The hospitality industry is one of the most competitive markets to date and competing for your customers’ attention and affection isn’t easy. The question on how to increase restaurant profits is a good consideration to make regularly, no matter whether hitting your targets or under-performing. There are a number of ways you can refresh your restaurant operations by readdressing the basics as well as introducing some innovative tech to maximise your earning potential.
1. Improve your Customer Service
The biggest downfall of any hospitality venture is inconsiderate or unattentive staff and something many scoot over as a non-technical aspect of the business’ performance. Have you ever heard the common review ‘the food is great but their service is meh’? Many place importance on service and if it’s important enough to mention, it’s enough to drive people away. You may need to implement standard procedures for staff to deal with customer complaints, giving more room to customise orders and introduce flexibility in refunds. Alternatively, it may simply be a problem of being short-staffed, with your team being inundated with requests and unable to deliver sufficient quality customer service as a result. It’s a good idea to take the time and review how your business is handling customers and ensure it’s not the service that’s letting you down.
Customer service is one of the biggest contributors to word-of-mouth referrals – a far more effective marketing tool than any Facebook ad can supply and a priority in addressing the question of how to increase restaurant profits. We tend to trust a positive review of a close acquaintance over a display ad we bump into during a Google search. Simple patterns of recognising repeat customers, remembering their order history and building rapport can have a huge impact on retention and you’ll likely be more successful in the upsell.
2. Point of Sale system
A restaurant till system brings a range of solutions to your operations including greater restaurant payment technology as well as giving you access to key performance metrics. The insight will help you identify opportunities for growth, carve out a way to respond to customer needs and understand your target audience based on their buying habits. With our POS management and reporting capabilities, restaurants are now able to access turnover, profit margins and identify best sellers with ease as well as make restaurant inventory management easy using live stock updates. This will ensure you don’t lose money on over or under-stocking as you respond to the dynamic stock movements in real-time. We have our very own dedicated restaurant POS system to help you with bespoke solutions including mobile ordering that is able to pivot to a table service app once you’re ready to cater to guests dining in.
3. Diversify with Mobile Ordering
Consumer behaviour is rapidly changing before our eyes, helped along by the pandemic but ‘convenience’ has been the rising star of priorities in the past few years. Many now opt for ordering from the comfort of their home, workplace or hotel room and forgo the need to queue or interact with more people than needed. Mobile ordering platforms like Goodeats ensure that you’re able to cater to a wider crowd with half as much effort when compared to servicing indoor guests. Whether you hop on the UberEats or Deliveroo train, you’ll have more eyes on the food you have on offer, receive more engagement and have your restaurant promoted on mobile ordering apps to those ordering in your radius which can up your sales by up to 20%. This also brings the added bonus of all your upsell being digitised via your click & collect platform ensuring your customers experience a far smoother checkout experience; customers can opt-in or out of products that are offered as add-ons with a click of a button.
4. Build your Online Presence
The world is rapidly moving online, and your customers are a key part of that. Building a website, creating a menu to view online, using social media such as Instagram to show off your delicious food can have a huge impact on your bottom line. Find out how to get your restaurant online here. This also opens a pathway to creating a longstanding relationship with your customers without needing the face to face interaction; you’ll be able to promote offers, exclusives and freebies to incentivise your customers to opt-in on your push notifications whenever you have something to shout about.
5. Refresh your Pricing
Whether a newbie restaurant owner or a trained veteran, it can be difficult to ascertain menu pricing depending on the kind of food you deliver as well as the average price range implemented by businesses similar to yours. It’s not uncommon to overprice or even underprice, both of which will lead to a significant dip in profit margins. Identifying your target audience is important, whether you’re managing a quick-service restaurant or offering a fine dining experience in the heart of London; the pricing will vary significantly. You can find out how your clientele, demand for your offering, location and competition plays into your pricing here.
6. Introduce Combo Meals
This may very well depend on the kind of food you serve, but befitting many, combo meals can be a huge game-changer when refreshing your menu. Eye-catching, comprehensive and targeted, combo meals will help you bring in customers looking to forgo a lengthy menu browse and save a little extra. These usually come at a discounted price which can, in turn, help you draw attention to menu items you may deem underrated and in offering them within a meal combo with your bestsellers, you can shine a spotlight on under-performing menu items that hold potential. You don’t have to be a burger joint to sell combos and there’s plenty of room to play around!
Assessing and reassessing
Getting your restaurant game right is no easy task. It takes a whole lot of analysis of your surroundings as well as your existing restaurant operations to identify opportunities for growth. By implementing new ways to attract customers and keep them around for the long haul, these actions can help you realise your Restaurant’s potential.