Modern shoppers love convenience wherever they can get it, and grocery store restaurants are no exception. Also called grocerants, grocery store restaurants let shoppers cruise the store for what they need and pick up dinner on the way out.
On the flip side, grocery store restaurants can also be intimate meeting places for friends, family, or colleagues, which means you need to get the ambiance and the atmosphere right. A few haphazard chairs and tables aren’t very welcoming, and certainly don’t invite people to stay.
If you already have a grocery store restaurant or you’re looking to start one, this blog will help you understand what successful operations could look like and how to maximize profits using the right strategies and technology, like an all-in-one point of sale (POS) solution.
Understanding the Grocery Store Restaurant Concept
Grocery store restaurants, or grocerants, have become increasingly popular for several reasons.
By definition, a grocery store restaurant is a hybrid concept that merges your store with a restaurant or quick-service food outlet. They provide a seamless shopping and dining experience, letting customers grab groceries and enjoy a meal all in one trip.
Adding a restaurant to your grocery store will:
- Increase foot traffic
- Provide additional convenience to customers
- Capitalize on the increasing popularity of eating out
- Generate higher sales
- Increase customer loyalty
- Help you stand out from the competition
Think about it this way: If a customer is already in your store shopping for ingredients but realizes they won’t have time to cook this particular recipe tonight, they can always grab something from your grocery store restaurant to heat up and serve at home. Problem solved!
Related read: What Is a Grocerant? The Latest Food Retail Trend
Here are a few strategies for maximizing profits at your grocery store restaurant.
Think about your restaurant's concept and design your menu offerings around that. Are you strictly serving lunch and dinner? Breakfast only? Will you offer all the same things a restaurant does (appetizers, salads, entrees, dessert)?
A well-designed menu is key to attracting and retaining customers. As you create your menu, consider incorporating items already available in your store to cut costs and reduce waste.
Using ingredients before they expire will help reduce shrinkage and keep costs low. Plus, using grocery store items also introduces your customers to new things they may not have considered buying before.
Last, promote local ingredients to support farmers in your area. Your customers will love supporting the local economy and appreciate fresh food.
Related read: How To Open a Grocerant: 3 Simple Steps
Tip 2: Implement Effective Marketing
People who frequent your grocery store will realize you’ve opened a restaurant, but marketing is essential to get more people in the door. Here are a few ways to spread the word about your grocery store restaurant:
- Print coupons on receipts: Offering coupons with discounts on future purchases at your restaurant will encourage return visits and remind customers that you’re there when they need a meal in a pinch.
- Social media promotions: Use platforms like Facebook, Instagram, and X (formerly Twitter) to engage customers and showcase menu items. Schedule posts to run right before mealtimes to entice customers.
- Billboard advertising: Buying a billboard ad will increase the visibility of your grocery store and restaurant. This may be the message they need to stop in for people just passing by.
- Customer loyalty programs: Use existing loyalty programs to incentivize repeat business. For example, for every five sandwiches or bowls of soup a customer buys, they get the sixth free. Using a POS system will help you keep track of your most loyal customers so you can reward them with additional discounts or promotions.
Related read: 4 Grocery Store Marketing Tactics To Implement Now
Tip 3: Simplify Operations for Efficiency
Streamlined operations lead to better service and profitability, and who doesn’t want that? To do this, you need a firm handle on inventory management, reliable technology, and frequent staff training.
How can all of this be made easy? By investing in the right POS technology, you can run your grocery store and restaurant all in one place. You don’t have to worry about spreadsheets, timesheets, or paper schedules.
Markt POS was designed with grocery store and grocerant owners in mind, which means you get features specific to your industry, such as:
- Quick service restaurant features to customize orders
- Inventory management
- Customer loyalty
- Mix and match pricing
- Customizable touchscreen and button layout
- Marketing capabilities
- Advanced reporting
These features lead to an unmatched customer experience and flawless backend operations.
Tip 4: Upgrade the Customer Experience
Creating a welcoming atmosphere is crucial for attracting and retaining customers. When people choose to eat at restaurants, they consider all aspects of their meal, including the environment. Setting the scene is just as important as setting the menu.
Choose inviting decor like comfortable seating, relaxing artwork, and tables big enough for multiple people to enjoy food. Make sure it’s not too hot or too cold. Provide a barrier from the rest of the grocery store to make customers feel like they’re truly somewhere apart from what’s happening in the store.
Last, use your restaurant space for more than just dining: host cooking classes, wine tastings, or product launches to engage with the community.
Tip 5: Monitor Financial Performance and Adjust As Needed
After your grocery store restaurant has operated for a few months, tap into the reports in your POS system to check out the metrics.
Keep an eye on:
- Daily sales to find your most popular day(s) of the week
- Inventory turnover to understand whether you’re moving stock efficiently
- Food cost percentage to maintain a healthy balance between costs and sales
- Gross profit to understand how much revenue remains after you subtract the costs tied to cooking the food you sell
- Prime cost to calculate the total direct costs of production, including raw materials and labor
- Average check size to understand how your restaurant is performing and look for opportunities for improvement and increased revenue
Regular reviews of these metrics allow you to set benchmarks and will help you make continuous improvements if a benchmark isn’t met.
Related read: Gross Profit Margin vs. Net Profit Margin: Which Is More Important?
Boost Grocery Store Restaurant Profits With Markt POS
Grocery store restaurants offer a unique blend of convenience and dining, creating a valuable opportunity for you and your customers.
By implementing effective strategies and leveraging the right technology, you can significantly boost profits, increase foot traffic, and keep customers coming back.
If you’re ready to open a restaurant in your grocery store, invest in a grocery-specific POS system designed for your unique needs. The right solution will simplify your operations and make your customers happier. Schedule a demo today to see how Markt POS can help.
