Because there are softer customer traffic levels, the Restaurant Performance Index had a slight decline in June. The index tracks the U.S restaurant industry’s health and outlook. In June, it stood at 101.3, which is lower than it was in May. Although there was a drop, the RPI still remains over 100.

 

The store sales were efficient in June, but the RPI still decreases because the traffic levels were lighter. Restaurant operators are somewhat optimistic about increases their sales during the next few months. In addition, their capital spending habits are close to post-recession highs.

 

The RPI is built so that the restaurant industry’s health is measured based on a steady-state level of 100. Index value over 100 means that certain industry indicators need expansion. A value under 100 means that there is a need for contraction for key indicators. There are two components of the index, which are the Expectations Index and the Current Situation Index.

 

Current treads in capital expenditures, same-store sales, and labor expenditures are measured by the Current Situation Index. In June, the index was at 100.9, which is higher than it was in May.

 

For four months, many restaurant operators had increased same-store sales. Over half of the restaurant operators reported improved same-store sales between June 2013 and June 2014.

 

How To Improve Over Performance

Restaurant owners must deal with unique challenges to achieve better employee performance levels. Most employees are very young, so they usually will pursue another career that does not involve food.

 

This means that turnover can be very high in the restaurant industry. A high turnover makes the task of keeping workers motivated so that they will perform at an efficient level more challenging.

 

Restaurants that have survived the recession a few years ago achieved success because they took time to train and manage their employees.

 

Many casual restaurants have a 200 percent turnover rate each year. Unique management practices help businesses save money on training and hiring costs each year. Proper management also improves product quality and customer service, which are the most important elements of a successful restaurant.

 

How To Improve Customer Service

Each employee should learn effective customer service techniques. They must have eye contact with each customer and greet them properly with a smile. In addition, employees should anticipate the customers’ needs. For example, glasses must be refilled when they are half empty, and employees should give customers extra napkins after messy finger food is ordered.

 

Establish clear policies about makeup, attire, and hair, and ensure that everyone understands how to handle problems and complaints. When a customer receives a steak that is not cooked enough, an employee should take the steak back to the grill so that it can be cooked a bit longer. However, the manager must tackle delayed meals and any forgotten orders. In these situations, the manager should offer the customer a free meal or another item.

 

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