Recession proof your restaurant by booking more private events
As an event consultant, one of the most rewarding experiences is convincing restaurant owners to finally prioritize private events. After all, events are the low-hanging fruit of the industry. And by not having an event strategy in place to easily book events, you are leaving behind four major benefits and significant impact your bottom line.
Higher Profit Margin
In an industry known for slim profit margins, private events offer a remarkable opportunity to double your average profit margin. By breaking down the four key factors—lower food costs, lower beverage costs, reduced staffing expenses, and upselling opportunities—we uncover how hosting private events can significantly boost your profitability. With precise ordering for events, you can optimize your food costs and increase the margin between what you spend and what guests pay. Open bar options also prove highly profitable, as the majority of the time, the house wins. Furthermore, staffing can be tailored precisely to the event, minimizing costs. Lastly, leveraging upsells from your event community enables you to generate additional revenue with zero effort or expense.
Private events provide a unique advantage of advanced sales for restaurants. Corporate events, wedding receptions, and other celebrations are often planned months in advance, resulting in customers securing event dates by providing a deposit. This upfront payment guarantees revenue and offers valuable financial stability. With advanced sales, you can confidently forecast your revenue and make informed decisions regarding staff hiring, upgrades, or other investments, ultimately improving your overall business operations.
Every private event held at your restaurant offers a tremendous opportunity for free marketing. Think about it, events are not for just one person. Each new event client is bringing their community to you. Their guests get to experience your restaurant, taste your food, and witness the exceptional service you provide. These attendees become potential customers for future events, spreading positive word-of-mouth and increasing the likelihood of repeat business.
During recessions or an economic downturn, the trend is for large private events become even more popular at restaurants. People still need to celebrate weddings, host corporate gatherings, and organize special occasions, but they often seek more cost-effective alternatives. So instead of going with the lavish ballrooms, they look to restaurants like yours to host their event. This trend allows you to diversify your revenue streams and provides higher profit margins, offering a much-needed buffer against economic uncertainty.
Private events hold immense potential for restaurants, offering higher profit margins, advanced sales, free marketing, and resilience during economic downturns. By capitalizing on these benefits, you can significantly boost your restaurant’s financial health and decrease your anxiety. The first step is getting a solid event strategy or process in place. One that is clear, efficient, and repeatable. And even better, one that is done for you by a top event consultant. Click here to start!