Hey Hot Potatoes,

Welcome to the latest edition of the Hot Potato Newsletter. Well, it’s been a while hasn’t it?! Rest assured after a much needed break I am back and ready to hit the ground running. I’m super excited for what’s in store for 2025 and can’t wait to get stuck into it! I hope you all managed to enjoy some time off over the Christmas period, although I’m sure it’s now starting to feel like a distant memory. Anyhow, we’re back in business, and what better way to kick off the year than by focusing on growth. In the first HP newsletter of 2025, we explore five ways you can grow your revenue without breaking the bank so that you can start your year full speed ahead.

In today’s email: Beyond the Menu: 5 Low Cost High Growth Strategies.

Read Time: Approx 5 mins

Delivery and Click & Collect

Embracing the digital world and offering both delivery and click & collect are super easy ways to start driving revenue from the get go.

Having spent a few years in the trenches at Just Eat, I've seen firsthand how delivery can transform a restaurant's bottom line. These days, getting started is easier than ever. Delivery platforms offer a plug-and-play solution: they hand you a tablet, help set up your account, and boom – you're ready to roll. No upfront costs are required. And if you're looking to keep more of your profits, platforms like Slerp offer lower commission rates whilst handling all the delivery logistics through your own website and app.

Now, let's talk about our peculiarly British love of queuing (yes, it's somehow in our DNA!). Click & collect is your chance to give customers the ultimate skip-the-line pass. They can order ahead, breeze past the queue, and grab their food – it's convenience at its finest. On top of this, by taking pre-orders, you’ve got money in the bank before you've even fired up the kitchen! Check out platforms like Storekit for a hassle-free way to launch your click & collect service.

Here's the deal, in today's world, more access points to your business equals more opportunities for revenue. Admittedly, these services might not be perfect for every venue (fine dining, I'm looking at you), but if your operations can handle it, why leave money on the table? Especially during those quieter periods when every order counts. At the end of the day, the digital world allows you to expand your reach more than you would have been able to otherwise, so you might as well embrace it!

Retail

Source: Restaurant Online

Let's explore a revenue goldmine that's hiding in plain sight… yep, it’s retail. Your menu items might just be the ticket to expanding your business beyond your four walls.

The line between restaurants and retail is getting more and more blurry. Since Pizza Express first dipped their toes into supermarket waters with their sauces and pizzas, we've seen an explosion of restaurant brands making themselves at home on retail shelves. Look at Nandos, GBK, Wagamama, Dishoom, and Itsu – they're not just restaurants anymore, they're retail powerhouses. Want proof? Itsu raked in a cool £60m in supermarket sales last year, and they're gunning for £100m this year. Or look at Dishoom who have built a mini retail empire, selling everything from homeware to cook books to meal kits. Meanwhile, coffee giants like Starbucks and Grind have customers brewing their morning fix at home with branded coffee pods.

Here's the exciting part, you don't need to go straight for the supermarket shelves to get a piece of this action. Start where you are. Got a sauce that customers rave about? A signature spice blend that makes your dishes sing? Why not package it for your diners to take home? Whether it's beautifully crafted hampers, convenient meal kits, or even a cookbook featuring your greatest hits, there's an opportunity to extend your brand beyond the dining room.

Every retail product you create is another way for customers to take a piece of your restaurant magic home with them – and another flow of revenue for your business. The retail revolution is happening – isn't it time you claimed your spot on the shelf?

Merch

Source: Square Meal / Square 

Let's dive into the merch(andise) game – a revenue stream that's not just filling pockets but turning your customers into walking billboards!

The numbers don't lie… Square's data shows food and beverage businesses offering merch has doubled since 2019. Why? Because smart brands have caught onto something brilliant – merch isn't just profitable, it's a brand-building powerhouse. From tees to totes, the margins on these products can make your accountant smile. Some of my favourite examples include the likes of It’s Bagels, Acme Fire Cult, Elsewhere Coffee and Rudy’s Pizza. They've nailed their offerings, creating gear people actually want to wear.

Here's where it gets more interesting; food and high fashion are having a moment. We're seeing luxury powerhouses like Gucci collaborating with Monocle, bringing what we eat and what we wear under one umbrella. The Maginhawa Group gets this – they draw inspiration from fashion brands for their food concepts and have even launched Mamasons Collective, their very own clothing line. It makes sense – both industries thrive on creativity and innovation.

But here's the real secret sauce, merch is your silent marketing team. If you think about it, every customer wearing your tote bag or t-shirt becomes a brand ambassador, spreading your message across the city and boost your credibility. It's like having hundreds of walking representatives for your brand, each one potentially bringing new hungry customers through your doors. The team at Brand Stamp produce some great merch, worth checking out!

Catering

Let's talk about catering, a revenue generator that often flies under the radar. Whether you're feeding hungry office workers or supplying private events, this channel can seriously improve your bottom line.

Here's what makes catering so appetising; these orders aren't just bigger – they're supersized. We're talking anywhere from 10 to 100 hungry mouths to feed, which means your average order value skyrockets. Even just a few of these orders each week can add a tasty supplement to your regular trade. It's no wonder industry heavy-hitters like Pret a Manger, Sandwich Sandwich, Atis, Salad Project and Lina Stores have all grabbed a slice of this profitable pie.

Ready to step into the catering game? You've got options! Platforms like Just Eat for Business can get you up and running smoothly, handling all those pesky logistics. Or if you're feeling independent, take the reins yourself and create your own catering operation from scratch. Either way, you're opening the door to a whole new revenue stream that could transform your business.

Events and Classes

Last but definitely not least in our list of revenue growing strategies is events. Your venue has untapped potential just waiting to be discovered, whether that’s through private rentals, ticketed events, or hands-on classes.

Take our friends at Bangers as an example; these breakfast and lunch specialists don't let their space sit idle in the evenings, instead they've partnered with Appear Here and have turned their off-hours into a profitable opportunity by renting out their venue. So here's some food for thought, if you're mainly an evening venue, why not explore morning rentals?

Want to take this concept a step further? Consider hosting your own ticketed events and classes, either in-house or with expert partners. I'm actually experiencing this firsthand next week at Caldesi in Marylebone, London, where I'll be joining one of their popular pasta-making classes. These regular events don't just fill seats – they create memorable experiences that keep bringing customers back through your doors. Every event you host is another opportunity to boost your cash flow and build your reputation in the community. Simple, effective and delicious!

Today we’ve run through a few different ideas on how you can look to grow your revenue without breaking the bank. Out of all the strategies listed, which one would you be most keen to implement?

Now, I’ve spoken with a few restaurant founders in my time, and one common theme seems to be that there is a plethora of restaurant technology out there, almost too much. Hospitality technology can be a confusing place and it’s hard to know what’s good and what adds value. In the next edition of Hot Potato, we will look at restaurant technology that actually works and what you need to elevate your business.

Thanks for reading and don’t forget to subscribe to stay updated weekly on all things hospitality!

Bon appétit,

Max Shipman, Founder, Hot Potato

P.S. Don't forget to add us to your safe senders list to ensure you don't miss out on any of our tasty content.