Increasing Profitability in Your Restaurant

As a restauranteur and business owner, you already know that running a successful restaurant often involves operating on relatively small margins. However, you can still boost total profits by adopting a few clever strategies. If you’ve already protected your business with Dayville Restaurant Insurance and feel confident in your brand but want to cut down on burdensome  costs and find ways to increase restaurant profitability, check out these simple ideas you can put to work right away.

Whittle Down Your Menu and Offer Standard Portion Sizes

One of the most common reasons many restaurants lose money is having too expansive of a menu. An overly long menu can cost your business significant revenue loss if you purchase enough food to prepare all the dishes you offer but then too little of that food ends up getting sold. Instead of having a long menu, opt for a smaller menu with a handful of signature dishes at a reasonable yet competitive price. You can also double-check your restaurant’s portion sizes to make sure you’re not accidentally offering too much food for the price. As a rule of thumb, if many patrons take out large quantities of food at the ends of their meals in take-out boxes, your portion sizes are likely too large.

Swap Out Pricier Recipe Ingredients Without Sacrificing Quality

Many restaurants lose out on potential profits by purchasing groceries that are too expensive. Although it’s important to offer customers quality foods, you may be able to achieve the same flavor and quality with less expensive ingredients. There are a few ways to swap out recipe ingredients without having to sacrifice quality. For instance, your restaurant could:

  • Purchase grains and produce in bulk quantities
  • Take advantage of restaurant discount offers from major grocers or producers
  • Switch out rare or expensive ingredients for comparable and more affordable ones
  • Focus on purchasing a few star ingredients and saving money on the other ingredients
  • Learn new cooking techniques to enhance the taste of your ingredients

Offer Specials and Deals on Foods That Need To Sell

You may already be familiar with the technique of upselling, wherein your servers offer customers daily specials that are marked up to increase the restaurant’s profits. However, you may be underutilizing another common sales tactic: offering special deals and discounts. A clever way to use this strategy is to discount dishes that need to sell, especially if certain foods are nearing their best-by date. Boost profit margins by strategically offering:

  • Daily or weekly specials
  • Meal deals if customers buy a bundle of entrees
  • Discounted prices on foods that must go

Even if your business has already secured thorough Dayville Restaurant Insurance and taken steps to establish a steady budget, it can still seem difficult to increase your restaurant’s profit margins. However, these straightforward strategies can help you boost profitability without having to compromise on overall quality. Consider implementing these profit tips today.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations. 

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