Diversification of restaurant revenue today

Before the Covid-19 pandemic, restaurants relied primarily on the direct sales of food and beverages for revenue, but since the pandemic, many have had to diversify their revenue streams to survive. EHL Assistant Professor, Guy Llewellyn writes that restaurants have used traditional methods such as selling branded merchandise and gift cards, but also modern methods such as investing in a food truck as a mobile second location or using vending machines or local grocery stores to expand their operations. This has allowed them to reduce the risk of relying on one source of revenue and adapt to changing conditions such as closures of in-person dining and social distancing measures.

From restaurant manager to risk manager

Post-Covid, many restaurants materially have had to change their operations to diversify revenue streams, and despite the eased restrictions, restaurateurs remain risk managers keen to maintain diversity in their revenue streams, no longer comfortable relying on 90% of the sales coming from the direct sales of food and beverage. Diversifying restaurant revenue is nothing new. The sale of branded merchandise, cookbooks, or loyalty and gift cards have been traditional ways of diversifying revenue streams. Today, however, there are other more modern ways of diversifying.

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The Hotel Yearbook 2023 - Annual Edition

As we have embarked on 2023, it is evident that the hotel industry has made a robust recovery from the pandemic. Occupancy and pricing have returned to their pre-pandemic levels. However, the future of our industry is contingent on how nimble the hospitality sector can be in adapting to ongoing innovation, changing market conditions, evolving consumer preferences, new staffing challenges, and sustainability realities. These uncertainties are the new normal in an unpredictable world.
www.hotelyearbook.com/edition/2023.html