Revenue growth – it’s what every restaurant is chasing in the face of the negative same-store sales trends plaguing the industry. At a high level, there are three primary ways that restaurants can generate revenue growth – through expansion, increasing average check value, or simply getting more people through the doors. Clearly, each of these is easier said than done.
Right now, let’s focus on that third revenue growth tactic: ways to increase traffic. One of the best ways to get more customers into your restaurant is finding a consumer need that you’re not yet addressing. Some restaurants are finding success by taking advantage of a rising trend in consumer dining needs – the shift from three square meals to focusing more on snacking.
NPD reports that in the year ending September 2016, restaurant lunch traffic declined 2% while restaurant snack visits increased by 3%. In fact, the afternoon snack outperformed all other dayparts in 2016.
What’s going on, exactly? This trend in snacking is driven primarily by younger generations, or, more accurately, consumers under the age of 35. As they’re not the types to be put in a box, Millennials want to eat when they’re hungry, not when the clock dictates that it’s lunch or dinnertime. Coca-Cola recently conducted a study on the dining habits of millennials and found that 30% eat snacks instead of a meal at least once a day.
So, what does this mean for you and your restaurant? First, this is definitely going to matter the most for limited service restaurants, since snacks typically aren’t a full-on sit-down-and-stay-awhile affair. If that’s you, then it’s time to consider tweaking your menu to provide options for those who are just looking for a snack.
The most common food items purchased as an afternoon snack are burgers, chicken sandwiches, fries, chips, ice cream, candy and cookies. These are typically purchased alongside coffee, bottled water, juice or soft drinks. Consider adding smaller versions of your existing menu items, starting with burgers, sandwiches and fries. Pita Pit has seen success doing exactly that with their pita sandwiches. Snack-sized value offers, like a meal deal that includes a cookie or a drink, would also perform well during this time.
Of course, simply updating your menu isn’t enough. Once that’s done, you have to get the word out! Strong offers, like freebies or BOGO deals, are great ways to drive trial of new menu items. Regardless of budget, every restaurant can (and should) make sure their existing customers are aware of the change. Social, email and in-store POP are smart and effective ways to do this without breaking the bank.
Since you’re talking to a younger audience, have some fun with the snacking daypart and build a campaign around your new menu reveal.