“For full-service restaurants, an increased focus on strategies that drive check averages, such as promoting sides, appetizers, desserts and adult beverages can help to drive not just revenue growth, but also profitability, as many of these items have higher average margins than do the main entrées. Align the incentives of servers and line managers with selling activities that will drive profits.
For those not in the Top 100, unit growth remains important to drive to a position of better economies of scale. In addition, look hard at opportunities to improve processes in the back of the house. While smaller chains do not have the buying power of large chains simply due to size, they do have the opportunity to hold a tighter rein on operations due to size. For many chains, there is significant opportunity to take cost and inefficiency out in this area, which can be a major profit-driver…”
source: “Public Company Reports” by Technomic (MarketBrief, July 2006)
“MarketBrief provides chain restaurant operators with research-based analysis of key industry developments. Access to past issues is offered free of charge by logging into this section of our site.
MarketBrief is produced by Technomic, Inc., the leading provider of consulting and consumer research to the restaurant industry.”