We all know that in the restaurant industry it’s important to serve delicious food, but there is much more that goes into building a successful business. You need to make sure you’re generating enough income to keep the restaurant running. A crucial part of owning a restaurant is having a positive return on investment (ROI). The ROI is a ratio that compares the gain or loss from an investment relative to its cost. To understand your restaurant's ROI, you’ll need to start by calculating it! You can either use an ROI Calculator or calculate it on your own with this equation:
ROI = (Net Return on Investment / Cost of Investment) x 100%
In the first quarter of 2022, the average ROI for restaurants in the U.S. was 10.73%. At the same time, the average ROI for quick-service restaurants was about 5%. Remember that there are many different factors to consider when calculating your ROI, so don’t worry if your numbers aren’t meeting the average just yet. To help you out, here are 4 ways you can start maximizing ROI in your restaurant today!
Use Restaurant Technology
If you want to increase your ROI, you’ll need to keep up with the industry. There’s no better way to do so than implementing an all-in-one restaurant engagement platform. The right technology will help you run your restaurant smoothly while enhancing your guests’ experience at the same time! In a survey conducted by Toast, results showed that 79% of diners agree that restaurant technology improves their guest experience.
With the labor shortage in full effect, numerous restaurants are searching for new ways to get the job done. Restaurant technology is the solution! This may look like implementing front-of-house technology! Have your guests place their orders through a kiosk or digital system to reduce the need for cashiers and make the process run smoother. This allows you more time to focus on what’s happening behind the scenes to ensure your guests get the highest quality service. The fully integrated software will get the work done behind the scenes to ensure your brand stays front and center!
Advanced restaurant technology will help you acquire new customers while simultaneously increasing loyalty and engagement with your current ones. It will also help you collect the information needed to make data-driven decisions and in return increase your ROI. That’s an investment you won’t want to miss out on!
Optimize Your Website
In 2022, having a strong online presence is the key to success in the restaurant industry. A report from The National Restaurant Association shared that 83% of adults use their smartphones to look up restaurant locations, directions, and hours. In addition to that, the report also discovered that 75% look up menus, 51% read reviews, 51% order takeout or delivery directly from the restaurant’s website, and 50% use rewards or special deals. Knowing that it’s safe to say your restaurant's website makes a huge impact on your guests' decisions. It’s also essential that your website is mobile-friendly!
If your restaurant’s website is nonresponsive or difficult to view it may be losing you, valuable customers. When searching on their phone for a place to eat, customers are much more likely to consider the restaurant whose website they can easily navigate. Not only is a functioning mobile-friendly website good for your guests, but it will also help you place higher in Google rankings!
Optimizing your website will help you increase your SEO rankings as well! During the optimization process, you can conduct market research to find the best keywords for your industry. Using high-ranked keywords will help your website be seen easier and on a larger scale!
Offer Online Ordering
Online and mobile ordering has taken over the restaurant industry. This method of ordering represents roughly 40% of total restaurant sales. Restaurants can save several hours a week when they use their all-in-one restaurant engagement platform to provide their guests with online ordering! The best part is that you’ll be collecting valuable customer data with every order. That means you will have everything you need to cook up a recipe for success!
Your guests will love the convenience of online ordering, and it may even raise their average check size! Online order tabs average 30% higher than telephone or over-the-counter transactions. That’s because it’s so convenient that guests will want to take their time and look through the entire menu. It also gives them complete control to make customizations and perfect their order before purchasing it. A survey revealed that restaurant customers value online ordering, payment flexibility, and customization the most. When you have an online ordering system you’ll be checking off all of those boxes!
Another way to increase your ROI is by offering delivery. There are a few options to pick from when adding delivery to your restaurant. You could either choose to use third-party delivery marketplaces, in-house delivery, or delivery as a service (DaaS)! Each method offers its service differently, so it’s important to choose the one that will support your restaurant the best. If you’d like to read more about the different delivery options as well as calculate your delivery ROI then check out this blog!
Adjust Your Strategy
A successful business is made from continuously adjusting to fit the needs of the industry. By tracking and measuring your efforts you’ll be able to better understand your restaurant's ROI. Although not every tactic will be successful in every restaurant. It’s important to test out different strategies and find the one that works the best for your restaurant! If something is not working, don’t keep doing it.
Navigating your way through the restaurant industry is difficult when you don’t have a strong strategy. Once you figure out what strategy you’ll be using and how to track it, you’ll be able to see how well you’re doing compared to your competitors. Start by developing a standard set of metrics to use as a benchmark. This will allow you to easily track how successful your strategy is, as well as see when it may be time to make more adjustments! By fully understanding your ROI, you’ll have everything you need to maximize it!
Comments