Definition of restaurant merchandising

Restaurant merchandising refers to the products created and sold by restaurants to promote their brand, such as apparel, accessories, housewares, food products, and merchandise ideas like custom gift cards and tote bags. This provides an additional revenue stream while reinforcing brand identity.

Exploring merchandising opportunities around delivery system and selling branded merchandise enables restaurants to diversify income with high-profit margins.

Importance of exploring branded products

Adding merchandising to a restaurant brand diversifies income while providing high-margin supplemental sales. It also strengthens brand exposure and deepens customer loyalty when executed thoughtfully. Developing a sound restaurant marketing strategy around new revenue streams with strong ROI.

Overview of the outline

This article will explore best practices for identifying, developing, marketing, and optimizing a successful restaurant strategy.

Understanding Restaurant Merchandising

Scope

Restaurant merchandising includes retail products like:
Apparel – t-shirts, hats, sweatshirts featuring brand names/logos
Accessories – bags, water bottles, phone cases
Housewares – kitchen tools, appliances, barware
Packaged foods – sauces, baked goods, cookbooks
Gift cards – custom designed

selling restaurant merchandising

Restaurant merchandise presents a major opportunity to deepen bonds with customers while also lifting revenues. The right products practically become part of patrons’ lifestyles, sparking enduring affinity. So, what clever merchandise concepts should restaurants develop?

The possibilities are endless, but owners should thoughtfully consider a few factors:

Creating restaurant merchandise is an excellent way to form meaningful connections with customers. When patrons proudly wear branded apparel or use logo drinkware, they are publicly displaying affection for your establishment. These products turn loyal customers into brand ambassadors. Offering compelling merchandise that reinforces your visual identity fosters greater engagement that transcends a single meal or transaction.

Of course, well-executed merchandise also provides an additional revenue stream with minimal extra effort. The key is to design creative offerings aligned with your brand essence—fun products that customers genuinely want to use, versus just having a logo plastered on their faces. Apparel and barware should add extra value and utility for buyers beyond advertising your name.

This merchandising ultimately amplifies your establishment’s recognition as well. Distinctive and aesthetically pleasing products will capture attention, efficiently promoting the recall of your restaurant. Merch allows new customers to discover your concept organically. When branding cues consistently remind existing patrons of your hospitality, it cements your positioning at the top of their minds for dining occasions. Leverage merchandise to drive discovery while continually delighting your core base.

Examples of successful restaurant merchandising

Starbucks sells a massive collection of branded apparel and accessories, topping $1.5 billion in 2019 sales

TGI Fridays features branded stripes and logo designs across its merchandise
Wingstop focuses primarily on core logo apparel and gifts online

Identifying Branding Opportunities

Analyzing the restaurant’s brand identity

Conduct an audit assessing brand recognition, iconic visual assets, target customer demographics and psychographics. This reveals strengths to leverage.

Assessing customer demographics and preferences

Survey customers to gauge interest in product categories based on gender, age ranges, and lifestyle needs.

Identifying potential branded products

Compare current offerings to reveal gaps representing merchandising opportunities aligned with brand identity and customer demand signals.

Developing Branded Products

Conceptualization and design

Ideate fresh merchandise concepts that communicate brand essence from packaging to fonts and slogans used. Bold, colorful artwork and lifestyle photography inspire purchases.

Product sourcing and manufacturing

Strategic partners should ensure consistent quality materials, construction methods and responsible labor practices. Investing in durable and safe merchandise prevents reputation damage.

Ensuring quality and consistency

Create clear brand guidelines and inspect prototypes thoroughly before full production runs commence. This maintains integrity as merchandise portfolio expands.

Marketing and Promotion

Creating a marketing plan for branded products

Map out targeted initiatives across diverse owned, earned and paid channels to build awareness. Schedule campaigns supporting new product launches and key seasonal gifting occasions.

Utilizing various channels for promotion

Spread branded merchandise promotions across multiple platforms:

Owned
In-store displays and signage
Website merchandise section
Catalogs and direct mail pieces
Loyalty member rewards
Earned

Influencer seeding and partnerships

PR outreach across hospitality media
User-generated social content campaigns
Paid social and display ads
Paid search campaigns
Retargeting past customers

Leveraging the restaurant’s existing customer base

Notify loyal patrons first about new arrivals via VIP pre-sales and members-only offers to drive word-of-mouth buzz. Offer frequent diner discounts to incentivize purchases.

Sales and Distribution

Setting up retail channels

Sell merchandise in-store via cool shop-in-shops, at the host stand, or integrated into waiting areas. Offer self-serve and assisted selling.

Establishing partnerships

Tap third-party stores and e-commerce platforms to widen distribution reach, leveraging their marketing strengths.

Managing inventory and fulfillment

Forecast demand to guide sufficient stock levels. Local distribution hubs supply stores rapidly. Ship online orders promptly.

Monitoring Performance and Adaptation

Tracking sales and revenue data

Analyze weekly reports on metrics like units sold, conversion rates, average order values and profitability by segment.

Gathering customer feedback

Solicit product reviews and test concepts with focus groups to learn what resonates.

Making data-driven decisions

Address poor performing categories through pricing shifts or improved display positioning.

Challenges and Solutions

Guest interest may vary
High development costs
Inventory forecasting complexity
Quality control obstacles

Strategies to overcome obstacles

Start small focused only on proven logo apparel
Build data models predicting sales by seasonality
Establish supplier management procedures

Conclusion

Strategic branded merchandise unlocks a lucrative new revenue stream while enriching brand exposure and customer loyalty – making it a highly compelling channel.

Diligently leveraging this outline for identifying, creating, and optimising branded products empowers restaurants to fully capitalise on merchandise upsides today and into the future through savvy distribution in owned stores, third-party retailers, e-commerce platforms, and food delivery systems.