Posted on | January 15, 2014 | No Comments
Five Inexpensive Ways to Improve Your Restaurant Revenue
Everyone in the restaurant business is constantly looking for ways to improve their restaurant revenue and make more net profit. Everybody knows the expensive ways, like relocating or remodeling, but what about the inexpensive ways to improve your restaurant revenue? Here are five ideas worth considering.
Revise Your Menu
Some items may sell too little to deserve a place on your menu at all. Without sacrificing your restaurant’s theme or quality, it is possible to identify under-performing items and replace them with more profitable ones. After all, what is the advantage of getting more customers through the door if you can’t offer them what they really want to buy? Also, check each item to make sure you are getting the maximum profit margin out of each dish.
Are you available to your customers at the times they want to stop by? Adding hours or days can be expensive in labor and other overhead costs but not if you are drawing enough additional customers each day to cover it. Do you serve an extended lunch or by reservation only? Breakfast, dinner? Catering? Don’t be afraid to experiment, you may be surprised to find a whole new range of profit-making opportunities arising from expanding your hours of operation.
Focus on Repeat Customers
Getting new customers to come through the door is a major challenge for every restaurant. Yet, many owners don’t fully appreciate the customers they already have thereby missing out on growth potential. A customer who usually comes to buy loose leaf tea may become a lunch customer if you give them a bag stuffer/menu replica or a promotional discount certificate. You can also encourage people to spend more while there by adding a cream tea or dessert tea to your menu. If you don’t already have one, consider getting a liquor license. You may be surprised at the number of people who enjoy wine and champagne with their tea meals.
Every business owner can find ways to streamline their operation and reduce costs if they will only look for them. How efficiently are you scheduling your help? When was the last time you price checked your suppliers with their competitors? Is there energy saving technology you are not using but could be? There is always money to be saved by those who will take the time to search for them.
Go Take Out
A lot of tea restaurants could expand their business and improve restaurant revenue simply by offering take out service. All you need are some nice take-out containers and suddenly you have a whole new customer base. It may be stretching your employees a bit more, but if you have enough demand, the cost will be worth the effort.
Not all these tips will work for everyone, but most restaurants will benefit by considering adapting at least a few of them. Try it and see.