Sticky Note

Meal Enhancers Translate To Revenue Enhancers

Meal Enhancers
Atlanta, GA, Sept. 29, 2012 (RM101) - Every restaurant manager or food service operator I know wants to increase sales/revenue and bottom-line profits. Don't you?

One of the best ways to do this is through incremental sales. What is incremental sales? Well, an incremental sale is when you sell the customer add-ons to enhance their meal that maybe she/he didn't think about.

This is not just a tactic for increasing sales or up-selling to get more money. It is a way to enhance a customer's meal and therefore the satisfaction level. It's the "feel good" feeling that entices a customer to tell friends how enjoyable the experience was while dining at your establishment.

However, it will also increase your revenue and add profit to the bottom line. That's not counting the residual sales effects you'll receive by that customer telling others to come dine with you.

Creative Meal Enhancers
Here is an example of meal enhancers and the potential increase in sales and profits.
Let's say you sell hamburger steaks. Two side veggies are included with the hamburger steak along with bread. The entire meal sells for $5.99. How can we enhance that?

It's been my experience that people who order hamburger steaks love sauteed onions and sauteed mushrooms atop the steak. When the steak is ordered, the server/order taker simply tells the customer that they can get delicious sauteed onions and mushrooms on the steak for an extra 79 cents. The customer says yes and you have enhanced their satisfaction level while enhancing your profits. How much? Here is what that translates to in dollars and percentages.

Using our Menu Retail Price (MRP) calculator, we see in the first example that at $5.99 selling price, you will gross $3.74, creating a food cost of 37.56% and gross margin of 62.44%.

Profit on entree is $3.74 giving a gross margin of 62.74%

Now, when we enhance the customer's satisfaction by adding sauteed onions and mushrooms atop the hamburger steak, we add 79 cents to the original price of $5.99 to increase the sale to $6.78. This meal enhancement translates to a gross profit of $4.41 or 19.65% more than without the add-ons. The meal enhancers also lowered our food cost to 34.96%, a decrease of 2.6%.

Meal enhancers lowered food cost by 2.6% and increased profit by 19.65%.

Think about your operation. What can you do to enhance the meal and add value to your customers to give them the "feel good" feeling?

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