11 tips on how to increase your profits.
1. Digital presence & online marketing strategy
You want to be present everywhere and you want people to know about the awesome place that you have and this has to be easy for them to find! Having an online presence can bring you a lot more profit just by gaining more customers. But do not be cheap! Have a strategy and good content, we can help you with that, click here to see more.
This includes answering to reviews. You need to be active in that area as well. Reply to them and be polite(but fair) even to the bad ones.
2. Know your internal costs: food, alcohol, staff
You need to have a good knowledge of what goes around in your kitchen, bar and how much you spend on human resources, plus what other additional costs you have. It will be easy to figure out where to cut, what to reuse and what you need to chance so your profit will increase.
3. Use new technology
New inventory systems, new management software will make you save in spending time and money on people to do it for you.
New machines are made nowadays with saving energy in mind, so your energy consumption will lower.
A really good tip that I got and implemented was saving on heating by using a thermostat.
4. Redacted portions and small plates
This is an old trick and now almost all restaurants are doing it. Small place plus a reduce dish equals feeling full. Is the optical illusion that gets most of the people here. One advice here is not to make it too small. People will feel that and if your prices are too high they will not be happy.
5. Free snacks & discounts
Yes! You can make more money if you give things for free or offer a discount.
Give a discount to your regulars. They will be happy to come back and spend some more money in your place. Now this was easy, wasn’t it?
Free salty snacks- why? Because they make you thirsty. Like this your guest will end up ordering more drinks and feel special because they got something for free.
Other free snacks can be small mixes of things that you need to dispose of. Like fresh fruits, vegetables, cheese and so on. You can make a small mix and serve it as a free snack.
6. Make money with the kids menu
O no, you don’t have a kids menu?! Excellent and this is how you will make more money.
A trained waiter will propose to the guest the possibility of having a smaller size from a kids friendly dish, of course you will sell that at half a price. And here is where you win: kids menu usually has a drink and a dessert included, you don’t. They will have to buy a regular size one. Even if there is a small loss on the food side you will have a profit on the other side.
7. Trained and friendly staff
Your team is the biggest asset that you have! Train it well, here you can find why is this so important.
A good team needs to know every product in the menu and what extras they can give. They should greet and welcome you with a smile, this is how you build rapport. Once established you can play with that and sell your guest the most expensive dishes or drinks that you have.
8. Clean place
This helps with a good first impression. Usually this sets the mood for the rest of the visit. Why do I think this can make you more money? Simple. Customers will return. If you are in the beginning and maybe not having a budget for decoration and to make your place look cozy you can definitely keep it clean and have people return just because of that.
9. Music and ambiance
You can influence how rich people feel with this. Classical music, jazz and blues are making people spend more money because they are associating this with richness. The reverse is also true. If your music is blasting and is something that you can’t ignore, this will create anxiety, guests will feel uncomfortable and will spend less money. If you don’t want something classical because you consider it to be old, try lo-fi.
10. Muffled light and cold temperatures
Lighting can increase the speed at which people eat. Dim lights that will give intimacy and cold temperature to make you eat faster. The body tends to heat up and consume more energy thus you will feel better after eating and might continue to do so if the temperature goes down.
11. Cozy tables and seats
Yes, having a cozy and hidden place makes people relaxed and if it’s a bit hidden this will also make them spend more money on bigger portions and definitely having desert. They will feel shield and are intimate, away from peoples eyes so guilty pleasures are a must.
Other restaurants opt for uncomfortable seats because they think they will have people eat and leave faster. In a way it is true but you will not maximize your profit like this. If you want people to spend a lot of money in your place, then, make them feel good.