In Minnesota we are consistently at the mercy of our unpredictable weather. Yet we know the second the weather is nice, we want to be outside – especially after spending the winter months cooped up. And for businesses that take advantage of the outdoors, it can mean additional revenue for many months.
What are the ways in which businesses can use the outdoor spaces around their locations to expand capacity ad increase revenue? What are the challenges involved with those additional increases and what’s the pay-off for doing so? These are all good questions. So let’s dive in a take a look at outdoor spaces for your business.
We checked with Vsag.com and they introduced a new way of looking at outdoor dining, for example. If your business is a restaurant, keep reading. There’s some great information here. If your business is not a restaurant, you may also want to read through this article completely to spark some ideas as far as outdoor seating is concerned for your own business. In 2013, vasag.com conducted a business analysis for a client on the benefits of adding a patio to their operation. The research showed that with a proposed initial investment, the forecasted seasonal use return could result increased sales. Hence, by leveraging base costs (adding labor, furnishings, real estate use taxes or public space fees and anything else associated with the front end investment) gross profits of 65% can be achieved. Overall, they also found that with a robust strategic management plan in place, there is great potential for a hearty profit return on investment.
Sterlingfunding.com offers insight as to how to get the most out of outdoors seating. If you think that open-air dining is right for your restaurant, consider these ideas for boosting your restaurant’s revenue by incorporating outdoor seating:
• If your establishment is located in a scenic area, or near a local attraction, situate your patio so that if offers guests a great view. If your surroundings aren’t naturally awe-inspiring, create your own ambiance. Some ways to do this are incorporating a mural, offering live music, and planting beautiful landscaping.
• Create a happy hour or dining special just for al fresco customers. A frozen beverage promotion, for example, can help draw thirsty diners to your space on a warm summer day.
• Outdoor spaces give you an opportunity to create private parties that are removed from the on-goings within your restaurant. Use your new space to offer this service to customers and boost your restaurant’s revenue.
• Once you have your outdoor seating area the way you (and your customers like it), make sure to keep it updated, just as you would your indoor space. The National Restaurant Association recommends updating your patio or deck every five to seven years to keep up with design trends and customer expectations.
• Contemporary diners have a multitude of options, so make your restaurant stand out by focusing not only on the quality of your food, but also on your patrons’ experiences. Outdoor seating may be just what you need to set your restaurant apart, attract new customers, and boost your restaurant’s revenue.
In Minnesota, it is important to take into consideration elements we face every day and how unpredictable they can be. Taking advantage of every opportunity to allow your customers the outdoor experience could be a game changer for your business.
If you’re interested in seeing what a return in your investment may look like? Download the Patio Enclosure ROI Calculator below.