Are the holidays tough for restaurants?

As we start to embrace the holiday season, take out our wallets and pose a toast to the past and future year, many will look for outlets to celebrate the holidays with their friends, family and colleagues. Although the common perception is that consumers will turn to restaurants, there are industry studies suggest that some restaurants experience a 61 percent decline in sales during a seasonal holiday.

According to a National Restaurant Association survey from 2006, the three most popular holidays for Americans to go out to eat are Mother's Day, Valentine's Day and Thanksgiving. Christmas is close to the bottom of the list.

It may seem counterintuitive, but reality is that in the weeks leading up to the big gift-giving day, consumers are spending their hard earned dollars and time elsewhere - department stores, retail outlets, philanthropic organizations and dollar establishments. In addition, consumers will have a holiday hangover in January, which means some restaurants may not start to see an increase in business until Valentine's Day.

In other words, the holiday season can actually be pretty rough for many in the restaurant business. In order to generate an uptick in revenues they will have to incorporate some unique methods and innovative marketing techniques, which could sometimes be an expensive endeavor, something that a plethora restaurants can't afford right now. Perhaps your restaurant should consider a merchant cash advance to boost your clientele this holiday season.

So how exactly can restaurateurs take advantage of the holiday season?

Here are five ways to increase restaurant holiday sales and end 2014 with a bang:

Menu & Services

Instead of welcoming the holiday season with the same old menu and services, think about introducing a new menu and seasonal services like catering. One of the simplest ways to do this is to add holiday favorites to the menu, such as turkey, stuffing, cranberry sauce and specialty desserts. Always remember the important up-sell at this time of the year.

Catering is popular in the month of December, particularly for office parties. Be sure to advertise this clearly inside your restaurant, online and in your local community.

Advertise

How will potential customers know your business is celebrating the holidays? They don't, unless they're regular customers. As the holiday spirit settles in, begin to advertise your efforts and sponsor local community events, such as school plays, neighborhood celebrations and nearby parades. The more people know your restaurant is partaking in the holidays the better.

Promotions

Industry professionals recommend restaurants to refrain from lowering their prices. However, they do suggest for businesses to offer various promotions, including additional services, free items and drawings to win a gift certificate. These entice patrons to visit your restaurant and take advantage of these holiday promotions.

Gift Certificates

Gift certificates are very popular to purchase at this time of the year. In fact, they often become the 'go to' gift for shoppers who still don't know what to buy for their colleague, uncle or the mailman. It is important to place gift certificates at the entrance or near point-of-sale systems, while also perhaps having the staff offer guests these certificates. Gift certificates should be listed on the website and promoted in other ways when possible, for instance, via direct mail campaigns.

Social Media

For restaurants, social media remains an integral aspect to their business model. By fully utilizing social networks, like Facebook, Twitter and Instagram, you can garner new clientele and boost sales when you engage with your audience, offer promotions and post company updates (photos, news, etc.). It's imperative that these updates are festive.

Here are a few friendly reminders to enhance the holiday experience at your restaurant:

• Ensure your staff is sending out "happy holidays" and "season's greetings."
• Participate in a donation drive and encourage customers to bring in toys, coats, or clothing.
• Send out free samples, allocate holiday cards and prepare for the next holiday.

These measures aim to boost revenues at this time of the year, but can require business financing to achieve. If you find yourself short on funds at this time of year, consider merchant cash advances to cover these short-term expenses.

Here’s to a profitable holiday season!

For more ideas on how to prepare for the holidays and maximize profits this season, download this free holiday preparation guide.