#1 Challenge: Not Having Enough Capital: Decrease Restaurant Overhead (Part 2)
Nov 04, 2023
Low To No Budget Advertising And Marketing Options
Trying out many advertising solutions and free marketing techniques can result in a big improvement in your restaurant sales and help you offset your restaurant’s overhead costs.
Free Restaurant Marketing Ideas
There are many free and low budget ways to endorse your restaurant, which can help you increase brand awareness while interacting with your local community. Check out some of the options below:
- Host Karaoke and Open Mic Nights
- Feature Special Trivia Events
- Implement a Customer Happy Hour
- Add Bar Games to Your Space
- Start an Online Blog for your Business
- Register Your Restaurant with Google My Business
- Social Media Marketing
Social media is an excellent way of brand marketing you can use anytime to reach a much wider audience. With media sites like Facebook, Twitter, and Instagram, you can post pictures and videos of your delicious food to introduce and entice people into your restaurant.
Social media also allows you to inform customers of updated menu items, daily specials, and upcoming events at your restaurant. When you interact with your customers and reply to their questions, you are reaching out to all of their followers and connections, potentially bringing in new business.
Online Reviews
Review sites like Yelp, TripAdvisor, and Zomato can have a major effect on your business and help you bring in more customers. Many people use online review communities to help them make decisions, which means that getting more reviews on your site’s page can actually help your business. Here are some tips to keep in mind with dealing with reviews:
Respond appropriately to negative reviews. Among positive reviews, there are bound to be a few negative reviews as well. It is best to treat reviews the same as dissatisfied customers – by offering your apologies, a refund, or a free meal. Avoid deleting negative comments or try to coerce reviewers to give you a more likable review, as this is more likely to end badly.
Let the reviews come in naturally and have your service and food speak for itself. When you are asking for good reviews, this can easily seem desperate and may make customers distrust all your other online ratings.
Overhead costs take away a meaningful amount of your profits each month, but managing and controlling your expenses is always possible, and it can help you boost profits and sales as well. It is best to consistently monitor and track your spending while keeping an eye out for cost-saving opportunities where you can.
A common problem for many restaurants is poor cash flow. Credit cards and credit lines with suppliers may not be enough to carry business that far out. At the end of the day, restaurants still need enough cash in the bank to make up for their overhead expenses. If your restaurant is under a cash flow problem as such, it’s important to take steps and actions that will either increase cash flow or decrease overhead costs (or preferably both).
Increase Restaurant Cash Flow
The number one way to increase a restaurant’s cash flow is to, of course, increase restaurant sales. This is much easier said than done, but it isn’t impossible either. You can ramp up your advertising with little to no budget, using social media sites like Facebook or Instagram. You can also host various restaurant events and promotions, like two-for-one dinner nights, unique daily specials or affordable meal plans to lure in budget-conscious guests.
There are times where you need to spend some money (albeit, not very much money) to make some money.
Decrease Restaurant Overhead
If you realize that your restaurant sales are making up for your monthly expenses, it’s the best time to start cutting down from inventory, payroll, and other business areas. Monitor your menu usage and see if there are items that aren’t selling just as great. By decreasing your menu you can limit the amount of inventory you need to order each given week. This not only helps you reduce waste but also saves money as well. If certain days of the week are slow, like Monday dinners or Tuesday lunches, you can reduce the number of staff on the job – from either on the floor or in the kitchen, or both.
Now is a good time for the restaurant manager or owner to work some overtime (that’s why you keep them on salary and not hourly).
Most importantly, be proactive about asking for help. If you know, you are going to have a hard time making the month’s mortgage payment on time, inform your bank and ask for an extension. Most of all, they do not want you to go out of business. They may extend your deadline or even restructure your loan plan, to assist you in making ends meet.
Do you have any questions or need help you lower your overhead expenses?
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