How to Increase Sales in the Food Business [An 8-step guide]

If you’re looking to start a food business with your savings, consider it one of the best and the most profitable decisions. Food businesses are some of the fastest-growing sectors, especially in the wake of the pandemic. As the world becomes more fast-paced and people’s lifestyles change drastically, more and more people give in to ordering food as opposed to cooking at home. From following diets, craving restaurant food, and the process of ordering online becoming easier than ever, there are many opportunities for food businesses to thrive.

A survey conducted in 2018-19 on how to increase sales in the food business concluded that the organised food service industry accounts for around 35% of the entire market. It has contributed a staggering Rs 18,000 crore in taxes alone. If the unorganised sector becomes organised, the number is anticipated to more than double.

Another study on how to increase sales in the food business reported that around 26% of restaurants fail in the first year of operation even after heavy investment. This means that only three out of every four restaurants operate for more than one year.

When it comes to what not to do, most food businesses fail because of their lack of focus on marketing. Some of these reasons include–

• Weak name and unattractive logo
• The very high initial investment
• Not studying the market
• Considering the restaurant as a passive source of income from the initial stage
• Over-dependence on employees
• Avoiding self-supervision
• Unplanned and unorganised location

Keeping the above drawbacks in mind, the following are some steps to take if you’re wondering how to increase sales in the food business–

Step 1: Propose a concept and theme for your restaurant  

The food industry is vast and offers a wide scope. The food business consists of cafes, restaurants, franchises, bars, lounges, small stalls, shops, and hotels. You need to decide which type you want to open. While discussing how to increase sales in the food business, it must be noted that ambience always plays a major role. To attract more customers, open a restaurant with a theme. It may vary from a famous web series, memorable characters, movies to generic themes like the ocean, rainforest to avant-garde themes like experimental botany or molecular gastronomy.  

Step 2: Design a logo with an easy-to-pronounce name

Ideas are the cornerstone of any business. These ideas should be reflected in the name of your establishment, its logo and its theme.

Step 3: Favourable location for the business

Choose a wise location. The location should be best suited for the type of food business you want to do and must be under your budget. For instance, opening a restaurant on a quiet road will not be a good idea; opening a bar beside houses is not wise.

Step 4: Maintain a regular fresh vegetable supply

The only thing worse for a consumer at a restaurant than hearing “Sorry! Your order is not available” after ordering the food is being served food that is not fresh. This might spoil the reputation of your restaurant. As the restaurant owner, it is your responsibility to keep a fixed and a reserve supplier for the raw material. All items on the menu should be available in your restaurant.

Step 5: Modern marketing strategies

One out of every four restaurants shut down in the first year of working. A big reason behind it is ineffective marketing. While many invest huge sums in marketing, they often drown in waves created by the big and already existing competitors. Posters and holders will not do the trick in such situations to attract people. Making pamphlets is a good advertising strategy but only when you hand one to the people yourselves. Talk to people about your restaurant in person.

You can keep a photo point in your cafe/shop. This will encourage people to come and eat and upload the photo on their social media handles. It will increase the opportunity for word-of-mouth publicity.

Step 6: Create a digital presence

The 21st century is a digital era, and a marked online presence can be greatly conducive to increasing sales in the food business. Food bloggers are flooding the internet these days.

• Bring your business to Facebook, Instagram, and other social media channels
• Engage with them
• Create a website and blog
• Get reviews from customers on Google, food delivery platforms, and tourist websites

Step 7: Fast, good, and hygienic services

Marketing effectively and having a good online presence will bring in new customers. But will it bring retention? Will it ensure that the old customer will come again? Good and faster services improve customer retention. Convert your existing customers into promoters. Avail home delivery services. Customer retention is an important step on the ladder of how to increase sales in the food business.

At the end of the day, people will remember your restaurant’s service as much as the food.

Step 8: Recruiting a team

Majorly in a restaurant, there are three kinds of services for which workers are needed:

• Kitchen staff: the ones who will decide the menu and chefs
• Assisting staff: waiters, guards, and delivery personnel
• Management staff: the manager, accountant, and supervisors

These personnel are required for the smooth running of a restaurant. But if you do not have enough capital, try to do most of the work yourself.

Step 9: Properly plan and design your menu

Small efforts will have significant effects.

• Invest a reasonable sum of money and time in designing your menu
• Adhere to the theme and concept of the restaurant that you have planned
• Create a category-wise menu such as Veg and Non-Veg
• Write about all the offers on the menu. Mention ‘Today’s Special’.

The most important thing to keep in mind is to write the prices of the food items.

Conclusion

These are the few steps one should keep in mind to increase sales in the food business. Improve your marketing techniques to boost your sales!

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FAQs

Q. What is the minimum investment required for a QSR?

Ans. A Quick Service Restaurant or fast food restaurant requires an investment of about Rs. 5–10 lakh, of which a substantial amount would be spent on promoting the restaurant. In a fast-food restaurant, location is crucial since the entire business is based on a high number of orders.

With the above basic investment, it is always advisable to keep a reserve amount for unforeseen circumstances in the business.

Q. When to expand the business?

Ans. Before expanding your business, understanding why you want to expand your business is crucial. Before launching a new location, you must first assess your present success.

Q. Starting a company v/s buying a franchise?

Ans. Starting a food company may require a significant amount of capital. You may need to invest a huge sum in marketing and to generate a good name and fame. On the other hand, you can also purchase a franchise from a multinational brand such as Pizza Hut, KFC, or McDonald’s, or from a domestic brand like Jumboking and Dosa Plaza. To start a food franchise, typically, initial setup costs are around INR 10 lakhs or more.

Q. What legal permits do I need to start a food business in India?

Ans. Every food company owner, including small vendors and hawkers, must get an FSSAI food license. Under the Trade License Act, a trade license as an ‘Eating House’ is generally issued to a food establishment. If you are offering alcohol in your establishment, you’ll need a liquor license as well. You will also require a NOC from the fire department according to the state’s safety legislation. Keep updated on the old laws and new amendments.