Revenue is one of the most important focal points of running a successful restaurant. The revenue encompasses all the money the restaurant is bringing in from all sources. Higher revenue with lower expenditures creates a nice profit margin that defines your success as a restauranteur.
Calculating your restaurant's revenue is a fairly straightforward process. You just add up all the income the restaurant has made. This includes the sales from dine-in, carryout, and delivery orders. You should also add in merchandise sales if your restaurant offers anything for sale. Once you calculate restaurant revenue for the month, you can divide it by day or week to determine the average restaurant revenue.
Many restaurant owners want to boost the store's revenue so they have more flexibility for upgrades and expansions. They may even want to offer something like profit sharing or raises to their hard-working employees. Consider these ideas for boosting your restaurant's revenue:
Your workforce must be properly trained if you want them to take care of your customers. Many restaurants rely heavily on hiring employees who are already trained. But, you have to consider the type of customer service that's offered at the places those employees previously worked. Do you really want that type of service at your restaurant?
Your employees have to make sure that customers are happy, but they also have to ensure they're balancing that with keeping your restaurant's interests at heart. You need to empower your employees to do what they can for customers, but set limits on what's acceptable. For example, offering a free dessert to a table that had complaints is usually a good idea, but this can't be something that a server does simply to try to increase their tip.
Understaffing can lead to great frustrations for employees, which can transfer to customers. You don't want to overstaff because that will cost your restaurant money due to having to pay wages, but understaffing can be even more costly.
When your restaurant is understaffed, customers will have to wait even longer than usual to get their food. If they're dining in, it make longer for them to get a table. They may not get the service from the server that they expect from your restaurant.
Staffing according to demand means that you have to look at the historical sales data from your restaurant. Cuboh makes this possible because you can generate reports that provide valuable information that you can use to make decisions about what needs to happen at your restaurant.
Dine-in customers come to your restaurant to eat and possibly socialize a bit. While it's understandable that they may want to sit around a bit after they eat, this can prevent your restaurant from maximizing revenue. There are a few ways that you can encourage table turnover, but you have to determine which ones work for your restaurant.
One option that you have is to train servers to offer desserts. This is an upselling technique that offers an added sale to the table. But, it also signals that the server notices that they're done with their food.
If the customers decline the dessert and remain at the table, the server can follow up again by offering a takeout container if there's still food on the plates. Any plates that are empty should be cleared promptly.
As a final cue that it's time for the table to leave, the server can drop the check. Giving the table a subtle final call, or end to the service experience, can help this. "Thank you for coming. See you next time you stop in." is an example of what a server might say to tell the guests that it's time to go.
Delivery services quickly became a cornerstone of the restaurant industry during the pandemic. The benefit of offering delivery through these apps continues on even as people are getting back to eating in at restaurants.
One of the keys to having a successful delivery service is clearly defining what dishes are available for delivery or takeout through these apps. Ideally, you'll offer the easier and faster dishes for takeout and delivery. This helps to ensure that the preparation of those orders doesn't stand in the way of the dine-in experience for customers who come out to partake of the true experience your restaurant offers.
Specials for dine-in customers provide a two-fold benefit for your revenue. It highlights offerings that guests might not have considered, which can encourage them to try something new. It also enables you to indirectly control food costs by offering a dish that has ingredients you don't want to go to waste.
Offering dine-in specials also adds the perception of value for people coming into the restaurant. It makes them feel as though your restaurant truly appreciates people who are coming in to eat.
A customer loyalty program rewards your customers for coming back to your restaurant. There are a variety of options for these. Some provide cashback to the customers, while others give them free items after a certain number of visits.
Loyalty programs are sometimes app-based, but you can also choose to use emails or punch cards for your rewards programs. Some restaurants have more than one type of program so customers can choose what will work best for them.
One thing to remember when you're coming up with the terms of the loyalty program is that you have to think about how the rewards you offer are perceived. Customers are much more likely to get excited about the program if they see value in it.
Inventory control is multifaceted. You have to ensure that you don't waste inventory by over-ordering, but you can't underorder. Having to tell customers that you're out of their favorite dishes creates a disappointing experience that can cause them to leave the restaurant without a purchase.
Taking a look at the historical sales data for dishes can help you to learn what's selling and when. You may notice that certain menu items sell better during the week while others perform best on weekends. Adjust your inventory ordering to address those trends.
Word-of-mouth advertising provides a quick boost in revenue, but it's one that's long-term if you handle things properly. Customers who are amazed by the food and pleased with the service will recommend your restaurant to their friends and acquaintances. They may even think about suggesting it if they're asked where to dine for a group event.
Making sure that you provide a satisfactory experience for every customer can solidify your position as a leading restaurant in your area. Remember, word-of-mouth advertising can come from all forms of orders, including delivery, takeout, and dine-in.
A local presence increases revenue because it lets local residents know that you value the community. You can do this in several ways. Consider joining local associations. Work with local farmers to provide farm-to-table options. Get involved with local fundraisers.
Certain local affiliations might even provide you with free or discounted advertising opportunities. For example, buying ad space for a local dance recital's program shows your support for the local kids and could entice parents to give your restaurant a try. Consider using the ad to offer a discount if they mention the ad.
One way to increase profits is to rethink the menu. While you don't want to do away with customer favorites, you should reconsider the time and effort it takes to prepare each dish and compare that with the price of the dish. Menu items that take a long time to cook or prepare can increase the time a party sits at a table, which can negatively impact the table turnover rate.
You also need to think about what menu items set you apart from similar restaurants. Enticing customers into the restaurant with unique offerings is one way to ensure they keep coming back. Find those signature dishes and finetune them so nobody else can compete.
Finding the balance between boosting your restaurant's profits and controlling the expenses is the only way that you can improve your restaurant. Taking these suggestions as a springboard can help you to improve the profitability of your restaurant while cementing your spot as a fixture in the community.