How can you provide insights for restaurant owners in your market? In this series, we are discussing four different things a restaurant owner can do...
How to Increase the Average Order Size – Restaurant Expert – Part 3
How can you provide insights for restaurant owners in your market? In this series, we are discussing four different things a restaurant owner can do to increase the profitability of the business. First discussion was how to get first time customers. Second was how to encourage customers to return on a regular basis. Today, thirdly, […]
How can you provide insights for restaurant owners in your market? In this series, we are discussing four different things a restaurant owner can do to increase the profitability of the business. First discussion was how to get first time customers. Second was how to encourage customers to return on a regular basis. Today, thirdly, I’m discussing how to help a restaurant owner increase the average ticket size. Even if there are no new customers, increasing the existing order size is very beneficial. The extra revenue per order translates into more profit. The hourly fixed cost is the amount necessary to have the business open. This amount includes fixed costs such as utilities, building rental, etc. Once that amount has been met, any extra revenue per order is profit. Here are three ideas to help increase ticket size:
- Take great care in creating the menu. It’s very important to match things correctly. Most restaurant owners don’t have the data they need to do this. A point of sale system would show which menu items sold in the last week and which other menu options were purchased with that item. For example, someone who purchases stromboli might not be likely to purchase chicken salad with it. A meal deal should not include these two items together. If the owner did research, it would become evident that fries should be paired with stromboli rather than chicken salad. Then customers will buy the meal deal. There may be items on the menu which are seldom ordered and should be removed altogether. The only way to think through this strategically is to have data showing what customers are actually buying and what menu items they are buying together.
- Availability of add-ons, both in store and online, is another way to increase ticket size. Having in store add-ons is all about employee training. Servers should be trained and perhaps keep a “cheat sheet” inside their order pad with suggested add-on items. The server should offer the customer another item which would go well with his entrée order. In this instance the owner needs to have tracking of average order size per server. When owners get this kind of data on our point of sale solutions, they are usually surprised at the difference of order size between servers. One server may have average orders of $70 while another may have average of $40; this is a big difference and could be significantly changed by training all servers how to offer add-ons to orders. Online orders allow consumers to make orders which they wouldn’t have otherwise made, so this will be a bonus to the restaurant revenue. If they use one of our solutions, the online order will go right into the restaurant kitchen printer.
- Make sure you have types of menu options customers expect you to have. There are two pizza restaurants which I frequent. One has an amazing chicken salad with fries, but the one closer to my home doesn’t offer that menu item. I am in the process of helping these business owners see the value of having the same point of sales system so they can easily track which menu items sell best.
These are some insights you can share with your clients to help them increase average order size in the restaurant business. Check back tomorrow for the last post in this series on providing insights to restaurants!
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