Managing a restaurant business can be daunting, especially considering sales, revenue, and the overall work involved. Whether you're the owner or manager, it's ultimately your responsibility to ensure everything runs smoothly and that you generate a decent profit at the end of the month.
Therefore, it's natural to constantly seek tips, tricks, and ways to improve your profit margin and increase revenue from your restaurant every month. In this article, our experts have outlined tried-and-tested methods that will not only maximize your restaurant's sales revenue but also help you provide better service to your customers, leading to the overall success of your restaurant business.
Enhance Customer Experience
With new restaurants opening almost weekly, it can be challenging for established outlets to remain exciting and relevant to customers. An enhanced customer experience can give your business the "X factor" and help you stand out.
Consider upgrading your restaurant's overall atmosphere to match better the type of food you serve. This doesn't have to be an expensive overhaul, but small changes in decor, lighting, and music can create a more appealing ambiance. You can also provide accommodations like ramps, accessible restrooms, and braille menus to ensure your restaurant is inclusive to all customers, including those with special needs.
Invest in a comprehensive training program for your staff so that they can become knowledgeable about your menu, understand your restaurant's philosophy, anticipate customers' needs, and provide proactive service.
Optimize Your Menu
"Variety is the spice of life" is a timeless phrase that applies to all aspects of life, including the restaurant business. Consider adding a variety of dishes to cater to different customer tastes and preferences. We're not suggesting a complete menu overhaul, but offering customers new food options can be a wise long-term decision.
Explore dishes from around the world and develop a few signature dishes unique to your restaurant. This can be a great way to attract new customers and encourage repeat business.
Alternatively, you can focus on fresh, seasonal ingredients from your local area, which may be limited for a few months. This approach can create a buzz among customers and tap into their fear of missing out on something special, leading to increased footfall.
Effective Pricing Strategies
Implementing effective pricing strategies can significantly increase your restaurant's overall profit. Use psychological tricks like odd pricing, which can make customers feel they're paying less even though the price is nearly the same.
Alternatively, offer value combos or deals that encourage customers to purchase more items at a discounted price. For example, include a family meal plan that combines popular items with less popular side dishes and drinks at a lower cost. Train your staff to upsell additional items, such as appetizers or desserts.
However, make no mistake—we are not suggesting you employ predatory pricing practices. Instead, ensure your portion sizes are substantial to satisfy customers. Overportioning can lead to excessive waste and cut into your profit margins.
Increase Your Online Presence
In today's age of social media, no service business can truly thrive without a solid online presence. This is especially true for restaurants, which rely heavily on customer feedback and reviews. Cloud-based services like OrderEm create a user-friendly website that is easy to navigate and accessible on all devices, including desktop and mobile.
With OrderEm's mobile app, you can ensure your website is mobile-optimized for a seamless experience on smartphones and tablets. Keep the content up-to-date using personalization features, exciting templates, menu options, etc.
Encourage customers to leave social media reviews by offering incentives like discounts or freebies. This can be a powerful advertising tool for your restaurant. Use OrderEm's content management features to respond to all positive and negative reviews in a timely and professional manner. Thank customers for their feedback and address any concerns they may have. This can help build a robust and organic relationship with your customers, leading to a loyal customer base.
Offer Delivery, Catering & Pick Up Services
The pandemic has popularized food delivery and ordering among consumers. Therefore, your restaurant must offer these services or risk being left behind. Partner with delivery apps to increase your restaurant's visibility and reach a wider audience. Additionally, services like OrderEm can help you set up an in-house food delivery system, allowing you to retain more revenue per order.
Consider offering pick-up services like drive-thru ordering systems for a steady revenue stream. Restaurants can also provide catering services for events, corporate parties, and social gatherings. These can be a great way to boost your monthly profit margins and overall reach.
However, you must maintain the same high standards for catering and delivery orders as you do for in-house services. Use high-quality packaging with proper branding to ensure your food is recognizable, which is suitable for advertising and will help customer retention.
Make Use of Technology
In today's technology-driven world, restaurant owners must fully utilize cutting-edge technology to increase their overall business revenue. A point-of-sale (POS) system can streamline operations by automating tasks like order taking, payment processing, and inventory management.
Offer self-ordering kiosk services to put customers in control of their own ordering experiences. This not only adds a unique selling point but also reduces staffing requirements and waste since the overall process is automatic. Incorporate contactless payment options for a convenient and secure payment experience. This method is faster than traditional payment methods, reducing wait times, improving service, and leaving less scope for human accounting errors.
Use your POS system to track sales data, gain insights, and implement a loyalty program. Reward frequent customers with discounts, freebies, or exclusive offers. Consider creating different tiers of loyalty programs based on spending habits. Use surveys to collect customer feedback on their dining experience, menu items, and service.
Evaluate & Adapt
To remain profitable and ahead of the competition, continuously evaluate your Key Performance Indicators (KPIs). These include your restaurant's sales data, such as total revenue, average order value, and sales by menu item. Track customer satisfaction through surveys, online reviews, and staff feedback. The cost of food and labor, such as chef and server salaries, is high. Use this data to identify areas for improvement and make suitable improvements to maximize efficiency.
Stay informed about new culinary techniques, ingredients, and food trends. For example, if you see a particular food trend like the keto diet, vegan food preference, or intermittent fasting, you must ensure that your restaurant provides customers with options that are keto and vegan-friendly. To reach your target audience, keep up with the latest marketing and consumer trends, including changing dietary habits and new marketing strategies and technologies.
To Conclude
Maximizing your restaurant's sales revenue requires a dynamic approach focusing on enhancing the customer experience, optimizing your menu, and implementing effective pricing strategies. You can also take advantage of cloud-based ordering services like Orderem to increase your online presence and offer additional services like POS systems, self-serving kiosks, online delivery, etc.
Implementing these strategies can attract new customers, encourage repeat business, and improve overall profit margins. You must always remember to grow continuously, evaluate your performance, adapt to changing trends, and balance service and innovation.