Offer all first-time restaurant customers a coupon with a simple redeemable offer on their next visit (perhaps a free appetizer, dessert, or an after-dinner drink). The offer must not have conditions and must be exchanged in the next 6 months. Tell the customer to bring the restaurant coupon and be sure to request information that they can add to their database. Measure the results, modify the offer if necessary, and if it brings you more business, make this part of your marketing system.
Quick Win 2: Reduce restaurant costs
Even if you're busy, it's literally worth taking the time to review your restaurant costs every 6 months. An easy way to increase your bottom line is to cut costs. When was the last time you renegotiated your credit card charges? Are you getting the best deal from your wine dealer? Review your menu and check your profit margins: what are the dishes that give you the best margins? Create a special menu with these dishes to sell more. Eliminate your 3 best-selling dishes and those with the worst margins. You will be amazed at how this regular cleaning can affect your restaurant marketing idea.
Quick Win 3: rising restaurant prices
"If your prices are 10% too low, you have to do triple the work to get the same benefit. If your prices are 10% too high, you can lose 43% of your business and still keep the same profit." - Larry Steinmatz
One of the fastest ways to increase your restaurant's profits is to increase prices. Just a few bucks on various well-sold items will give you exponential growth right away. That may sound like a scary idea, but take a closer look at the psychology of pricing and buying behavior, and you'll understand why 80% of restaurant companies overcharge for their services and products.
Except in some particular cases, most people don't make purchasing decisions just because of the price. Don't believe me. Just take a look at the sunglasses that people have around you. I bet you see a lot of Ray Bans and Dolce Gabbana sunglasses. This only shows that there are other criteria for purchasing behavior than price.
So whatever you do, never cut prices, and certainly don't start a price war. You don't want that to be your competitive advantage because anyone and everyone can weaken it. Rather, seriously consider increasing your prices. Don't let fear of competition or lack of confidence stop you. If you have a true differentiation, you have successfully targeted your audience, and they see perceived value in your product that they are willing to pay, then you can charge higher prices. Actually, they'll expect premium service and feel privileged, and it may sell even more.
In most cases, you will find that lowering prices to sell more actually makes you lose money, while increasing prices, even if you sell less, increases your margin.
Even if it seems difficult to do, try different higher price points for various offers. Tomorrow increase your prices by 10%. You can see not only how price increases affect your business (you will lose business, win business, or stay the same), but you can also view your profit margins and adjust them accordingly.
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