Everyone knows that entering the restaurant business is no small feat. You need to secure funding, choose a location, get the building ready, plan a menu, curate a brand, and draw attention to your new spot.
Once you cross each of those (and so much more we breezed right over) off your list, congratulations! You're the proud owner/operator of your very own restaurant.
Now, the real work begins.
While many unsubstantiated figures are thrown around about restaurants closing within the first year of opening , it's undeniable that setting up a restaurant business for continuous, predictable growth is a challenge.
From high employee turnover rate, notoriously low profit margins, and the lingering scars from COVID-19, it's easy to fall prey to common restaurant pitfalls.
Looking to grow your restaurant? Are you on the hunt for tips to increase sales in your restaurant?
We've got you covered. We'll cover common restaurant road bumps and the best ways to smooth them out on your road to success.
Common Pitfalls to Growing Your Restaurant Your restaurant is open, customers come and go in waves, and business is steady. Now what?
It's time to grow. Before diving into the top tips for increasing restaurant sales, let's review some of the blockers that can slow you down.
Pitfall 1: Not owning your slice of the market. Generic restaurants rarely cut it anymore. You're less likely to grow your restaurant business successfully if you don't differentiate.
Competition is a common blocker to restaurant growth. The industry is super competitive, with new spots opening frequently. Staying on top of the competition can help you understand how to carve out your corner of the market.
Customer preferences also tend to change. You must stay on top of what's trendy and what's not to avoid falling prey to irrelevancy.
Investing in marketing and branding can sometimes come as an afterthought. If you're the “if I build it, they will come” type, expect to lose out on potential sales you didn't attract with thoughtful marketing and branding.
Pitfall 2: Not getting and keeping the right people Hiring the right staff is an ever-present challenge in the restaurant industry. With notoriously high turnover rates , building a healthy hiring and retaining culture will pay dividends later on.
Training is just as important as getting the right people. If the game plan is to “wing it” or to expect great people to know how to churn out great results, you can expect some unhappy employees and unsatisfied customers.
Pitfall 3: Setting up unsustainable or unscalable operations Staying on top of finances certainly isn't the sexiest side of operating a restaurant, but unless you're on top of your investments and managing your cash flow, you can anticipate financial struggles. Managing a supply chain is especially important in the restaurant business, as getting fresh and high-quality ingredients is key to great food. But, finding suitable suppliers and efficiently getting those ingredients proves challenging. Optimizing operations is another extremely unsexy way of emphasizing the importance of getting the right systems across the restaurant—in the kitchen, front of the house, for deliveries, on your website, over the phone, etc. Scaling your restaurant business will be impossible without the right foundations in place. Using technology is often overlooked when growing a restaurant. The food industry doesn't embrace technology as quickly as others. It often falls into holes when trying to band-aid solutions together, whether it needs consistency in reservations, phone etiquette, takeout orders, and more. Why you should focus on restaurant growth in 2024 Any restaurant owner/operator knows there are a ton of challenges to growing a restaurant.
We only covered a few of those, but we can't emphasize enough that if you're in the restaurant business, you always need your eye on the next growth phase.
The restaurant industry isn't for the faint of heart or hobbyists. With investors to pay back, competitors to overcome, talent heading to other up-and-coming spots, and new brands popping up left and right, if you're not growing, you're dying.
As Alexandra Leung reported in her Restaurant Industry Trends for 2024 for LinkedIn, eateries that embrace growth and change will come out on top in 2024:
“By keeping pace with changing demands and industry advancements, restaurants can thrive in the coming years. Those who rigidly cling to the status quo risk falling behind the competition.”
20 tips to increase your restaurant sales You're committed to increasing your restaurant sales. Awesome. Before you put your foot down on the pedal, you need to know where you're going and how you're going to get there. Let's plug some directions into the GPS.
What's your strategy for increasing sales at your restaurant? Need some direction?
Read on for our top 20 tips for growing your restaurant.
1. Embrace the right tech Though the industry is known for being slow to adopt new tech, the best restaurants, hospitality groups, quick-service brands, and more lean into new technology instead of shying away from it.
Reservations systems and phone services handle a lot of the busy work you'd need to hire extra staff. POS systems are great for enabling easy payments and added convenience for guests. Inventory management systems and food waste monitors help ensure you’re minimizing waste. Marketing platforms help make sure you’re getting in front of your target audience and social media helps your brand shine. If you're looking to get ahead, consider where you could invest in technology to fill some of the gaps in your operations.
2. Listen to your customers Restaurant owners need to stay on top of what people want. Are plant-based options in? Would your clientele prefer booths or low tops? Does this menu reflect the brand you're trying to curate? Getting feedback from your customer base is the key to getting and staying ahead.
Make sure you have easy-to-use feedback loops set up whether it’s in your physical restaurant or online. Invest in a feedback kiosk in the restaurant or ask for a rating through your mobile app. Keep an eye on your review site and social media profiles for comments too!
3. Enhance your guest experience Once you know what the people want, give it to them. Incorporate customer feedback into your menu, seating layout, reservation experience, and so on. From there, anticipate what you think will bring a delightful experience for your customers.
Most potential customers will have multiple touch points with your restaurant before dining there–a billboard, a scroll of your website, a phone call to make a reservation , a five-minute wait in the lobby before being seated, etc. Whatever those touchpoints are, make them delightful.
Think about how you could go above and beyond for your loyal customers.
Would a certain promotion resonate with them? Would they invest in branded merchandise to represent your restaurant? 4. Honor seasonality and run promotions Cycling through different types of promotions can help boost sales when you need it most. Lean into seasonality and offer season-inspired menu items or holiday-themed promotions.
What could be your version of the pumpkin spice latte? Do your customers like to shop around Black Friday? Should you run a Black Friday promotion? Is there a trendy seasonal drink you could work into your menu? Try out different promotions and see which ones work well for your business. They might not all be soaring successes, but you’ll learn more about your clientele and how to run future promotions more efficiently once you test out a few.
5. Invest in your staff Hiring and keeping good people is one of the critical challenges of the restaurant industry. What makes your restaurant a great place to work over the other spot down the street? Consider what benefits and culture you want to establish for your people and budget to make those investments happen.
Create clear expectations for staff so they know what they need to do to succeed. For example, consider your current scheduling system and gauge whether it’s practical. What training protocols exist so staff can quickly learn the menu or answer the phones? Setting staff up for success will pay dividends down the road.
6. Build lasting partnerships Apart from the people who work in-house, the partnerships you build outside your restaurant are just as important. What suppliers are you working with? If you outsource delivery, who do you partner with and why? While in-house turnover is a huge headache, cycling through your external partners is a bigger headache and more importantly, a huge expense. Find partners with similar values and nurture that partnership.
Building partnerships in your local community can also go a long way for your business. Are there food festivals or sporting events in your area that you could cater to or have a booth at? Fostering partnerships locally can open the door to new business opportunities for your restaurant.
7. Consider catering, takeout, or delivery If you haven't already considered opening other arms of your business, catering or takeout orders are likely one of the first places you'll look to expand. Make sure you cover the scope of creating a new arm of business before moving forward.
Do you have the right tech for take-out, like a website or a stellar phone service? Is your kitchen prepared to handle more food production? Do you have the inventory and food waste systems in place to make sure you’re running as efficiently as possible? Is your staff trained on how to handle take-out orders? Will you partner with a delivery service like Uber Eats or Postmates?
8. Don't forget branding and marketing It's often difficult to attribute the return on investment made to your brand or marketing efforts but they're still worth investing in. Especially in such a cutthroat industry, differentiation is crucial. Think about your favorite restaurant. It has a strong brand, whether upscale exclusivity, fun fast casual, or something completely unique. Having a lukewarm brand identity will get you nowhere fast.
There are so many ways to make your brand shine. Make sure you have a beautiful website and a unique presence across social media platforms. Consider selling branded merchandise or try out special menu items that can act as champions for the brand you want to curate.
9. Engage with the community Though much of the restaurant business operated online and over deliveries during COVID-19, we're nearly back to our brick-and-mortar roots. It's important for you, as a restaurant owner, to consider what role the community can play in your business. Who would it make sense to partner with in the community? Are there food fairs you should be a part of? How does your brand play with the local area?
Consider hosting events or trying out happy hours if you’re looking for new ways to engage with the community around you. This is a great way to demonstrate to the locals around you that you’re restaurant is a destination and not just a spot for great food.
10. Try cross-selling and upselling If your restaurant is growing well but you're looking to increase your average sale price— the amount a customer spends when they come to see you—try cross-selling or upselling to them. Maybe a wine pairing would work well on your menu. Or, you could train your employees to always ask customers if they want fries and a drink with their burger.
Maybe there’s an opportunity to bundle items on the menu so customers are more likely to buy more items per purchase. Test out different cross-sell and upsell strategies to see which works best for growing your restaurant business.
11. Reduce food waste Not only is reducing food waste better for the environment, but it’s better for your business, too. Say you serve a side salad with each of your dishes, but turns out most customers leave the salad untouched.
Food wasted? Yes. Money wasted? Also yes. Are customers satisfied? Not really.
Successful restaurants know how to run as lean as possible while still meeting customer needs. While increasing revenue should always be the goal of your restaurant, minimizing waste should be high on the priority list, too. Consider investing in commercial food waste solutions like Winnow or Leanpath if you’re looking to get a better understanding of how you could run more efficiently.
12. Incorporate recent trends into your menu When it comes to the restaurant business, being “trendy” isn’t about bandwagoning on the latest viral TikTok trend. Sure, croissant cookies are delicious, but it doesn’t mean they make sense on your menu.
Being “trendy” is actually about understanding your target market's changing needs and wants and incorporating those desires into your dining experience. Customer tastes are constantly changing and while you shouldn’t add new dishes for every new trend, taking note of persistent consumer preferences like the rise of plant-based or alcohol-free options could be worth incorporating into your business strategy.
13. Increase your social media presence Speaking of TikTok, if you haven’t prioritized social media within your marketing strategy, it’s time to dedicate dollars to getting social media pages up on TikTok, Instagram, or any other social media platforms your customers tend to spend time on.
Use social media to attract customers and inspire loyalty from existing ones. Post menu updates, upload drool-worthy food videos, run targeted ads, and let your brand shine. With so many restaurant businesses trying to find their slice of the market, social media is a great tool to differentiate from the competition.
Make sure to keep your pages up to date, and don’t forget that people will leave comments. Good, bad, or ugly, treat your social media pages like review sites and get back to customers quickly.
14. Start a loyalty program There’s nothing more satisfying than stamping the last punch on your punch card and cashing in on that scoop of ice cream, cup of coffee, or free slice. While punch card programs still exist, restaurant loyalty programs have grown much more sophisticated in recent years—especially in the wake of the rapid digital transformation Covid brought to the industry.
Many restaurants, especially QSR businesses, use mobile apps with loyalty programs to personalize the customer experience and encourage repeat purchases. For example, Starbucks Rewards has 30.4 million users in the U.S. through which existing customers can earn stars to get rewards.
Looking to retain happy customers? Stand up a loyalty program that’s easy to use and keeps people returning for delightful experiences (and the occasional discount or giveaway). If you have a mobile app, consider what kind of loyalty program you can bake into the mobile experience.
15. Get involved in local events While it’s important to create digital experiences for your customers, restaurants are physical spaces customers come to for delightful, in-person experiences.
Double down on that physical experience by making your restaurant a space people want to gather. Holding special events in your space is a great way to differentiate your restaurant and make it a destination for good food and a great time.
Consider what your ideal customer would be interested in. Would they like to come for a karaoke night? Cooking classes? Wine tasting? Hosting events is a great way to embed your business in the local community.
On the other hand, make sure your restaurant is a go-to name for other local events. Consider how you could cater the event or run a stall, whether it’s a food festival or a sporting event.
16. Update your website and boost SEO A great website is a lot like having fantastic curb appeal. Potential customers often do a quick Google search and scroll through your site to understand your vibe and menu.
Website work doesn’t stop there, though. Not only should it help leave a great impression, but it should also help with business performance.
17. Sell merchandise branded for your restaurant business Restaurant merchandise is everywhere . Whether it’s a tote bag, t-shirt, cap, or mug, over the past few years wearing merch from the places that make the food you know and love has exploded in popularity.
Creating branded merch for customers is a great way to increase restaurant sales without making any menu or other operational changes. Selling merch is an opportunity to show off your brand personality and even get some free advertising when customers walk around town with your name on their chest. Brand merchandise is a trend worth hopping on if you’re looking for an easy way to make more money.
18. Step up your plating People eat with their eyes first. It’s no secret guests prefer beautiful food and drink, so if you’re looking for another way to improve your restaurant and boost customer satisfaction, consider the visual appeal of your food.
This will vary depending on the type of business. For dine-in experiences, make sure the plating is tidy and colorful. For takeaway food, consider the packaging you’re using. Does it preserve the beauty of the food from restaurant to home? If drinks are a big part of your business, what do your glasses or cups look like? The same theory applies to takeaway cups, too.
In a world where food videos are incredibly popular, people have grown used to food that’s beautiful and delicious. Make sure you meet (and exceed) guest expectations by stepping up your food presentation.
19. Host a Happy Hour Offers and events are two of the best ways to improve the customer experience and increase sales to your restaurant business.
Happy hours combine those strategies to boost business (especially during slow periods!) Figure out popular menu items and run deals on them during slower periods during the week. Even with special menu pricing promotions, this will help get more sales during those naturally slower times of the day.
Happy hours are also a great way to try out seasonal items. Run promotions around seasonal cocktails or holiday-themed food items to attract more customers.
20. Offer online ordering Every restaurant has a finite amount of space to seat customers. A great way to increase profits without expanding your space or reorienting the seating plan is to offer online ordering.
Of course, many restaurants pivoted and started offering the option to order food to take out with the rise of third-party delivery services. This is a great way to diversify your audience. You can serve the regulars who like to dine in and attract new customers who just want to pick up food to eat in the comfort of their homes.
Drive traffic to online ordering by ensuring your website is up-to-date and optimized for search engines to encourage customers to try your online ordering. Make sure your kitchen and staff have the training to handle the new volume of orders. voice AI phone answering service can direct callers to your preferred platform of choice by sending them a text via SMS .
How Will Voice AI Help Your Business Grow? If there's one thing to take away from this guide, it's that making the right investments for your business is the key difference between restaurants that make it and those that prematurely close their doors.
Embracing change, specifically emerging technology, will be key for restaurant growth in 2024 and beyond.
That's where Slang.ai comes in.
We're a digital phone concierge that answers questions, takes reservations, and satisfies callers.
Creating delightful touchpoints for customers? Check Investing in your staff to be more productive? Check. Freeing you up to think about the future of your business? Check. Want to learn how restaurant brands Texas de Brazil use Slang.ai to make staff more productive? Book a quick 10-minute demo.
