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Menu Development – Increase Your Restaurant Revenue

Increase Your Restaurant Revenue During Off-peak Hours  Menu Development

Snacking is not just for in-between meals – Menu development for the next generation

 

Over the past decade, eating habits are shifting in response to a shift in the American culture and lifestyle. In 2014, Bloomberg did a study that indicated people are spending almost as much money dining out than eating at home. The possibilities for increasing profits may lie in the way people are eating today. The demand for quick, healthy snacks are on the rise among people who like to eat a few small meals a day.

 

Changing Menu Preferences

The Technomic 2016 Snacking Occasions Consumer Trend Report highlights the importance of snacking and reveals some opportunities for restaurants to increase market share in this space by capitalizing on the trends. The report indicates that 60 percent of consumers snack at least twice a day and 37 percent would like more restaurants to offer mini-sandwiches that they can eat as a snack or light meal. These trends had double-digit increases and suggest that restaurants may need to revise their menu development.

Some of the key takeaways of the report are diners want healthy snacks in place of, or to go with full course meals. The trend has rapidly changed as 40 percent of consumers are eating healthier foods between meals, more than they did just two years ago. According to the 37 percent of respondents, if bundled mix-and-match snacks were available, they would order them. These diners are not looking for a typical meal. Proper menu development is critical in this aspect because studies show that 49 percent prefer snacks that are different from breakfast, lunch and dinner fare. 

 

A Transforming Culture And Demographic

Having to conform to a hectic lifestyle, dual income parents and single parents are eating outside of the home at least once a week. Additionally, many parents want to provide healthy snacks for their children in between meals. However, the real “snackies” are the millennials. There are three defining characteristics about this group. They are budget conscious, they want healthy food and eat a few small meals a day and they prefer to eat at off-peak times. As their purchasing power increases, restaurants will have to rethink their menu development in order to capture their business.

In the Technomic 2016 Snacking Occasions Consumer Trend Report, some of the responses by millennials were not that surprising. If available, 44 percent of millennials would order snack delivery from restaurants. Additionally, 54 percent of this group prefer unique flavors and pairings in their healthy snacks.

 

Where The Opportunities Lie

The report also generated some interesting information that has the potential to drive more revenue and increase market share in the snack category. A restaurant consultant can help you with your menu development to capture these missed opportunities.

While 56 percent of snack purchases are planned, 44 percent of people attribute their snacking to an impulse buy. Restaurant consultants can help catch that impulsive buyer with better placement and creative menu design. Leveraging the restaurant consultant’s knowledge can also help restaurateurs take their share of the snack market. With statistics that demonstrate consumer snack buying behavior favoring 77 percent of snack purchases at retail locations and only 23 percent bought snacks at restaurants there is room for growth. Work with a restaurant consultant to develop an atmosphere that grabs some of the 72 percent of people eating their snacks at home.

Learn more about how menu development can help transform your snack business on our TRG consulting service pages.

Resources:

2016 Snacking Occasions Consumer Trend Report [Technomic]

Americans spending on dining out just overtook grocery sales

How to Increase Profits with an Operational Analysis 

Operational analysis for restaurants

Restaurant Operational Analysis for Restaurants

 

Let’s face it, the statistics for restaurant failure are not all that encouraging. Various studies indicate that only 10 to 12 percent of restaurants will survive their first five years. Regardless of how you slice and dice the numbers, the restaurant business is a strong and growing part of the economy. According to IBISWorld, industry revenue will grow an annualized 2.5% to $97.8 billion between 2013 and 2018.

Capturing a piece of the market

The reality is that only restaurants that achieve operational excellence will be able to grab a piece of the business market, and conducting an operational assessment will show you where you are losing revenue, as well as the procedures and practices that are hurting your profitability.

Running a profitable restaurant requires operational efficiency. Every aspect of your business from location and services to suppliers, involves constant oversight and an operational analysis. As a restaurateur, there are critical aspects to consider. Whether you are a startup or an established business, you need to begin with defining your goals and then evaluating your strengths and weaknesses.

Know your market

A SWOT analysis helps you determine the strengths, weaknesses, opportunities and threats to your business. Most entrepreneurs conduct these frequently to stay competitive in the marketplace. Here is an example of what a restaurant SWOT analysis would look like:

SWOT

Creating long and short-term goals

Restaurant trends, technology and target audiences are changing at a rapid pace. Regardless if you are a startup or an established restaurant, you need to routinely access your business plan by defining long and short-term goals.

An operational analysis provides the restauranteur with an overview of menu choices, location, hours of operation, operational costs, technology and your entire staff performance from front-of-house to back-of-house. This assessment provides a snapshot of where your business stands now and where you will be in the next years. You will be able to proactively and immediately begin to eliminate inefficient practices and expand upon the areas of productivity and revenue generation. 

Location Evaluation

Where your restaurant is situated is probably the most important factor of your business. Does your target audience live or work in the neighborhood? Are you in a high-volume area? Is there a great deal of competition in the vicinity? Can your customers park? Is your space large enough? As the old real estate saying goes, ‘location, location, location’! Diners rarely have time to wait for parking or drive far from their neighborhood. Additionally, being among other restaurants is not the big problem, it’s where the competition is located that can be an issue. Along with location, your hours of operation could be a factor. Can you open early to catch those commuters or can you stay open late for the college students who want to eat later? Choosing a location is often the first step in opening your restaurant, so know the area well.

Review your menu options

Whether your restaurant serves fine dining cuisine or fast casual dining, your menu is one of the driving factors of your success. Knowing your customer’s preferences will help increase traffic to your restaurant and decrease food waste.

Assessing the costs

Monitoring the bottom line on a regular basis is essential to your profitability. Are you buying your supplies from a vendor with high discounts or low prices? Are you getting value using the ingredients that comprise your menu? Is your staffing balanced for low and high-peak hours of operation? Is your rent too high? Finding the things that can reduce your overhead and improve productivity will enable growth and increase revenue.

Front-of-House and Back-of-House Staffing

Your staff can make or break you. In the restaurant business, good customer service is critical to your operation. Ensure your employees not only know what you expect but retraining them constantly and teaching by example is important. Mishaps occur, just remember it is how your staff handles them that will make the difference between a repeat customer and a bad review on Yelp.

An operational analysis is the only thing standing between the restaurant owner and profitability. Learn more about how an operational analysis works by taking a look at our  TRG operational analysis TRG operational analysis service page.

The Clean Eating Movement

Clean Eating
TRG Restaurant Consulting

Clean Eating Movement: Chipotle and Panera go head to head.

The Clean Eating Movement has been gaining steam for a few years now, and while it has its base back in the 1960’s, it has gained considerable steam in the United States. Consumers want to be more informed about their food choices.  Movements such as the Paleo diet, non-GMO (genetically modified organism) and eat local have begun to influence choices offered by restaurants.

How to Increase Restaurant Profitability

Increase your Restaurant's Profits

Increase your Restaurant’s Profits

There are several steps involved in increasing your restaurant’s profit margins.

First you need to evaluate your business, or have a non-biased professional conduct an in-depth operational analysis.  An operational analysis will identify any areas that need improvement and a plan of action will be delivered to you as a guide on how to implement the new procedures.

In most cases, several minor changes in your daily operations can have a significant positive impact on your overall profitability and your way of life.

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