How Adding an Outdoor Patio Cover Can Increase Dining Revenue 30%

Operating an outdoor patio area can be a great investment for a business in the hospitality space. As the weather warms up and even in the winter in some milder climates, an outdoor patio can provide additional seating, increased revenue, and happier customers for a restaurant. Research has shown that patio seating can add as much as 30 percent in sales to an establishment’s receipts,  so it’s no wonder that outdoor seating is something a lot of businesses choose to invest in.

Stop Relying on Perfect Weather

There is always the chance of perfect weather. For all the other days of operating an outdoor seating area, sun and rain protection is a must. Rain can shut down outdoor seating for days in certain seasons and cut into a restaurant, club, or hotel’s profits in no time. Likewise, too much sun and heat aren’t always welcome. With growing health concerns for UV exposure and an aging population, an outdoor space can become uncomfortable for patrons, driving customers away in search of a shady outdoor space leaving your patio empty. Meanwhile, a full and active patio is an excellent advertisement of a restaurant’s popularity.

To ensure outdoor serving areas produce revenue and attract customers, an increasing number of businesses in the hospitality niche are turning to retractable patio covers. Retractable patio covers keep a patio up and running rain or shine, keeping the wet away and patrons cool on harsh summer days.

Running the Numbers

When considering a patio cover, business owners may want to run a few numbers to determine what kind of ROI (return on investment) they could get from investing in a retractable patio cover.

A basic calculation can illustrate the sizeable ROI potential. In this example of a small outdoor space, simply keeping a patio open an additional 15 days in a season can return $45,000. Let’s say we have a casual dining restaurant with a $25 per seat average and a patio space with just six tables of four.

15 (DAYS) x 24 (SEATS) x 25 (DOLLARS) x 10 (TABLE TURNS) x 0.5(CAPACITY)= $45,000
Note: A motorized retractable patio cover covering a total area of 320 sq ft (20×16) costs $9200.

With 45k in receipts for an extra 15-days of seating (with just 10 table turnovers at 50% capacity), a retractable patio cover will see your business recouping the investment in these 15 days assuming a 20% bottom line. The ROI is considerably higher if you also account for the added revenue and return generated on all the other days. With a retractable patio cover you now have a more comfortable dining environment sheltered from the sun.

Custom Patio Covers

The patio area needs to possess many of the same interior space characteristics to maintain a consistent brand, style, and ambience. Many of the retractable solutions require a selection of stock available frames that do not match the high-end look and feel of your establishment.

Only ShadeFX retractable canopies are capable of mounting to any style structure, below or above the rafters, clearing light fixtures, radiant heaters, tvs, and other objects.

Browse commercial installations in our photo gallery >>

Is your business interested in making the most of it’s outdoor dining space and considering a patio cover? Please contact us for suggestions on how to extend your service outdoors and protect your customers, rain or shine.



Retractable Solutions for Outdoor Spaces

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