Like any business, additional sources of revenue will help restaurants become and stay profitable, especially during uncertain times. If you’re looking for new opportunities, this list of additional restaurant revenue streams will help you protect your business and increase profits.
Sauces & Spices
If your customers rave about your pizza sauce or your taco seasoning, consider selling bottles of sauce or packets of spices. If customers experiment with your flavors at home, your restaurant will stay top of mind, increasing the likelihood that guests will return.
Does your restaurant have a strong brand and a cool logo? If so, you should consider selling branded souvenirs such as mugs, glasses, t-shirts and hats. If you want to increase sales, try promoting the products online as part of your restaurant’s social media strategy.
In addition to delivery, curbside pickup is another way for people to enjoy your restaurant’s food at home. Since there are few additional costs except packaging, curbside pickup is a great way for restaurants to make more sales without incurring additional expenses.
According to a RestaurantDive.com article, 80% of gift card holders spend more than the value of the card when at fine dining or fast casual restaurants. In addition to boosting sales, a few gift cards are bound to go unredeemed, giving your restaurant additional revenue with almost no additional costs.
Restaurant loyalty programs can be good for increasing restaurant revenue, too. In fact, diners who join loyalty programs visit restaurants 20% more often and spend 20% more. Implementing a loyalty program would require updating your POS system and printing membership cards, but the increased sales would be worth the investment.
Considering that the profit margin for caterers is 7-8%, catering is one of the best additional restaurant revenue streams, and it can lead to more sales down the road. If you catered graduation parties and wedding receptions, many of the guests would be trying your food for the first time, making it a great way to market your restaurant to potential customers.
Do you have unused space? Are Monday nights slow? If so, holding events at your restaurant could be the answer. By renting out rooms for graduation parties and organizing weekly trivia nights, you can increase revenue by using the space and time you already have more effectively.
Just like eating out, cooking at home is as much about the experience as it is the food. If your customers want to stay in rather than go out, giving them meal kits with measured ingredients and clear instructions is a good way to make sales when they are in the mood to cook at home.
Are you a pizzeria owner who’s also really passionate about Italian beef? Instead of opening another restaurant, consider turning your kitchen into a ghost kitchen, making Italian beef during your non-peak hours and selling the sandwiches via delivery. This would also be a great way to test the waters to see if there’s interest in your product before opening a new location.
Commercial Kitchen Space
Most health guidelines prohibit or restrict cottage food businesses. If you know of any budding entrepreneurs who want to get started, consider renting out the kitchen when your restaurant is closed. Although you may need to set aside storage space and establish ground rules, the extra rental income would be a great additional revenue stream for your restaurant.
Restaurant industry data suggests that upselling leads to more sales in 60-70% of cases. Since asking customers if they want an appetizer or dessert doesn’t cost anything, it can be a powerful way to increase restaurant revenue. However, it’s important for your wait staff to promote items with high profit margins to maximize profits, as well as to not annoy guests by being pushy.