Strategic Operational Changes Lead to Happier Guests and More Profit

Mike Corwin knew some things needed to change at his restaurant, Diner 23. He also knew what should never change.

The restaurant resides in the small town of Waverly, OH, population 5,500. "The whole county has around 27,000 people in it, so we have to work with a small customer base," he says. "We try to maintain an atmosphere where our customers are like family. We have the same customers almost every day; we know their names, their kids and other family members."

Education, Corwin says, has proven vital. "I've watched several webinars that helped with marketing and sales. Some Restaurant Startup & Growth magazine articles about how some things operators are doing work in our area; some won't, but they give us fresh ideas. What I learned about controlling costs from the experts helped keep us open over the years. Taking in a lot of money doesn't help if you're spending more than you bring in."

Altering the restaurant's operating hours two years ago proved a smart decision. "We were open from 7 a.m. to 9 p.m. Monday thru Saturday, and we couldn't get our payroll below 36%," Corwin recalls. "We noticed that business really dropped off after 7:30 p.m., so we started closing at 7:30. Payroll went to 31%, while gross sales stayed about the same."

After studying the numbers, he recalls, "it appeared that the 3 to 5 p.m. time was still costing us. We had a good supper crowd, which we hated to lose, but we finally decided to close at 3 p.m. Our utilities decreased a great deal, and our payroll went to 23% to 28%. Our sales are just about where they were when we were open till 9 p.m. We now have way lower utility bills and payroll. We also have fewer (positions) that we have to try to find qualified help for."

The process has worked, Corwin explains. "Our payroll is where it ought to be, and we're in the black at the end of the year."

What Won't Change

For 2018, the Corwins are looking for increased sales numbers along with happier customers. "Happier customers seem to be our most effective advertising."

The restaurant sells its meatloaf, chili, spaghetti sauce, French onion soup, chicken and noodles, beans and cornbread, Marzetti, vegetable soup and more at retail. For now, the couple is looking into transitioning from offering just quarts to whole dinners for four or more. "We are also looking for food that our customers are looking for. The people in southern Ohio are used to home-cooked meals."

Tracking customer traffic has been key. "We see what increases sales, and then put them on our marquee outside," Corwin says. "Right now, we have Beans & Cornbread, Blackberry Cobbler, and Marzetti. We'll run that until something slows down, or something else peaks the customers' interests. We have had people traveling through stop in and get blackberry cobbler for dessert after they ate at another restaurant just before; they saw it on our sign."

What won't change, Corwin promises, is his restaurant's relationship with its guests. "People are becoming busier, so they go through life faster, including eating their meals," he notes. "We try to show them that their days may go a little better if they take time to sit, relax, and eat a meal with friends or family."

Corwin relates that a lot of people come in and ask about getting into the restaurant business. "We always tell them to make sure they get a restaurant-knowledgeable bookkeeper and to get involved with RestaurantOwner.com. The templates, training information, and webinars backed by all the experienced authors and trainers are invaluable."