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The Big Opportunity: Consumers, Restaurants See Room for New Lines of Business

Our Most Compelling Data:

76%

of restaurant leaders said they believe retail or service offerings beyond made-to-order food are important to their growth plans.

51%

of consumers have purchased a retail item or service from a local restaurant in the past year, continuing an ongoing trend.

24%

of consumers have bought four or more retail items or services from local restaurants over the past 12 months.

Restaurants see multiple revenue streams as a path to growth

The majority of restaurant leaders (76%) told us that non-core offerings, like memberships and merchandise, are essential to business growth.

In fact, 28% said they’ve added a membership or a club — for instance, a wine club where customers commit to buying a bottle each month at a discounted cost — in the past year. As restaurants make more sales within these new categories, many see the multiple revenue stream model as a chance to change the very definition of what makes a successful operation.

It’s clear consumers are embracing the expanded offerings, too. Not only did 64% of consumers tell us they’re interested in purchasing items outside of the restaurant’s menu, but 51% say they made at least one of these purchases in the past year.

Which extras are consumers most interested in picking up? Pre-packaged food or beverages, catering services, kitchen supplies (e.g. cookware), branded clothing, in-person classes and subscription boxes top the list. But it doesn’t end there. Consumers also expressed interest in other offerings, such as books, memberships and home decor, giving restaurant leaders the opportunity to tap into what makes their businesses unique for returning customers.

Key takeaway:

To boost your offerings and add non-core products without straining your bottom line, think about testing new concepts in small batches and rely on your business reporting data to make long-term decisions. For food products, packaging up your biggest sellers could be an easy win. Beyond that, poll your best customers to see what they’re interested in, whether it’s something like a quarterly exclusive dinner, a meal kit subscription or even kitchen decor, and to see what they’ve bought from other restaurants and related shops in your area.

Pro tip:

The Square for Restaurants ecosystem supports businesses with diverse revenue streams. For example, Canberra restaurant Fricken Fried Chicken deepened its bond with customers by launching themed event nights and take-home sauce packs.