Keeping your existing customers satisfied is essential—they are the foundation of your business and provide a steady revenue stream. While restaurateurs often invest considerable time and money in marketing to attract new clientele, retaining current customers is generally more cost-effective and profitable. By prioritizing customer retention, you not only encourage repeat visits but may also benefit from word-of-mouth referrals, as happy customers are likely to share their positive experiences. Building strong relationships with loyal patrons supports repeat business, and there are straightforward server tips and techniques to boost restaurant customer retention.
Reaping the Benefits with Customer Retention
Customer retention in restaurants refers to the strategies and actions taken to minimize customer complaints and encourage repeat visits. The primary goal of customer retention programs, often powered by a reliable restaurant management system, is to retain as many customers as possible through loyalty and brand commitment initiatives. Typically, customer retention begins with the first interaction with a customer—whether tied to a company, organization, or community—and continues throughout the duration of the relationship.
Traditionally, many businesses have focused more on customer acquisition, assuming it to be the quickest way to drive revenue. However, it is generally estimated to be at least seven times less costly to retain customers than to acquire new ones. Selling to long-time customers has proven to be a more effective revenue strategy, as it reduces the need for extensive efforts to attract, educate, and convert new visitors. Restaurants that prioritize retention often find it more efficient, as they’re marketing to customers who are already familiar with and engaged in the brand, making it easier to enhance their dining experiences. Consequently, customer retention serves as a more sustainable business model, essential for substantial revenue growth.
How to Improve Restaurant Customer Retention
Most established restaurants recognize the importance of focusing on customer retention. While comfortable commercial-grade furniture, optimized table spacing, brand marketing, and strategic menu pricing all play vital roles in retaining customers, restaurants are discovering that loyalty and profitability increase when existing customers return frequently. Implementing and executing the following customer retention strategies, including tips for servers, can yield highly rewarding results:
- Prioritizing Service
Delivering exceptional service that exceeds customer expectations can create a memorable dining experience. Training staff in etiquette allows them to guide guests to the dishes that have earned your restaurant its reputation, as well as customer favorites that keep them coming back. Servers should also be adept at promoting specials, seasonal menu updates, or signature drinks. Leverage social media to share details about events worth returning for, such as live music from well-known artists or stand-up comedy shows.
- Enhancing Your Menu
As an owner or chef, understanding the “signature” items that define your restaurant’s identity—and what makes them stand out—is crucial. Perhaps you’re known for a succulent New York strip or a delicate tiramisu. Ensure that servers communicate guest favorites and customer feedback during staff meetings. Guide them to promote popular dishes to first-time guests and observe their reactions.
- Rewarding Loyalty
While money can buy many things, it can’t buy happiness, love, trust, respect, or loyalty—these are earned. Once you've won customers over with an exceptional dining experience, it's time to deepen that connection with special incentives. Whether through exclusive invitation-only events for VIPs or a tailored loyalty program, creating personalized rewards can drive repeat visits. Take the time to get to know your customers and customize your rewards program to match their preferences.
Participating in Humanitarian Causes
With globalization, people are becoming increasingly socially conscious and expect the businesses they support to share those values. This is particularly true for younger generations, many of whom are actively involved in philanthropic efforts. If millennials are among your target demographics, aligning your restaurant with charitable initiatives can be advantageous, as they are more likely to support businesses committed to making a difference. One of the simplest ways to engage in these efforts is by supporting local organizations—consider regularly donating food to a homeless shelter or having staff volunteer weekly at a soup kitchen. Hosting fundraising events is another effective way to attract customers and, more importantly, convert them into loyal patrons.
Restaurant Etiquette that Cements Customer Retention
Restaurants blend diplomacy and sociability, requiring effective communication, confidence, skill, and politeness from their staff. However, waiting tables is not as easy as it may seem; it can be quite stressful, especially when juggling multiple orders or carrying a 20-pound tray of food. Disgruntled customers can truly test your patience and composure. To help ensure smooth service and keep customers satisfied, the following etiquette guidelines for restaurant staff are essential:
- Greet visitors warmly upon entry.
- Remember customers’ faces and names.
- Maintain a polite and even-tempered demeanor.
- Fix any unlevel tables before guests are seated.
- Make thoughtful recommendations.
- Minimize physical contact with customers, or avoid it altogether.
- Refrain from eating or drinking while serving.
- Pay close attention to what you touch.
- Serve at the customer's pace.
- Provide extra cushions or high chairs for babies and toddlers.
- Avoid eavesdropping on conversations among guests.
- Stand upright throughout the duration of service.
- Speak softly and avoid arguments with guests and other staff members.
- Return change unless customers specifically allow you to keep it as a tip.
Servers are Also Salespeople
Restaurateurs don’t typically view servers as salespeople in the traditional sense. However, with the right training, servers can boost revenue, foster loyalty, and reinforce the brand. As the face of the restaurant, your servers play a crucial role in shaping its reputation. While factors like location, food, and ambiance greatly influence the dining experience, poor service can negate these efforts, jeopardizing customer retention. Conversely, exceptional service can set your restaurant apart.
Many restaurants focus solely on process and product training. While it’s essential for servers to thoroughly understand the menu and operate the POS system, menu memorization alone isn’t enough. Training your staff with diverse strategies can better equip them for success in engaging customers, enhancing both sales and customer retention.