Strategy to Increase Restaurant Revenue When It’s Closed

This is a simple technique that lets you increase a restaurant’s revenue by using the hours it stays closed.

I tried it at one of my restaurants back in 2012, and it was so profitable that we are still running it today. We copied the model at 3 more restaurants and the effect was the same: we generated more revenue by using the hours when the restaurants are closed.

Strategy details

In our case, we specialize in restaurants that only serve from midday through the evening. I never liked the idea of offering breakfast, and to this day none of my 10 restaurants offers it, because if we did we would break the whole break schedule we have coordinated for the work teams at each one. Besides, we don’t like it, and I have always believed that the important thing about a job or an activity is that you enjoy it.

Starting at midday gives us an excellent window of time when the place is closed. Practically from 7 in the morning until about 11 am you can do “something”.

So we started developing seminars and training sessions, where a specialist in a given topic offers his knowledge and experience to people in his field who are interested in acquiring new skills.

But how did we keep attendees from getting a bad impression because the training sessions were going to be held in a small restaurant?

We made a combined concept. The sessions are training-plus-breakfast sessions, meaning attendees were entitled to food, and it was already included in the price of each session. Simple… it was the best “excuse” to hold them in a restaurant… when in reality we only wanted to generate more revenue, taking into account that we pay the rent, which naturally includes the morning hours while the place was closed.

Does it work?

Of course it works, and very well.

You have to work on promoting the events among the people who work in the sector and among university students in related fields.

In our case, the sessions cover highly specialized topics in corporate communication, service marketing, human resources, strategic management, among other topics.

Naturally, the restaurant plays a secondary role; it is only “the one who provides the venue.” The spotlight goes to the expert or group of experts who lead the promotion of the service.

Does it generate good revenue?

Yes, that is why we keep doing it. To give you an idea, the sessions or seminars we offer usually last 3 or 5 days; on average we hold between 5 and 6 sessions per month.

On average, each restaurant brings in extra monthly revenue ranging from $4,000 USD to $7,000 when the sessions are for more specialized sectors. Naturally, the total revenue is much higher, but our share is between 40% and 45%.

Without a doubt, it is a strategy I recommend implementing: it lets you get the most out of the venue and increases your restaurant’s final revenue.