Need some advice for winter restaurant prep? From virtual kitchens to retail items to branded merchandise, there are multiple ways restaurants can adapt their business to expand into new revenue streams that increase sales and brand loyalty during the colder months.
Expand into virtual kitchens
Did you know that you might be able to open a second restaurant for the price of one? With technology partners like DoorDash, delivery-only restaurants have been able to operate without the overhead costs associated with dine-in.
In addition to being a great way to generate business without excessive overhead, virtual kitchens and delivery-only restaurants are especially successful right now. According to a recent report by Technomic, since the beginning of the global pandemic, 77% of consumers have increased their use of third-party delivery platforms. Another 66% of consumers report having used delivery to try a restaurant they would not have otherwise tried.
Delivery-only restaurants can take a couple of different forms, including ghost kitchens, virtual restaurants, dark kitchens, and virtual brands. For example, ghost kitchens are off-premise locations — like a commercial kitchen shared by multiple businesses — designed to fill a large volume of orders. Ghost kitchens don’t have a physical storefront, so orders are delivered directly to customers.
Pursue new revenue streams
In the wake of the pandemic, businesses across many industries have found ways to adjust and adapt to the “new normal,” which includes shifting market conditions, government regulations, and consumer trends. The restaurant industry is no exception. Whether it’s outdoor dining, at-home cooking kits, pre-prepared family meals, or enhanced takeout experiences, restaurateurs everywhere are finding ways to expand into new revenue streams and capitalize on customers’ current needs while taking into account local and state restrictions and, of course, the safety of the larger community.
Here are a few of the ways you can generate new revenue streams for your restaurant.
1. Convert or modify your business model
While many customers may still be wary of in-restaurant dining, everyone needs to eat. Consider converting any unused indoor space into a bodega or grocery store, leveraging your existing supply chain to sell the ingredients and food items that set your establishment apart — and that your customers already know and love. You can also decide to offer pantry staples along with your delivery menu, so at-home chefs can get the ingredients they need without having to go to the grocery store. By shifting your business model even temporarily, you can generate more revenue, maintain important supplier relationships and continue to do what you love: selling your customers the delicious, high quality food they’ve come to expect from you.
2. Look to alternative selling avenues
If you don't want to open up your own bodega or store but would still like to capitalize on an alternate selling strategy, you may want to consider selling through a third-party convenience store. DoorDash’s DashMart is a new type of convenience store that offers everything from everyday essentials to household goods and restaurant favorites. By channeling some of your inventory there, you’re providing customers two different ways to order your food: your own storefront and the local DashMart.
3. Create branded merchandise
Loyal customers are always eager to support their favorite businesses.Selling a collection of branded items — like T-shirts, caps, buttons, stickers, or koozies — is a great way to foster brand loyalty, increase awareness, and generate additional revenue. Just be sure to use social media and/or email communications to let your customers know that merchandise is available for purchase.
4. Launch your own online ordering system
With mobile and online ordering on the rise, launching your own online ordering system through a service like DoorDash Storefront is a great way to receive and fulfill more orders. The best part? It’s always commission free and restaurants with five or less locations can participate with no activation, subscription, or delivery fees through March 2021.* Storefront allows you to customize the platform so it reflects the look and feel of your brand, which helps to increase brand loyalty. It also connects with your DoorDash Marketplace page so your menu, hours, and payment system are always up to date and in sync. Visit the Storefront page to get started, or sign up to become a merchant partner.
How will your restaurant generate revenue during the winter?
For more guidance on generating new revenue streams and other ways to prepare your restaurant for the winter months, download the 2020 Merchant Product Guide, to learn how to add delivery, pickup, and online ordering to your restaurant for incremental revenue.
Partner with DoorDash and make the most of the winter months.
Already a DoorDash merchant? Get started with Storefront.
*DoorDash Storefront Offer Terms & Conditions: There are no activation, subscription, or delivery fees through March 2021 for restaurants with five or fewer locations in the US and Canada. Your Storefront account must be set up by 3/31/2020 to qualify for the offer.