Two of the most efficient ways to increase restaurant revenue are buffets and catering services.  Both can add value to you business and create a dramatic increase in sales.  Here we’ve outlined what you need to successfully pull them both off.

A More Efficient Restaurant Model

Buffet dining turns the customer into waiter — a waiter you don't have to pay. When a healthy percentage of your clientele frequents the buffet instead of ordering off the menu, your need for full-time wait staff shrinks. The fewer people you have to pay, the wider your profit margin grows. Food is cheaper when you serve it in bulk instead of preparing it to order. More food means that you can take advantage of wholesale rates to control your inventory costs.

Investing in Success

The return on investment you enjoy from your all-you-can-eat buffet depends in part on your ability to read the marketplace. Do some research to understand where there is need for a particular cuisine. Having the only taco bar or build-your-own-sundae counter in the area could bring in customers. Offering a different "theme" buffet every night can create predictable, consistent customers who look forward to your themed buffets. The flexibility of a buffet model helps you to reach a larger audience by offering various cuisines such as Chinese, Italian, steak, or soup/salad.  Offer upscale choices to avoid the appearance of "cheap eats.” Choices such as fresh sushi, Mongolian fare cooked to order, and a fancy dessert bar can attract diners who might not usually frequent a buffet.

Practical Considerations

A buffet requires investing in a different layout than your typical restaurant. You will have to place hot and cold tables in central locations with plenty of space around each station, sufficiently far away from tables and booths to maintain customer privacy and avoid congestion. Each station must include the necessary equipment to keep up with health code such as heating elements, sneeze guards and other provisions to ensure fresh, hot food as well as a safe dining experience.  When you think about how an all-you-can-eat buffet helps you control restaurant overhead and maximize profits, it only makes sense to look into this model in more detail. So set out the plates, decide on the dishes and set your table for a more diverse business.

Catering

Are you a restaurant owner looking for a way to grow your restaurant? Consider offering catering services. Catering can open the door to an entirely new revenue stream that can significantly increase your profitability.  Why does catering prove to be a great way to grow your restaurant? The answer is simple: catering allows you to expand your customer base and average transaction amount significantly without making a substantial investment in equipment, workspace, or marketing.

What you need to get started

Now, you might be wondering what you need to add catering to your restaurant’s list of specialties. The largest investment that you will have to make is in a branded truck or van. The right vehicle will attract attention from potential customers and provide you and your food with a dependable means of transportation when it matters most. It may require a moderate up-front investment, but it will be a primary tool generating a new revenue stream for your restaurant. Once you have your transportation intact, consider the way that you would like to work with your new catering customers. You can opt for "drop-off" catering, where your staff prepares delivers, and sets up self-service food stations. This is a great way to grow your restaurant with catering since it requires only a slight investment. You will need an ordering system (perhaps through your website), disposable containers and cutlery, and a way to ensure that food is kept at a safe temperature at the catering site. If you plan to serve your catered foods, you should increase your investment in serving ware depending on the formality of your restaurant and your food. For a high end restaurant, purchase equipment that "looks the part" including stylish chafing dishes, linens, serving ware, and uniforms for your staff. Keep your color schemes neutral so you can easily blend with any décor. For a casual restaurant, you will still want to invest in temperature-controlled serving stations, but you can opt for chafing dishes that complement your restaurant’s style. In addition, your staff can wear matching shirts with your restaurant’s logo on them instead of formal uniforms.

Is Catering right for you?

If you already operate a successful full-service restaurant, you know how to prepare delicious fare and you know what types of dishes are successful in a commercial food service environment. You may be able to use this, combined with your restaurant’s reputation and customer base, to become a successful caterer.

Quikstone Capital Solutions has been providing small business owners with merchant cash advances to stabilize and improve their companies for more than 10 years.  If you are in need of a cash to cover unexpected costs, or if you’re looking to make long overdue improvements, a merchant cash advance could be right for you.  With the ability to quickly qualify and get your money in a timely fashion, there is no more convenient option. 

Like more ideas on how to grow your restaurant? Download our free Restaurant Investment Guide below.