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  • Writer's pictureJess zhang

Maintaining profitability with dine-in density limits

In the current climate, with flip-flopping policy around dine-in seating capacity, amongst the many other challenges brought about by the pandemic who shall not be named, continual and considered planning is now more important than ever to ensure we stay cash flow positive. Density limits typically translate to reduced revenue. Every week we speak to many hospitality operators who express not only frustration but outright anger at the current state of affairs. Anger however, seldom helps with cash flow.

Not all is lost. There are some quick and simple things that you can do, to affect meaningful change:

  1. Reduce. Reduce your menu, thereby stock requirements. Reduce opening hours, maybe start later or finish earlier or perhaps close an extra day of the week. Proactive measures to lean up your operations will help to alleviate some of the cost pressures.

  2. Increase prices. Apply discretion, but increase prices. Add weekend and public holiday surcharges. Just get it done. Be reasonable of course, and stand your ground from the inevitable any push back. You will invariably get a few complaints but it doesn't mean you made the wrong decision. You have a business to run.

  3. Get smart. Deploy smart tools that help increase ticket sizes for dine-in customers. You only have so many seats, and there are only so many opening hours so use both of these wisely. Tools such as QR codes and table ordering are well recognised for their ability to boost your average order size.

Get in touch for a chat about the tools we have in our toolkit, that can help you tackle profitability.


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