Maximize Profitability With Private Dining Restaurants


Entertaining the client does not mean you have to do luxurious and expensive gestures.  Adding grace and personal touch can make the guest feel special and also help develop better business relationship with the guest. Taking out clients to private dining restaurants is a simple but truly fulfilling way to let your client know that he or she is special. The concept of private dining is gaining popularity worldwide and in business too. So, if you are planning to maximize your profitability or make a special impression to a potential guest, choose a private dining restaurant the next time.

As an owner of a private dining experience it is a great opportunity for your business as well. This form of dining and hospitality is crucial for large groups & hosting private events. You will be tapping into an entirely separate segment of hospitality which will be a completely profitable venture for the business. There are several reasons why private dining restaurants earn more returns than general ones and these are listed below:

Profitability Of Private Dining Restaurants:

1) Higher spends are made:

The party size in an average full-service restaurant is 3 to 7 guests per table. The profit margin from each table of your restaurant will improve considerably each day almost every week. You can notice some variance indeed with respect to the spending levels amongst different sets of customers. You will still end up having 5 to 20 times more revenue from a private dining arrangement as compared to an average table. Getting the restaurant data analyzed by an expert team will help you understand the repeat customer and their spending patterns. Accordingly you can market your services based on customer expectations for further profits.

Moreover, private dining restaurants are also hired for hoisting events such as parties, business celebrations or rehearsal dinners. Such events usually tend to improve the overall returns of the restaurant considerably.

2) The revenue can be forecasted:

Hosting private events involving a large number of guests are major sales opportunities for restaurants. Active sales can be made in every area in such events taking place inthese private dining restaurants. All you have to do is provide high quality service and food and make a positive impression in the mind of the guests. In no time word of mouth recommendations will fetch you endless new customers and also repeat orders for old ones.  

The revenue which will be generated in a private dining restaurant is quite predictable because they are usually booked in advance. One of the biggest and most profitable values of hosting the private events is that they guarantee revenue over the passage of several weeks, months or even years. Majority of private events are being booked 30-60 days in advance from the actual date of the event. This gives the restaurant a lot of time to prepare and also predict its sales before ahead. These days most restaurants are using advanced software and technologies where advanced reports can be created based on all the analysis and prediction of customer behavior and sale forecast.  These programs are giving private dining restaurant owners the capability of easily identifying their lead sources and also their conversion rates.

3) Advance booking assurance: It is a standard practice in the private dining restaurant industry to collect an advance booking money cover in around 10% to 50% of the estimated total cost when the private events are being booked.  However this percentage can differ from one restaurant to another. Over 90% of the restaurants have digital contracts which the client reads and signs when paying the advance booking money. Restaurants can hence get a partial or at times a total guarantee for the estimated cost of the event much ahead of time.

The private dining restaurants are indeed a profitable business proposition which the restaurant owners should adopt and monetize the potentials. Consulting with an expert to make this shift is a good idea.

Recommended Posts: