Anyone who has worked in the service sector understands how difficult it is to manage a restaurant. The fact that there are so many places to choose from simply adds to the difficulty. What should you do if your restaurant isn’t generating enough money and you need a solution other than cost management to prevent having to close your doors? Are you looking for a few sales-boosting strategies? Better restaurant revenue management is the solution to your problem. Pricing solutions to distribute the appropriate capacity to the right client, at the right place, and at the right time are key to revenue management. With effective restaurant revenue management tactics, you may increase your restaurant’s income.
Continue reading to find out what restaurant revenue and revenue management are, as well as the tactics you may use to increase sales!
What is revenue management for restaurants?
Restaurants can increase income by increasing the number of clients they serve and/or the amount of money each guest spends. Increasing sales and lowering expenses aren’t all that dissimilar. They both require one important aspect in order to function, and that is correct data. Without it, your restaurant will be unable to identify and address the elements that influence your restaurant’s revenue management.
Some restrictions that may arise when considering revenue management in the restaurant sector include a lack of space and the uncertainty of service time. Unlike the hotel sector, where service time is nearly always predetermined in terms of check-in and check-out, as a restaurant owner, you can never forecast how long it will take a customer to finish their meal. Therefore, it is not possible to create a clear strategy. But flexible planning will take you one step further. Extra seats or drive-through windows, longer hours of operation, and additional food service units are all examples of restaurant initiatives to enhance their capacity to serve more people. Service personnel suggestive selling, imaginative menus, and special discounts for extremely large purchases, on the other hand, are examples of efforts to maximize the amount of money each client spends. One method of increasing income in restaurants is through revenue management.
Restaurant revenue management is primarily determined by three factors: traffic, sales, and service. If you have a revenue problem, it is most likely due to a failure in one of those three areas. The improvements you will make in these areas will increase the success of your business and indirectly increase your earnings.
How to calculate Revenues
So, are you wondering how revenues are calculated? Let’s see!
When calculating restaurant income, multiply the number of customers served by the average check each shift to obtain your average revenue per shift. In other words, you should figure out how much each seat in your restaurant costs. To accomplish so, use the following formula!
Total Revenue ÷ Seat Hours (the number of seats in your restaurant multiplied by the number of hours you’re open)
Let’s say your restaurant brings in $20,000 in revenue on a single night. If you have 500 seats and you’re open for 4 hours, you would do the following:
$20,000 ÷ (500×4)
$20000 ÷ 2000
$10 dollars per seat
From there, you can assess whether you need to raise the seat average, add additional seats, raise rates, or do anything else to optimize your income.
Optimize your menu to get the best result
As technology evolves at a quick pace, so do client demands and wants. People are increasingly considering digital solutions over old techniques. This is when FineDine’s unique features come into play. QR Menus and Tablet Menus, powered by artificial intelligence, such as FineDine, which recalls client preferences, previous orders, and trends. It also keeps track of goods that are consumed at the same time. Based on this information, digital menus may make intelligent suggestions about what customers should order. Because of its targeted approach, this personalized advice produces more income and improves client happiness. This is something that a typical paper menu would never be able to achieve.
FineDine digital menus allow visitors to order their meals via the QR Code Menu and the Tablet Menus (iPad Menus). Because visitors are not reliant on the employees and may buy their meals at any time, the average ticket size might increase by up to 30%. Order management solutions, when combined with lower labor costs, may enhance restaurant revenues by more than 30%.
FineDine is a rapidly developing technology firm that offers menu management, order, and payment solutions using a data-driven digital tablet and mobile menus for a more inventive and lucrative dining experience. FineDine, which was founded in 2015, quickly became one of the world’s fastest-growing and top menu management systems. The platform is available in more than 60 countries and supports 40 languages, reaching thousands of clients worldwide. Give FineDine a try if you want to improve client happiness and, as a result, your business’s profits. FineDine can provide you with a professional experience!
To summarize, digital menus such as FineDine can help to streamline restaurant operations and improve the eating experience. Remember that the most critical aspect of a restaurant’s success is its service. To guarantee that your clients become regulars, you might check the menu models supplied by FineDine to improve the quality of service in your restaurant. If you’d like to learn more about FineDine, please visit our website!