Making Restaurants Profitable with Private Events

We’ve gone through the Brave New World the pandemic brought us, transforming our lives indoors. Six years later, solo is out, and large gatherings are back in. People want to go out; they want memorable experiences, large gatherings, shared celebrations, and loud parties.  

Data by OpenTable reveals that group dining increased by 8% in 2024, with 43% planning to dine more frequently in 2025. Restaurants must catch up and make the most of it because in an ever-changing industry like hospitality, staying ahead of the curve means the difference between relevance and success.  

Why Private Events Matter 

Higher spend per cover 

Americans love to dine out, and the survey by US Foods corroborates that. In 2024, the average monthly spend at restaurants in the US was $191 compared to $166 in 2023.  

Additionally, private events come with a higher price point, significantly boosting the average spend per guest compared to regular dining and guaranteeing a consistent revenue stream. Hosts typically opt for premium packages and add-ons, allowing restaurants to optimize pricing and maximize revenue per cover.  

Drives revenue during off-peak hours 

With pre-paid private events, restaurants generate revenue upfront, reduce the number of no-shows and cancellations, and ensure predictable income that covers fixed costs.  

“Wednesdays are the new Fridays”  OpenTable 

OpenTable data saw an 11% rise in seated diners on Wednesdays, the largest jump compared to any other day of the week. 43% of their respondents also suggest they’d dine out midweek if they had to choose.  

Restaurants that promote their space during the week through special event packages, menus, promotions, and experiences are more likely to see busier off-peak hours than slower days.

Reimagining the Restaurant Experience  

With a 27% increase in Experience Dining in 2024 vs. 2023, diners are gravitating towards unique experiences. They’re actively seeking memorable moments that are worth remembering.  

This has opened doors for restaurants to diversify their offerings and highlight their adaptability. Restaurants can experiment with new dishes or special menus that align with their identity while giving guests more reason to choose them over their competitors for intimate offerings.  

Sushi On Me, located in Jackson Heights, Queens, breaks away from traditional sushi dining norms its boozy and vibrant omakase parties. Hosting just four seatings per night, each accommodating up to a dozen guests, this intimate experience is available every day, offering an exclusive and lively twist on traditional sushi. 

Featuring a 15-course luxury raw fish menu paired with unlimited sake, the restaurant p transforms a typical dining experience into a fast-paced, one-hour celebration. The lively ambiance, coupled with interactions between chefs and guests, creates an unforgettable setting for birthdays, anniversaries, and other special occasions.  

This unique concept positions Sushi On Me as a standout in New York City’s dynamic restaurant landscape, appealing to those who crave not just exceptional sushi but also a fun, unconventional atmosphere for their dining and party needs. 

Upselling Opportunities 

Private events generate revenue from upselling opportunities like custom decor, AV equipment, or live entertainment. These extras contribute to higher margins while enhancing the guest experience, making private events a win-win for both the restaurant and its customers. By leveraging these efficiencies and revenue streams, restaurants can turn private events into a highly profitable part of their business model. 

Creating a memorable experience  

Stick to your identity 

What gives the restaurant a unique brand identity? How is it different from the competitors and other eateries in the neighborhood? Understand your restaurant’s strengths and determine how they could be used to offer unique experiences when hosting private events.  

The River Café, located on the Brooklyn waterfront, with its stunning views of the Manhattan skyline and the Brooklyn Bridge immediately differentiates itself from competitors and other eateries in the area. 

For private events, The River Café leverages its strengths by offering an unparalleled dining experience that combines breathtaking scenery, impeccable service, and an upscale menu. Their event packages often emphasize sunset dinners, where guests can enjoy the view during golden hour, creating a truly memorable occasion. 

By understanding its venue’s unique strengths, The River Café capitalizes on its setting to command premium pricing for weddings, corporate dinners, and milestone celebrations, positioning itself as the go-to destination for luxury private events in Brooklyn. 

This approach highlights the importance of assessing your restaurant’s standout qualities—whether it’s a historic location, a signature dish, or a distinct ambiance—and using them to enhance your private dining appeal. 

Know your customers 

Who makes up your primary customer base? Which target demographic are you aiming to attract? Are they looking for a flexible, budget-friendly casual space or prefer a high-end experience with five-star service? 

Similarly, consider what event planners prioritize when choosing a venue, including customization, affordability, and premium offerings. Understanding these preferences will help tailor your event offerings to meet the needs of your audience.  

Calculate the potential revenue increase  

By conducting a comprehensive cost analysis, restaurants can understand the expenses of hosting private events. Include food, beverage, staffing, and production costs in your calculations. Analyze the business during peak seasons, slower months, and the off-season, and use this data to set minimum event fees tailored to various times of the day, week, or year.  

When diners are looking for an event space, they’re often comparing similar restaurants in the neighborhood. Take a look at the competitors and see how they’re pricing their events to ensure you’ve priced the event competitively.  

Choose pre-payment for private events 

Having guests pay in advance gives restaurants greater cash flow control and brings in certainty. Upfront payments deter cancellations and no-shows, bringing in more enthusiastic guests who are looking forward to the event. It also allows restaurants to plan keeping a confirmed headcount in mind.  

Planning and coordination  

Hire an event coordinator to ensure the events run smoothly. They streamline operations, tailor the event experience to client needs, and handle any issues that arise, ensuring a seamless experience for guests. With their expertise, coordinators enhance client satisfaction, build long-term relationships, and drive repeat bookings, making them an invaluable asset for successful and profitable private event experiences. 

Streamline the menu design  

Private events allow you to connect with your guests more intimately over food and space. Offer set menus tailored to capture your guests’ attention and generate a predictable revenue stream. For example, healthy dining is on the rise, with many diners counting calories and seeking out healthier food, restaurants can offer dishes that are delicious and nutritional.  

With a selection of thoughtfully crafted dishes, restaurants can cater to diverse customer preferences, streamline service, and upsell their offerings. This approach ensures a seamless dining experience, faster service, and improved profitability. 

Staff training  

Equip your team with the skills to deliver impeccable service, emphasizing attention to detail, adaptability, and guest satisfaction. Training should include event-specific protocols, such as handling unique requests, managing tight timelines, and maintaining professionalism under pressure. A well-prepared team enhances the guest experience, builds your restaurant’s reputation, and increases the likelihood of repeat bookings. 

Integrate the latest technology 

Leverage restaurant management software to optimize the planning and execution of private events. These tools allow you to efficiently track bookings, monitor inventory levels, and ensure seamless team communication. Features like automated reminders, real-time updates, and centralized schedules minimize errors and save time. Integrating technology into your operations can deliver a more organized and professional experience, enhancing client satisfaction and operational efficiency. 

Promote your events online 

If you’ve started hosting private events, get the word out. Promote your event packages and highlights of past events along with set menus you’ve tailored for guests across all your social channels and website. Encourage diners to leave reviews online and tag your restaurant when they post stories and reels.  

Make the Most of Private Events  

The private dining era is here to stay, offering restaurants with party rooms or event spaces a golden opportunity to boost revenue, enhance customer satisfaction, and secure long-term profitability. By taking cues from industry leaders and implementing best practices, your restaurant can transform its private event offerings into a thriving revenue stream. Whether you’re a boutique eatery or a Michelin-starred establishment, investing in private events is a step toward sustainable success. 

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