4 Surprising Restaurant Challenges

Posted on: April 11, 2017 by RMS Hospitality

The restaurant industry is a crowded and competitive one. With so many details to perfect, it can be a major challenge for your clients to bring their vision to life. However, recognizing these four surprising yet common challenges can help them to develop strategies to combat them and stay on top. In addition to backing their operation with the necessary Restaurant Insurance Program, share with them the following advice.

The menu.

Crafting a menu is a balancing act. Are there too many dishes? Too few? Are they priced and portioned appropriately? Is the entire menu cohesive? Here are a few tips for your clients to keep their menus on the right track:

  • Keep menus clean- wipe them down to prevent them from accumulating food and drink residue.
  • Don’t include money signs.
  • Keep the menu simple and sleek- consider hiring a copywriter to tell the story of the restaurant via the menu.
  • Update the menu to include seasonal and trendy items to stay relevant.
  • Ensure wait staff memorizes the menu front to back.


There are hundreds, if not thousands, of restaurants similar to your clients within a few miles radius. While a superb menu and outstanding customer service are required, they are merely expectations of any diner. Therefore, an element of uniqueness needs to be incorporated into their restaurant. What makes them stand out? Why should prospective customers dine at their restaurant as opposed to someone else’s? Consider highlighting a selling point, such as integrity of food, local and organic ingredients, sustainability, worldly dishes, etc. Your clients should identify a mission that suits their menu to make them stand out.


Hiring competent and experienced managers is pivotal to your client’s success. According to Restaurant Engine, their management team should track and identify the following:

  • What does it cost to make each menu item? What’s the profit margin?
  • Do you have a budget for labor? Are you sticking to it?
  • How much do you spend on labor compared to your restaurant sales?
  • How much loss is involved in your inventory?
  • Do you have sales goals? Are you meeting them?
  • What is your profit and loss for each week you are open?


The looming threat of running out of money is a real challenge for many restaurateurs. Experts recommending starting the business when enough capital is raised to operate for one year. In addition, your clients should plan for unexpected costs and losses during the year, as well.

About RMS Hospitality Group

At RMS Hospitality Group, we strive to provide the proper protections for your clients and their restaurants. From liquor liability to property protection, our specialized coverages can be custom-tailored for their unique needs. For more information, contact us today at (888) 359-8390.



Posted in: blog Restaurant Insurance

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