How To Add Grocery Services To Your Restaurant

How To Add Grocery Services To Your Restaurant

According to a survey conducted by the James Beard and Independent Restaurant Coalition, only 20 percent of restaurants in cities affected by mandatory restaurant closures are certain that delivery and takeout can sustain business until they can return to their normal operations with full capacity. If that’s the case for your restaurant, there are other options to generate revenue. One option is turning into a makeshift grocery store. Here are some ways to make that happen.

Know The Business

Selling groceries is a lot different than running a restaurant so you need to make sure you are within the guidelines that are set by your state and the federal government. Remember that taxes are handled differently for groceries compared to a restaurant, and they are even different for different types of groceries. Make sure you have the legal aspects squared away before you start selling.

Choose Your Items Thoughtfully

The last thing you need to do is make things complicated for yourself, your staff and your customers. Many grocery stores are running out of essentials as fast as they can stock them, so think about what the consumer need in your area. Milk, eggs, fresh produce, meats, and dry goods are a great place to start. Talk with your vendors to find out what items can be packaged in smaller quantities, so your staff doesn’t have to divide up large bulk items. You can also look into selling paper goods like toilet paper and cleaning supplies if your supplier is still able to fill the orders. Just remember to keep prices competitive but also within reason. Now’s not the time to price gouge. It will create a lot of upset customers and you may lose more business from patrons when the time comes to transition back to normal operations.

Create An Easy Process For Customers

After you select what you’re going to sell, you need to create a process for your customers to select what they want and how they will get it. If your restaurant has an online ordering system already in place, you can utilize that system to create a grocery list and place their orders. If you don’t have an online system, think of how your customers will place their orders. Can they call in their orders? Do you have curbside area or a drive-thru window that they can come up and place an order for their groceries? Finding an easy, contactless way for them to place orders and pick up is your best bet to ensure your customers are comfortable using you as their new grocery hub.

Be Transparent

Now more than ever your customers want to know where their food is coming from. Make sure you have the information available and even advertise it to appeal to your potential customers. If your produce comes from a local, sustainable farm they will know they are not only helping a local farmer, but also your restaurant. Giving this type reassurance will go a long way if you’re competing with a big grocery store in your town.

Advertise Appropriately

Next you need to get the word out that you have this new service available. If you’re still open for to-go and delivery orders, include a flyer that outlines your items for sale and how they can obtain them. You could even include a special offer for placing their first grocery order. You can also utilize social media by posting on your usual channels and also send out a press release to your local news outlets to let them know about your new grocery service.

 Are you ready to branch out and start earning more revenue? Adding groceries to your restaurant may be a great opportunity for you. If you need working capital or line of credit to order your inventory or upgrade your equipment to accommodate for this new service, we’re here to help. Contact your local loan consultant today to get started on your application and position your restaurant to survive in the midst of this storm.