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10 Ways to Increase Restaurant Revenue

Last updated 3 years ago

Here are ten tips from Jordano’s FoodService on building your restaurant revenue through creativity rather than simply raising the menu prices. Let's look at each one and see how it stacks up.


1. Make sure all of your food costs are in line. The average food cost in restaurants hovers around 33 percent. There are some fine dining houses that creep to 40 percent while some great, well-run operations can maintain a 28 percent food cost. Remember, this is an average. The key to a perfect menu is perception, value and food cost balance.

If you aren't tracking it, you won't know if you are in line or not. If you are tracking it, you should be on the constant lookout for prices going up and always asking your vendors for the best possible deals and viable alternatives.

2. Analyze profit margin as closely as you analyze price. If one of your menu items is priced at 40% food cost, then another menu item needs to be at 20% to maintain your average. That's one of the reasons many restaurants mingle reasonably priced pasta on the menu with a high priced lamb sirloin. The pasta will deliver more profit to the bottom line at $14.00 that the lamb will at $25.00. This is why you plan your menu pricing structure at the same time you develop your menu - so you have balance in your margins and for the palate.

3. Add items that tantalize taste buds and increase profits nightly. Make your specials, special.

4. Appetizers, desserts, soups, salads and side dishes all bring joy to the table and profits to your pocket. There are some very simple recipes that you don't need pastry chef to create that are highly profitable. Not only should you offer exciting, tempting and new dishes with good margins, you should also make sure your staff is properly promoting them to your customers.

5. Remember, remind your servers what business they are in: Sales. They work on commission. And, depending on how they do, they also realize increased revenue while you realize more profits. Figure out who your best servers are and ask them to mentor the weaker performing ones. Anyone who really doesn't get it needs to be replaced as they are costing you money.




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