Limited-service Dining, Unlimited Potential
Long before the Covid-19 pandemic, the restaurant industry saw consistent growth in limited-service dining. With its focus on convenience, this sector has seen a 13% growth in revenue over the past 10 years. Although there has been continued growth in its market share, the path to profitability continues to narrow. With rising costs associated to labor, food cost and other operating expenses, operators need to evolve the way in which they work to ensure they stay viable. Carpedia Hospitality’s methodology supports our client’s efforts to improve their limited-service operations profitability.
The Art of Forecasting
A vital aspect within the planning process for limited-service operators is knowing how many customers to expect and when to expect them. There is often a lack of scientific rigor around the process in which forecasting is done. For instance, Carpedia Hospitality’s client, a luxury resort destination, had an inconsistent approach into this planning process. Limited hotel occupancy data was used to forecast operational volumes, which resulted in over staffing of their sales attendants and challenges with waste due to overproduction of grab and go sandwich offerings. Our team implemented a refined forecasting process that used a multitude of available information to allow for better planning for the culinary team and to realign the service schedule resulting in a 6% improvement in productivity. Forecasting is a crucial step in the process, but it does not solve for all challenges, click here to read more about how restaurant leaders can best leverage their forecasts.
Your Layout Should Pay Out
Limited-service operations are often referred to as “quick service” and the convenience factor has long been touted as a driving force behind their popularity. With that expectation comes little room for error on execution. Poor planning of the queuing process can lead to extended guest wait times with increased abandonment and negative guest experiences. Carpedia Hospitality helped a client within a casino resort property refine their layout, remove redundant steps from the ordering process and increase customer throughput all while decreasing labor expense by 10%.
“The Price is Right!” or is it?
With the fleeting length of stay for limited-service dining guests, it is imperative for operators to drive incremental revenue offerings. Carpedia Hospitality’s client, a major city center business, was pouring revenue down the drain by not aligning their menu offering pricing to the market and not instilling a consistent process around upselling. Carpedia Hospitality presented a refined approach to revenue generation which resulted in a revenue growth potential of 2%. Interested in learning about our approach to growing revenue? Click here to find out more!
Limited-service operations will continue to be a driving force in the restaurant industry with their convenience factor, but limited-service should not mean limited profitability. Operators face a daunting task of turning dimes into dollars but with the support of Carpedia Hospitality and our proven approach, significant improvement is possible.
To learn more about our work in food & beverage, click here.