Are you tired of watching your restaurant’s profits cool down during slow periods? It’s time to turn up the heat with a ‘Hot’ Shelf Strategy. In this blog post, we will explore how to boost your restaurant’s busy periods with a hot shelf strategy.
What Does “Hot” Mean in RRM?
In Restaurant Revenue Management (RRM), “hot” times refer to periods when demand exceeds supply. Picture a busy restaurant packed with eager diners, but only a limited number of dishes available. The main aim is to make the most of this surge in demand. This involves two key strategies: prioritizing high-value orders and making the most efficient use of the restaurant’s capacity to serve as many customers as possible. By doing so, the restaurant can maximize its revenue during peak periods while ensuring a great experience for its guests.
3 Ways to Boost Your Restaurant’s Busy Periods with a ‘Hot’ Shelf Strategy
- Catering to High-Value Demand
Airlines and hotels have long utilized RM systems to prioritize high-value customers during peak times by restricting lower-priced options. This ensures premium customers get priority. Quick-service restaurants can also benefit from this strategy.
- Skip the Discounts: Avoid promotions during busy times; save them for quieter periods when customer attraction is needed.
- Leverage Loyalty Programs: Regular customers are invaluable. Use loyalty programs to offer exclusive deals or priority access during peak hours. For instance, provide a secret menu to your highest-value guests.
- Channel Management: While first-party orders are ideal, third-party platforms are inevitable. Tools like ChowNow or Olo help manage these channels effectively, prioritizing high-value orders.
- Maximizing Capacity
To fully take advantage of ‘hot’ periods, streamline every aspect of your operation:
- Setup: A well-organized start sets the tone for success. Your restaurant layout should ensure smooth movement for both staff and guests. During peak times, offer a limited, profitable menu. Tools like DynamEat help focus on high-profit items that can be quickly prepared. Also, proper staffing must be ensured, especially during peak hours, using labor scheduling software like Sling, 7Shifts, or Restaurant365.
- Ordering: Speed is crucial in the fast-food industry. A user-friendly interface is essential for online orders. Kiosks are trendy and efficient for walk-ins, with Touch Bistro reporting kiosk ordering can be up to 40 percent faster. Drive-thrus, if well-managed, can be highly profitable. For example, Chick-fil-A has the fastest drive-thru service among major chains. AI deployment can further accelerate service, reduce labor costs, and increase average check size.
- Order Production: A smooth front-of-house operation means nothing if the kitchen is chaotic. Organized stations, clear communication, and efficient technology integration are vital. Consider pre-prepping certain items or off-premise production for items requiring longer preparation times. Service Physics has helped restaurants decrease wait times by 33 percent and increase pizza production from 38 to 54 pizzas per half hour, significantly impacting revenue.
- Order Fulfillment: Ensure a seamless handover of ready orders to customers and delivery drivers, whether at the counter, drive-thru, or pick-up point. Toast provides valuable tips for this process.
- Evaluation
Regularly pause to assess your performance. Are you meeting your targets? Key performance indicators such as speed of service, order accuracy, profit margins, and customer feedback offer valuable insights.
Navigating the “hot” periods in the fast-food industry can be challenging but also presents a significant opportunity. The essence of Restaurant Revenue Management is to maximize profit by optimizing available resources. Whether using menu design and pricing tools or specialized ‘hot’ and ‘cold’ shelf strategies, the ultimate goal is optimal profit.
How Packaging Strategy Can Help?
Adequate packaging is critical to any successful restaurant operation, especially during peak periods. Here’s how an intelligent packaging strategy can enhance your restaurant’s performance:
- Optimized Food Presentation: Packaging isn’t just about containing food; it’s about presenting it in the best possible way. Choose packaging that keeps your dishes fresh and visually appealing, even during busy periods. Crisp salads, piping hot pizzas, and decadent desserts should all arrive at the customer’s table looking as irresistible as they do on your menu.
- Efficient Delivery: Restaurants offering delivery services must invest in durable packaging to ensure that meals arrive intact and ready to eat. These solutions maintain temperature and prevent leaks or spills, guaranteeing a positive customer experience every time.
- Branding and Marketing: Your packaging is an extension of your brand. Use it as an opportunity to reinforce your restaurant’s identity through custom designs, logos, and slogans. Eye-catching packaging enhances brand recognition and serves as a form of free advertising as customers carry your branded bags and containers with them.
- Sustainability: In today’s eco-conscious world, sustainable packaging is more than just a trend – it’s necessary. Choose biodegradable or recyclable materials whenever possible to reduce your restaurant’s environmental footprint and appeal to environmentally conscious consumers.
In Need of a Trusted Packaging Company? SupplyCaddy is Here!
SupplyCaddy is a leading global manufacturer and supplier of packaging and disposables for the food service industry. With headquarters in Miami, Florida, and manufacturing facilities in North America and Europe, SupplyCaddy can provide high-quality, affordable products for restaurants, chains, and food service brands. Reach out to us at [email protected] to elevate your operations today!
