April 4, 2020

Restaurant Revenue Formula

There is a formula for restaurant sales. The formula is guest count multiplied by per person average, which is the amount that each guest spends.

If you want to increase restaurant sales, you need to work on increasing at least one of the two parts of the equation.

And if you increase both, you will see your restaurant sales skyrocket.

For example, let’s say that you increase your guest count from 100 people to 150 people per day. The amount that each guest spends is $25 and that amount stays the same. Based on those numbers, your daily revenue would increase from $2500 to $3250, a $750 daily sales increase.

On the other hand, let’s say that your guest count stays at 100. However, the amount that each guest spends increases from $25 to $30. Your revenue would increase from $2500 to $3000 per day, a $500 increase. Still a very good increase!

Now, let’s say that your guest count increases from 100 to 150 and you are able to increase the amount that each guest spends from $25 to $30. Your revenue would jump from the original $2500 daily revenue to a hefty $4500. That’s $2000 more in daily revenue and almost double what your sales were before. Amazing!

When working on increasing restaurant revenue, I highly recommend you focus on one part of the equation first instead of working on both at the same time. This will help you create small, bite-sized tasks for yourself and your staff, allowing your team to have a common, focused gola instead of scattered thoughts.

Once you see the consistent change in your numbers, you can move on to the next strategy of increasing guest count or guest spend.

The question is which one will you work on increasing first?

Today I am going to share every single way you can increase your restaurant’s sales.

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Wilson Muh


Wilson Muh

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