Market a loss leader, then go for the upsell

With a downtown location in the heart of San Francisco’s Union Square shopping district, and in close proximity to downtown offices, E&O Kitchen & Bar is open all day. To drive traffic between dayparts, and to attract corporate guests at the end of their workday, the restaurant introduced an attention-grabbing happy hour program, headlined by a half dozen oysters for only $10.50, a great deal by local standards. The restaurant basically just breaks even at that price, but it’s able to use the opportunity to attract guests, boost beverage sales and promote higher-margin dishes.

The rest of the happy hour menu offers a wide variety of items ranging from the restaurant’s popular butternut squash dumplings, to corn fritters, pork buns, or satay skewers, priced by the piece from $2 to $5 to boost incremental sales. There is also a $30 appetizer platter, great for small groups, offering two each of the most popular bites. The menu has proven popular enough that corporate offices have started coming in for happy hours in lieu of more elaborate events, which have been cut from their budgets. The attractive prices generate word of mouth for the restaurant and draw people in during a traditionally slow period.   

Look out for locals

The Matheson, on the main square of Healdsburg, Calif., in the Sonoma Valley, is one of the best known restaurants in this now-bustling wine country town. With a $125 tasting menu, most appetizers hovering around $20, and entrées around twice that, The Matheson could be seen more as a splurge destination for vacationers or second-home owners, rather than a place for locals to enjoy an everyday meal. While the restaurant’s menu has always paid tribute to the micro-seasons of Sonoma, they have recently introduced a Local’s Menu, offering a value-driven three-course set menu Tuesday-Thursday for $58. Diners have their choice between two appetizers, entrées, and desserts, which may include such tempting items as burrata with hazelnuts and sourdough, a bavette steak with hollandaise sauce, and a chocolate pot de crème. That menu makes The Matheson more approachable to locals, increases frequency of visits, and helps the restaurant reach a community that has experienced a lot of growth recently.
“Considering my family’s long history in Healdsburg, we wanted to create a forum to continue showcasing our local farmers and artisans while ensuring that we’re providing an increased value for our community,” chef Dustin Valette said. “Our Local’s Menu is great for those seeking a special weeknight dinner in Healdsburg that highlights Sonoma County's farmers in each course.”

Master the high-ow ratio

Every restaurant operator wants their menu to include items that are both incredibly popular, easy to make, and extremely profitable.

That item at Duende, a popular Spanish restaurant in Oakland, Calif., is the Ensalada de Col, essentially a mountain of shaved raw Savoy cabbage surrounded by grated Mahón cheese, chopped anchovy-stuffed olives, and pistachios. Cabbage is readily available and generally inexpensive throughout the year; the other ingredients, while expensive, are used in small quantities, but that’s enough for them to have significant impact. The combination transforms cabbage into something completely new, different and unexpected. The dish is so popular, and profitable, that it has come to play a part in almost all of the restaurant's special events and set menus, allowing the restaurant to economize while delivering something people love.

Have fun with quirky programming

Restaurants and bars have been offering live music for ages, but recently there has been an uptick in using various forms of entertainment to add value and drive sales. After a chance encounter that led the owners to become friends with a modern mystic, ’Cille & ’Scoe in Greensboro, N.C., launched a Modern Astrology Brunch on Sundays, when guests can get a mini reading for $1 per minute (it often takes 10-15 minutes). The money goes to the reader, not the restaurant, however due to the popularity of the idea the restaurant now has lines every weekend, regardless of whether readings are offered or not. Co-owner Tara Reeves said “The restaurant’s energy is unmatched and it is next level when someone is in the building curating positive energy, influencing, and empowering. Everyone is smiling and interacting with intention. It’s a really good time.”

The Modern Astrology Brunch has worked so well that the restaurant is launching a jewelry brunch at the end of April, when guests will be able to sign up to buy bracelets and interact with another woman-owned business.

Use your skills to create value with inexpensive ingredients

For chef Jason Raffin of Curio, a neighborhood bar and restaurant in San Francisco, mitigating inflation means taking simple, inexpensive ingredients and creating value through technique. Curio’s menu is covered with crowd-pleasing dishes that groups can easily share and are tempted to add to any order, including house-spun curly fries, tempura sweet potatoes, and smoked potato wedges. Raffin finds that starches are some of the least expensive ingredients and are most easily transformed into popular favorites. Both the curly fries and the tempura sweet potatoes are among the restaurant’s top 10 best sellers, with the curly fries taking the first position. The fact that curly fries can be considered a starter, side or add-on to any meal makes them a frequent order for individuals and groups, increasing sales for a high-profit-margin item, and giving guests something they love, and don’t think twice about ordering.