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Restaurant sales are hardly consistent. Season, competition, the economy, and a multitude of other factors may all influence how many customers visit your restaurant. So restaurant owners are constantly looking for ways to boost their restaurant sales.
With COVID-19 reducing foot visitors and restaurant sales, it has become increasingly important to adopt strategies that attract more customers to enable an increase in revenue.
If you’re looking to increase your restaurant’s sales, this article will give you tips on what you can do to achieve your aim.
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How to Increase Your Restaurant Sales
The following are effective tips and modern ways to boost your restaurant sales.
1. Upgrade Your Upselling Skills
Upselling means swaying customers to boost their current purchases or buy more items. If you want to increase your restaurant sale, train your servers to offer or suggest add-ons to customers.
For instance, if a customer orders pizza at the counter, your salesperson can ask if he needs fries and cola along with it. This can persuade him to order a combo instead of the initial pizza.
2. Offers Variety of Services
Device creative ways to offer your services to meet different customer needs. For instance, many customers do not have the luxury of time to seat in for a meal.
The following are ways you can diversity your services and increase your restaurant sales:
- Providing curbside pickup to quickly deliver to your customers. With this, they don’t have to waste time stepping into the restaurant.
- Creating a menu that is dedicated to takeout and delivery
- Implementing a fast delivery service system
- Creating a drive-thru window that allows customers to purchase products without leaving their cars.
- Keeping your drive-thru window area stocked with the items you need to serve customers quickly.
3. Leverage Word of Mouth Promotion
Your existing customers can help boost your restaurant sales. If you treat them well, they’ll reciprocate by spreading the word about how good your restaurant is.
One way to do this is by recognizing your customers when they visit your restaurant. Acts like addressing them by their names or remembering what they bought the last time, will make them feel valued.
You can actually get such information from your customer database. This can make them recommend you to family and friends.
4. Use Smart Table Turnover Style
No lingering and no lazing around. You have to increase the number of customers served in a day. You can achieve this by instantly sending placed orders to the kitchen. Make sure prepared orders are promptly served.
In addition, checks should be presented and collected on time. Once a customer leaves, the table needs to be cleared and reset immediately. This helps you turn tables quickly and create room for new customers.
5. Optimize Your Menu
You can optimize your restaurant menu by renaming a classic item. Similarly, present the most popular dishes to your customer first on your online menu.
Remember to keep your dish description to the point. Do not cloud them with unnecessary words. You can also use upselling techniques on your restaurant menu to attract customers and increase your restaurant sales.
6. Provide a Loyalty or Reward System
Customers love incentives! It keeps them coming back. There are different ways to keep loyal customers. However, you have to think about your budget, the type of restaurant you run, and your personal preference.
One way is to create a membership card that tracks each time a customer visits your restaurant through your POS system. This way, customers get free items after a certain number of patronage.
You can also offer small gingerbread donuts, liquor chocolates, or small cranberry-apple gravy to satiate your customers’ tastes during festive periods. This makes them feel appreciated.
7. Increase Both Local and Online Marketing Efforts
The following are ways to increase your restaurant sales through marketing:
Local Marketing
It is important that you create awareness about your restaurant in the community. You can achieve this through the distribution of flyers and pamphlets.
Local marketing helps you reach different kinds of people, including the aged and those who are not tech-savvy. Hence, it might be helpful to also advertise in newspapers too.
You can also see 27 Websites To Sell Stuff Locally And Online
Email Marketing
Email marketing has gained ground in recent years. This kind of marketing helps you promote products or services while nurturing a long-term relationship with your customers. This will enable you to increase your restaurant sales.
You can make use of email marketing services like Mailchimp, ActiveCampaign, and MailerLite. There are also open-source free self-hosted email marketing options.
You can distribute periodic newsletters to all your customers to keep them informed on all the new happenings at your restaurant.
SMS Marketing
SMS marketing is a sure way to create a short-term relationship with your customers. You can use it to garner additional sales to boost your restaurant sales.
Through SMS marketing, you can send offers to all the customers from your database. These messages can also contain links to your online ordering site.
Social Media Promotion
Almost everyone including your customers is on social media. It’s crucial to be where your customers are. Hence you need to have a strong social media presence.
Make sure you set up Facebook, Twitter, and Instagram accounts. You can promote your daily specials on these pages. Remember to regularly update your customers about upcoming events in your restaurant.
It, is also important to set up a free social media management tool. This will help you monitor the activity and engagement on your channels. You can use social media tools like Hootsuite, Zoho, and Social Sprout.
In addition, you can use your pages to notify your customers about changes. Such changes include the timings of the restaurant or changes in the menu. You can also use it to make announcements regarding special offers or discounts.
8. Offer Online Order
Currently, many people prefer ordering food from home to going out. Hence offering online food would boost your customer base and increase your restaurant sales.
You would need a website or customized app where your customers can see your menu and place orders. Keep your site and menu organized and simple. Don’t forget to upload and update photos and short videos of your delicacies.
Remember to respond immediately to orders and queries. Good management of the entire operation is key. These responsibilities can be handled by your online business manager.
Occasionally, you might update your customers with video clips of hot apple pies or hamburgers from your restaurant. Remember, speedy delivery can boost your customer ratings.
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9. Claim Your Business Page on Google My Business
It is important to list your business on Google with a free Business Profile. This will convert people who find you on search and maps into new customers.
To claim your google my business profile, you have to add your business through Google maps. How to add your business through Google map:
- Sign in to Google maps on your device.
- Then enter your address in the search bar.
- On the left, in the Business Profile, click “Add your business.”
- Follow the on-screen instructions to finish signing up for your business profile.
After adding your business profile, follow the steps below to claim your business through Google
- First, open Google Maps on your device.
- Next, enter the business name in the search bar.
- Then click on the business name and choose the correct one.
- After that, claim this business. Select “Manage now.”
- Now select a verification option, and follow the on-screen steps.
Your business page on Google also gives your customers the opportunity to give you positive reviews. This will help increase your restaurant’s sales. Also check out other local business directories that might be of use to your restaurant.
10. Sell Branded Products
Many people love to display branded merchandise. From phone holders to tea tools and even flip flops, the options are many.
However, this would require some upfront investment and budgeting. In addition, you’ll need to carry out some research on what the product would be. Keep your customers in mind.
More so, asking your customers and collecting their views would definitely pay off. You can also start with a small quantity to test the market. This would surely increase your restaurant sales if properly done.
11. Offer Quality Service
Quality service consists of good food, good service, and a good customer experience. If your restaurant lacks any of those, then other efforts will yield nothing.
12. Encourage Employee Growth
In addition to quality service is employee growth. Your workers are the restaurant’s ambassadors. Hence, you can motivate them with incentives, training, and inclusiveness.
How Much Are Restaurant Sales Taxes?
Restaurant sales taxes come on multiple fronts. It all depends on how profitable the restaurant is, where it’s located, the size of the property, and the number of employees.
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The following are Various Restaurant Sales Taxes
Federal Income Tax
Federal income tax is placed upon your business and personal income. Income taxes are based on your restaurant’s net income. If your company makes less than $50,000 a year, your restaurant sales tax would be 15 percent of your income.
Similarly, companies that make $50,000 to $100,000 pay 25 percent. More so, sales taxes for $100,000–$10 million is 34 percent, while companies that earn more than $10,000,000 pay 35 percent.
Tax on Restaurant Tips
Aside from income taxes, you also get to pay restaurant taxes on tips that employees receive from customers. To get the exact amount to be taxed, you’ll need to record both cash tips and those logged in the restaurant POS.
However, if a server makes less than $20 per month, they don’t need to report it. You can get more information the from IRS official page on taxed tips.
Payroll Tax
You are also required to pay the taxes on your employee’s wages. This tax covers cover things such as Medicare, Unemployment, and Social Security. You can be taxed an amount ranging from 2.9 percent to 12 percent.
The amount you withhold from an employee’s pay depends on the employee’s work duration and pay rate. Be sure to remit the payroll tax on time.
Health Taxes
Health taxes are levied on products that have a negative public health impact. Examples of such products are cigarettes, alcohol, and sugar-sweetened beverages.
The aim of this taxation is to reduce the consumption of such products. Hence, if you sell such products, it could be a part of your restaurant tax depending on your location.
Also Read: Local Small Businesses: 2023 Most Profitable Small Business
Restaurant Sales Tax By States
The following is a list of different states and local restaurant tax rates in the US. See the list of three states with the highest average local restaurant tax rates above.
| State | State Tax Rate | Average Local Tax Rate | ||
| Alabama | 4.00% | 5.22% | ||
| Alaska | 0% | 1.76 | ||
| Arizona | 8.40% | 5.60% | ||
| Arkansas | 9.47% | 6.50% | ||
| Califonia | 7.55% | 2.97% | ||
| Colorado | 2.90% | 4.75% | ||
| Connecticut | 6.35% | 0% | ||
| Delaware | 0% | 0% | ||
| Florida | 7.05% | 6.00% | ||
| Georgia | 4.00% | 3.31 | ||
| Hawaii | 4.00% | 0.44% | ||
| Idaho | 6.00% | 0.03% | ||
| Illinois | 6.25% | 2.83% | ||
| Indiana | 7.00% | 0% | ||
| Lowa | 6.0% | 0.94 | ||
| Kansas | 6.50% | 2.18% | ||
| Kentucky | 6.00% | 0% | ||
| Lousiana | 4.45% | 5.07% | ||
| Maine | 5.50% | 0% | ||
| Massachusetts | 6.25% | 0% | ||
| Maryland | 6.00% | 0% | ||
| Michigan | 6.00% | 0% | ||
| Minnesota | 7% | 0.07% | ||
| Montana | 0% | 0% | ||
| North Carolina | – 4.75% | 2.22% | ||
| North Dakota | – 5% | 1.85% | ||
| New Hampshire | 0% | 0% | ||
| New Jersey | 6.625% | – 0.03% | ||
| New Mexico | 5.125% | 2.69% | ||
| New York | 4.00% | 4.54% | ||
| Nebraska | 5.50% | 1.43% | ||
| Nevada | 6.65% | 1.43% | ||
| Ohio | 5.75% | – 1.42% | ||
| Oklahoma | – 4.50% | 4.44% | ||
| Oregon | 0% | 0% | ||
| Pennsylvania | 6.00% | 0.34% | ||
| Rhode Island | 7.00% | 0% | ||
| South Carolina | 6.00% | 1.46% | ||
| Tennessee | 7.00% | 2.53% | ||
| Texas | 6.25% | 1.94% | ||
| Utah | 6.10% | 1.08% | ||
| Virginia | 5.30% | 0.35% | ||
| Vermont | 6.00% | 0.22% | ||
| West Virginia | 6.00% | 0.41% | ||
| Washinton | 6.50% | 2.71% | ||
How to Calculate Monthly Restaurant Sales Tax
Generally, you would need to contact your sales tax agency to find out your tax rate and taxable items. The following are specific steps you can take to calculate your restaurant sales tax:
- Determine the tax rate for your city and county.
- Differentiate between taxable and non-taxable items you sell.
- Add up the sum total of all the taxable items sold in the restaurant during the month.
- Multiply your sales tax rate by the sum total of all taxable items sold during the month.
- Fill out the sales tax forms for your state.
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Conclusion
The restaurant business is quite competitive. However, investing your time and little money in modern strategies will help increase your restaurant sales.
It is also important that you understand the different taxes you need to pay. The federal, state and local governments have different rates. It all depends on your location.
Few states and local governments charge 0% tax rates. Having this knowledge will help you when planning to boost your restaurant sales. It is also okay to seek the services of an accounting manager if you are not friendly with numbers.
Frequently Asked Questions on Restaurant sales
What is the sales tax on restaurant food in Atlanta Georgia?
4%
Restaurant sales tax in Georgia equates to the general 4% state tax rate. This tax will be collected on the sale of food.
What is NYC restaurant tax?
About 8.875%
In New York State, the tax rate for processed food is 8.875%.
The following are the five best social media platforms for restaurants
- Youtube
6 ways to use social media to promote your restaurant
- Create a social media account
- Create a mobile app or website
- Leverage on visual content
- Offer coupons online
- Host online media webinar
- Write educative blogs
How to increase sales for your restaurant
- Improve Your Upselling Technique
- Diversify Your Services
- Turn Your Existing Customers Into Promoters
- Maximize the Table Turnover
- Optimize Your Menu
- Provide a Loyalty or Reward System
- Increase Both Local and Online Marketing Efforts
- Offering Online Order
- Claim Your Business Page on Google My Business
- Sell Branded Products
- Offer Quality Service
- Encourage Employee Growth
What is the sales tax on restaurant food in Atlanta Georgia?
4%
Restaurant sales tax in Georgia equates to the general 4% state tax rate. This tax will be collected on the sale of food.
What is NYC restaurant tax?
About 8.875%
In New York State, the tax rate for processed food is 8.875%.
Which social media platform is best for restaurants?
The following are the five best social media platforms for restaurants
- Youtube
How to use social media to promote your restaurant
6 ways to use social media to promote your restaurant
- Create a social media account
- Create a mobile app or website
- Leverage on visual content
- Offer coupons online
- Host online media webinar
- Write educative blogs
How to increase sales for your restaurant
- Improve Your Upselling Technique
- Diversify Your Services
- Turn Your Existing Customers Into Promoters
- Maximize the Table Turnover
- Optimize Your Menu
- Provide a Loyalty or Reward System
- Increase Both Local and Online Marketing Efforts
- Offering Online Order
- Claim Your Business Page on Google My Business
- Sell Branded Products
- Offer Quality Service
- Encourage Employee Growth
References
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