5.5 Ways to Increase Your Profit Margins Without Scaring Your Guests.

1). Stop discounting your menu price for the sake of a "special"! Discounts should only be used to increase foot traffic in a strategic promo. Frequent discounting devalues your menu.

2). Stop selling unpopular, low margin menu selections (Dogs)! Start promoting your most popular, high margin menu selections (Stars). Use software such as Menu Profit-builder Pro , which is FREE to US Foods customers, to analyze the per plate cost of your menu. Promote your "Stars", eliminate your "Dogs". Rework your "Puzzles" and de-emphasize your "Plow Horses".  We'll talk more about these in a later blog.

3). Create a Black-Board Special or a Limited Time Offer with higher than average profit margin! By promoting the new menu selections you provide the guest something new and exciting at the same time, you make more money! If the special or LTO hasn't been on your menu, then there is no price "increase" to be noticed by your guests.

4). Add a menu selection that is the most expensive selection on your menu! By adding an expensive selection to your menu, it makes the rest of the menu seem "reasonable and affordable". Most people are reluctant to order the most expensive menu selection that's why it is important to add this new one so you can sell more of the original menu selections.

5). Decrease portion size. Consider decreasing your price and serve a smaller portion. Another clever way is to offer "Seniors" portions. Rework the price for a smaller portion with the appropriate margin. This also reduces the number of FREE doggy bags you give away.

5.5). If and only if all the above has been implemented, make increases to your existing menu in small & frequent amounts. Small amounts over an extended period of time often go unnoticed.

The Power of Thank You

     What a simple little phrase that makes a huge impact on the dining experience of your guests. I am always amazed how often restaurant folks forget to say Thank You. Unfortunately thank you has become all too uncommon these days.
     Think of a time when a staff member thanked you for your business. I bet you felt all warm and fuzzy. You probably smiled a little bigger and the birds chirped a little sweeter. That's because some one made you feel special. That person created an experience that was extremely memorable.
Do your guests leave your establishment with that same warm and fuzzy feeling? Did you create a memorable dining experience that will make your guests raving fans? Will they tell the world of your Legendary service?
     Now, how about your staff? Do you thank them often? Do you catch them doing things approximately right and acknowledge their effort with a thank you? Did you know that when your staff feels good about themselves they perform better? Doesn't it make sense that a happy staff does more to enhance that Legendary Dining Experience that I discussed in my earlier blog?
Take one minute today and thank some one whether it's a customer, staff member, or vendor and thank them for something specific that they do. Nothing builds a better attitude than gratitude!

Now, go make the world awesome!