Are you wondering how to increase profits in your pizza restaurant?
After over 10 years working together with above-the-line restaurants and shops, here at Modalita we understand that running a pizzeria can be incredibly competitive. And as long as so many new pizza shops keep popping up everyday, the competition is going to get even stiffer.
As a consequence, one of our main goals has always been helping shops to boost their profits, and thus, competitiveness. In this blog post, we’ll try to explain ONE KEY way to increase your profits.
So, are you struggling to generate more revenues for your restaurant? If it’s a yes, have you considered focusing on quality as a way to increase your margins?
The most costly mistake commonly made by tons of shops is trying to increase margins by saving on crucial investments. This way they end up lowering the overall quality of their tools and therefore products, with painful consequences in the long run.
But the most successful restaurants show that the best choice is doing rather the opposite. Investing in top-of-the-line equipment can in fact significantly boost your bottom line for a number of reasons.
In this article, we’ll be showing you how improving the quality of your pizza restaurant will help you increase your profits.
There are at least 3 key reasons behind that.
1) Quality helps you to save money
Profits and margins are the results of two numbers: costs and revenue. To boost them, you might therefore reduce costs, boost revenues or both.
So, regarding costs first, what’s the best way to reduce them?
Investing in high-quality equipment may seem like an expensive upfront cost. At the beginning, you might be tempted to lower the standards of your equipment. But this is a mistake that won’t help you to save money in the long run.
Cheap equipment tends to break down more frequently, requiring costly repairs and replacements. At a certain point, you’ll end up regretting not having invested in proper equipment from the beginning. And most likely, instead of repairing it again, you’ll decide to switch to a better tool to boost your business!
Moreover, it can also lead to a lot of inefficiencies and waste, which can eat into your profits.
On the other hand, top-of-the-line equipment is built to last. It requires minimal maintenance, and operates at peak efficiency, saving you a bunch of money on your utility bills. A high-quality oven, for example, will have better insulation and therefore use less energy. This translates into lower energy bills and a more sustainable business model.
2) Quality increases your average customer’s Ticket Size
The second way to increase profits in your pizza restaurant is to boost the other factor within the equation: revenues.
In order to do so, you should always strive to raise your customers’ ticket size. Quality helps you here in two different ways.
Firstly, customers are willing to pay more for high-quality food and presentation. Upgrading your product can help you achieve a more sophisticated and upscale taste and presentation, which can justify higher prices.
For instance, investing in a top-of-the-line pizza oven can help you create the perfect crispy crust. This way you can charge more for your pizzas. People prefer to spend a few dollars more for a mouthwatering pizza instead of saving on a boring, undistinguishable one!
Secondly, quality helps you to cross-sell your offer. A customer who feels delighted by your pizza, will surely be more prone to order another beer or a promising dessert. Which obviously leads to a juicier ticket size for your business.
3) Quality leads to better Customer Retention
As we have already pointed out, quality can boost your revenues.
But it’s not just a matter of ticket size. Customers in fact appreciate quality, and they’re more likely to return where they have had a positive experience. This might seem like an obvious finding, but it’s not: most restaurants totally forget to act towards this.
They keep focusing their efforts into new customer acquisition, forgetting to make the past ones come back. We’ll dig deeper into this marketing crucial rule in our future posts.
For now, just keep in mind that investing in high-quality equipment not only ensures that the food you serve is delicious, but it also enhances the overall dining experience. Moreover, top-notch ovens and dough mixers can help you serve more pizzas per hour, leading to more customers served.
Needless to say, if your customers see that you are committed to providing them with quality food and service, they’ll be more likely to become regulars. Also, they will leave you positive reviews, suggest your place to their friends, and so on.
Never underestimate the strength of a customer’s snowball!
How much profit does a pizza restaurant make by improving quality?
In conclusion, if you want to increase your restaurant profits, you need to boost revenues and lower costs. And the main tool to do both is focusing on quality. Quality can easily double your sales, spice up your ticket size up to 30-50% and help you save a huge slice of recurring costs.
Investing in top-of-the-line equipment is the first necessary step to raise your overall product and service quality.
In the following weeks we’ll go into greater detail for any of these aspects. We’re preparing for you several contents full of marketing tips to boost your pizza sales and stand out from the competition.
At Modalita, we’re in fact always committed to providing you with all the tools necessary to achieve success. We do that through the best in class quality equipment, the best possible customer service and our learning programs and advice.
If you’re interested in upgrading your restaurant and get our best quotes, fill in the form and reach out to us before your competitors do!