Look at bankruptcy news as a reality check

From Pizza Hut, to One Table Restaurant Brands, to Red Lobster, there has been a lot of bankruptcy news in the restaurant industry of late. While it’s natural to see these cases as reflections of the ongoing challenges of doing business the industry in recent years, looking deeper reveals distinct problems within the brands that became unsurmountable for them. What can be helpful in these times is giving your restaurant a health check so you have time to make corrections before problems snowball. The restaurant accounting firm Cogneesol shared some tips operators can use to make sure they’re on the right track and not missing red flags that signal brewing problems. First, study your performance. If it’s poor, dig to find the reasons why. Is it about not sufficiently understanding your guests? Losing staff because of delays in paying them? Make decisions based not on gut instincts but on data- or experience-driven logic. Professionals in public relations, law, tax, finance, marketing, food safety, purchasing, training and maintenance can be helpful sounding boards and help you make more strategic decisions. Next, develop and maintain a good relationship with your bank manager by keeping them informed about your business on a regular basis. It can encourage their support and also make them aware when you might need a contingency plan against bankruptcy. Finally, make staff communication a priority – so they understand their value to you and are, in turn, willing to go the extra mile for you and deliver the kind of service that keeps guests coming back.