Due to the current economic hardships, many consumers have cut back on expenses, including eating out. The rising food prices have taken a toll on the hospitality industry as many consumers refrain from going out.
With that said, restaurant owners need to develop ways of boosting restaurant sales with the cost of living crisis. So, how can restaurant owners boost revenue with the ongoing cost of living crisis? This blog will cover 5 areas that you could potentially implement to help boost restaurant sales throughout the remainder of the year and beyond.
Traditionally, restaurants did not seek to embrace technology as part of their business model. Restaurant owners’ view on technological adaptation is that it lacks an authentic restaurant experience, including fine dining.
With the recent rise in the cost of living, many consumers have no choice but to cut back on some of their spending habits, such as eating out. Consumer behaviour has led to decreased revenues for restaurant owners. The low sales have led restaurant owners to rethink their business strategy by incorporating technology.
In a bid to lure consumers, restaurants can implement WIFI marketing strategies. They can facilitate WIFI access for their clients to improve customer experience. In the long run, consumers will be satisfied by the services offered, and businesses will earn their loyalty despite the biting cost of living.
Also, developing apps can go a long way in satisfying consumers. Apps that can be used for ordering, delivering, and paying for orders made online make life easier for customers. Such developments offer convenience and ease of processing orders in one place. In turn, consumers benefit by saving their time and energy by ordering in while restaurants grow their revenues.
Engaging third-party delivery apps for their services can also increase the restaurant’s income generation. However, restaurant owners have to pay a commission fee. While the price can be painstakingly high, the services are usually worth it due to increased orders. However, developing your app can be the most profitable if you want to cut on the cost.
Cutting operational costs is essential to a restaurant’s growth. One effective way to reduce your operating costs is by rethinking the menus offered and creating more cost-effective ones. However, be sure not to compromise on the quality of your menus.
Some of the ways you can achieve this objective are;
- Prioritising foods with a longer shelf life minimises waste by controlling the amount of spoilage
- Reducing the number of ingredients used to make a meal. A classic example of McDonald’s during the 2008 recession was changing their double cheeseburger to a single cheeseburger, reducing operational costs while maintaining consumer satisfaction.
Restaurant owners can also offer limited-time offer menus. The menus should be innovative and constantly evolving to capture new consumers and retain your loyal ones. Since offers create a positive buzz among consumers, you can provide them frequently to increase your restaurant sales turnover.
Transitioning from tasting menus to simple meals is another alternative to improving consumer satisfaction. Tasting menus can be expensive, coupled with the rising cost of living. It is crucial to offer simple options such as burgers and family treats meals that are pocket friendly since many consumers spend their income on cheaper food options due to the increased food cost.
The hospitality industry is competitive, with rivals trying to lure consumers to their doorsteps. This narrative has witnessed a turnaround, with many restaurant owners seeking to establish partnerships as an alternative to remain open despite the high cost of living.
In the face of increased commodity prices, banding together and offering enticing offers to consumers has proven to be an excellent way of increasing personal income for restaurant owners. Partners complement each other by providing different meals under one package. For convenience, these complements can be ordered from one place for ease of delivery and sharing of transport and labour cost.
Selecting the right partner is vital for your business’s growth. An example of a good partnership is a coffee shop complementing a bakery.
Like any business, communication among employers, employees, and customers is essential for the hospitality industry’s growth and survivability. The communication should be from the top down and back and forth.
Good communication will facilitate the adequate airing of problems, solutions, and views for proper service delivery. Restaurant owners should always listen to their consumer’s complaints and opinions regarding food prices, the quality offered and the types of meals desired. By so doing, consumer confidence will increase because of the excellent service provided. A happy consumer translates to a fruitful business.
You can also boost your restaurant sales by engaging consumers on social media platforms. It is an attempt to create brand awareness through online marketing to increase revenue generated by the business. You should continually update your online community with the types of meals offered, the price of meals, offers available, and services offered.
A good communication strategy is essential for boosting restaurant sales during the cost of living crisis.
Regular Inventory Checks
Regular inventory checks are essential in boosting restaurant sales with the cost of living crisis. It lets you know how your stock moves, its balance, and the required ingredients. Additionally, its role in income distribution is vital.
Checking your inventory from time to time also gives you a chance to reduce expenses by refraining from ordering goods that are spoiling in the store. It is done by reducing the portion requested hence minimising spoilage.
Learning To Boost Restaurant Sales
Due to increased food prices, restaurants have witnessed a sharp revenue decline. However, by implementing the abovementioned strategies, restaurant owners can generate an income and pay off their employee’s income.
If you’re a restaurant owner, implementing these strategies and changing your business model is necessary to remain profitable. For further support on maximising your technology output to help boost restaurant sales in this period, get in contact with us here.