How To Increase Your Profit Margins

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Attention: Restaurant Owners!

and it's NOT what you think!

How To Increase Your Profit Margins -Triumvirate MMAHow To Increase Your Profit Margins

So if you're Restaurant Owners who really needs to attract more profitable customers... but can’t seem to work how to get them into Your Restaurants...then here's the solution you've been looking for...

Hi, my name is Rowan Shead and here's the TRUTH you need to know about getting more Restaurant Customers!

In fact, here's the biggest problem you face right now.

It's your Café or Restaurant is facing Stiff Competition, which is Squeezing Your Profits Margins...

Café Restaurant & Catering Industry Stats

Cafe Restaurant & Catering Industry Stats -Triumvirate MMARestaurant stats

  • 24,838,779 Population of Australia as of 23 Feb 2018 at 3:59:28 PM - //
  • 2,238,2992 businesses operating in Australia - ABS - at the end of 2016-17
  • As at 30 June 2016, there were 85,284 eating out establishments in Australia: 29,432 fast food outlets, comprising 34.5% of the national total; 21,953 Restaurants; 20,502 Cafés; 6,983 Pubs & Bars; 6,413) Clubs
  • $45.3 Billion Total Revenue - The total revenue of the eating out industry in Australia, for the 12 months ending 30 June 2016, was $45.3 billion
  • We eat 2- 3 Times a Week - There are just over 24 million Australians, and they eat out an average of 2 to 3 times a week
  • $2.5 Billion Meals Eaten each year - That’s more than 50 million meals out each week or 2.5 billion in a year
  • Each Australian household spends an average of $94 a week eating out. That's a total of $45 billion a year.
  • House spend $94 week eating out -ach Australian household spends an average of $94 a week eating out. That’s a total of $45 billion a year
  • Aussie restaurant industry up 4.4% - The eating out industry market rose by 4.4% with VIC, NSW, QLD & SA leading the pack and WA feeling the pinch post mining boom
  • Employs more than 558,000 Workers - In 2015 Cafés, Restaurants, and Takeaway Food & Beverage Services employed more than 558,000 workers. That's, an increase of 10,700 since 2014 and reaching a 10-year record. - BankWest

The Crowded Café & Restaurant Market

The Crowded Cafe & Restaurant Market -Triumvirate MMAThe Crowded Cafe Market

As at 30 June 2016 there were 85,284 eating out establishments in Australia...Eating Out in Australia 2017

Increased Competition

"Over the past five years, despite the high business failure rate, there are more operators than ever in the industry, with estimated figures at around 35,000 businesses. As a result of this, establishments need to implement stricter cost controls and optimise business processes in order to maximise profits and remain competitive,""

Restaurant & Catering Australia

Source: Restaurant & Catering Australia. (2014). Competition Policy Review: Response to issues paper //

"Though this is great to see, it has put a strain on finding industry workers," he says. "Also, restaurants are competing with delivery companies such as Deliveroo, Uber Eats and Foodora, which encourage people to stay at home,""

Ian Royle

Flying Fish Restaurant & Bar at Pyrmont

The challenges facing the Australian restaurant industry – and how to overcome them - //

Restaurant Industry Growing 4.4%

"So, what happened in 2015-16? Well, it has been a bumpy ride overall, with consumers influenced by a turbulent year in national politics, volatile global markets and even wild weather. However, despite the unpredictability, the industry ended up on top, growing 4.4% on the year before!"

Source: The 5th Dimmi Australian Dining Index, revealing the latest restaurant industry trends and insights impacting Aussie dining culture.

Average spend remained steady at $64.28 per person

Average spend remained steady at $64.28 per person. Which means we're eating out more frequently but still spending the same.

Source: The 5th Dimmi Australian Dining Index, revealing the latest restaurant industry trends and insights impacting Aussie dining culture.

Household Expenditure

Household Expenditure -Triumvirate MMAHousehold Expenditure

This table shows the average annual expenditure on eating out. It's broken down by establishment type and state. (Derived from dividing total revenues by the number of households). The average Australian household spends $4,905 a year eating out, or around $94 a week. - Eating Out in Australia 2017

Amex Dining Key Trends

Amex Dining Key Trends -Triumvirate MMAAmex Dining Key Trends

Latest Trends in Australian Dining - Industry Insights Amex Dining Australia 2106

Huge competition from an ever-growing restaurant market as one of the biggest challenges in Sydney

"Increasing competition has always meant more expenditure devoted to decor and state-of-the-art cooking equipment," he says. "This means it's harder to turn a profit, let alone amortise the set-up costs"

Damien Pignolet

Regatta Restaurant Rose Bay

The challenges facing the Australian restaurant industry – and how to overcome them - //

Profit levels squashed to 7%

Your In Business To Make a Profit. But the reality is, profit is becoming harder and harder to achieve in the hospitality industry...

Food and Beverage Services – Profit Margin

Food and Beverage Profit Margins -Triumvirate MMAFood and Beverage Profit Margins

Profit margins for the industry are consistently lower than the all industry average. With operating profit before tax only 7.9% of total income, compared to 10.9% for all industries.

Profit levels are trending down, currently sitting at around 7%

Cafes & Restaurant owners are more likely to absorb growing ongoing costs rather than passing them on as price increases. Becuase you fear it will drive your customers away.

"Profit levels are trending down due to this, currently sitting at around 7%,"" Silverchef

Total revenue of cafes and coffee shops in Australia from 2005/06 to 2019/20 (in billion Australian dollars)

"From Bondi to Bourke, we are all eating out more. As a direct result, hospitality venues are now forced, not just to have "good food" they are forced to have great food, exceptional family facilities and quality entertainment"

Peter Seeto

Colliers International

The 5 Industry Divers Causing the Surge of Many More New Restaurants Opening Their Doors

1. Real Household Disposable Income

Australians experienced major wage growth around 4% from 2004 - 2012, allowing people to dine out at Cafes & Restaurants. But real wage growth has declined since 2012 - 2015 to around only 2%. This limits our ability to spend more on dining out. - Real Household Disposable Incomes

2. Convenience

As consumers, we live super busy lives. Our demand drives our desire for convenient food and beverages. Cafes should expect to take some market share from restaurants because we move away from formal dining. Choosing more convenient cafe-style meals and snacks.

3. Health

Our demand for healthier, premium quality food and beverages underpins industry performance. Cafe & Restaurants offering diverse menus with an emphasis on fresh, premium ingredients should expect to perform better. Because discerning consumers search for better quality.

4. Competition

Fierce industry competition, particularly on price, is the main factor limiting growth. Price increases for restaurant meals and take away and fast foods have moved closer to the CPI. (Australia’s weighted average price increases). Which means restaurants and take-away services have less room to add any extra mark-up for inflation.

5. Food and Pop Cultures

The cafe & Restaurant industry has benefited from a rising food culture. There is a trend towards high quality, gourmet food. As seen by the all the TV cooking shows, such as Masterchef and My Kitchen Rules. We have a better Awareness of fashionable restaurants, cafes and bars thanks to online consumer review sites, such as TripAdvisor & Urbanspoon.

Consumer Spending Per Meal is Down

"The relative proportion of discretionary income that the general Australian population is spending on eating out per meal is trending down. This means that a lot of high-end restaurants are beginning to compete for the traditional clientele of casual dining establishments, and as a result, they are needing to lower prices to compete. Therefore, medium-priced restaurants are likely to see more competition for their consumer dollars, so if you're among them, you should be putting your best food forward!"

Restaurant & Catering Australia

Source: . (2014). Competition Policy Review: Response to issues paper. Retrieved from Competition Policy Review website


So if Your Cafe or Restaurant Is struggling to Stand out from your Competition. And Your Profits are Shrinking...That's a Big Problem...

It's Time To Boost Your Profits & Get More Profitable Customers

Traditional marketing won't cut today because it's too expensive & infective to find customers to try out your restaurant...

Are You Still Relying On These Tired Old Tactics To Get People Into Your Cafe Or Restaurant?

Tired Marketing Tactics -Triumvirate MMATired Old Tactics

Restaurant Marketings Techniques

Restaurant Marketings Techniques -Triumvirate MMARestaurant Marketings Techniques

Good marketing will be the difference between success and failure in your dining business.

Which ones are you still using to try and reach your Customers?

Your customers are looking on their mobiles to find somewhere to eat. Are you ready to catch their Mobile moment or will you miss out?

So if you like to learn how we can help your Café or Restaurant show up when people are engaged in their mobile moment looking for somewhere to eat, then we're happy to help.

To see a demo. We'll also send Restaurant Marketing Tips, Tricks & Ideas, through Facebook Messenger. Ok?

Triumvirate MMA - Getting More CustomersSend to Messenger

Tap the blue Messenger button below or click on the Link below, you'll be taken to Facebook Messenger. Then click on Get Started.

I hope you found this Article useful. Let me if you need help with your Restaurant Markeing.

Rowan Shead

Getting More Customers

Your local direct response & Digital Marketing Agency on the Northern Beaches

Let us do the hard work and source the right equipment for your Restaurant or Commercial Kitchen

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Our goal at SCK is to sell you products that add value to your business.

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