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Profiting on Birthday Parties - 09/25/2009

BIRTHDAY PARTIES - People very seldom celebrate their birthdays alone. They like to have a party. Can they have "fun" at your restaurant? What can you do to Add Value to a Birthday Party experience? Birthday Parties are generally big ticket events. We outlined a few items to consider your restaurant marketing:

  • Balloons, Streamers, a Song
  • Bring 4 or more people and get a FREE Specialty Drink for each person
  • $10.00 credit toward a Birthday Dinner - (30% Food Cost) = $3.00 Promotional Expense

This Party Special Event will cost about $3.00 in added value cost for the items listed above, to bring in a party of four to your restaurant. At a $13.50 average guest check, the total party cost to the guest will be:

Gross Profit

  • Four People $ 54.00 - $10.00 - $3.00 = $41.00 (Less 30% Food Cost) = $ 24.80
  • Six People $ 81.00 - $10.00 - $4.50 = $66.50 ($24.30) $ 42.20
  • Eight People $108.00 - $10.00 - $6.50 = $91.50 ($32.40) $ 59.10
  • Ten People $135.00 - $10.00 - $8.50 = $116.50 ($40.50) $ 76.00
  • Twelve People $162.00 - $10.00 - $10.50 = $141.50 ($48.60) $ 92.90
  • Fourteen People $189.00 - $10.00 - $12.50 = $166.50 ($56.70) $109.80
  • Sixteen People $216.00 - $10.00 - $14.50 = $191.50 ($64.80) $126.70

Notice the difference in Gross Profit according to party size. The larger the party, the more profit there is. Now there are other questionable areas such as, table turns and whether or not you are operating at full-house capacity. You'll have to think these areas through yourself.

Birthdays come 365 days per year. The majority of these days come on Sunday through Thursday, a time when you are not running at full-house capacity. Special emphasis should be put on rewarding guests who celebrate their birthdays during slow business periods. What else could you add, during the slower times, that would give the guest value-added services? Also, is it possible to get the customers whose birthday falls on Fridays or Saturdays to come into the restaurant on Monday-Thursday on the week before or after their birthdays? i.e. "Birthdays are generally very busy. Your birthday falls on Friday. Because our restaurant is also very busy and we are not as busy on Monday-Thursday, if you would agree to celebrate your birthday on the week before your birthday or the Monday-Thursday after your birthday, we will give you an added bonus.

FREE $10.00 Gift Certificate and a bonus appetizer or dessert. If you bring 5 other people to celebrate your birthday with you, we will give you all FREE specialty drinks." August 25th

Having a Birthday Club Program is a fantastic way to get repeat business and to reward and celebrate with your regular customers. The Birthday Program is designed to increase frequency in the following ways:

  • A Bounce-Back Certificate good for only two weeks after the Customer signs up.
  • During the week of their Birthday.
  • During the Month/Week of the Customer's "Half" Birthday ("Six Month Birthday").

Doing "little extras" can go a long way and you could be a place to go for any birthday. You need to supply the balloons, hats, streamers, pictures, and birthday gift for the birthday person, food and fun. You should always have balloons for any occasion. The more people they bring in, the more money you make. You should encourage them to bring in friends and family. We offer "FREE Specialty Drinks" to 5 or more in their birthday group. You could instead offer a "FREE Appetizer" to the party of 6 and "2 FREE Appetizers" to any party of 12-18 people. This is a great incentive for them to invite all their friends. While you have all their friends there, you can hand out your "Frequent Diner Cards" or Bounce-Back Certificates. Also, have the server ask if everyone is in the Birthday Club Program. You only have this one chance to impress all of the party members and make them want to come back after the party for their own Birthday Party.


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