By the time the pandemic is over more than 75% of restaurants will close. This is because of the impact the pandemic has had on revenue and the staffing problems it’s caused. If you’re facing and preparing for your restaurant closing, there are some things you need to know.
Even during the closing of a restaurant, there are some mistakes you’ll want to avoid no matter how you plan to close your restaurant. Closing a restaurant isn’t a position that any owner wants to be in, but there is a way to handle it properly.
Learn some of the mistakes people make when learning the steps to close a restaurant and how you can avoid them. Read on now.
1. Leaving Equipment Behind
Even if you have used restaurant equipment, it doesn’t mean you can’t sell it and make a small profit from it. Equipment that’s used can still be sold for a considerable amount of money, so it’s best if you don’t allow the equipment to go to waste by leaving it behind.
If you work with a company that specializes in restaurant closures, they’ll be able to help you decide what to do with leftover equipment from your restaurant. Working with someone that knows what to do reduces the chances you’ll allow equipment that could be used by other restaurants to be thrown away.
2. Communicate With the Landlord
Are you renting your restaurant space? If so, there is a landlord that manages the property, and you need to take time to communicate with them when you liquidate a restaurant.
When you speak with your landlord, there is a series of questions you need to ask to ensure you leave the space on good terms. What condition does the property need to be left in before you exit?
Are there remaining fees that need to be paid before you close the restaurant completely? Are there any repairs that need to be made before closing the restaurant?
You need to have a conversation with the landlord ahead of time. This is to give yourself an ample amount of time to complete everything on your checklist before you’re scheduled to leave the property.
It will also show positively in your background when you seek to rent other properties in the future. You never know when you’ll need a reference from a landlord.
When you do things the right way, they can vouch for your character and let other landlords know you’re the right tenant for their properties.
3. Avoiding Your Team
There are some cases when the closing of your business will come as a surprise to your time, but it shouldn’t be this way. As you take steps to close a restaurant, one of the most important steps to take is communicating with your team.
You need to let them know what is happening and how long it’s going to take to close the restaurant. You need to also let them know some things they need to be doing as you work through the closing process, including seeking other means of employment.
While it might come as a shock to your team, at least you’re giving them a chance to prepare for the future. It allows them to get their affairs in order. Working at your restaurant can be the only form of income they might have to support their families.
Of course, there are times when there are legal reasons you can’t discuss the closing of your restaurant. Even during these times, there are some pieces of information you can share with staff.
This is information you can share without legally breaching any boundaries.
4. Ignoring Your Customers
Much like the discussion you have with your staff, you should take the same steps to communicate with your customers. It doesn’t have to be as extensive.
But it’s beneficial to thank them for being loyal patrons to your establishment and provide a place where they can direct their questions. When they access this resource, it should detail for them what they can do with things like gift cards or outstanding coupons.
It might prove helpful to direct students to other locations in the area that will allow them to use their coupons and gift cards. This shows customers that you truly do care about the love and loyalty they’ve shown your establishment throughout the time you were open for business.
Remember, without your customers, your business would not have succeeded the way it did before you chose to close your restaurant. In fact, depending on how you choose to handle the closing of your business, it will impact whether or not these customers continue to remain loyal.
They might even follow you to your next restaurant location.
5. Tie Up Loose Ends
Another important thing to do when closing your business is to tie up loose ends you might have with vendor suppliers. You need to speak with them in advance about canceling your account with them.
From there, begin making arrangements to have balances resolved before the closing of your account. Communicating with your vendors is a part of being transparent with them about the current status of your business and what’s to come.
It also ensures the vendors can take the proper steps on their side to cover any losses they might incur as a result of the closing of your business. We’ve mentioned before that you need to have a plan for the closing of your business.
The plan should detail everything that needs to be done and help you complete everything within a specified time period. The plan ensures you don’t forget something that could be detrimental to your future as a restaurant owner if you choose to open another restaurant in the future.
6. Not Being Transparent With Investors
Investors invest in your company because they see an opportunity to make money and find your company to be a valuable asset to them. Because of this, you might find it especially challenging to speak with them and let them know your plans to close your restaurant.
If you don’t take the time to speak to them, it can taint your reputation and leave a bad taste in their mouths, especially if you need investors in the future. Sit down with them and be as honest about the situation as you possibly can without breaching any legal requirements you’ve got to adhere to.
Transparency is one of the major keys that help you distinguish yourself as a leader. People will respect you more for the way you handle the closing of your restaurant than if you’ve decided to keep things to yourself.
When you’re not transparent, it can be challenging for people to get on board with plans you might have and will lead to some backlash as people continue to search for answers and other information about the closing of your business and why it’s taking place.
7. Forgetting to Take Inventory
How are you going to know what you have leftover in the restaurant if you forget to take inventory?
Taking inventory is important because you’ve got to make arrangements for items to be picked up, sold, or stored to ensure it remains protected. You should have a closing checklist you use to ensure everything that needs to get done throughout the closing process is done.
For example, there should be a list of staff tasks that include ensuring all pieces of equipment are properly cleaned, and all tables and chairs are stacked in a certain way before the restaurant closes. You should have a checklist dedicated to properly disposing of leftover food that might be stored in the refrigeration units your company uses.
After food has been disposed of, is there a process in place to defrost the freezer so that the unit can be cleaned and turned off before being moved into storage. Without a plan, the closing of your restaurant is going to be more challenging than it needs to be.
This can lead to unnecessary stress for yourself and your staff members.
Inventory is useful as you make plans for equipment redeployment.
Mistakes to Avoid During a Restaurant Closing
During a restaurant closing, there are a series of mistakes that can be made, but it’s best if you avoid them as best as possible. Don’t forget to sit down and be transparent with your investors, staff, and customers.
And find a way to sell your leftover restaurant equipment instead of throwing it out. Are you in need of help during the closing of your restaurant?
Contact TAGeX Brands and let us help you close your business the right way.