6 Ways to increase your restaurant revenue this summer

Let´s look at how restaurants can increase revenue quickly through better space utilisation and reservations.

August is a difficult month for some restaurants in big cities, so let´s try our best to make the best out of it.

Terraces: do you have a terrace? Do you prioritise your outdoor space vs indoors? Is it bookable online? 

Make your terrace or outdoor space bookable for reservations if you can. People want to enjoy a nice meal outside. Not being able to guarantee a space outside during quiet and warm periods is detrimental to your business. Take amazing pictures of your outdoor space, add a great description and beautiful flowers. Get creative and differentiate your offering online. You will get a good return from this.

Table Supplement: when demand is low, restaurants need to ensure we offset the lack of volume with increased spending per customer. If you have premium tables in high demand, you could try adding a table supplement to those tables when they get booked. Restaurants might be scared of how customers react, but remember, you are not forcing anybody to buy anything they do not want. You are just applying revenue management techniques to help your business. Also, guests will have a more enjoyable experience at their desired tables. I have tried table supplements in some restaurants, and they work well.

Table combos and floor plan:

1. During low-demand periods, ensure your floor plan is as flexible as possible.
2. Revise your table capacities and combos, so you allow every reservation to come.
3. Revise your reservation pacing, so you have enough availability during the most wanted times. 

Remember, we are doing the opposite of what we would do when the restaurants are bustling.

Reservation channels: looking after each reservation channel is one of the most crucial tasks for every restaurant. Understanding how many reservations come via your direct website or phone, third parties, and walk-ins can help you push for more profitable and less costly channels. During low-demand periods, ensure your phone is looked after, and you are not missing phone calls. When there are many places available, customers will choose the place that offers the best customer journey, where information is clear, pictures look good, the menu is straightforward, and it is easy to book.

Relax your cancellation and No Shows policies: to protect the business during covid periods, many restaurants started asking for card details to secure the business. I always support these actions but not when the restaurants are not full. Revisit your cancellation policies.

Private dining spaces: If you have a private room you hire for events, it is time to revisit your minimum spend charges or waive them. These spaces are fantastic for applying dynamic pricing based on demand.

Learn your competition: To avoid spending a lot of money on campaigns, new menus or extra decoration, knowing where you stand in the market is the most powerful data during quiet periods. Sometimes, the demand is so low and the competition is so high that we lose perspective and waste unnecessary resources. REMS benchmarking is the perfect partner to understand where you stand versus your competitors and gain back your customers (market share) 

Thank you for your time reading this, and please remember to join REMS Hospitality to be one step ahead of the market.

Author: Carmen Mallo - Revenue management specialist and co-founder of REMS Hospitality