The Top Five Ways to Increase F&B Profitability.
The key to more profit is more revenue. If you’re not increasing revenues, it is very hard to increase profit without negatively affecting what you do. Of course, there are always things that you can do to be more efficient and improve on the cost line, but in the big picture, increasing revenue is really where it’s at!
Here are the top ways to increase revenues:
1. Improve product
2. Increase pricing
3. Find new revenue sources
4. Maximize your seating
5. Strategically Improve efficiency during peak times
1. Improving Product - Look realistically and evaluate all aspects of your restaurant. Review and ask why people would go to your restaurant? Is it something that you would do? How can we be more attractive, memorable, and give the guests what they want? Look at quality, service, and atmosphere. What is it that makes you stand out?
2. Compare Your Pricing to Area Restaurants - Conduct a review of what people are charging in the area for same or similar items. Evaluate based on your popular items and slower selling items. Don’t always use the food cost percentage alone; you should be looking at what you can sell a dish for and what people are expecting to pay. Don’t leave money on the table. It should, of course, be a good value, but don’t charge $32 for something that people will be quite happy to pay $35 for. At the same time, you could just as easily be over-priced in some areas turning off future customers.
3. New Revenue Sources - There are many new sources to be evaluated. In these busy times, the modern couple/family is looking for food they can take home and eat or take home and cook. Many folks like to pre-order and eat at the bar. “Uber Eats” is getting bigger. Everything is time sensitive these days, so really evaluate these areas to expand. But, while you are looking, review and plan on how your restaurant is set to be able to integrate this new revenue stream. Consider the timing necessary to prepare this new volume of business alongside customers that are seated at the restaurant.
4. Maximizing Your Seating - Realize that you can only serve as many people as you have seats for [obviously!]. Are there areas in the restaurant that you could expand: How is your bar seating? What about your table sizes? Do you have the right size tables for the parties that you generally get? Are you able to seat people to the demand you have? Is there a patio area that can be used? Be creative!
5. Peak-Time Efficiency - There are three periods of the day which are your peak periods. These will change by your operation and location, but usually something like 7:00AM – 9:00AM, 11:30AM - 1:30PM, 6:00 PM - 8:30PM. If you run a wait during any of these periods you’re leaving money on the table. How can you affectively and quickly maximize your seating during these periods? How is your staffing? Is the kitchen staffed and prepared? How about the number of servers, greeters? Are you able to get the food out as fast as required? Look and evaluate all of these areas as you must maximize your peak periods in order to be successful.
These are just a few thoughts which may seem obvious, but if you take the time to sit and evaluate this with your team, I think you’ll find some quick, low-hanging fruit, and some longer-term solutions.
Russ Blakeborough, Managing Director, Focus F&B, has 30+ years of experience in this field and specializes in helping restaurants increase quality and profitability. Put his experience to work for you today. Contact him at www.focus-fb.com.