How to Build Year-round Business with Restaurant Week Promotions

Throughout the year, Restaurant Week events seem to have sprouted - and often flourished - in every burg and metro across the country. Particularly in bigger cities, the annual event is a holiday celebration of sorts. During its 24-year history, for example, New York City's Restaurant Week has evolved into a colossal affair that now features a record 371 participating restaurants.

Restaurant Week promotions around the country are a great way for operators to energize sales during slow periods, introduce their brand to new patrons, and support worthy causes. Startup operators need to tread carefully, however. There can only be one first impression, operators putting their best foot forward must be careful not to trip over it.

Restaurant Week can come in a number of forms. Some are strictly promotional efforts by the local Chamber of Commerce or local restaurant association. Others are charity-based, with a percentage of sales supporting a selected charitable organization.

For example, during Kansas City, Missouri's Restaurant Week, all participating restaurants are required to offer their own special menu. Participating restaurants are required to charge the same price for these special menus: $33 for dinner and $15 for lunch. Ten percent

In the case of one Kansas City independent operator, Restaurant Week sales from its special menus exceeded $70,000, well above the sales for a normal week in January, about $38,000. If you apply the numbers, based on of 32% food cost, the extra $32,000 in sales represents $10,250. Deduct the $7,000 donation (the 10% donation) and the gross profit remaining is close to $15,000.

The operator incurred additional labor costs; however, mostly related to front-of-the-house staffing, particularly servers. The good news is, with the tip credit, servers are the least-expensive labor. As far as the kitchen crew is concerned, maintaining a fixed Restaurant Week menu can simplify food preparation.