The ROI of Outdoor Restaurant Seating

The last few months, we’ve spent a lot of time on this blog talking about how MagnaTrack™ can help the fun keep going in your outdoor areas all year around, rain, snow or shine. We’ve talked about turning residential patios and pergolas into cozy spaces where you can host holiday parties. We’ve discussed how event venues can partner with us to continue hosting well into the fall. We’ve even talked about the best heaters a restaurant needs to keep their outdoor spaces comfortable for patrons all through winter. But there’s no getting around it, MagnaTrack and heaters are an investment for restauranteurs. And we’re not sure we’ve done a good enough job demonstrating that ROI.

How to Evaluate the ROI of Restaurant Outdoor Seating

We’ve boiled down our ROI equation to something we think any restaurant owner or general manager can agree with. It looks like this:

DAYS x SEATS x DOLLARS x TABLE TURNS x CAPACITY = YOUR ROI

Here’s how we break it down.

• Days is the number of additional days out of your usual season you’re able to serve people outside. We’re going to do an example that’s modest, but keep in mind that MagnaTrack can help you keep these spaces available nearly year around.
• Seats is the additional number of seats your now able to offer.
• Dollars is your average check per seat.
• Table turns is probably self explanatory, but it’s basically how many times you can use those extra seats.
• Capacity won’t always be 100%, so you have to make sure the money makes sense even at lower capacities.

So let’s plug in some reasonable numbers. Again, MagnaTrack will have you open all through winter if you want to be, but we’ll just assume you’re trying to keep the patio open an additional two months and that you’re open six days a week. That means about 24 additional days.

We’re doing to assume you’re working with a relatively small space and call it 20 additional seats. Similarly, we’ll assume a $15 meal per seat, but remembering our stats, we’ll also assume they spend $7 per seat at your bar for a total of $22. We’ll do a middle of the road estimate on table turns and call it 12. As for capacity, let’s ignore those amazing stats at the top of the post and assume you’ll run at 50% capacity. Now our equation looks like:

24 x 20 x $23 x 12 x .5 = $66,240

Again, we know that there’s an investment in MagnaTrack and heaters, as well as new furniture, additional flatware and silverware, napkins, tablecloths, and probably a whole host of things we haven’t even thought of. But when you look at a conservative ROI that hits those kind of numbers, we feel confident in saying that it’s a very good investment.

Do Customers Even Want Outdoor Seating?

Before we get into the math, you might see some issues with outdoor seating, including being unsure if your customers even want it. Toast, a leader in the point-of-sale industry, did a survey to show the trends on outdoor seating for restaurants and we think you’ll be pleasantly surprised by what they found.

Their quick insights are that:

• 54% of respondents are more likely to choose a restaurant with outdoor seating.
• 48% of respondents said that umbrellas or a covered area for shade was the most important factor when choosing an outdoor restaurant.
• 62% of respondents prefer a covered screened-in patio when dining outside.
• 70% of respondents are willing to wait longer for outdoor seating.
• 35% of respondents are more likely to book a reservation in the summer when the weather is supposed to be nice.
• 40% of respondents prefer to dine outside in the late afternoon (happy hour) the most.
• 41% of respondents choose to dine specifically at restaurants with outdoor seating.

The rest of Toast’s article gives additional insight to each statistic that we’re sure you’ll find compelling, but we felt the quick facts proved our case admirably. But here’s a couple of other facts to think about.

• 84% of Baby Boomers wanted to make the post-lockdown outdoor eating experience permanent.
• 43% of Millennials spend more money on alcohol when dining outdoors, making outdoor seating even more attractive to restaurants offering bar service.

To large percentages of restaurant goers, access to great outdoor spaces make them significantly more likely to choose those restaurants.

Can you imagine anything else you could do that would instantly make you more attractive to 54% of people eating out? And what else could you possibly do that would entice 70% of people into waiting longer? But that’s the magic of outdoor dining.

Things for Restaurants to Consider for Outdoor Dining.

So your customers want outdoor seating and we’re confident it will make money sense by the end of this post, but there are some other considerations. Not necessarily barriers as much as questions you need to ask to make sure you’re maximizing your profits with good planning and wise choices.

What’s the point of outdoor dining

Are you simply trying to give an alternative to indoor dining? Do you have a large, wasted outdoor space that you’re trying to capitalize on? Are you trying to expand into more private events? Are you trying to capitalize on the insights above? Do you want to use your outdoor space more months out of the year? If so, how many?

There are no wrong answers to any of these questions. But, as a business owner or general manager, you know better than most that it’s important to know why you’re making changes. Gut feelings are great, but answering these questions can help you set realistic goals, which helps you measure true success.

Do you have the infrastructure for outdoor dining?

What we mean by this is, do you have the kitchen and waitstaff to support expanded seating? And do the logistics of the space make outdoor seating workable? It won’t do you any good to add more tables if you don’t have enough staff to cook for and serve those tables. Even worse, if the lay out of your restaurant makes it difficult for wait staff to keep an eye on those new tables or is so long to walk that the food is no longer served quickly or at the optimum temperature, you’re going to alienate your outdoor customers more than cater to them.

It’s important that you aren’t dazzled by the ROI numbers we’re about to share with you to the point that you fail to be realistic about your ability to keep up with additional business. The last thing you want is an ill-advised expansion ruining the good reputation you’ve spent so much time and effort cultivating.

The Importance of Contacting MagnaTrack Right Now!

For decision-makers in the restaurant industry, investing in MagnaTrack Screens is a strategic move to elevate your venue’s appeal and profits. By giving yourself additional seating that can be available uninterrupted by weather or pests, you can attract more clients and boost your revenue. Contact MagnaTrack today to transform your venue into the ultimate destination for unforgettable outdoor dining.