Does your restaurant's web site sell for you? If your site is like most then the answer is probably not. It's an opportunity that the large majority of independent restaurants are not taking advantage of. Let's look at some ways that your restaurant's site can go beyond the basics to help boost your sales and profits by capturing revenue that may currently be going elsewhere.
Online Ordering
This is a true growth category and area of opportunity. The large chains are getting into online take-out ordering in a big way. Independents need to get in on the action. Families are looking for better (i.e. not fast food) take-out options that are easy, flexible and familiar. This is a 20% to 30% sales growth opportunity waiting to happen for your restaurant.
Taking Reservations Online
One rule of business is "make it easy for your customers to do business with you". This certainly applies to online reservation systems. For customers, online reservation taking offers a speedy, around the clock option for making dinner plans. There is a certain demographic that loves this feature. They are, for the most part, tech savvy, professionals with high levels of disposal income. Sounds like a good target audience, no?
Gift Cards
If your restaurant has a gift card or gift certificate program in place then you need to be promoting and selling your cards online. An easy to use secure order form can help your restaurant bump up its gift card sales to the next level. An online gift card option or even an instant gift certificate option meets the needs of the time crunched gift giver where an order can be completed in just a few minutes. Get this on your web site and promote it. This is a no-brainer
Parties & Catering
Events, parties and catering are terrific profit centers for your business. Rarely, however, does a restaurant use its web site well to promote these offerings. Think about having full screen photos of your private rooms or facilities. Event menus and catering prices should be readily available, even if they are only samples. Floor plans with layouts and dimensions can easily be included. A virtual tour similar to a "house-for-sale" listing can easily be created. Let beautiful pictures and bountiful information do the selling for you.
Merchandise
As with gift cards if you have logo merchandise or other products that you sell in your restaurant then have them for sale on your web site as well. For most restaurants a basic e-commerce application is all that is needed. This is cheap and easy and almost any web hosting company or developer can help you get up and running fast.
Now Open
The truth is your restaurant's web site should be selling for you 24/7/365. Don't make the mistake of having your restaurant's web site be just a yellow page listing with your name, menu and phone number. Take advantage of all that the Internet has to offer by expanding your web site to include some of these interactive and e-commerce options as a way to increase your restaurant's bottom line.
Friday, June 25, 2010
Tuesday, June 22, 2010
Rules of Thumb for Beverage Costs: How's Your Restaurant Doing?
Although every restaurant is unique, industry rules of thumb can provide a valuable starting point for evaluating and understanding how your restaurant is performing.
While there will always be exceptions, here are a few beverage cost rules of thumb that we've found to be quite reliable over the years when working with operators who have collectively managed thousands of diverse restaurant operations.
Alcoholic beverage costs: Liquor, beer and wine costs will vary among restaurants due to a number of factors but here are typical costs in percentages:
* Liquor - 18 percent to 20 percent.
* Bar consumables - 4 percent to 5 percent as a percent of liquor sales (includes mixes, olives, cherries and other food products that are used or consumed exclusively at the bar).
* Bottled beer - 24 percent to 28 percent (assumes mainstream domestic beer, cost percent of specialty and imported bottled beer will generally be higher).
* Draft beer - 15 percent to 18 percent (assumes mainstream domestic beer, cost percent of specialty and imported draft beer will generally be higher).
* Wine - 35 percent to 45 percent (the cost percentages of wine can vary dramatically from restaurant to restaurant depending primarily on the type of wines served. Generally, the higher the price per bottle, the higher the cost percentage).
NOTE - All percentages above are the ratio of each item's cost divided by its sales, not total sales or total beverage sales.
For example, liquor cost percentages above are based on liquor costs divided by liquor sales. This applies to the non-alcoholic beverage costs discussed below as well.
Non-alcoholic beverage costs: Historically it has been standard industry practice to record non-alcoholic beverage sales and costs in Food Sales and Food Cost accounts. However, we've found that many operators are now breaking out non-alcoholic beverage sales and costs and report on them separately as "Soft Beverages."
* Soft drinks (post-mix) - 10 percent to 15 percent (another rule of thumb for soft drinks is to expect post-mix soda to cost a little more than a penny an ounce for the syrup and CO2).
* Regular coffee - 15 percent to 20 percent (assumes 8-ounce cup, some cream, sugar and about one free refill).
* Specialty coffee - 12 percent to 18 percent (assumes no free refills)
* Iced tea - 5 percent to 10 percent iced tea is the low food cost champ of all time. Cost of the tea can be less than a penny per glass. Biggest cost component in iced tea is usually the lemon slice.
FINAL POINT: While every restaurant is different, if your costs are running significantly higher than the averages above, it might be smart to investigate your pricing, beverage controls and the possibility of theft.
While there will always be exceptions, here are a few beverage cost rules of thumb that we've found to be quite reliable over the years when working with operators who have collectively managed thousands of diverse restaurant operations.
Alcoholic beverage costs: Liquor, beer and wine costs will vary among restaurants due to a number of factors but here are typical costs in percentages:
* Liquor - 18 percent to 20 percent.
* Bar consumables - 4 percent to 5 percent as a percent of liquor sales (includes mixes, olives, cherries and other food products that are used or consumed exclusively at the bar).
* Bottled beer - 24 percent to 28 percent (assumes mainstream domestic beer, cost percent of specialty and imported bottled beer will generally be higher).
* Draft beer - 15 percent to 18 percent (assumes mainstream domestic beer, cost percent of specialty and imported draft beer will generally be higher).
* Wine - 35 percent to 45 percent (the cost percentages of wine can vary dramatically from restaurant to restaurant depending primarily on the type of wines served. Generally, the higher the price per bottle, the higher the cost percentage).
NOTE - All percentages above are the ratio of each item's cost divided by its sales, not total sales or total beverage sales.
For example, liquor cost percentages above are based on liquor costs divided by liquor sales. This applies to the non-alcoholic beverage costs discussed below as well.
Non-alcoholic beverage costs: Historically it has been standard industry practice to record non-alcoholic beverage sales and costs in Food Sales and Food Cost accounts. However, we've found that many operators are now breaking out non-alcoholic beverage sales and costs and report on them separately as "Soft Beverages."
* Soft drinks (post-mix) - 10 percent to 15 percent (another rule of thumb for soft drinks is to expect post-mix soda to cost a little more than a penny an ounce for the syrup and CO2).
* Regular coffee - 15 percent to 20 percent (assumes 8-ounce cup, some cream, sugar and about one free refill).
* Specialty coffee - 12 percent to 18 percent (assumes no free refills)
* Iced tea - 5 percent to 10 percent iced tea is the low food cost champ of all time. Cost of the tea can be less than a penny per glass. Biggest cost component in iced tea is usually the lemon slice.
FINAL POINT: While every restaurant is different, if your costs are running significantly higher than the averages above, it might be smart to investigate your pricing, beverage controls and the possibility of theft.
Thursday, June 17, 2010
New York City Set to Serve Grades to Eateries
The city's Department of Health rolled out its final rules yesterday for a system that will require restaurants to post letter grades based on inspection scores beginning in late July.
Those in the restaurant industry were quick to voice disappointment. The rules didn't have significant changes from those posted in April despite vigorous opposition voiced at a public hearing last month.
A city chapter of a restaurant trade group is exploring a legal challenge and protest, said Robert Bookman, an attorney for the New York City chapter of the New York State Restaurant Association. "We're looking at all of our options," said Mr. Bookman.
Don't expect A's, B's and C's to spring up at all of the 24,000-plus affected eateries overnight. The Health Department said it will take about 14 months before the placards appear in every storefront and the first wave of letters will be A's because of the way the policy is designed.
Restaurants that receive a B or C can opt for a second inspection a few weeks later. After that inspection, those that contest their grades can install "grade pending" signs until the matter is resolved.
Restaurants that fail to post their letters will be fined; the Health Department is recommending a $1,000 fine.
The scores are based on an inspection cycle in which restaurants are inspected about once a year.
Health officials said they listened to concerns about nonfood violations being factored into their letter grades and took some of them out. But restaurant owners say the inspections are arbitrary and too many nonfood violations will still be counted.
Health Commissioner Thomas Farley said he didn't think restaurants with C's would necessarily lose business. "I actually think probably most people won't make their decision based upon a letter grade," he said. "But some of them will. And even a small percentage of them is enough to provide an economic incentive for restaurants to improve their practices."
Restaurants have said the system will put those with C's out of business. Dr. Farley said the industry has made similar dire predictions when the city banned smoking and required calorie postings in some restaurants.
Asked if he would eat in a C restaurant, Dr. Farley said, "You know, depending on the circumstances, I might."
But he added, "I certainly would prefer restaurants that have higher letter grades."
Thursday, June 3, 2010
Digital Dining Recognized as a RSPA Certified Retail Technology Provider!
Retail Solutions Providers Association (RSPA) is an industry association dedicated to the retail technology industry. Their members include resellers, distributors, hardware manufacturers, software developers, consultants and service providers who bring retail technology solutions to the marketplace. RSPA has been in existence for over 60 years and is pleased to name Digital Dining/MenuSoft Systems as an RSPA Certified Retail Technology Provider.
Top 10 Reasons You Should Buy From an RSPA Certified Partner
10. You are assured that an RSPA certified reseller has integrity.
9. An RSPA certified reseller provides jobs for your community.
8. An RSPA certified reseller can service your equipment at 5pm on a Friday.
7. An RSPA certified reseller can guide you in your purchase decisions so your POS equipment supports the peripheral equipment that you need to interface in the present and in the future.
6. A certified RSPA reseller is qualified to consult with you about every aspect of your business that impacts the function of your POS system. Do you want to interface your security camera with your POS system? Why or why not?
5. Your RSPA reseller will guide your PCI compliance needs.
4. An RSPA certified reseller provides you what’s needed, not just what they have to sell, and shows you the way to increase profits by doing so.
3. An RSPA certified reseller will help you gain an edge over your competition by providing the products, services and support you need.
2. Your RSPA certified reseller can optimize your profits by showing you how to reduce waste,prevent employee theft, and create higher per-customer sales.
And The Number One Reason You Should Buy From an RSPA Certified Reseller
1. An RSPA certified reseller is your partner, not a one-time transaction. They want your business to be profitable just like you do, and can help you succeed.
Wednesday, June 2, 2010
46.4% of Restaurant Operators Looking Towards Wireless Tableside POS Solutions
When Hospitality Technology polled their readers on POS software purchasing plans, the POS Software Trends 2010 poll revealed that 46.4% of operators consider tableside POS for ordering and/or payment to be an interest for 2010. These sentiments were again reflected in the Restaurant Technology Study which indicated that there has been a significant increase in the percentage of companies using wireless handheld POS terminals in the period between 2009 (15.3%) and 2010 (27%). Sixty-three percent of respondents indicate that wireless POS terminals increase guest satisfaction, and 56% indicate that they increase guest credit card security. What's more, IHL's North American Hospitality POS Terminal Market Study identified that hospitality establishments are moving more and more toward wireless technologies, flagging this as a trend for the years ahead.
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