Easy Win 1: Bring them Back Restaurant Coupons
Provide all first time restaurant customers a coupon with a basic offer redeemable on their next visit (perhaps a free aperitif, sweet or after dinner drink). The offer should have no conditions and should be redeemable over the following 6 months. Notify the customer for growing the restaurant coupon and make sure you ask for information that you can add to your database. Strategy the results, modify the offer if needed, of course, if it brings you more business, make this part of your marketing system. Denham Springs Antique District
Quick Get 2: Cut Restaurant Costs
Even though you are busy, it literally compensates to take you a chance to review your restaurant costs every 6th months. An easy way to enhance your bottom collection is to cut costs. When did you carry on renegotiate your credit greeting card charges? Are you getting the greatest deal from your wine merchant? Review your menu and look at your profit margins – which are the meals that give you the best margins? Produce a special menu with these food to sell more. Eradicate your 3 worst-selling food and the ones with the most severe margins. You will be surprised at how this regular housekeeping can influence your bottom line.
Easy Win 3: Increasing Cafe Prices
“If your prices are 10% too low you have to do 3x the effort to make the same profit. In case your prices are 10% too much you can lose 43% of your business but still maintain the same profit. ” – Lewis Steinmatz
Among the quickest ways to improve your restaurant earnings is to boost prices. Merely a few dollars on several well-selling items provides you with exponential growth immediately. Which usually may sound like a frightening idea, but take a closer look at the psychology of prices and buying behavior and you will understand why 80% of restaurant businesses undercharge for services and products.
Except in some particular cases, most people tend not to purchasing decisions on price only. Don’t believe me? Only take a look around at the sunglasses people have on around you. I gamble the truth is a lot of Ray ?uvre and Dolce Gabbana glasses. This just demonstrates that there are other standards for choosing behavior than price.
No matter what you do, don’t ever reduce prices, and certainly avoid start a price conflict. An individual want that to become your competitive advantage because everyone can undercut you. On the other hand, really consider raising your prices. Don’t let fear of competition or lack of confidence stop you. When you have true differentiation, you have targeted your audience appropriately and they see a perceived value in your product they are willing to pay for, then you can charge premium prices. Actually, they may expect a premium service and may feel privileged, and you may discover youself to be selling even more.
Typically you will find that dropping prices money actually loses you money, while raising prices, in case you sell less, raises your margin.
Even if it seems like a horrible thing to do, test different higher price points for various offerings. Tomorrow increase your prices by 10%. You will discover not only how the price rise influences your business (you will either lose business, gain business or stay the same), however you can then look at your income and adapt accordingly.
Most of the restaurant owners that we use have experienced the pursuing pleasing phenomena: they elevated prices and located that not only did they may have more customers (the restaurant is identified as higher quality), nevertheless they had a more reliable and fewer difficult consumers that also spent more money and had higher overall tickets.