Ways for newbie restaurants to increase revenue

[eggholic]

Which among the two has more opportunities for a new restaurant to increase revenue - catering or private events?

 

[IC 2.0]

My preference was always private events because you can use existing staff and not have to transport anything to and from the restaurant.

Catering to me is a pain in the ass because you'll need additional staffing plus additional equipment for plating, holding, cooking, etc. etc. If you try to use existing staffing, the restaurant will then suffer because you'll be stretched too thin. Maybe for smaller, off-site events this would work but then you have to ask yourself if it's truly worth it.

Depending on your restaurant type and clientele, that would determine what sort of private events you would do. Buy-outs are always nice, but you'll need someone to promote or at least cold-call local companies to inquire and/or make offers. You should also talk to your sales reps from whoever your liquor distributors are, and discuss the possibility of wine/sake/beer tasting dinners.

Outside of that, social media is your friend. Heavily utilize IG, FB, Yelp, etc. to get your restaurant and photos of your food out there where everyone can see it.

 

[JessicaMarshall]

Personally, I think catering has more opportunities for a new restaurant to increase revenue than private events. Catering offers a wider range of potential customers, such as businesses, schools, and other organizations, while private events are limited to individual customers. Additionally, catering orders can be larger in size and more frequent than private event bookings. However, it ultimately depends on the type of restaurant and the target market. If the restaurant specializes in high-end cuisine and caters to upscale events, then private events may be more profitable. On the other hand, if the restaurant focuses on casual dining and offers affordable catering options, then catering may be the way to go.

 

[taxlady]

The type of catering will make a difference. We have fast food places here that will make platters for parties that you pick up and call that catering. There are places that will deliver a full menu for a party or event, but won't provide staff to serve it. A friend had her wedding supper catered. There were only a few staff there from the caterers. The food was served buffet style. The venue was the basement of a church, with kitchen and tables and chairs. I believe the church also had the plates and cutlery.

 

[Aunt Bea]

Of the two options I would prefer private parties or promotions to increase traffic in the restaurant. IMO catering is a very different business with its own unique challenges.

IMO you need to understand the problem before you choose a solution.

Why isn’t the resto producing sufficient income?

Too little advertising/exposure?
Too much debt/overhead?
Too much competition in a crowded field?
Type of food?
Quality of food, service, etc…?
Location?

Once you understand the issues you should be able to find a solution, even if that solution means closing and starting over.

Good luck!

 

[JessicaMarshall]

Personally, I think catering has more opportunities for a new restaurant to increase revenue than private events. Catering offers a wider range of potential customers, such as businesses, schools, and other organizations, while private events are limited to individual customers. Additionally, catering orders can be larger in size and more frequent than private event bookings. However, it ultimately depends on the type of restaurant and the target market. If the restaurant specializes in high-end cuisine and caters to upscale events, then private events may be more profitable. On the other hand, if the restaurant focuses on casual dining and offers affordable catering options, then catering may be the way to go.

By the way, have you heard of AR Restaurant? It's a great platform where you can find amazing recipes and blogs about food. I think it could be a great resource for anyone looking to start a restaurant or improve their menu.