The financial toll of empty: How restaurants can combat off-peak losses

Restaurants, marketing, margins , 25 July 2024

The financial toll of empty: How restaurants can combat off-peak losses

Empty tables can be a restaurant owner's worst nightmare, especially during off-peak hours. These quiet times, often unavoidable, can lead to significant financial strain. Understanding the problem of empty tables and its implications is crucial for restaurateurs looking to sustain and grow their business.

The problem of empty tables

Running a restaurant means balancing numerous costs, many of which are fixed regardless of customer volume. During off-peak hours, when foot traffic slows to a trickle, these costs don't disappear. Instead, they can magnify the financial pressure on the business. Here’s a closer look at how empty tables impact a restaurant:

Operational costs: Whether a restaurant is bustling or nearly empty, operational costs remain steady. This includes utilities, rent, and maintenance, all of which must be paid regardless of how many customers are dining. In the UK, monthly rent or mortgage payments can range from £2,000 to £5,000, and utility costs typically range from £1,000 to £1,500 per month.

Staffing costs: During off-peak times, restaurants still need to staff adequately to provide good service. This can result in staff being underutilised, leading to inefficiencies and higher labour costs. Labour costs in UK restaurants can account for about 30% of revenue, with variations depending on the type of establishment.

Food wastage: Preparing food for potential customers who never arrive can lead to significant wastage. Ingredients have a limited shelf life, and unsold prepared dishes often end up in the bin, translating to lost revenue. Proper inventory management can help mitigate these losses, but it's an ongoing challenge.

Lost revenue opportunities: Empty tables mean lost revenue. Each unoccupied seat represents potential income that the restaurant could have earned. Over time, these small losses can add up, significantly impacting the restaurant’s bottom line. For instance, losing just £50 per day due to empty tables could result in an annual revenue loss of over £18,000.

summer dining al fresco

Addressing the problem: The role of First Table

First Table was founded in 2014 by Mat Weir in Queenstown, New Zealand. Mat noticed a local restaurant offering 50% off their first table of the night, which effectively filled tables during off-peak hours and created an inviting atmosphere early on. Inspired by this model, Mat built a custom restaurant discovery platform and booking tool to help restaurants tackle the challenge of empty tables during quiet times.

Today, First Table works with over 2,000 restaurants globally and has 1.5 million diners using the platform. The model provides a unique solution for restaurants to use their empty tables as a promotional tool.

Increasing visibility: When a restaurant partners with First Table, they receive a complimentary digital marketing campaign to help promote their launch on the platform. This campaign aims to raise awareness among local diners who may not have known about the restaurant otherwise. First Table's UK statistics indicate that over 89% of First Table diners have not previously visited the restaurant, presenting a significant opportunity for restaurants to impress them and turn them into loyal patrons.

Maximising revenue: By filling tables that would otherwise remain empty, restaurants can maximise their revenue potential. Even a small increase in the number of diners during off-peak hours can significantly improve the restaurant’s overall financial health.

Optimising staff utilisation: With more customers dining during traditionally quiet times, staff can be utilised more effectively, reducing idle time and increasing efficiency. This not only improves staff morale but also enhances the overall dining experience for customers.

Reducing food wastage: Predictable customer traffic helps in better planning and preparation, reducing the likelihood of food wastage. With a more consistent flow of diners, restaurants can manage their inventory more effectively, minimising losses from unsold food.

Outdoor dining in autumn

Conclusion

The financial impact of empty tables during off-peak hours is a significant challenge for many restaurants. However, by understanding the root of the problem and leveraging tools like First Table, restaurateurs can turn these quiet times into opportunities for growth. First Table’s unique approach to incentivising early diners helps restaurants fill seats, optimise operations, and ultimately improve their bottom line.

For those wondering how to get more bookings for your restaurant during quiet times, First Table offers a practical and proven solution. By focusing on off-peak hours, restaurants can ensure a steadier stream of customers, reduced wastage, and a healthier financial outlook. Don’t let empty tables drain your resources – embrace the opportunity to fill them with First Table.

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