Updated: Apr 26, 2020
The Importance of Understanding Your Restaurant Revenue Per Seat
In this industry, I believe that being aware of your business’ revenue per seat is integral to making key decisions regarding your sales tactics, marketing efforts, and even the future growth of the restaurant. To run a successful restaurant, you need to know your full potential and how close you are to reaching your goals. Your customer data, if use properly, you can take advantage of it to measure how much each grain of rice contributes to your advantage. Technology's today is giving us tremendous access to an abundance of data to help achieve your restaurant goals than ever before.
"Restaurant Revenue is the money your restaurant generates. Not to be confused with profit margin alone"
How Do You Measure Your Revenue Per Seat For Your Restaurant?
1. Effective Menu Matters
Let's start with your menu. The important question is "Is your menu design optimized to make more sales? " Menu optimization is a fine balance between attracting and pleasing customers while meeting the needs of a restaurant’s profits. A well designed Restaurant Menu is very critical part of point of sale.
The important question is "Is your menu design optimized to make more sales? "
Your menu is more than just a vehicle to show customers what dishes you have on offer. In fact, a well design menu can improve their entire dining experience, boost the perceived value of your brand, strategically drive customer buying decisions, and increase your profits by 10-15%.
2. Optimize Your Menu
Update your menu seasonally. Keep track of what your customers order most and which menu items will generate the most profit for your bottom line and highlight those prominently. Keep the favorites and signature dishes on the menu as a focal point. For our menu, I put our big ticket items at the center area. This would be the first things they see when they pick up the menu. In addition, you should also use seasonal special items as a way of introducing new menu items to your customers. We like to periodically come up with different campaign through out the season for our table advertisement menu stance.
"To run a successful restaurant, you need to know your full potential and how close you are to reaching your goals. "
There is one important thing restaurant owners should understand is to avoid the trap of wanting to be all things to all people. It's because by trying to put too many items on the menu to please everyone, not only it's time consuming to look through your entire menu, this drive up food costs, but can also confuse customers. So learn to say no.
3. Categorize Your Menu
Besides understanding the important of well designed menu in style, color and consistently with your brand, be sure that your menu is shorter rather than longer; customers won’t spend the time flipping through long menus. Create categories to organize your food items is essential for a well designed menu. When deciding on menu categories, consider what you would like to draw attention to. Decide what you want your menu to say prior to deciding on food groupings.
"We experiment with promotions quite predicatively to boost slower hours, introduce existing items as well as new items. "
A well categorized menu makes it easier for your customers to find the desired dish, but it’s also very helpful on smaller screens. A well thought out menu can fold and unfold as customers browse through the menu, which makes it easier to handle and read. The key is to always keep in mind that the easier it is for the customer to navigate the menu, the better. Then certainly, the more the customers buy. In terns, it increase the revenue per table item greatly.
4. Use Visual To Your Advantage
Professional food photography drives more sales. Visual marketing always plays a crucial part in menu design. In fact, according to HubSpot, 46% of marketers say photography is critical to their current marketing and storytelling strategies. Effective food visual communication can actually build your brand & drives sales. Great photography creates a great first impression because we are visual creatures.
A mantra of revenue per seat table is to sell more, to more people, more often.
Photography tells a story. Visual communication sets expectations because pictures shows exactly what your customers can expect when they order an item. They’ll feel more comfortable ordering. When you meet and exceed expectations, you’ll drive repeat business. In addition, visual communication connects, entices, and increases desire with the viewers.
It's a responsibilities for managers, perhaps restaurant owners to take all these tactic into the account in running their establishments. I think, overall, being aware of your business’ revenue per seat is integral to making key decisions regarding your sales tactics, marketing efforts, and even the future growth of the restaurant. To run a successful restaurant, you need to know your full potential and how close you are to reaching your goals.
With technology gives us access to an abundance of data now a day, your customer data, if use properly, you can take advantage of it to measure how much each grain of rice contributes to your bottom line. If it's done right, a well designed menu can improve their entire dining experience, boost the perceived value of your brand, strategically drive customer buying decisions, and increase your profits by 10-15% or more.
Measuring Ratings and Reviews
Overall Customer Satisfaction: 85%+
Repeat Customers: Improved 65%+
Online Engagement: Increased 55%+
Webite Visits: Increased 45%+
Online Weekly Orderings: 55%+
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