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Should you sell Alcohol at your Restaurant?

One of the biggest decisions that you will make as a Restaurant is the decision whether to sell alcohol or not. This is because selling alcohol will give you certain benefits which will encourage your customers to spend more but will also put some limits on your restaurant and could cause certain issues. Here are a few of the advantages and disadvantages which you will have to consider when deciding to serve your customers alcohol.

Should you sell Alcohol at your Restaurant?

Benefits

Increases Average Spend

One of the biggest benefits of serving your customer’s alcohol is that will increase the amount which they spend in your restaurant. This is because alcohol will be more expensive than non- alcoholic drinks which means that customers will spend more on a glass of wine than they would on a glass of Coca Cola. Alcoholic beverages are an effective  way of increasing the profit margin of your restaurant as you will be able to charge a more expensive price for your alcohol which means that the profit margin on each product will be higher. One recommendation is that you should offer deals on your alcohol such as a bottle of wine for only £20. This will encourage customers to buy more alcohol as they will not want to miss out on the deals. This will lead to your customers buying a bottle of wine instead of a glass which will allow you to generate a higher revenue. This shows that serving alcohol will allow your sales to grow.

Larger Audience

Serving Alcohol will allow you to target a wider audience as you will be able to attract customers who may not usually visit your restaurant. Many adults will enjoy an alcoholic beverage to go with their meal which means that the local people may choose your restaurant over your competitors because they will be able to have an alcoholic drink. This proves that serving alcohol will enable your restaurant to cater for the needs of different segments of customers. It is recommended that your restaurant has a bar area because this will allow customers to be able to drink at your restaurant without having to order food and be seated at a table. This will allow you to attract people who may want to go out for a drink at the weekend or after work. This will increase the popularity of your restaurant and will lead to your restaurant generating more sales. This shows that serving alcohol has the power to lure in new customers and will allow your sales and profit to rocket.

Disadvantages

Licences

If you want to serve alcohol, you will have to apply for a liquor licence. Depending on the location of your restaurant, this can be a very time-consuming and expensive process. This means that you will have to consider whether an Alcohol licence will be an effective investment for your restaurant. Once you have been granted your liquor licence, you will have restrictions placed on the service of your alcohol. The government will put limitations on the type of alcohol you can sell and what hours you can sell it. This means that you will not always be able to offer your customers alcohol which may lead to them leaving your restaurant and visiting a restaurant which has a different liquor licence. This shows that obtaining a licence can put a restriction on the sales of your restaurant.

Increased Costs

In order to serve alcohol in an effective and controlled manner, you will have to ensure that all of your staff are trained to prepare alcohol e.g. pouring pints. This means that you will have to pay for the training of your staff which will lead to your costs increasing. In order to serve alcohol, you will need to buy the correct equipment so that you are able to serve customers effective and correctly. This shows that before you start to make money from your alcohol sales, you will have to invest into a large chunk of your budget into the equipment that you will need. Serving Alcohol will not guarantee you increased sales and profit.

Customer Behaviour

When Customers have a bit too much to drink, they may start to become aggressive and may cause disruption in your restaurant. This will give your restaurant a bad name and may lead to customers avoiding your restaurant as they may think that customers may cause trouble. This will lead to them feeling nervous in your restaurant meaning that they will not be able to enjoy their meal. This shows that serving alcohol could actually deter customers from your restaurant which will lead to your competitiveness decreasing. You should ensure that your staff are trained to deal with intoxicated customers because it will defuse any heated situations and will prevent any scenes from being caused. You should also ensure that your staff serve alcohol responsibly by putting a limit on the amount of alcoholic drinks a customer can order at a time and by asking any customers who look under the age of 25 for ID. You should also ensure your staff does not serve any customers who are heavily intoxicated.

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