Your Beverage Menu Can Help Your Average Cheque Size
By Dwayne Reno
Firstly, the BBA team would like to say happy Easter to everyone! We hope you all enjoy today with your friends and family.
With limited foot traffic to go around it has become more important than ever before for foodservice operators to find new ways to generate higher cheque sizes from their customer base. Many large chains are generating foot traffic with their beverage menus. This is because drinks are much more profitable then food. Taco Bell’s chief marketing officer, Brian Niccol told the associated press “The more often you can sell a drink, the better you feel about providing discounts on other items.”
Also beverages can help your restaurant, bar or café attract more customers during off peak hours. This week I let's take a look at your beverage menu and why it's important to your average cheque size.
Beverage sales are good for business
Revenue from alcohol sales should fall between 25 – 30 per cent. Maintaining this number is important because if food costs are not properly managed many food items will sell for little or no profit. Revenue from drink sales can help your business remain profitable if this happens so set realistic targets that will help your location reach this figure. If you find that your alcohol sales are below this average try introducing non-alcoholic beverages to stimulate beverage sales.
Non-alcoholic drink creations and mocktails can help to drive your drink revenue up. Also, beverage sales can help to drive traffic to your location during off peak hours.
Non-alcoholic beverages can generate revenue
Hot beverages such as tea and coffee continue to be popular among restaurant customers. Since customers continuing to respond well to new beverage introductions many restaurants have started to add juice pairings and non-alcoholic matches to their beverage menus. This is also a great way to appeal to designated drivers, pregnant mothers and under-age dinners.
Beverage sales at large franchises
Large chain operators continue to grow their average cheque size due to new beverage introductions. Taco Bell has started the “Happier Hour” where from 1-5pm customers can purchase any drink from a selection of specialty and fountain drinks. In recent years MacDonald’s has positioned itself as one of the leading coffee brands in Canada. Sales of the hot beverage have been so good that the fast food chain has recently opened a McCafe Express in Toronto’s Union Station, here.
Beverage sales have been driving foodservice revenues for years and will continue as foodservice operators continue to find new ways to increase cheque averages from low customer traffic. If you would like to know more on how Building Block Associates can help you increase average cheque sizes and supply your location with teas, coffees and much more, here.
Until next time your customers want to know why they should spend money at your restaurant, bar or cafe. So give them the goods!
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Dwayne Reno CEO & Founder
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