Introduction
Off-premise dining has become a significant part of the restaurant industry, accounting for 30% of sales nationally. However, thriving in this space requires a distinct strategy compared to traditional dine-in operations. From delivery app rankings to profitability tracking, off-premise dining presents unique challenges that restaurant operators must address to succeed.
1. Understand the Game: Off-Premises vs. On-Premises
Off-premises dining is not just an extension of your restaurant—it’s an entirely different game. Channels, tech tools, and competition operate on distinct rules. To succeed, restaurant operators must recognize these differences and prepare accordingly.
2. Delivery App Rankings Are Critical
In delivery apps, 75% of users never scroll past the first page of search results. If your restaurant isn’t ranking high, your chances of capturing orders diminish drastically.
- Action Plan:
- Optimize your menu descriptions and photos for search visibility.
- Engage in promotions or partner programs to improve your ranking on delivery platforms.
Without a plan to consistently show up higher, entering the off-premises market may lead to inconsistent results.
3. Track Off-Premise Profitability
Off-premises profitability tends to be lower due to platform fees, packaging costs, and delivery charges. If your General Ledger and P&L aren’t set up to separate on-premise and off-premise contribution margins, it becomes difficult to assess the true impact of this channel on your bottom line.
- Action Plan:
- Set up separate accounting systems to track off-premise revenues and costs.
- Evaluate whether investing in off-premises marketing aligns with your profitability goals.
4. Don’t Sacrifice On-Premises for Off-Premises
If you lack the bandwidth to manage a robust off-premises channel, shifting your focus could hurt your primary on-premises operations. Resources like staff time, mental energy, and financial investment are finite—allocating them poorly can lead to operational strain.
- Action Plan:
- Ensure your on-premises operations are efficient and profitable before diverting attention to off-premises.
- Consider whether off-premise opportunities align with your brand’s strengths and customer expectations.
5. Summary: Is Off-Premises Right for You?
Off-premises dining can be a powerful revenue channel—when executed correctly. Restaurants that have nailed this channel share three common traits:
- High visibility on delivery apps to capture customer attention.
- Clear profitability tracking for informed business decisions.
- Adequate resources to support both on-premises and off-premises operations without sacrificing quality.
For those not ready to invest heavily in this channel, focusing on on-premises excellence might yield better returns.