Adding Another Revenue Stream: Offering Retail Sales
In the restaurant and bar industry we work with very slim margins, so any method of increasing our revenue is worth considering. Retail sales are an underused revenue stream in the restaurant and bar industry, and -no matter what you might be thinking- it has a broad range of applications, of which at least one or many may be applicable to your location.
What to Sell?
What items you sell need to be specific and unique to you, whether that be branded merchandize, or items used in or related to your location. Besides the increase in sales you’re looking to sell items which also represent you and will remind the purchaser of your location.
Branded Merchandize – The obvious, and often go-to, item for when people wish to push retail sales. But these types of items don’t work for all types of establishments, for example, a fine dining restaurant is unlikely to sell branded t-shirts and caps, however a beach bar, or a restaurant located in a tourist destination could sell branded merchandize successfully.
Food Products – Not actual food -you already sell that- but if you make any dressings, rubs, marinates, coffee beans, breads, pastries, etc, for your menu items, selling these for people to use at home could provide a good revenue stream; especially if “made-in-house” is what your brand is known for. You can even sell other items that you have on your menu, i.e. cheeses and cured meats.
Flatware, Silverware, and Glassware – There are many different restaurant concepts out there today, and each is trying to stand out in their own way. Unique flatware, silverware, and glassware have been excellent in helping these unique concepts stand out and these items have caught the customer’s interest; with some customers even offering to buy these items, only to be let down. If you serve tiki drinks in funky glasses, have them posted for sale; if your bowls, plates, and cups are unique you might want to make them available for purchase.
The Above are common, adaptable, and brand relatable items which you could sell from your location. Some restaurants around the world have had great success combining their restaurant venue with retail spaces, selling items related -and some entirely unrelated- to their business. Coffee shops that are located in bookshops, restaurants that also incorporate florists and many other ideas have been successfully trialed, it’s all about if and how you can make it work.
How to Sell
What you choose to sell will affect what methods you use to promote these items. Mentioned above were restaurants which have incorporated retail spaces into their environment, alas, for most already existing venues, this option is unavailable, and, thus, we must result to other means.
Displaying Items – If you’re selling branded items, like t-shirts and hats, placing a few up behind your bar will definitely grab customer’s attention and let them know of your offerings. If you sell your tiki glasses, put a sign on the shelf next to them along the lines of: “For Cocktails and For Sale!”
On the Menu – Your menu is where you put all the other items that you sell so why not put these items there also. Items like T-shirts, maybe not, but having a side note on your cocktail page mentioning that your cocktail glasses are for sale, or by your salads saying that you sell your home-made salad dressings are definitely good ideas.
Verbalize it – If a guest mentions that they like your glassware, or that your salad dressing or steak rub was “amazing!” make sure your servers and bartenders are trying to upsell those products to those guests. Catching a guest on a high point such as this is often a good catalyst for a sale.
Introducing retail sales to your venue adds another revenue stream that comes with benefits that many other products you sell don’t. Retail goods can often be non-perishable and, whatever products you sell, retail sales also allow you to push your brand name and brand reach further than ever before. Involving your employees in the selling process also gives the an extra incentive to push sales and increase their check average.
