Restaurants seek revenue growth in a variety of ways, but after exhausting all options, restaurants pursue a unit-growth strategy to capitalize on these opportunities.
Several restaurants are focusing on changing their restaurants’ images by remodeling their existing stores. For example, Burger King’s (BKW) already re-imaged stores have boosted sales by 10% to 15%.
By opening restaurants for different dayparts such as breakfast, afternoon snacks, or late-night snacks, restaurants believe they will sell more products throughout the day and improve same-store sales.
Increasingly, restaurants are using technology to increase customer traffic and drive same-store sales.
Restaurants often innovate their menus to remain relevant to their customers. This also helps restaurants keep up with shifting trends in the industry.
Advertising serves two purposes. Restaurant retailers advertise for brand recall and to showcase new products on the menu.
Same-store sales are driven by two factors: the number of customers walking into the stores and the average amount or average check those customers pay for an order.
The two most important drivers of revenue in a restaurant business are same-store sales and unit growth. Same-store sales growth measures the growth at existing stores or locations over a period of time.
Pizza places primarily offer pizza but may also include sides and desserts. They focus heavily on take-out or home-delivery orders and may have limited seating space. Cafés do not offer lunch or dinner and focus heavily on beverages and the breakfast daypart.
Family-dining restaurants offer full table service. They’re similar to the casual-dining format, although most family-dining restaurants don’t offer alcohol.
Casual-dining restaurants Casual-dining restaurants have a relaxed, casual ambiance with a lot of seating. They offer full table service and may also have a wine menu or full bar service.…
Fast-casual restaurants are a hybrid of fast-food and casual-dining restaurants. Fast-casual restaurants are experiencing high growth with most of the players who have their locations and expansions in the United States.
Fast-food restaurants, as the name suggests, specialize in serving food they can prepare and serve quickly. The fast-food industry has reached its mature stage in the United States, and several fast-food chains are already focusing on international expansion.
Full-service restaurants make up 44% of the market share in the United States. Full-service restaurants usually serve breakfast, lunch, and dinner.
Limited-service restaurants can be classified into fast food or quick service, fast-casual restaurants, pizza restaurants, and cafés.
Consumer confidence in the United States is at an all-time high in seven years, and people are spending more on food prepared outside the home.
Google, Inc. has taken clear forward strides in the mobile devices market. Android should gain up to a 52% share by 2015.
Google announced that it teamed up with Asus, LG, Motorola, Samsung Electronics Ltd., and Sony Corporation to launch new Android Wear devices last quarter.
Google Chromebook sales are growing fast, courtesy of the education sector. More than 1 million Chromebooks were sold in this sector last quarter.
Android Lollipop has a number of updates and new features. Also, consumers in India who bought Android One OS devices can upgrade to Android Lollipop.