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Expanding into retail offerings is a great way for you to find additional revenue streams for your restaurant. But where should you start?
According to the 2023 Square Future of Restaurants report, 55% of millenial consumers say that they’ve purchased items aside from food
or drinks from restaurants in the past year.
Plus, 29% say they purchased merchandise or retail items. And 20% have purchased gift vouchers or gift cards.
You have plenty of options for ways to expand into retail at your restaurant. Here are seven ideas that could fit your business.
1. Branded merchandise
Using your brand and aesthetic to market everything from clothing to home goods to tote bags can appeal to both your regular and new customers. These are easy items to add to your online store and market in-store. Plus, you can bundle the merch with popular offerings already on your menu.
Subscriptions can help you build deeper relationships with regulars while ensuring a steady income stream. In the subscription business model, customers pay a recurring price at regular intervals to access a product or service. Here’s our guide to creating a subscription service. Learn more about subscription management with Square.
3. Partner products
Consider stocking a shelf or your checkout counter with your favourite products from other businesses in the area that could be appealing to your customers. You can set up a cross-selling system with businesses to promote each other’s products, increase visibility and add new revenue streams.
Restaurant cookbooks don’t have to be glossy, heavily produced, hardcover books that take years to make. One low-cost alternative with potential upside: digital cookbooks that you can sell through your website as downloadable PDFs, featuring recipes for your signature dishes. You could even make recurring seasonal cookbooks and sell them as a subscription. A digital download also helps build up a strong customer list for your email marketing efforts.
5. Pet gifts
Are you a pet-friendly establishment? If so, offering branded pet toys and treats can help build customer loyalty and entice customers to include add-on items to their bill.
6. Cooking equipment and kitchen supplies
Your customers trust that you know your stuff when it comes to food and kitchens. Stocking your restaurant and online store with your favourite cooking tools, serving utensils and ingredients can attract sales from regulars who trust your taste.
If you have the staff and space for it, consider packaging popular sauces, seasonings and specialty grocery items. Square Inventory helps you keep track of items across multiple ordering channels, curbing a need to manually stay on top of parts and counts with different selling channels.
This article is for informational purposes only and does not constitute professional advice. For specific advice applicable to your business, please contact a professional.