December 02, 2016

Riskaurants: Cocktail Lead Restaurant Recoveries

We owe the people running restaurants a lot, after all they feed us, quench our thirst and provide respite from a day that was or still is.

 
On the flip side, the business of food is highly risky, the factors making it so are: 
  • Labour and ingredient costs are high
  • Long hard hours
  • Negligible returns
Selling wine and beer to most restaurants is a critical component in generating incremental income, with less effort and greater return than serving food and therefore is a key driver of profits.
 
Depending on restaurant, food to alcohol sales can be dangerously low, weighing in at 80/20 to 90/10 in many Asian countries. 
 
In Western counties sales ratios ranging 70/30 and 80/20 are more common.
 
To many restaurants a golden revenue opportunity is being lost by either not having a cocktail offer or having one that’s so old school that no one orders them.
 
In any business diminishing risk is what it’s all about, for those that don’t or don’t really maximise the opportunities of offering cocktails, better pay attention.
  
Plating and serving food takes time, effort and money by comparison, serving a quality cocktail takes less effort, time and product costs to return Gross Margins of over 80%.
 
Many restaurants price cocktails at around the same price of starters (entrees).
 
Imagine the dramatic impact on your business if you could serve in $ equivalent terms double the value with a starter/cocktail combo. Most likely the 2 together would generate more $ than the sale of a main meal by itself.
 
Too many restaurant businesses leave money on the counter.. take the risk out of Riskaurant by offering or upping your cocktail offer.