Hospitality is Heart, But It's Also Business

Let’s be honest, every restaurant opens with passion, but staying open? That takes precision.

In the restaurant world, margins are slim, stakes are high, and failure rates are sobering:

  • 30% fail in the first two years

  • 50% by year five

  • 66% by year ten

Success isn’t just about great food or service, it’s about running a smart business. And that starts with two key ingredients:

  1. Knowing your numbers

  2. Activating your team as revenue creators

Know What You're Really Spending

Your costs are more than just inventory and payroll. You need to know exactly where your money is going, and where it’s leaking.

Here’s a breakdown of the core cost categories you should track monthly:

🔹 Rent & Insurance

Beyond your monthly rent, factor in costs for shared spaces, maintenance, and essential coverage (like hazard insurance). These fixed expenses don’t change, but they absolutely impact your bottom line.

🔹 Utilities

Electricity, gas, water, internet, it adds up fast. Monitor usage and adjust seasonally when possible.

🔹 Staffing Costs

This includes hourly wages, manager salaries, overtime, and employee benefits. Want to stay profitable? Your scheduling must be tight, strategic, and planned weekly with real-time traffic in mind.

🔹 Food & Beverage

The biggest area for loss. Work closely with your chef, GM, and bar manager to avoid over-ordering, spoilage, and portion waste. Every menu item should have a cost analysis behind it.

🔹 Outside Vendors

Uniforms, linens, cleaning services, soap, kitchen tools—they’re necessary, but they must be cost-checked regularly. Don’t assume you’re getting a deal, know you are.

Your Team = Your Revenue Engine

Every position on your floor can, and should impact the bottom line. Let’s break it down:

🔹 Host: The Guest Experience Gatekeeper

Your host sets the tone. Their voice, energy, and presence influence whether a guest returns.

  • Master the flow of reservations and walk-ins

  • Build rapport with waitstaff for smoother seatings

  • Keep the vibe warm, professional, and composed under pressure

🔹 Server: The Trusted Advisor

Servers are your frontline sales team. With the right training, they:

  • Upsell specials, desserts, cocktails

  • Know the menu like a chef

  • Recommend pairings confidently

  • Read guests and personalize the experience

Every extra sale is profit, and every connection builds loyalty.

🔹 Busser: The Flow Facilitator

Bussers are often overlooked, but they’re essential.

  • Turn tables quickly without making guests feel rushed

  • Help servers shine by anticipating needs

  • Maintain cleanliness that boosts both experience and hygiene scores

🔹 Bartender: The Profit Catalyst

Your bar is one of your highest-margin areas.

  • Craft beautiful drinks guests talk about

  • Upsell premium spirits or featured wines

  • Welcome bar guests with warmth, they’re often solo diners or first-timers

Great bartenders don’t just pour, they perform.

🔹 Management: The Culture & Cash Flow Leaders

Your management team holds it all together.

  • Know your P&L like your playlist

  • Hire for heart and train for excellence

  • Lead by example, not pressure

  • Create systems that support both profit and people

Want to Grow Revenue Without Burning Out?

It starts with clarity. In my complimentary consultation, we’ll:

  • Analyze your current costs and systems

  • Uncover silent leaks in your operations

  • Create a tailored plan to boost revenue and reduce waste

  • Equip your team to step into their full potential

📩 Email me to book: zana@zdhospitality.com

Ready to Transform From Good to Unforgettable?

Let’s elevate your service, support your staff, and turn your operation into a well-oiled revenue generator, without losing the soul of hospitality.

♻️ Let’s amplify the science of kindness in leadership, hospitality, and life.

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With purpose,
Žana DeVine
Hospitality Expert Coach | Advocate for Service Excellence & Staff Empowerment
Podcast Host of R&R: Resilience and Rebirth

Until next time, stay kind, stay curious, and always lead with love.