It is easy to lose sleep over the bottom line of your restaurant business. It’s not easy to cut food costs and labour costs while maintaining profitable margins. However, there are certain strategic steps that you can take to increase sales at your restaurant business and grow a restaurant business.
So, how can you increase profit margins at your restaurant? To help get your creative juices flowing, here are 15 tips to improve sales at your restaurant and enjoy better returns in your hospitality business.
It is easy to lose sleep over the bottom line of your restaurant business, especially in today’s competitive market. In fact, Hospitality Magazine reports that one in 11 Aussie hospitality businesses are set to fail in the next 12 months. But don’t fret – it’s not all bad news. There are certain strategic steps that you can take to increase your profit margin and build a successful, long-term business. Here are 10 tips to improve sales at your restaurant and enjoy better returns in your hospitality business.
1. Update your restaurant menu
If you haven’t updated your menu in a while, it could be time for a refresh. Updating your menu could be as simple as renaming a classic item, or placing your highest margin items at the top of the first page.
Updating your menu can be a good regular habit to maintain. Routinely changing items and ensuring you’re using seasonal produce can help to keep your menu fresh and engaging.
2. Put on themed events
There are many types of special events your restaurant can host without putting a strain on your profits. Whether it’s a wine and cheese tasting, or an “Italian summer” themed dinner, there are many creative options.
You may also explore ways to maximise your space when business is slow or when your business is closed. For example, reach out to local artists, book clubs and other community groups who may be looking for venues for their events.
3. Sell in-house products
A branded product can be a great way to generate a secondary revenue stream. Are you a coffee shop owner who sells house-roasted beans? You can package them and sell them at retail prices for your customers to use in their own kitchens.
4. Increase your speed of service
It is well-known that the more tables you can turn per hour, the more profit your business will receive. Give your staff the tools to improve their working efficiency. For example, a mobile point of sale (POS) system will enable your wait staff to send orders directly to the kitchen.
5. Partner with food delivery services
Convenience is the new king in today’s mobile-driven world, and a great way to increase sales is to partner with food delivery companies. This can help raise awareness of your restaurant and attract new customers.
6. Organise a workshop
Are you the best pizza place in town? Maybe you are renowned for your gourmet burgers, or perhaps customers rave about your amazing cocktails. Whatever your specialty is, consider hosting a workshop around it – either online or in person – to showcase your expertise.
7. Consider private dining
Private dining can be a great option if themed events don’t really appeal. Perhaps you have a large banquet room that could be used more effectively. Anyone planning a party may be looking for a small semi-private space that is closed off for private dining.
8. Host pop-up experiences
Pop-up bars, restaurants, and other venues are on the rise. These limited-time experiences can often be huge crowd pleasers. Margarita Mondays could be a regular event for your restaurant, with special cocktails and a menu featuring a slew of tasty drinks. You may also partner with an emerging chef, and have your restaurant space open to them for a period
9. Create a loyalty program
There are many ways to incentivise customers to keep coming back to your restaurant. For casual eateries, you may choose to use coupons or punch cards. Higher-end restaurants may use email, app-driven programs, or swipe cards. Whatever option you choose, the most important thing is to make the process easy for customers so they feel encouraged to use your loyalty program.
10. Encourage your staff to upsell
One of the simplest ways to increase restaurant sales is to train your staff how to upsell. Your waitstaff are the face of your business, and training them to recommend add-ons or pairings, or suggesting a premium menu item, could help to boost your restaurant profits. Make sure your staff know which items to promote and are always aware of any menu changes. And of course, ensure that their training covers how to upsell in a friendly, polite and natural manner.
How BizCover can help reduce the risks to your restaurant business
At BizCover, we make it easier than ever for restaurant business owners to reduce their risk with business insurance that specifically addresses challenges in the hospitality industry. Compare competitive hospitality insurance quotes from Australia’s leading insurers online, get covered fast, skip the paperwork, and get on with your day. For on the go cover, go BizCover.
This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.
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