serve restaurants where employees work together to prepare orders, serve meals and clean up after customers.
- Percentage-based. Employees receive a percentage of the tip pool based on their contribution to service. Because servers handle the bulk of the customer-facing duties, they typically get a majority of tips. Bussers, hosts and bartenders usually receive smaller percentages.
- Points. This tip-pooling method is similar to the percentage system, except employees receive a certain number of points depending on their role. Add up the points for everyone who’s working, then divide the total tips by the number of points to get a per-point dollar value. The point value changes every shift, helping to account for variations in staffing and order volume.
After you choose a tip-pooling method, you must decide whether to calculate tips at the end of each shift or at the end of the day. Shift-based distribution requires more accounting work on the employer’s side, but it offers fair compensation for employees who work the busiest shifts. You might choose a workday distribution method — where employees receive tips based on the number of hours they work — if you’re open for a limited number of hours or if your orders tend to be stable across shifts.
The pros and cons of pooling tips
Not sure if tip pooling is right for your restaurant? The pros and cons can help you make a decision.
Pros of pooling tips
- All service employees receive tips from the tip pool.
- Employees aren’t penalized when they’re assigned to a low-tipping table.
- Tip pools can encourage teamwork.
Cons of pooling tips
- Tip pooling laws can complicate your tip credit system.
- Employees are compensated equally even if they put in less work.
- It can create conflict between average and high-performing workers.
- Pooling tips adds complexity to employer accounting procedures.
When in doubt, ask your restaurant employees how they feel about pooled tips. Experienced, highly skilled workers may be strongly opposed; if they’re forced to pool tips with new or lower-performing workers, they’ll almost certainly make less money. When employees rotate positions in a counter-serve restaurant, however, the system can benefit the entire team.
Keep employees happy while growing your business
If your employees are happy with it, a tip pool can boost morale across the entire team. But employee appreciation shouldn’t stop there. Taking time to show your employees you appreciate their work will help foster a healthy work environment. Keeping employee practices consistent and fair will help minimize turnover.
Don’t forget to include your delivery tips, too. With Grubhub, you can opt to self-deliver orders within your preferred radius to ensure all tips remain with in-house staff. To learn more or try the system for free, get started with a Grubhub account.
Your guide to great food critic reviews
Restaurateurs understand the weight of food critic reviews. A negative review could threaten to shut a restaurant’s doors, while a positive review can make a restaurant fill up reservations for weeks. In an industry where the approval of your work can make or break your business, it can be nerve racking to interact with food critics. To increase your chances of a positive rating, make sure your restaurant is prepared for a critic’s visit.
The role of a food critic
A food critic’s job is to visit restaurants, try the food, and write about the experience. Depending on the publication, the reviewer might also provide a rating. The purpose of a critic’s reviews is to educate readers about what to expect and help them make an informed decision about whether the restaurant is right for them.
Traditional food critics — those who write for newspapers and magazines — are usually reputable trained journalists. This formal education helps them apply consistent standards and write fairly about each establishment. Many critics have years of experience writing about food, restaurants, food service, chefs, and industry trends. They’re well-versed in different cuisines, cooking styles and service types.
Unlike other journalists, a restaurant critic needs a few specific, intangible skills — namely, a nuanced palette and few (if any) food aversions. That way, they can eat and write about a wide range of dishes without incorporating personal bias. Because they go incognito at restaurants, critics must be able to order and pay for meals without attracting attention.
Guidelines food critics follow
When a food journalist tries a restaurant, they pay close attention to every aspect of the experience. From the moment they walked in the door, they’re observing the decor, service, atmosphere and — of course — the food. Most publications require that their food writers follow a set of guidelines to ensure a fair reviewing process.
- Anonymity: To avoid special treatment, critics try hard to blend in with the rest of the patrons at a food establishment. Their goal is to get the same experience as any other customer. To that end, they rarely use their own names when making reservations.
- Range: Most critics try to taste a wide variety of recipes, often over the course of two or three visits. They typically order items from all parts of the menu, paying close attention to different ingredients and cooking techniques. This strategy gives them a better sense of the menu as well as the service experience. In many cases, a writer will bring a few guests to accommodate large orders without creating a spectacle.
- No gifts: In most cases, the publication pays for the critic’s meals. They don’t accept free or discounted meals to preserve the integrity of their reviews.
- Accuracy: Like any good journalist, a food critic strives for accuracy in every word. They double-check facts and verify that any claims they make are correct before the review is published.
Reputable critics understand that their words can have a very real effect on a business’s future; they go to great lengths to be fair and honest. Most publications establish a standard rating scale to help customers compare options at different price points. After a restaurant opens, writers usually wait a few weeks to review it; that way, the team has time to refine their operations and build key skills.
Wondering what standards your restaurant needs to meet? Some factors food critics consider include:
- Flavor and freshness of food
- Expertise of food preparation
- Selection of menu items
- Quality of service
- Atmosphere of the restaurant
- Price
Context is important, especially when it comes to service and atmosphere. After all, customers expect a different level of attentiveness and elegance at a fine-dining restaurant than they do at a diner. Critics take this into consideration when giving ratings.
In the age of blogs and social media, restaurant reviews can come from a variety of sources. While professional reviewers usually stick to journalistic standards, informal critics aren’t bound by the same standards.
How to earn a 5-star review
When you run a restaurant, you never know which patron could be a food critic. The best way to earn a good review is to create a consistent experience for all customers. Below are some tips and best practices.
- Focus on quality. Great meals start with high-quality ingredients. To preserve quality, make sure food is served quickly and stored safely.
- Refine your recipes. Narrow the selection to include meals customers respond well to. Choose dishes your kitchen staff can prepare well every time. Take a look at more tips on perfecting your menu.
- Train your staff. Make sure they understand skills such as speaking to customers, processing transactions, clearing tables, and serving food in a way that matches the atmosphere of the restaurant. This is particularly important for fine-dining restaurants, where customer expectations are higher.
- Offer efficient, friendly service. Customer-facing staff should aim to be friendly and welcoming but not intrusive. They should also be able to gauge what each table needs in terms of timing and interaction.
- Ask for feedback. Offer comment cards, send out surveys by email, or poll customers on social media. Use the responses to improve your operations.
The best part? When you maintain high standards for food critics, you’re more likely to receive more positive customer reviews on social media and Google Reviews. The same is true across more informal types of food writing, including blogs and online publications.
Steer clear of these common restaurant mistakes
Despite their attempts at anonymity, food critics occasionally become recognizable. In some cases, you might receive a tip that a food writer is on your reservation list. If that happens, it’s important to avoid these common mistakes.
- Don’t provide unusual services. If a food critic notices they’re getting preferential treatment, they’re likely to compare it to the service other tables are getting. When the difference is drastic, it can reflect unfavorably on the restaurant.
- Don’t gawk. Ask your servers and front-of-house staff to avoid staring at the critic; aim to create a standard, welcoming experience.
- Don’t interrupt the meal. Avoid the temptation to be overzealous with your service. Instead, give the critic time to taste and enjoy their meal.
- Don’t offer freebies. A trusted food critic with experience won’t accept meals for free. When you make the offer, even if it’s well-intentioned, it may seem like you’re trying to manipulate the situation.
By showing a critic what it’s truly like to dine in your restaurant, you can create a positive and realistic experience. Without excess attention, the reviewers have time to focus on the food – they can appreciate each detail of the restaurant and represent you fairly in their food writing.