Why is Communication Important in Business? Reasons Why it Matters

Just How Important is Business Communication?

Why is communication important in business? Anyone in the restaurant industry understands how critical good communication skills are. Both servers and hosts need to use proper etiquette to welcome customers and resolve complaints. An equipped waitstaff knows the best sales techniques to encourage additional customer purchases. Everyone must be well-versed in digital communication tools or traditional procedures to send orders to the back-of-the-house.

Most importantly, managers need good communication skills to streamline operations and meet goals. They have to handle customer complaints, streamline onboarding, supervise staffers, and run social media campaigns. Restaurant owners need to know exactly which communication techniques work for different audiences. Furthermore, they must understand which digital tools are best to optimize connectivity, deliver a message, and streamline processes.

In short, effective business communication is what holds a restaurant together. It's what leads to an increase in sales, better customer service, and a greater number of return visits. Read ahead for more reasons on why business communication is so critical for restaurants and other small businesses.

1. Business Communication Enables Goal Setting

Restaurant owners usually have a vision of all the goals they want to achieve. However, if they fail to communicate them properly to staff and involved stakeholders, it will be harder to meet them.
Therefore, all objectives must be conveyed so everyone is informed as to what actions they need to take.

This will also prepare employees for the various challenges they may face and will allow them to work more efficiently. As a result of effective communication, overall workplace productivity will increase. This optimizes the company culture, improves morale, lowers turnover, and increases sales.

Common Goals for Restaurant Managers:

• Increase monthly net restaurant sales
  
• Increase daily net restaurant sales
  
• Improve employee productivity and decrease risk of theft
  
• Improve new revenue streams
  
• Improve top-selling items
  
• Test new menu items
  
• Test service changes
  

2. Business Communication Creates a Better Team

Transparent internal communication policies will produce a more productive and collaborative team. Because employees feel valued and know that their perspectives matter, they will have a better attitude at work. This leads to an increase in efficiency and greater productivity.

A secure team unit encourages employees to be loyal and to support one another whenever necessary. Therefore, workers will be less likely to seek employment elsewhere when difficulties arise. If there is a major bottleneck, employees will feel comfortable asking for help and will know exactly who to turn to.

3. Business Communication Improves Customer Service

No restaurant owner wants to receive negative reviews and feedback from angry customers. It only takes a few bad experiences for a patron to leave and never return. Multiple experiences such as this can damage a brand's reputation, particularly in an age where online reviews exist.

To mitigate customer service problems, managers should teach employees the importance of business communication. This is critical because the way employees react and resolve problems correlates to the restaurant's ability to achieve key goals.

Importance of Good Customer Service:

• If customer service is excellent, 78% of patrons will make a return visit
  
• Customers who rate service as "good" are 38% more likely to post a good review
  
• 50% of customers say they would switch to a new restaurant if the service is poor
  
• After one bad experience, 80% of customers would do business with a competitor
  

4. Business Communication Ensures Transparency

Nothing frustrates a customer more than a lack of transparency and honesty. If people feel like they've been lied to or misled, they are going to be unhappy and angry.

Effective communication practices require complete transparency from the owner down the employee chain of command. This will minimize unrealistic customer expectations and decrease the number of bad reviews. Employees will know how to effectively handle upset patrons and promptly resolve problems.

Internally, managers who are honest with their team will have a more streamlined operation. There will be less friction between subordinates and superiors, and everyone will stay informed on what goals to meet and when.

5. Business Communication Ensures Compliance

Transparency in business communication is also linked to compliance with federal and state regulations. It also ensures employees comply with internal rules and procedures. Employees will know what processes to follow to complete tasks, and managers will know what onboarding procedures to follow when training a new hire.

Any written communications that describe business plans or changes should also be transparent and consistent. Written policies and procedures also serve as a reference in case someone needs to review a process or look up a rule.

What to Include in Restaurant Policy Guidebook:

• Workplace Policies - Employee pay according to timesheet policies
• Restaurant Specific Policies - Breaks, shift scheduling, timekeeping
• Dress and Grooming Code - Uniform, required styles, show requirements
• Social Media Policy - What employees can and cannot say online to avoid damage to the restaurant's brand
• Health and Safety Regulations - COVID-related policies and any other procedures
• Benefits - Healthcare benefits, worker's compensation, employee meals

6. Business Communication Helps Everyone Stay Organized

Managers must communicate to employees in a timely and effective manner each day. Communications may include everything from an upcoming meeting to a new scheduling policy. If managers don't deliver this information on time, there may be a complete business communication failure across the supply chain. Everyone must have the information they need to cross-collaborate and work towards shared goals.

On the other end of the spectrum, employees also need to communicate key information to coworkers. From informing coworkers of a shift swap to including a special note about an order, good internal communication practices are critical.

Key Takeaways of Why is Communication Important in Business

Here are the top reasons why communication is so important in business -

• Effective communication enables good goal setting and creates a more cohesive, functional team.
• Good communication improves the quality of customer service and prioritizes transparency, which helps to streamline processes.
• Business communication helps to maintain compliance with FLSA regulations and internal policies and procedures.
• Effective communication ensures everyone from management to low-level employees stays organized and informs coworkers of critical information.