5 Ways to Boost Margins by Daypart
Takeout & Delivery
With growing interest in all-day breakfast, the first meal of the day is a profit hub—and potatoes are the perfect margin-builder. Sixty-five percent of the top 500 fast-food chains offer potato sides at breakfast, and potatoes are one of the fastest-growing breakfast sides at fast-casual chains, according to Technomic data. Consider easy upsells of already-popular breakfast potatoes with on-trend toppings such as crumbled bacon or sausage, red-eye gravy or cheese sauce.
Consumers are always value-oriented, but they’re especially so at lunchtime. Sixty-four percent of 18- to 34-year-olds say they typically order combo meals for lunch, according to Technomic’s 2016 Lunch Consumer Trend Report. Play up value meals so diners feel free to splurge on other offerings such as upgraded sides and beverages. Lunch is also a good time to appeal to snackers with combinable offerings of different sizes and pricing tiers.
There’s a tremendous profit opportunity in happy hour: 40% of 25- to 34-year-olds report going out to happy hour at least once a week, according to Technomic data. Among those bar-goers, nearly three-quarters say overall value is the biggest factor in deciding where to go. Menu shareable appetisers and an assortment of on-trend small plates at enticing prices to convert drinks-only consumers into diners. With some 40% of consumers hitting up happy hour because of drink deals, be sure to menu adult beverage specials to draw in visitors.
Penn Station East Coast Subs, which has been offering takeout since 1985, has seen steady growth in these orders. “Takeout used to be 25 percent of our business, but it’s 60 percent now,” says Craig Dunaway, president. “It keeps going up a percent or so a year.”
Last year Penn Station added online and mobile ordering, a detail that makes takeout especially attractive to young consumers.
Like happy hour, late-night dining is an often-underappreciated profit opportunity. In fact, 31% of consumers visit late-night foodservice at least once a month. And 41% of those diners opt for appetisers and snacks during this growing segment, according to a recent Technomic Dinner & Late-Night Consumer Trend Report. Consumers are likely socialising with friends during this daypart, so be sure to offer a range of shareable sides. On-trend offerings include loaded fries, seafood nachos and global-inspired street foods. Make late night a special occasion with exclusive menu offerings and drink specials, and be sure to call these deals out with in-house signage and social media engagement.
For more ways to boost your profits by daypart, visit McCain® Foodservice here.