If you have a restaurant, you have perhaps the most profitable business there is. The food business has been known to give back 200-300% of the investment – if handled right. Are you handling your restaurant right? Let us run a fast diagnostic check up.
What do you need in order to increase your restaurant profit margin? Increased patronage is one possibility. The more people that come to your restaurant, the higher your sales and profits will be. Another possibility for improving the restaurant profit margin is to promote the most profitable items on your menu.
Identify the most profitable items and promote them well. Do everything you can to ensure that these ‘most profitable items’ become the darling items of your customers. Keep in mind that the most profitable items are not always the most expensive. One you have these identified, you may instruct your servers to subtly promote these items to your guests. The more of these items that are sold, the higher your restaurant profit margin would be.
Customers also love to feel like they are getting a great deal. One excellent way to increase your restaurant profit margin is to offered bundled meals. It is often extremely profitable to sell fixed menus such as salad + entrée + desert or appetizer + entrée + desert. This would offer the customer more value for dollar and you a higher restaurant profit margin
Of course, treating your customers like a kings and queens goes a long way toward increasing your restaurant profit margin. People love to be pampered and treated with personal attention. They would definitely relish the fact that they are fawned upon at your restaurant and choose to return to enjoy the experience again and again thereby increasing your sales and profits
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