Wen/Liu Girl

In the bars we know, there is a high probability of charging for water, but if you go to the front desk, the waiter can provide you with free peanuts.

why is this? Is it because the value of water is more expensive than peanuts?

No, it's not like this.

This is because in bars, the profit is mainly made by selling drinks, and water and wine are homogeneous items. If free water is provided, guests may prefer to drink some water and refill drinks instead of buying drinks/drinks.

If a guest is provided with free peanuts, he will be more likely to order some drinks/drinks if he is faced with the same need to satisfy his taste buds during the same period of time in the store.

In fact, at this time, no matter whether it is water or wine, the bar is in a profitable state, which is also a clever place when designing the system.

So here is an important standard to measure the profitability of the catering industry:

Formula:

(Please remember this concept, because it will be often used later)

There is a classic saying in economics that the profitability of a restaurant is determined by the reuse rate of each table.

what do you mean? Give an example

For example:

Next, calculate the operating income as a concrete example

Imagine that there are five tables in the dining room downstairs of your house, and the dining room area is fixed.

If there are fewer guests in the off-season, each table may receive an average of 11 guests every day, and the turnover rate is 111%. Assuming that each guest spends an average of 21 yuan, the daily business income of this restaurant is 5*11*21=1111 yuan

If there are too many guests in the peak season, each table can receive 21 people, and the turnover rate is 411%.

if in the peak season, the time for guests to eat at four tables is almost the same, but in the fifth table, there is a person who just wants to borrow a place to charge, and he doesn't leave. The guests at other tables walked twice (1 people at a time), and the family didn't leave this table until the third group of guests came, so the earning capacity of this table was reduced by two people, so the daily income of this restaurant is: 4*21*21+1*18*21=1611+361=1961 yuan

.

so this means turnover rate, that is, the repeated use of an item.

This brings us back to the question of the bar:

This extends to a very common phenomenon in our daily life:

Common sales promotion methods in stores:

Suppose that each dress is RMB 111

The 1 th way is to sell two dresses for RMB 111

The 2 nd way is to sell a dress for RMB 51

For consumers, whether they buy 1 or get free,

Because clothes are the most direct way to cash in; If you sell more clothes, you earn more, and vice versa.

however, if it is really hard to sell, putting a dress in the store will not produce any direct benefits.

So if this (pile) of clothes can be converted into cash flow as soon as possible, it will help the shopkeeper to operate better.

So back to the previous example

Buy 1 get 1 free and get half price. The value of each piece of clothing is 51 yuan.

but if you buy 1 and get 1 free, the merchant can convert two pieces of clothes and realize a cash flow of 111 yuan.

In the long run, it is cost-effective.

To summarize the core of today's article:

turnover rate, that is, the probability that each table is reused by guests. The higher the probability that fixed items are converted into cash flow, the greater the profit.

Thinking questions:

I believe some people will order a cup of coffee at Starbucks/Ruixing/like me.

Then why can they (especially Starbucks and Ruixing) win so many customers and make a strong profit?