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How to Increase Your Restaurant’s Profits in 2025
Master the art of profitable restaurant hospitality with these 16 strategies to elevate your customer loyalty and overall success.
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Opening and running a restaurant requires a significant investment of time, effort, money and informed decision-making. With so many other responsibilities on your plate, it’s not always easy to prioritize profit. But doing so is imperative to your success, and employing smart strategies can keep you in the black.
To help you make the most of your efforts, here are 16 strategies you can use to bolster your bottom line and increase restaurant profits.
How to increase your restaurant’s profits
By taking these steps, you can start saving your restaurant money and boost your revenue.
1. Do your research.
Owning a restaurant is extremely challenging, and no one can be an expert on everything. Regularly reading restaurant management blogs will give you keen insight from industry professionals on best practices for running your restaurant efficiently. With so many resources available at your fingertips, you can educate yourself on restaurant management practices that can help you save money on costs and increase your profits.
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2. Cut down on food waste.
America is a leading country in terms of food waste, resulting in trillions of dollars in losses each year, according to Statista research. One strategy for increasing your profit margin is to focus on reducing food waste.
Start by investing in a food waste tracker. These devices measure food and have a camera that monitors food waste so you can keep an eye on what’s being thrown away (and determine why). If you end the day with a food surplus, you can donate it to a food bank to receive a tax break.
“Maintaining inventory PARs [Periodic Automatic Replenishment] and auditing prepped or portioned items can help reduce waste and keep your food costs in line,” said Andy Diamond, president of Angry Crab Shack. “These same audits can be used to ensure there isn’t overspending on restaurant supplies or paper and disposable items used in the operation.”
Another way to cut down on food waste is to redesign your menu, focusing only on making what you do best. Here are some tips for creating an effective menu:
- Simplify: Don’t bombard your customers with too many options.
- Keep it short and sweet: Provide brief but detailed descriptions.
- Watch the market: Adjust your prices to include direct, indirect and volatile costs.
- Consider ingredients: Promote your most profitable items (those that use the least expensive ingredients).
3. Use technology.
If you’re disorganized, lose receipts and have a desk cluttered with paperwork, you may be throwing money out the window. A restaurant management system will help you keep track of sales, manage employees and create a rewards program or mailing list for your customers ― and that’s just the beginning.
Again, food waste costs restaurants a ton of money. Restaurant inventory software will let you track every ingredient you use, whether it’s a teaspoon of spices, a diced carrot or an egg. With inventory software, you can also keep an eye on expiration dates so that your bread doesn’t get moldy and your milk doesn’t spoil.
Not sure where to begin with technology implementation? In the next section, learn about the different types of software — and explore the best options — to help increase your profitability.
4. Market your restaurant.
One of the best ways to attract customers to your restaurant and increase profits is through marketing, especially on social media. Social media marketing is a virtually free way to interact with customers and grow your brand. Utilize social media management apps that allow you to schedule when a post will go live and give you insight into the ideal time to upload your #foodpics so you can reach the largest audience.
5. Consider food delivery options.
People love convenience, especially during busy lunch hours or after a long day at work. Offering quick turnaround options, such as delivery, can help you serve busy customers who don’t have time to dine in.
Food delivery services act as taxis for meals, letting you reach “hangry” customers without hiring drivers or purchasing company vehicles. These offerings can broaden your customer base and keep your kitchen active during historically slower periods.
6. Make a good impression.
A customer’s experience begins as soon as they reach your restaurant’s front door. Having welcoming staff at the door to greet them and get them situated can make a positive first impression. In addition, having staff thank customers on their way out may encourage them to return soon. Customers who feel welcomed and appreciated are more likely to generate positive reviews and recommend the restaurant to people they know.
7. Know your customers.
To create a successful menu that will generate profit, learn which meals customers want. Consider your restaurant’s location, which types of foods sell well in the area and what people are ordering the most from your current menu.
If you find that something isn’t selling well, try reworking the dish or creating new options. Customer survey data can provide valuable feedback. Additionally, have managers or waitstaff visit tables during service times and chat with customers about their opinions on certain dishes.
8. Establish a digital presence.
Many customers visit restaurant websites to get business hours, digital menus and contact information. In addition to a website, restaurants should create a social media presence to promote their restaurant and communicate with a broader audience.
Facebook, Instagram and TikTok are a few popular platforms that can attract and engage customers. Facebook is great for displaying business information, such as address, hours and daily specials. Instagram and TikTok help businesses create engaging videos highlighting dish preparation, restaurant tours and upcoming specials or events.
9. Train your employees well.
A confident, knowledgeable staff will give customers an excellent impression of your business. Waitstaff should know your menu items, current specials and how the food is prepared. With firsthand menu knowledge, they can more easily give recommendations, answer questions and ensure customers are getting what they want.
To ensure your staff are properly trained, establish a training program for all employees, both existing and new. Document your process and set milestones to monitor progress. “An effective training program will decrease employee turnover and reduce labor costs associated with new employee training,” Diamond said.
As part of the program, train staff on how to engage with customers positively and upsell items like appetizers and drinks. Make sure they’re also informed about any menu changes or newly available items and deals.
10. Offer coupons, specials and loyalty rewards.
Rewarding loyal customers helps ensure they’ll stay with you long term. Offering a reward program, such as allowing them to earn points for each visit, can incentivize them to come back. After accumulating a certain number of points, they can exchange them for discounts or earn free items or meals.
Customer loyalty programs demonstrate that you value your patrons. To bring in new customers, consider offering coupons or daily specials to encourage them to stop in and experience your restaurant. Everyone loves discounted meals that taste great.
11. Develop your own product line.
Creating your own branded merchandise or packaged versions of your top-selling products can be an effective way to boost your profitability. Beyond driving extra revenue, selling your own products can turn your customers into brand ambassadors. Whether they’re representing your brand on the go or serving your food at a gathering, it can be a powerful form of word-of-mouth marketing, which can lead to more traffic and higher profits.
12. Rethink your scheduling needs.
If you consistently have more staff on hand than necessary, it may be time to reevaluate your scheduling process. Doing so can help businesses better align employees’ schedules with their busiest operating hours, ensuring the appropriate number of employees are on at any given time.
“To ensure efficient labor, operators must understand high-volume and low-volume periods in their operation,” Diamond said. “Staggering employee shifts can reduce unproductive labor hours and save money during slow periods without hurting customer service.”
13. Change your menu layout.
Updating your menu’s design can help customers discover items they may have missed — and effectively guide them toward your most profitable dishes.
Use this opportunity to refresh your offerings and highlight signature dishes — perhaps by labeling best sellers or staff favorites with annotations or graphics. These small touches add a sense of personalization and can help steer undecided patrons toward higher-margin choices.
14. Embrace promotional events.
Events like Small Business Month and Restaurant Week offer eateries an opportunity to showcase their offerings and attract hungry diners. Take advantage of the free publicity by seeking ways to join in on the momentum and make your brand a part of the conversation.
Add your business to the list of participating restaurants during Restaurant Week to increase visibility and get your name in front of new audiences. You can also take part in national food holidays or seasonal festivals to draw in new crowds.
15. Let customers DIY their orders.
Encourage guests to make their order truly their own by offering a mix-and-match menu. Allowing customers to personalize their meals to their exact tastes can keep them engaged and eager to experiment with new combinations. This, in Diamond’s experience, encourages higher guest check averages.
“Personalizing the menu and using it as a marketing tool has made the biggest impact on our sales and profitability,” Diamond explained. “Guests have the flexibility to create their own menu item with no restrictions. For guests that want suggestions, we created menu items of our most popular combinations, whether it is for one person, two people or entire families.”
Maximize your potential by encouraging guests to share their creations on social media or through in-store promotions. Get creative — consider featuring customer favorites on your menu, setting up a bulletin board to showcase custom orders or offering a monthly special inspired by a guest creation.
16. Make your business the go-to for catering.
If your restaurant has the capacity, catering events can provide a significant boost to your bottom line — giving you the benefits of large orders without having to rely on full tables or large in-house parties. This added revenue stream can expand your offerings while helping to offset rising costs without raising prices.
Best business software to increase restaurant profitability
You work hard for your business — and your software should, too. Finding the right business software can help you maximize your profits without monopolizing your attention.
Credit card processors
The best credit card processors will offer low processing fees and a high level of convenience, enabling you to accept a wide range of payment methods quickly and efficiently. A faster checkout means shorter lines, more orders processed and, ultimately, more revenue.
Look for options that streamline checkout and allow for online ordering. Clover does all of the above, providing a seamless customer experience for both in-store and take-out orders, all while offering 24/7 support to ensure everything continues to run smoothly. [Read our Clover POS System review.]
POS systems
The best restaurant POS systems are flexible to accommodate changing menus and fluctuating inventory. This helps restaurants maintain adequate stock levels without overordering, reduce food waste and keep their revenue high while minimizing costs. It also gives restaurants the flexibility to test new recipes or limited-time offerings without having to redesign their menu with each release.
The POS system should also allow customers to customize their online orders without having to call the restaurant, ensuring a simple and positive checkout experience. Toast comes with an impressive array of online ordering and delivery options, as well as the ability to control ordering flow during peak times. [Learn more in our Toast POS review.]
Business phone systems
Phones are your customers’ most direct line of contact to you. Having the best business phone system for a restaurant is essential to taking orders, fielding questions and executing game-time decisions. Without it, missed calls or unresolved customer service issues could lead to lost orders or unhappy customers, both of which impact your bottom line.
Ooma Office is easy to use, affordable and has a 30-day money-back guarantee, allowing you to get the ball rolling quickly. It also has a backup service so you can continue operating — even when the Internet goes out. [See more details in our Ooma Office review.]
Accounting software
Money can be the most stressful part of owning your own restaurant. The best accounting software for restaurants can help you more easily handle the finances, from paying vendors on time to invoicing clients — all without spending a ton of money on professional accounting or financial help. This ensures your business knows where your money is going, can track outstanding payments and even access financial projections to help you plan more efficiently.
Intuit QuickBooks Online comes with an intuitive interface and a range of automation tools and third-party integrations, allowing you to monitor your restaurant’s financial health easily and make decisions accordingly. [Read our QuickBooks Online review]
HR software
Your staff is the lifeblood of your restaurant, and you need the best HR software for restaurants to manage them effectively. Otherwise, ineffective scheduling of employee shifts, neglected training or disorganized onboarding can lead to labor inefficiencies that eat into your profits.
BambooHR makes onboarding more efficient, helping you find the right employees more quickly; it also offers staff a range of self-service HR options to save you and your team valuable time. [Learn more in our BambooHR review.]
Miranda Fraraccio and Zac Johnson contributed to the reporting and writing in this article.
