Restaurants are buzzing during peak dining hours, but how can they simulate that same activity between 2 and 5 p.m.? Two decades ago, the answer to this was sidewalk specials or printed coupons. Fast forward to today, customers expect food at the touch of the button with online delivery expected to grow to $213 billion by 2030.
Understanding Off-Peak Challenges
Off-peak hours, typically between 2 and 5 p.m., pose significant challenges for restaurants. During these times, customer demand drops, leading to underutilized kitchen staff, increased operational costs, and a lower revenue stream. Addressing these challenges requires new strategies that take into consideration customer behavior, marketing tactics, and operational adjustments.
Although the increase in online food delivery options has kept kitchens running during peak dining times, new tactics may need to be deployed in order to cater to customers who are craving an afternoon snack, or when faced with the midnight munchies.
Here are five tips for restaurants looking to drive demand in the quiet off-peak periods to help maximize revenue and sustain profitability.
1. Incentivizing Off-Peak Orders
One of the most effective ways to drive off-peak demand is through promotional offers and incentives. Restaurants can target specific times of the day to entice customers during less busy times, such as an afternoon happy hour treat, or some late night bites. These extend to the budget-conscious crowd looking for a good deal, with the ultimate goal to shift customer behavior.
2. Innovative Menu Offerings
Offering unique and limited-time menu items, only available during off-peak hours, can also create a sense of exclusivity. For example, a lunch menu with lighter, more affordable options may attract the likes of busy office workers who are looking for a quick, casual meal. Seasonal menus, special dishes, or limited-time offerings designed for mid-morning snacks, or early afternoon cravings, can cater to a variety of customer needs, while also allowing them to try something new.
3. Embracing Technology
Online ordering and delivery platforms can help reach customers who are unable to dine in, but are still looking for that effortless and satisfying meal. More specifically, push notifications from delivery apps and loyalty programs can entice customers to check out off-peak deals, and encourage them to place orders during these times. Additionally, restaurants can promote their limited-time offers using social media channels such as TikTok and Instagram to reach their target audience. This can keep customers informed and engaged, and catch them in the moment when a craving strikes.
4. Investing in Staff Development
With no ticket orders coming through, an off-peak lull hits the kitchen staff and profitability levels the hardest. Investing in staff development and training during off-peak hours can pay off during busier periods by creating more skilled and motivated employees. It’s an opportunity to review and streamline processes and a chance to experiment with new dishes.
5.Partnering with Local Businesses
If there’s a popular neighborhood spot that you’ve always wanted to work with, restaurants can partner together for a culinary collaboration to create a fusion of cuisines. For example, in the Bay Area two popular restaurants, Square Pie Guys and Souvla, came together for a one-time event that brought both their brands together to create a special and unique product. You can also donate a portion of your proceeds to a charity of choice, so customers feel they are also reinvesting into their community.
By implementing creative promotions, diversifying menu options, leveraging technology, engaging with the local community, and investing in your employees, restaurants can transform their off-peak hours, reach new customers, and work on sustainable growth.
Off-peak hours give restaurants a chance to explore new strategies that can transform quieter times into livelier times, and ensure long-term success.
Vaibhav Goel is the Director of Product Management at DoorDash, where he leads the merchant success product team and is focused on helping merchants succeed on DoorDash. Vaibhav has more than a decade of experience in product management, business strategy, and software engineering across a diverse product portfolio that spans consumer, growth, B2B, ads, and marketplace sectors. Before joining DoorDash, Vaibhav spearheaded the SMB Ads team at Google, drove key growth metrics for the Market Health team at Lyft, and contributed to the development of the LinkedIn Job Search app at LinkedIn. Vaibhav graduated from Cornell University with a BS in Computer Science, and is passionate about harnessing the power of technology to improve lives and create a better world.
