An IBISWorld report on United States' single location restaurants indicates that 67 percent of the operational costs go directly to purchase expenses and wages. This factor, combined with the current economic times, has hit independent restaurants across the country hard. That is why savvy entrepreneurs have resorted to going beyond their current market areas to enhance their bottom lines.
Effective tips of revenue generation beyond your four walls
Here are some endeavors that can significantly improve revenue in your restaurant:
1. Joint ventures
One of the key methods of boosting company earnings is participating in joint ventures and cooperative sales agreements. Restaurant owners can contact other companies that sell complementary products or services and request them to sell their products as well. For instance, you can partner with a supermarket to sell some of your delicacies. Not only is it an incredible sales booster, but finding the right partner can also lower your sales and marketing expenses.
2. Expansion into highly populous locations
Expanding to areas such as airports, colleges, or military bases can be challenging, but such areas have become magnets for restaurant operators ready to crack the complex set of codes. Even though you will need to stay open all day throughout the year, the fact that you have a consistent flow of customers into the business around the clock is a crucial sales factor that guarantees higher returns.
3. Co-marketing with other businesses
This involves working together and sharing dieting and health food programs, resources, and audiences with a complementary brand. This way, you can execute campaigns that neither you nor your partner could have done as effectively without each other's support. The strategic partnership is cost-effective, and sharing audiences fosters positive long-term relationships while attracting potential customers and boosting sales. Bonus points for partnering with a local charity.
4. Adding catering 'express' units or offerings
Catering 'express' services have higher odds of generating additional profit for your restaurant. Since you already have the staff, equipment, and commercial kitchen, having this venture as a sideline will open up new markets without additional costs. Not only will your business convert potential guests into regular customers, but it also increases your revenue and cuts on wastes since you can accurately order for perishable ingredients.
5. Enhance your restaurant's online mobile presence
More people rely on their smartphones to access the internet, so you can generate additional income if you invest in a functional website that looks great and works seamlessly on desktops, tablets, and mobile devices alike. You can easily create your GMB (Google My Business) listing with your location, operating hours, contact details, and pictures of delicacies. Also, you can capitalize on your social media platforms to create awareness.
You have many factors to consider when finding the most effective opportunity to increase revenue. But most of the basic principles are standard and can work with different types of restaurant establishments. With all these tips, you can now generate revenue beyond your premises sales and raise the bottom line of your restaurant.