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small business, people and service concept - happy bartenders at cafe or coffee shop counter

Lost Revenue….

Last evening I attended a Networking Mixer at Mellow Mushroom in Phoenix at the Desert Ridge location. I was blown away that the restaurant not only lost the reservation for the large party but lost revenue due to poor management. There were about 25 people in the group and never once during the two hours we were there did we see a cocktail server for drinks. They were supposed to have light appetizers however chose to feature salad. Okay this is a pizza restaurant so if you wanted to promote your business why not promote the food that is your specialty?? Where was a cocktail server to take a drink order? Even if they were understaffed I know there was a manager because we saw him. Maybe he could’ve helped in another area to free up someone to take drink orders? Managers need to be prepared for situations like being understaffed etc…

I know the hosts of the event weren’t pleased so I don’t believe they will have an event there again. I started to figure not only how many people were unhappy but how much money the restaurant lost by not capitalizing on this event. I figure each drink probably $5-$6 or more when No Happy Hour so if everyone just ordered 1 drink even soda lost revenue of at least $125 and say half of the people had two drinks lost revenue close to $200. Also because they didn’t have real food imagine if they had sold some appetizers at say $10 each. Even if only 5 people bought an appetizer that would be an additional $50. The other flip side say some of those people decided to stay for dinner because food was so good. I am thinking that would be at least $50 for two people. So I am thinking this Mellow Mushroom lost at least $400!!!! Also how many people will tell their friends about the service and food. I am sure that anyone that was there last night will definitely not return with a big party….

Slow Service More Lost Revenue

Last week we were in the Yard House in Phoenix also in Desert Ridge. We didn’t mind waiting for a table however we were very hungry when we got seated. Server took our drink order fairly fast and we ordered our entrees right after drinks arrived. We had ordered a side salad and soup because we were hungry and thought we would come sooner. We waited over 15 minutes so finally asked if we could get our sides before our meal. The server said “yes they should be out shortly”. She said they were being made?? Now I used to be a server and I made my own sides or my food runner made them for me. Anyway 5 minutes later they arrived. Okay so 20 minutes for sides and 30 + minutes for entrees is lost revenue when you have an hour wait and can’t turn tables….

If you find that either of these scenarios is losing you revenue it’s time to hire The Hart Experience to give you an assessment of where you are losing money (profit). We do mystery shops and business assessments and show you how to run a more profitable restaurant. Contact Debbie Hart at 602.717.3271, Debbie@thehartexperience.com You may also go to the website and fill out your contact information and someone will reach out to you within 24 hours www.thehartexperience.com

9 Comments

  1. Lyda says:

    It works very well for me

  2. Rex says:

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  3. article says:

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    • Professional Mystery Shopper says:

      Good Afternoon Phillip,
      Thank you for your comment. If you would like to learn more on how to improve your customer experiences please feel free to reach out.

  4. Ute says:

    This is really useful, thanks.

    • Professional Mystery Shopper says:

      Good Afternoon Evie,
      Thank you for your comment. I am glad you found this article useful. If I may answer any questions on how you can improve your customer experiences please feel free to reach out.

  5. this article says:

    Thanks, it’s very informative

    • admin says:

      Good Afternoon Cory,

      Thanks for taking the time to read the article and commenting. If you are a business owner and have some questions how to improve customer experiences. Please feel free to reach out.