How to Diversify Revenue Stream for Your Restaurant Business
May 27, 2020
Let’s talk about how you can diversify your revenue stream when you already own a restaurant.
Most restaurant owners focus on one revenue stream, which is getting customers into the door. That’s well and good, after all that’s what a restaurant business is all about. But there are ways to diversify your revenue stream in the restaurant business beyond getting customers into the doors. And if you’re not doing this, you’re leaving money on the table.
Here are some of the ways that you can leverage your existing restaurant business and add extra revenue. Obviously the viability of doing it depends on the size of your restaurant. This will work better for some of the bigger outlets, but not for others. Having said that, being able to improvise is key for any successful entrepreneur.
1. Have an enclosed room ready for corporate meetings
If you have a large outlet and have an isolated and enclosed room that is sealed by walls and a door, you can make this into a meeting room and get it rented out to corporate clients. A lot of companies hold their meetings outside of the office. These meetings could be attended by many employees, so this is a good opportunity for you to rent out your spare room especially during quiet periods.
2. Rent out part of your outlet as a co-working space.
These days, co-working space is the new buzzword. With the advent of technology, thousands of people across their world have quit their jobs to start their own businesses. These people are usually looking for a work space. You need to provide these potential customers with a high-speed internet connection, and good comfortable seats and tables. You don’t actually need to charge them money to work there, as long as they purchase food and drinks from you. I’ve seen some restaurants charge a minimum price where customers have to purchase a minimum amount of food and drinks. If they don’t buy enough, the restaurant will charge them a fee for the privilege of using the table and internet.
This one is a low-hanging fruit. You’re leaving money on the table if you don’t offer catering services. There are many events happening every day in your city – from corporate seminars, exhibitions, weddings, and parties. You need to cater to this market by providing catering services. Beware that to provide a catering service, you may need to modify your menu into smaller versions in order to accommodate this market.
Read about Dod’s Burger catering service in Bali here.
4. Food delivery
This one is a no-brainer. As the world slowly emerges from the Covid-19 pandemic, I believe a new normal and trend will start to happen. A lot more people will prefer to have their food delivered rather than dining in a restaurant. Make sure you’re signed up to the biggest food delivery platforms in your respective cities. Also, you can think about having your own delivery service for orders around your area.
5. Build an online grocery shop
This one may take some of you by surprise, but when you think about it, online grocery shops and restaurants are actually complementary businesses. Because you’re already buying from suppliers for your restaurant business, those same suppliers can also supply your online grocery shop. And since you’re already paying wholesale prices, you can sell the same items at retail prices on your online shop.
6. Selling merchandise in your outlet
If you have your own merchandise such as t-shirts, tumblers, key rings etc, you may be able to earn extra revenue by displaying them in your outlet. I’ve also seen seen some restaurants partner with a fashion brand and sell fashion merchandise in their outlets. Some of the bigger global brands are already doing this, such as Gucci and Emporio Armani.
Having listed all that, don’t forget that at the end of the day you are still running a restaurant business. If you diverge away from that core business, your restaurant business will suffer and there’s no point in talking about extra revenues.
Author’s note :
Hello I am Eddy and co-owner of Dod’s Burger outlets in Kuta and Seminyak, Bali. I have been in the burger business for a number of years, and I can help you start your own burger business, from concept stage to operational. I also give advice to those who want to start a business in Bali. Please reach out if you would like me to help you at email@example.com.