Restaurants can effectively use barter to convert empty tables into new revenue which they can put towards paying for existing, ongoing, cash expenses such as food and wine supplies, equipment maintenance, carpet cleaning, electrical work, exhaust hood cleaning, landscaping, staff incentives, building upkeep, printing and marketing services. They can also barter to get newspaper and radio advertising which, in turn, should generate more cash sales.
Bartering for food and wine
A restaurant owner could enter into a barter relationship whereby they give gift certificates to a winery in exchange for a certain amount of wine per month. The winery, in turn, can use these for customer promotions, giveaways and incentives – or simply as a way to reward owners, employees and staff. This represents a good way for the winery to increase their customer-base and allows them to introduce their wine to more restaurants as they will now have more reference sites.
Restaurants can also partner with wineries for wine-tasting evenings where the restaurant provides the food and the winery provides the beverages. Both parties win through cross-promotion to each-others existing customer base and can receive excellent publicity.
If indirect barter is needed the restaurant could consider joining a Commerce Network who will, in turn, enable them to trade out a set amount of meals for food and wine on an ongoing basis. The restaurant will then be covering their ongoing cash expenses with new sales instead of existing income. This is a great solution for those looking for creative ways to meet new growth targets and/or save money.
Other suggestions for barter
Barter meals on slow nights: Restaurant may barter meals on specified days only e.g. Monday to Thursday when the business is slow or during lunch hours rather than dinner hour. Understanding your options when entering into a barter arrangement, and being selective about when you barter, will help to ensure that you have clientele to fill the unoccupied tables of your restaurants even during the slow nights. This gives your restaurant a busy look and keeps your resources fully utilized.
Rent out: You may also barter deals wherein you rent out your restaurant for parties, conferences, weddings etc. This can be utilized as a good way to diversify your customer base as you will be able to reach out a larger group. Also the guests at such occasions will come back to your restaurant if you give impeccable service and food.
Sell gift certificates: Don’t be shy in selling your meal gift certificates to your customers. Promote them so that the customers feel they are the best deal they could get and that you are doing them a service by giving them an opportunity to buy these gift certificates. Offer them to loyal clients who patronize your restaurants regularly or to completely new customers to ensure they comeback.
Host events: To attract more barter business at times favorable to the restaurant, owners can host special daytime cooking classes or luncheons on weekday evenings. By using downtime, the restaurant remains full and income is being generated.
Restaurateurs have can not only supply and service their existing locations with trade money, but they can also use trade to expand, and even to build, new restaurants.
Pay in Gift Certificates: For those businesses looking to renovate or grow you could consider paying for contract labour, equipment and materials in gift certificates which can be redeemed over a period of time. This is a great way for you to fund your current developments out of guaranteed future sales!
Brought to you by Neha Gupta
Marketing Department
Ormita Australia Limited
http://www.ormita.com.au
