It’s no secret that the more seats a restaurant has, the more revenue it can potentially generate each year. Everyone has been stuck waiting hours for a table at one point or another. As the frustration grows, the number of customers leaving or standing in the waiting area without spending a dollar grows as well. Expanding a restaurant to include more chairs can be costly, but what if you could add chairs without completely extending or renovating your restaurant?
Restaurant patios are growing increasingly popular in both the US and Canada with the COVID pandemic creating restrictions for indoor dining and the new trend in the enjoyment of eating in a beautiful outdoor atmosphere.
In a recent survey of consumer behavior conducted by Zagat– a majority, 77% of respondents said outdoor seating would make them more likely to dine in a restaurant.
Restaurant patios tend to attract customers to enjoy that outdoor dining experience and are a great way to increase seating opportunities. As the cooler temperatures arrive and new city guidelines are released to support fall and winter outdoor dining, there is a growing demand to keep customers warm and comfortable.
Restaurant patio heaters are the solution to keep those outdoor diners warm and comfortable and are a great way to extend your patio season during the colder months and add more to your bottom line. If your outdoor restaurant patio isn’t already heated, you are missing the opportunity to turn your tables and increase ROI.
Jim McLellan Discusses How Restaurant Patio Heaters Can Increase your Revenue
Let’s Look at an Example
Installing a restaurant patio heating solution means you are able to extend your patio season by approximately 3 months and extend your patio operation by approximately 4 hours per day [this would account for the colder nights where customers would prefer to sit inside but do not have that flexibility due to the pandemic]. Here’s an example of how restaurant patio heaters can pay for themselves.
Restaurant XYZ invests in patio heating to protect 10 tables on their patio during cooler temperatures. The 10 tables allow for seating of 40 patrons. It is anticipated the investment in overhead protection will extend the patio season by 10 weeks [3 months], adding 70 extra days of service per annum.
The average revenue at Restaurant XYZ is $20 per seat, and the tables turn over twice during dinner serving.
Calculation:
Revenue per extra seating $20 x 40 = $800
Total revenue per extra seating $56,000 [($800 x 70 days = $56,000]
[Example provided is based on industry figures and reports from the National Restaurant Association.]
With such a quick payback period and additional revenue generated each year, restaurant owners should really be asking themselves, can I afford not to have patio heaters installed on my patio?