Six Easy Ways to Increase Profits in your Restaurant or Café

Six Ways to Increase Restaurant or Café Profits in 2024

As the foodservice industry continues to adapt to changing times, it’s important to find new ways to increase profits. Implementing the following six strategies can help your business maximize profits and minimize costs in 2024.

1. Right Product, Right Place, Right Price

Pricing your menu items is a science, and it’s important to find the right balance between cost and profitability. Keeping food costs at an average of 30-35% of the menu price is a good benchmark, but some higher-priced items may run higher. In addition, it’s important to regularly review costs and adjust prices to account for fluctuations in food prices. Understanding the psychology of how customers make purchasing decisions can also help you price your menu items strategically.

2. Use Relative Placement and Menu Layout

Placing high-profit items next to even more expensive low-profit items can influence customers’ decision-making and drive sales of the former. This technique, known as relative placement, can be used strategically throughout your menu to increase profitability. Menu layout can also impact sales; highlighting daily specials, for example, can encourage customers to try something new and increase profits.

3. Review Your Recipes and Portion Sizes

Regularly reviewing recipes and portion sizes can help you identify cost-saving opportunities without sacrificing quality. For example, replacing a low-performing, high-cost meat dish with a satisfying pasta dish can increase profitability since pasta entrees average at just 15% food cost. Similarly, using lower-cost alternatives for high-dollar foods can help maximize profits. Ensuring that your team measures and portions ingredients accurately can also help minimize waste and boost profitability.

4. Implement Daily Specials

Daily specials can be a great way to use up excess inventory and allow your chefs to showcase their creativity. Specials or feature drinks can also be priced higher than regular menu items, increasing profitability. Look for simple dishes that can be prepped ahead of time to minimize kitchen inefficiencies.

5. Upsell to Increase Profitability

Upselling high-yield items, like desserts or additional glasses of wine, can significantly increase profits without increasing labor costs. Encouraging your staff to make personal recommendations based on their own experiences with menu items can also help build customer trust and increase sales.

6. Use Technology to Optimize Efficiency

Investing in technology, like online ordering or mobile payment options, can help streamline processes and increase efficiency, ultimately leading to increased profitability. Additionally, using data analytics to track sales trends and identify cost-saving opportunities can help you make informed decisions that maximize profits.

By implementing these strategies, you can help your restaurant or café thrive in 2024 and beyond. Email Pinnacle Consulting today to learn more about our services or visit our website at HospitalityConsulting.co/services.