Every restaurateur dreams of growing their restaurant business and running multiple chain restaurants by establishing their brand across the world.
There are countless examples of Indian restaurant owners and entrepreneurs successfully managing and running various chain restaurants. This is true not just domestically, but across the world.
A few examples of such chains are:
- Honest Restaurant – Serving lip-smacking pav-bhaji across the world
- Hotel Saravana Bhavan – With headquarters in Chennai, this restaurant is famous for serving its South Indian delicacies to food enthusiasts across the world
- Gwalia Sweets – They recently set up their new outlet in Toronto, Canada bringing Indian sweets and snacks to the world
- Sankalp – Another South Indian cuisine franchise, this was a huge success with people scrambling to get reservations on the weekends to eat their food
Yet, it is not easy to manage multiple chain restaurants by a restaurant owner. There are major management & technical issues to take care of before you can even begin thinking of expanding your restaurant business.
Read this blog to know more about acquiring multiple chain restaurants!
You can read this franchising blog if you’re looking to start an outlet instead of a whole new restaurant brand.
How To Manage Mulitple Chain Restaurants
1. Centralise Kitchen Operations
One of the most fundamental requirements for running a successful restaurant chain is the presence of a base kitchen. Once you’ve established your base kitchen, it will automatically assist you in streamlining your restaurant operations. It will ensure consistency across all of your outlets while eliminating the need for all of your outlets to communicate with the vendors, which can be a confusing process.
In large chain restaurants, vendors typically deliver raw materials to the base kitchen, where they are semi-processed and then delivered to the various outlets based on the indents raised by them.
2. Manage Raw Material Vendors
When running a restaurant chain, a single restaurant may get its raw materials from multiple vendors. Certain perishables must be purchased on a daily basis, whereas others can be purchased and stocked on a monthly and weekly basis. These items are now purchased from various vendors, and keeping track of all of the vendors and their contact information has become a difficult task.
However, it is a critical task that you should never overlook. Because raw materials are the core of your restaurant business, you should never jeopardise or take risks with them.
3. Keep An Eye On Stock & Inventory
One of the most difficult aspects of running a restaurant chain is inventory management. Internal thefts and embezzlement of restaurant inventory are already common, and this occurs on a large scale in the case of multiple restaurant outlets.
Keeping a record of the daily stock used by each outlet becomes tedious if the reports are collected manually from each outlet. Smart inventory management software can help you manage each outlet’s stock consumption and ensure smooth stock circulation across multiple outlets.
4. Keep A Tab On The Sales Of Each Outlet
One of your main tasks as a restaurant owner is to ensure that you thoroughly check and track on a multi-level all your outlets on a continuous basis. You should then plan your future sales based on the results of the reports. However, relying on your restaurant manager to receive all of the necessary reports in a timely manner is not a strategy we would suggest.
A good POS system can also compare the performance of different outlets. This will help you understand which outlets aren’t performing well and where you should focus your efforts. With these reports, you will be able to assess how different components are performing in different outlets and make necessary changes to your menu.
All these above-mentioned factors are important to keep in mind when setting up and operating multiple chain restaurants. What would make it easier for you to manage is investing in a good POS like Petpooja!
Petpooja is the solution to all your multi-chain restaurant operational and management problems.
Petpooja helps you:
- Centralise kitchen operations. With Petpooja’s Head Office Dashboard, you can monitor all your outlets on a central screen. Moreover, you can configure zones – outlet groupings by region, state, city, brands or channels, providing you with the necessary data to make reliable decisions and strategies.
- Streamline stock and raw material inventory. With Petpooja, you can manage stock at the central kitchen as well as the outlet, getting alerts when stock levels drop below par level. Petpooja also allows you to generate a consolidated route plan, allowing your dispatch to know which raw materials are to be dropped off at which outlet.
- Coordinate with Raw Material Suppliers. Suppliers Hub is a platform that allows you to buy supplies or kitchen equipment from verified suppliers, request quotations and get access to exclusive deals and offers.
Challenges Faced While Running Multiple Chain Restaurants
1. Maintaining Consistency Among All Outlets
This is critical from a branding standpoint; especially if you’re opening a second location. Your customers will have already formed opinions about your bar or restaurant.
Standardizing your operational procedures is critical for providing a consistent restaurant and guest experience. It’s essential that you document everything. From hiring and firing procedures to employee training manuals, recipes, cleaning and maintenance checklists, and how to handle customer complaints.
It is abundantly obvious that consistency does not imply rigidity. A case can often be made in favour of personalization. This is when you can truly leverage the knowledge and input of your local management teams to make decisions on things like location-specific promotions and menu items.
2. Managing Communication Between Employees and Outlets
Managing multiple locations necessitates extensive communication on your part so that the people you’ve employed have the data and resources they need to put their abilities to use.
Maintaining contact with your teams has never been simpler even if your restaurants are geographically dispersed. There are numerous user-friendly, low-cost social media platforms available that allow for virtual check-ins between in-person visits and company-wide collaborations.
Transparent, candid, and continuous communication between you, your management staff, and their workers fosters a sense of cohesion that is beneficial both financially and for a healthy workplace culture.
3. Giving Equal Time and Attention Across Outlets
It’s easy to become so engrossed in the thrills of expanding your business that you begin to neglect, the original or even your flagship outlets.
You’ve successfully managed to demonstrate that you have what it takes to open a well-functioning and popular bar or restaurant, but failing to provide proper, ongoing TLC to each unit can have a negative impact on sustainability.
You’ll also want to keep an eye on how many resources you’re transferring from your first location to your second, whether temporarily or permanently. Experienced employees can help make onboarding new team members easier, but taking on too many for too long may compromise the quality of service guests receive at your flagship location.
Mistakes To Avoid
- Rapid and Mindless Expansions
- Inconsistent Branding
- Going Against The Consensus Data Readings
- Mismanagement of Employees and Staff
- Gap in Communication between Outlets