This is our fourth episode Restaurant Value Engineering Podcast series.
In the last episode, we discussed 5 out of 10 ways that restaurant value engineering can be used to increase value and profitability.
In this episode, we will discuss the next 5 useful ways to use restaurant value engineering to increase sales. We have introduced the steps of how to run your restaurant so that you can create maximum value for you and your customers.
Some of our talking points include understanding the cost of entering your business to better optimize pricing and fees, and developing dynamic pricing strategies to get the most value from a wide range of customers. We will also discuss the establishment of happy hours, the provision of chef tables and the use of online ordering systems.
Example of a restaurant project for your restaurant
You don’t want to be one of those restaurant owners who work 70 hours a week but lose money. We will let you know the secrets of restaurant owners who can stay profitable by working only a few hours a day.
This is a continuation of the previous episode. We discussed the first five of ten restaurant value engineering ideas that will help your business stay profitable.
It’s all about building a brand through storytelling and using technology to price your food and increase the perceived value of your product. We will talk more about how value engineering can help you extract maximum value from resources.
Get ready for the next five big ideas!
Review input costs
We have already discussed raising food prices to increase profitability. There is another way to increase profits while keeping food prices unchanged. You can do this by looking closely at your input costs. There may be opportunities to reduce expenses. You can shop around, buy cheaper raw materials, or find better suppliers. In addition, you need to ensure that no premium input is used for non-premium dishes.
Charge extra during peak hours
Do you have more customers coming to eat? Then you should consider charging more for dinner than lunch and breakfast. The same goes for busy weekend nights.
Do this creatively. You can increase the price across the board and then offer discounts on less busy days and times. In this way, you can effectively increase peak-hour costs while providing perceived value for “discounted” products.
Increase revenue per available seat hour (Update)
revpash is a commonly used concept in the aviation industry, allowing you to focus on increasing “revenue per available seat hour.” It is very effective in a restaurant environment where tables and seats are also limited.
Increasing the profitability of restaurants in revpash allows you to be creative in your business strategy. If your restaurant is only open during dinner hours, calculating revpash might make you realize that you can increase your profits by opening your doors during lunch and breakfast hours. You can even limit the time for customers to dine. This is especially effective for restaurants that attract crowds.
If your space permits, you can also add tables outside the restaurant to increase seating capacity.
Milk your happy hour
Happy hour shouldn’t be just wine. Use it to attract diners. However, please make sure you don’t offer the entire menu as your staff will be busy preparing dinner. The best way to solve this problem is to provide easy-to-prepare or pre-prepared dishes at discounted prices.
There are many ways to benefit from happy hour. People who come to your restaurant during happy hour may end up staying for dinner. You can also increase the price on drinks. In addition, happy hour crowds can make your restaurant look busy, thereby attracting more curious diners.
Provide a dining experience at the chef’s table
Allow customers to dine at the chef’s table, not just to increase income. It creates a sensation around this experience so that people will be willing to pay a premium for it. Use your methods to dramatize and provide specific conditions. You can ask customers to spend x amount per person or promise a specific menu or price level.
You just heard about the remaining five of our ten restaurant value engineering concepts to improve your business profitability. However, we did not stop there. We over-provisioned our value products and added four other big ideas to the list. Listen to the podcast for juicy details!
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