How a 5% Shift in Soda Pop Sales Can Make You $7000 Richer
The beautiful thing about being presented with meaningful data about your business is that you can use that information to make real differences to your bottom line. We want to take you through how you could use one small part of LIVELENZ’s analytics capabilities to make an easy adjustment to your sales model that will give great results with minimal effort. So, here’s how you can use the drink percentage calculators to drive your profits:
Let’s say that right now, 60% of the meals that go through your restaurant have a drink order attached to them. You can see this on your LIVELENZ analytics in simple chart form, print off that chart and share it with your staff team when you tell them that your new goal is to increase drinks percentages to 65%. A 5% change isn’t huge, and is certainly manageable with a little staff education and cooperation.
You tell the staff that from now on, instead of asking customers if they want a drink, to which they always answer no, they are going to try a new tactic: Grab the large cup, slap it on the tray, and say, “Gonna have a large today?” 85% of the time, that customer will say, “No, but I’ll have a medium.” Boom, they just added $1.39 onto that customer check, and given that there’s a 99% profit on soda, that’s pretty much all going into your pocket.
If your staff manage to up that drinks percentage by 5%, and you average 200 meals a week, then over the next year you’re able to bring in an additional $7228. So just by moving that moving that barometer up 5%, which is not hard to do, we moved over $7000 back to the profit line. And this is just one store, apply that to four stores, then you’ve pocketed an extra $30,000 a year, if you’ve got ten stores, you’re talking over $70,000.
Running a franchise restaurant is a pennies game, and it is by making small changes that you’re going to notice big results over the long term. The data that LIVELENZ gives you allows you to make minor tweaks to the way you are doing things that yield sustainable increases to your profits. Because you can see everything that is going on, from second to second in all of your stores, you can see very quickly how the changes you are making are benefitting your business. When something works, that will be evident straight away – you won’t waste time on initiatives that don’t get you anywhere.
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