How to Make Your Franchise Restaurant’s Catering Business More Profitable
As a business owner, it’s your responsibility to save money everywhere you can while still delivering a top quality product. There’s no difference when it comes to catering, where you can increase profits through both cost cost savings and business growth.
Here are a few tried and true strategies to help make your franchise restaurant’s catering business more profitable.
Cater Better Events with Higher-Paying Clientele
While it’s nice to be known as the go-to favorite to cater a small business luncheon, catering for larger events such as weddings and conferences allows more opportunities for increased quantity, improved efficiency, and, of course, upsells.
Clueless about how to find better-paying customers? One option is to contact local event venues and work with them to offer discounts.
Offer Party Package Discounts
As you know, your franchise restaurant reaps larger profits on some items than it does on others. If you know your margin for side dishes is higher than your margin for meats, then you may wish to combine the dishes on your restaurant’s catering menu and offer them at a rate that allows you to maximize profit. That way, you can sell the customer the item you know they are going to need (i.e., meat for sandwiches) with an add-on they may have not necessarily considered ordering (such as sides of chips or cookies for dessert).
Even if these combos result in a slight discount as compared to what the customer would have spent ordering both items separately, you’ll likely make more money because you’re able to sell more volume as a result of the combo.
Offer Add-Ons Offer at Higher Price Points
Similarly, you can also offer add-ons to catering orders. If you’re starting with a standard option, you can offer a deluxe option that contains specialty items not available on your restaurant’s standard catering menu. For some restaurants, this may mean additional sauces or gourmet sandwiches, while for others it may mean including drinks and desserts instead of just the main items.
Try Referral Programs
If your customers are already raving about your franchise restaurant’s catering services, ask them if they’d be willing to refer you to friends and colleagues for either a small fee or a discount on a future order.
There are a number of digital referral programs out there, but simply picking up the phone and calling your biggest customers is one of the best ways to let them know about the offer. Position it as a thank you incentive to personalize the ask and get the maximum return on your efforts.
As you take on more catering orders, you may begin to find it’s more cost-effective to order certain items in bulk that you’d previously ordered in smaller quantities. While your catering business grows, make sure to regularly check your inventory to ensure you’re maximizing your product line.
At Catering Brand, we help companies optimize costs by offering a digital platform for taking catering orders and handling delivery logistics. Our tools help you save time and money by offering a hastle-free way to ensure deliveries are accurate and arrive at their destinations on time.
If you’re looking to increase profits on your catering business, follow these steps to ensure steady growth in your franchise restaurant’s catering services. And, if you’re looking for even more ways to spend less and make more, contact Catering Brand to learn how we help franchise businesses increase their profits.