6 Ways to Increase Small Restaurant Revenue
Any business is focused on increasing profits. To compete with the larger chains, small restaurants must work harder to reach a wider audience. There are several ways that a restaurant can appeal to its loyal patrons and increase sales.
How to Increase Restaurant Revenue
Every business can benefit by learning new ways to increase revenue. Here are six tips to increase small restaurant revenue.
1. Create a Social Media Presence
Facebook, Instagram and Twitter are great platforms to use to reach a wider audience and increase restaurant sales. Social media pages for small restaurants that have a local audience can be updated regularly to keep patrons informed.
Uploading photos of your most popular dishes can entice people to your restaurant and make them want to dine there. Use social media to inform customers about upcoming events, menu changes and new additions. Facebook and Instagram are great places to share specials, coupons or discounts with your online fans.
You can also use social media to connect with your customers via the comments section or direct messaging platforms. You can get feedback from customers by asking them to leave reviews or recommendations. You should acknowledge any complaints or issues posted by customers. Apologize for any inconveniences and offer solutions. You will increase sales and retain customers by helping these types of clients.
Staying active on social networks is crucial to keep your customers engaged. Monitor your social media growth, and share photos and posts that promote your tasty menu and helpful customer service. If you show that your restaurant cares for its staff, share customer reviews and update its pages frequently, it may encourage new customers to visit your restaurant.
2. Optimize Your Menu
Optimizing your restaurant menu is another great way to boost sales. Design your menu so that it encourages purchases. Place the dishes with the most profit where customers can see them.
Menus should be simple to read and promote dishes that are popular among customers. You can also mix up prices, popular dishes and niche items to avoid overwhelming the customer. Optimizing can be as simple as renaming dishes or rotating options according to the season.
Today, many restaurants offer a version online of their menu. Online ordering may require you to specify the number of dishes that are available, but it can boost your restaurant’s sales. You can increase your restaurant sales by focusing on online ordering dishes that are easy to prepare. Update your online menu to include clear images and descriptions of dishes to make ordering easier.
You can change your menu later if your customers react negatively to it. You can adjust your menu based on how popular certain dishes are. Sales will be determined by the success of your menu. You’ll also see an increase in profits once you cater to customers’ demands.
3. Take Upselling to the Next Level
When you offer customers more expensive items or additional items, it is called upselling. If used correctly, this strategy is common among restaurants and will increase sales. Listen to your server and learn what sells. Whether you offer free samples to lure customers or change your menu according to popularity, this is a good strategy.
Train your staff to use different strategies to upsell and encourage them to develop rapport with customers. Servers can test different prompts and determine which one works best for each customer. You can ask them to suggest modifiers or add-ons that will increase your profit or to create a script with detailed descriptions of the dishes to entice patrons.
Here are some ways that servers can increase sales while remaining subtle:
- Discovery Questions: Ask your customers why they came to the restaurant, and what they are looking for. Your servers will have more information and be able to recommend the best option for each patron.
- Positive rapport: Customers will add more items to their orders if they are satisfied with the service. Encourage your staff to develop positive relationships with clients to increase the chances of upselling.
- Recommendations that are relevant: Customers may only be interested in items that are pertinent to their tastes and circumstances. After your servers ask discovery questions, make sure they recommend appropriate dishes for each client.
- Upgrades: Customers will be more inclined to purchase extra items if the dish recommended is perceived as a better bargain or an upgrade of their current selection. Servers can suggest upgrades and add-ons that will appeal to this customer base.
- Encourage staff to be enthusiastic about their recommendations. Customers are more likely trust servers that are confident in their food and knowledgeable about customer needs.
4. Increase Table Turnover Rate
The number of tables you turn over each day is your table turnover rate. Your revenue will increase if you improve your table turnover rate. However, servers must still pay attention to and care for each guest that comes through the door.
There are several ways to increase the table turnover rate:
- Orders should be placed as soon as they are received and the kitchen should begin working on them immediately. To save time, combine table tasks such as bringing dishes or drinks and answering questions from customers on the same visit. Serves should give the customers’ checks as quickly as possible and then collect them when they are ready. As soon as customers leave, clear and clean the tables to increase turnover.
- Optimize the layout: Make sure that your customers and servers can easily move around the restaurant. You should also have a variety of tables to accommodate different parties.
- Have a team available: Hire enough employees to be able to help a greater number of clients throughout the day.
- Ask about time constraints. Ask your customer how long they may stay in order to determine how quickly you can turn around your work.
- Complete your seating: Parties that are not complete may take more time to order and to depart.
- Encourage “campers to leave”: Customers who sit at tables and stay for long periods of time should be encouraged to pay their bills and leave.
5. Create Unique Outdoor Spaces
Outdoor spaces are a great way of attracting new customers. They can also be used to seat more patrons. A patio or outdoor seating area can be a great way to increase sales and expand the design of your restaurant.
You can design your seats in an outdoor area to suit your taste, while also adding additional decorations to improve the space. Use the natural surroundings by adding bushes, flowers and shrubs. Try out unique lighting and movable chairs so that your guests can sit together in large groups or eat at night.
You can serve more customers if you have more space. You can reduce the wait time for customers and increase your revenue. A large outdoor space will improve traffic in the entire building. The extra space can be used to attract new customers and encourage existing ones to use it, especially in the warmer months or during holidays.
New spaces can also provide new revenue opportunities. Consider renting out your patio to local bands or hosting birthday parties and special events at your outdoor tent.
You will increase your clientele by appealing to social patrons, pet owners, and parents. Pet owners can enjoy a meal without having to worry about their pets disturbing other patrons, while parents can dine in peace. It allows more social patrons to sit with friends and enjoy the company of others without having to worry about their volume.
6. Extend Your Services
Offering different menus and services can increase restaurant sales. Customers are always looking for specials and unique products that meet their needs. Offering takeout and delivery has become an essential part of any restaurant service.
Consider designating parking spaces for takeout customers in your parking lot. This will make it easier for them to get into the restaurant. Designate an area indoors as the designated space for takeout where customers can pay and find their food.
Some restaurants will want to include delivery in their service. If you want to test whether or not this is a viable option for your restaurant, partner with companies such as Door Dash and local third-party services.
Other unique services may include special offers, gift cards or meal deals. Your business may see an increase in sales during the holidays, especially if you sell items or dishes that are relevant to your customers. Gift cards can also be used to bring in new customers, since many people tend to spend more than the value of the card. This increases the money that you get and builds relationships with your future clients.
Restaurants offer special bundles or meal deals to attract frugal customers. Consider offering combos that combine low-profit items with high-profit ones. You can run a catering business or sell large amounts of food in family bundles.
Increased Small Restaurant Revenue: A Value-Added Service
You must evaluate the success of your efforts to increase revenue. Consider setting up monthly KPIs and running reports to help you focus on your business’s growth and sales.
You can also get reports for specific sales periods, such as bar sales or online orders. You can also see which parts of your restaurant have seen an increase in revenue such as the outdoor patio, bar, or indoor tables. Use the same method for specific servers to determine who is making the most sales.
Use this information after running reports and tracking growth to determine the value of increasing revenues for your small business. Create a plan and track your financial status while predicting what you will make each season.
The Benefits of Outdoor Spaces in Restaurants
It may be helpful to explore the benefits of outside seating for your restaurant, as more restaurants are using outdoor space to increase sales. It is possible to attract new customers and increase revenue by creating a well-designed outdoor space. Creating an outdoor space for a restaurant can have many benefits.
- More seats more customers. Reduce the waiting time to be seated and you can satisfy more customers.
- Another advertisement: Outdoor spaces attract people walking by. This includes vacationers, couples, and families. Open-air dining and shade structures can be used to create a welcoming environment. Delicious-smelling food can also encourage people to stop.
- Enjoy a delicious meal or refreshing drink while taking in the scenery and fresh air. This encourages large groups and friends to come back more often.
- Increased revenue. Outdoor seating appeals to a wide range of customers and can increase sales for your business. You can also rent out the space to large parties for special events, which will allow you to seat more people throughout the day.
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