The term “monetize” refers to the process of converting non-revenue-generating items into cash flow. It usually develops when new income sources are identified, such as when websites are monetized by selling space to advertisers, or social media platforms sell users’ data.
In the restaurant industry, your menu is the center of attraction, the item that first gets people in the door. There is, however, another way to monetize or generate additional streams of revenue from your menu. And all it requires is your POS system and F&B Insights.
It Starts with Your Data
Today as never before, big data is driving corporate decisions as they come to understand the opportunities it holds. And, thanks to technological advancements, we’re generating enormous amounts of data every day and deriving insights from it. These insights provide clues as to enhancing operational strategies and optimizing menus. They also inform our suppliers regarding what’s working and in what type of venues.
This data is analyzed to uncover trends, patterns, and target audiences. It enables brands to strategize and enhance their marketing efforts. Through focused research, it can offer direction and help us stay up with the changing times.
A case in point is Applebee’s. In search of the Millennial market, Applebee’s transformed their menu. This transformation failed to elicit the desired results and, in fact, alienated some of its long-time customers. By leveraging data-driven insights, the brand dispelled myths about its customer demographics and retooled its launch of Applebee’s To-Go. Following their investment in big data, the relaunch doubled from 9% to 18% of revenue.
An Additional Stream of Income: Your Menu
In our industry, as with many others, it’s clear that the customer experience propels growth. Developing a deep understanding of your target market’s behaviors, habits, and desires helps form your business strategy.
Your suppliers also understand today’s data-driven business strategies. And that’s where menu monetization comes in. Your POS system is like your data bank, holding large amounts of data. The problem, as with most big data, is sorting through it and determining what’s relevant and how to collect, present, and sell it in a manner that’s easy to understand and powerful to buyers. Enter F&B Insights.
F&B Insights and Data Scientists
EMERGING is a team of data scientists, data engineers, analysts, and real estate experts that help restaurants reach and exceed their goals. They do this by analyzing data, whether helping a brand determine its best expansion strategies or optimizing a restaurant’s supply chain.
F&B Insights is one of their divisions focused on menu monetization. The data derived from your POS system is transformed into valuable insight-rich reports that your suppliers are willing to purchase. The F&B Insights marketplace can connect you with suppliers interested in this data and send proposals to your existing suppliers, letting them know about the opportunity that exists. Then, they collect fees, and you develop another stream of income.
Educating Your Staff
The benefits don’t, however, end there. Suppliers benefit from your staff knowing their products. That includes pairing drinks and menu items and upselling high-end brands. And, their willingness to pay to educate them on the tools that will drive sales for their company as well as your restaurant.
Supplier-sponsored promotions and contests urge staff to step up their game, enhancing the guest experience in the process. Learning brand stories and developing a better understanding of products results in the ability to make tailored recommendations and leave a guest feeling like they’ve received the best service and support.
Are you ready to explore the world of menu monetization? F&B Insights is here to help. To learn about the many opportunities your menu provides, fill out our contact form. We look forward to working with you!
How do you maximize profit on a menu?
Though called by many other names, menu engineering has been in existence since restaurants first wrote their offerings on a piece of paper. Many of you have heard of the Gallup poll that revealed the average customer spends about 109 seconds scanning a menu. Restaurants use this information as well as sales data and food costs to determine which meals to feature and design the menu layout accordingly.
What is the average profit margin for restaurants?
Restaurants’ profit margins vary considerably and often range from 0-15%. Generally, the average profit margin falls between 3-5%.