How to increase the turnover of your restaurant?

The desire to increase sales is common to all professionals in the restaurant industry. We then distinguish between those for whom this desire remains a dream, a fantasy, and those who take action to achieve their goal: increase their sales. Everything leads us to believe that you belong to the second category! 

Many external factors such as economic conditions, seasonality and competition affect your restaurant's sales, but don't overlook the importance of internal factors that you can influence to generate more business.

‍

Analyze the financial situation of your restaurant

Before you start taking more steps to increase your sales, take the time to analyze your restaurant's financial situation, but also the reasons for your current sales volume.

The average turnover achieved

You have decided to increase your sales and to give yourself the means to do so. The first thing to do is to calculate your turnover in order to follow its evolution and especially the impact of the measures taken on your sales. 

Before you continue reading, a quick look back at economics is in order. The turnover is the total amount invoiced for services or goods sold during an accounting period. You must therefore take into account the consumption services on the spot, but also the services to take away, in click and collect, in delivery and any other service. The turnover will therefore depend on the prices set and the number of sales.

The average ticket and the productive capacity

It will also be useful to calculate your average ticket, i.e. the average expenditure made by each consumer. Spoiler alert, it is possible to act at this level to increase your turnover. 

You will also need to estimate the productive capacity of your establishment. There's no point in chasing customers if you don't have the space, staff and equipment to accommodate them and make sure they leave satisfied with their experience. 

The benefits

Behind the growth in sales is often the desire to increase your profit margin. You can reinvest it in your restaurant (advertising, personnel, etc.), use it to finance a franchise network or to increase your own remuneration and that of your team. Increased sales volume will benefit you as long as your revenues grow more than your expenses . So before taking any action, make sure that your projected fixed and variable expenses are lower than your projected revenues.

Learn more 👉 Margin and profitability in the restaurant business: understanding it all .

Analysis of current sales

How come your sales are not already at the level you want to reach? 

• You have just started and few people know about your establishment.
• You are already established for several months or years, but are not visible enough to your target audience.
• According to the reviews, customers are disappointed with their experience after visiting your restaurant and do not return (quality of the food served, lack of professionalism of the staff, waiting time too long, excessive prices, content of the menu, bad location, hygiene, atmosphere, etc.).  
• You need to limit the number of covers for each service to be able to handle the influx of orders.
• Competitors have recently established themselves in the area. 
• You can only accommodate so many people during your opening hours. 
• The sector or the economy in general is going through a difficult period.

In which of these situations do you recognize yourself? Identifying the causes that prevent or limit the growth of your turnover will guide you in the strategies to adopt. Remember that in order to monitor your progress and the impact of the measures taken, it is imperative to evaluate your turnover before and after. Also consider setting a goal. How much would you like to achieve in the short, medium and long term?  

Learn more 👉 Margin and profitability in the restaurant business: understanding it all.

‍

7 solutions to increase your sales

Increasing your sales is within the reach of all restaurant owners, provided you have clearly identified what you can do and adopted the appropriate strategy. Here are a few tips: 

Digitalising your restaurant

The first measure that comes to mind, because it is our core business, but especially because it addresses several issues at once, is the digitalization of your point of sale. Let's take two very concrete examples. The production screen displaying all the orders reduces not only the risk of errors, but also the waiting time. The order terminal allows you to collect more customers and increase the average ticket.

From order taking to control, payment and preparation, these digital tools improve the customer experience as well as the working conditions of your employees. In the long run, this will inevitably have a positive impact on your turnover. 

To discover the impact of digital on the operation of your establishment and your sales, do not hesitate to contact one of the Innovorder experts. 

Increase the average ticket 

‍A large part ofincreasing the average ticket is training your staff. Servers need to know the food and drink menu inside and out so they can advise the customer. They should also be personable and not hesitate to make suggestions in a subtle way, without giving the impression of pushing consumption ("is there anything you would like to finish your meal with?").  

Make sure you have enough staff to be available to interact with customers or your sales will not increase.

‍

Expand your opening hours 

‍Expanding your business hours is another way to increase your sales. You used to be open only in the evening, why not welcome your customers for lunch? You're normally closed on Sundays, maybe you could offer a brunch deal on that day? Have you considered serving breakfasts during the week or offering a tea-time service? 

This will probably require you to hire or increase your staff time, but the main benefit is that the rent and fixed costs remain the same. The question to ask yourself is: will your new revenue cover these expenses? 

Propose offers and promotions 

Also consider diversifying your revenue streams by offering additional offerings. Have you ever thought about providing catering services or privatizing your establishment for an event during a time when it is usually closed? Have you ever considered renting out your reception room for a team building event during the morning? So much time during which your restaurant remains closed and does not make you anything. Your kitchens could also host a few workshops when they are not required for the operation of your business. 

To attract more customers, you can also lower your prices during off-peak hours or days, organize happy hours or offer preferential rates to students. 

Building customer loyalty 

One of the most effective ways to increase your sales is to retain your customersThis is a much less expensive strategy than acquiring new customers. Keeping them coming back will ensure a stable and regular income.

In addition to offering them the best possible experience in terms of service and quality of food, give them a personal welcome, by calling them by their first name for example. It's a small detail, but one that they won't find elsewhere and that may work in your favor when they're deciding between two establishments. To get feedback on the customer experience, there is nothing like a satisfaction survey. Online reviews can also give you valuable insight.

You can also reward their loyalty by offering them a loyalty card. This card entitles them to certain benefits such as a free coffee or a 10% discount on the bill after a specific number of meals consumed in your establishment. Subscription is becoming more and more popular with restaurant owners and could also boost your sales. We have dedicated an article to this practice which is more and more talked about. 

👉 Restaurant subscriptions: the future of dining?

Increase your visibility 

Attracting more customers to increase your sales volume is a good thing, but your potential customers must have heard of you. To do this, it is imperative to increase the visibility of your restaurant. Social networks (Instagram, Facebook, Twitter, LinkedIn, etc), local press or radio, television, billboards, there is no shortage of communication channels, but they must be adapted to your target audience and must obviously take into account your budget.

It is important to make this communication strategy last over time in order to imprint your name in the minds of your potential customers. You will be the first establishment they think of when they go out for lunch or dinner.

Opt for a multi-channel sales strategy

Consumption outside the point of sale has grown significantly since COVID-19 and seems to have become a real habit. Adopting a multi-channel sales strategy will allow you to increase your turnover without increasing your rent or your capacity. 

The digital solutions required to implement such a strategy as well as the personnel needed to manage these new orders represent a certain investment, but they are the sine qua non conditions to see your turnover grow. Those for whom leaving the couch is an impossible task will suddenly be convinced by delivery sales. Those who prefer to enjoy their food in front of their favorite TV show will be seduced by your take-away offer or your click and collect service. 

👉 Click and Collect restoration: the ultimate guide