When a restaurant offers to host private parties, they have the opportunity to increase their revenues throughout the entire year. Whether it’s an office party, wedding, birthdays, anniversaries or other special occasions, restaurants can serve as the establishment of choice for these special events.

Private parties can lead to great profits for restaurateurs because the party will need beverages (alcoholic or non-alcoholic), catering and a venue, elements that the restaurant provides. Everyone benefits from a restaurant maintaining a party room: the restaurant earns profits, the servers receive great tips and the partiers don't have to clean up afterwards.

Installing a party room inside of a restaurant can be a technique to attract new customers. By promoting this room to current patrons and advertising this to the target market, a long-term revenue stream can be born and help offset some of the standard restaurant costs that come with owning such a business. 

Here are four considerations when deciding to incorporate private party quarters into your business model.

Space

Determining the size of the space will be of the utmost importance. Indeed, the more accommodating the space the more it will be used for birthday parties, anniversary celebrations, engagements, holiday events and other large-scale parties.

Furniture & Supplies

Any type of private party room will need a sufficient amount of furniture and supplies, such as chairs, tables, cutlery, plates and much more. In addition, if there are more guests arriving to the party then there needs to be additional furniture for a this scenario. Remember, if there is a lack of furniture and supplies it may hurt your image and leave the party host with a bad impression.

Advertising

Whether it's on the menu, a placard at the entrance or on social media, it's important that every restaurant advertise that they host parties and maintain a stellar private party room for any kind of occasion. Servers should also make a mention of it in passing towards the end of the customers' experience. 

Restaurant Events

Why not use the party room and welcome guests to take part in the restaurant festivities. You can host a wine tasting event, a food sampling of a new menu or a charitable event. This shows appreciation for your patrons and something that gives back to the community. Plus, this is a great way to build brand recognition and a positive reputation.

Here are four tips to take into account when operating a banquet room:

•   Produce a spreadsheet to determine the fixed and variable costs.
•   Make a list of your strengths, weaknesses, successes and failures.
•   How much you will need to buy audio equipment, furniture and décor.
•   What menu items have been extremely popular and what have been ignored.

With consumers' eating habits evolving and operating costs rising, restaurants have to look out for new revenue streams and ways to bring in customers. And a private party room can certainly be a dependable revenue generator.

A merchant cash advance is a financing tool that can assist in either creating a private party room or renovating one. It can certainly allow the owner to cover the short-term small business funding that is involved with such an endeavor.