What is restaurant yield management?
Perhaps you are concerned by this phenomenon or you may have observed it …
An empty or half-full restaurant, a restaurant that refuses customers when it is full, identical prices whether the restaurant is full or not….
You are therefore concerned by this new article which will explain what yield management is and what it can bring you!
Yield management is selling the right product at the right time to the right customer.
It is a type of flexible price management that optimizes its filling and total revenue with the objective of maximum yield.
This system makes it possible to fill establishments even at the last minute, while retaining a margin allowing the optimization of turnover.
Yield Management restaurateurs offer prices that vary depending on when the customer books their table and allows more reservations to be made at peak times of the week or at certain times of the year when the activity of the restaurant is weaker.
Concretely, Yield Management in restaurants should allow you to:
– fill your restaurant,
– generate the least possible loss of food
– and to optimize the presence of your room staff as well as kitchen staff as much as
possible if you want to make the most of your establishment.
As in the hotel industry, a precise analysis must be carried out and certain criteria must be taken into account:
– Attendance at your restaurant: Which days are the most “hollow” and which days are the most frequented
– The number of covers according to the services: Do you make more covers during the midday, evening or both service?
– Do all of these averages repeat every week, every month …
– The dishes you sell should also be given great attention. Are certain dishes on your menu more appealing than others? Do you offer special menus or formulas and what is their level of success?
Here are some latest recommendations and ideas that you can put in place :
– Remember to offer discounts on a certain number of tables. For example you can offer promotions (50%) on a limited stock and during a fixed schedule. For example if you know that between 7 p.m. and 7:30 p.m., you have few customers, either offer a 10% reduction or you offer a product if the customer arrives in a specific time slot.
– Offer menus at special prices a little more expensive than your usual addition to increase your profits on certain days or special holidays which allows you to better profit from the most requested services and boost bookings.
– Reduce the no-shows (person who does not honor his reservation). Indeed, it is a real plague for restaurateurs. This is why more and more restaurateurs are asking for a credit card imprint with a sum withdrawn if the customer does not come without canceling in advance.
– Use sms and emails to confirm reservations with the day and time of arrival and the number of people.
– On busy days, organize your service to save time. For example by straightening the tables as quickly as possible (straightening equipment in the room available immediately)
– Expand the catering offer by offering additional “moments” of catering in other niches than those usually offered. : brunch, tea-time, happy hour…
You understood that to improve the profitability of your restaurant, set up a yield management policy.
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