Increasing Restaurant Profits with Product Merchandising

Abstract

Although many restaurants have merchandised products related to their operation for a long time, the current breed of entertainment-theme restaurants has brought product merchandising to a high art. In fact, nearly all restaurants could benefit from selling appropriate merchandise, which typically returns gross profits of 50 percent of sales. One of the most common products, for instance, is a t-shirt bearing the restaurant's logo. Not only are such items in demand as collector's items, but they promote the restaurant. To be effective, however, product merchandising must be handled professionally, and in accordance with basic display principles. Choose items that fit the restaurant's concept and price them appropriately. Locate the merchandise in the most appropriate place, often near the cash register or at the restaurant's entrance. The merchandise must be arranged in a pleasing fashion, properly balanced, and color coordinated. The display must have a focal point, which is best set at the intended customer's eye level. The display should be illuminated by spotlights or other secondary lighting to attract customers' attention. The other senses in addition to vision-touch, smell, and taste-should be engaged where possible.