It is no secret that the food service industry experienced significant hardships during the coronavirus pandemic. Many restaurants and cafes were forced to close due to restrictions imposed by public health officials. In Utah, restaurant owners faced the same struggles, highlighting the need for robust Utah restaurant insurance to protect financial assets. Now that the economy is recovering, surviving restaurants are seeking ways of boosting revenue. In this guide, we will explore several options for restaurant owners to generate new revenue streams, helping to speed recovery after a flat economic year.
The Case for Alternative Revenue Streams
As restaurants around the country closed or curtailed their operations in the wake of the pandemic, owners faced dire economic consequences. Thanks to innovative thinking and flexibility, however, some restaurants flourished even as others shuttered their operations. The key to surviving the pandemic meant identifying and capitalizing on alternative revenue streams. While some of these revenue streams began as stopgaps or emergency measures, restaurant owners have discovered that many of their efforts can be adapted to daily operations. In fact, alternative revenue has the potential to allow restaurant owners to reach new levels of profitability. Leveraging new opportunities is a powerful risk management tool that supplements the protection of Utah restaurant insurance; establishing alternative revenue streams hedges bets against an uncertain economic future.
Reinvention: Keys to Long-Term Success
Faced with steep economic and operational challenges during the pandemic, forward-thinking restaurant owners began to explore the concept of reinvention, or adding new services to their existing operations. Some of the most successful restaurant operations in the state of Utah implemented curbside pickup, contactless delivery options, and even make-your-own meal kits. Other restaurants added or revamped outdoor dining spaces that met public health standards for social distancing. Still others overhauled the entire operation, moving from dine-in to takeout and delivery only. In each of these cases, restaurant owners made the best of a bad situation by taking the time to determine which services customers really needed. One of the positive aspects of reinvention is that as customers grow to expect curbside services, takeout and delivery options, or outdoor dining, these alternative revenue streams can become a permanent part of restaurant operations.
Merchandising: Building Brand Awareness and Boosting Revenue
Every restaurant operation has its own unique style. Some of the most successful restaurants have developed a powerful brand; brand recognition is every bit as important as traditional print and online advertising. To get the most from brands and to boost awareness among consumers, many restaurant owners are exploring the idea of selling restaurant-branded merchandise.
Merchandise sales tend to have higher margins and can supplement or even replace existing revenue streams. If your operation is located in tourist areas, branded merchandise serves to provide visitors with souvenirs of their trip. For locals, branded merchandise can solidify a loyal customer base. Merchandise options can include:
- T-shirts
- Hats
- Coffee mugs
- Branded sauces and condiments
- Accessories
- Housewares
To get the most from this revenue stream, branded merchandise must be creative, must be of high quality, and must be displayed prominently within the establishment and online. Point-of-sale displays are a great way to stimulate impulse purchases of branded merchandise.
More Alternative Revenue Streams to Consider
Adding new services to cater to emerging consumer needs is a time-honored approach to building new revenue streams. So too is the sale of branded merchandise. Restaurant owners continue to seek ways of improving revenue, especially in an economy that is still struggling to recover post-pandemic. While Utah restaurant insurance serves as a foundational element of risk management, building revenue streams from alternative sources works to strengthen the financial standing of a restaurant operation. Some other ideas for alternative revenue streams include:
- Writing a restaurant cookbook with recipes based on the restaurant’s signature dishes.
- Revamping meal packaging with a fresh new look to boost brand awareness.
- Creating take-home meal kits with favorites from the menu.
- Adding catering services for special events – a high-margin stream that pays big dividends.
- Renting kitchen space to food truck and catering operations during restaurant downtimes.
Utah restaurant insurance is a valuable part of any restaurant operation. With this insurance and with alternative revenue streams supporting business growth, restaurant owners will emerge from the pandemic stronger than ever.
About BTC Insurance Services
Founded in 2011, BTC Insurance Services has proudly served Utah businesses with comprehensive and custom-tailored insurance coverages for a decade. We pride ourselves on fostering long-term client relationships with a personalized and hands-on approach, and have established a reputation built on quality and transparency. For more information about our products and services, we invite you to contact one of our reputable agents today at (855) 944-3457, or send us a message here.
Social Title: Boosting Restaurant Revenue
Social Description: Restaurant owners have several options to improve revenue streams and to boost brand growth.
