Earlier this year, Starbucks reported some of the most dismal sales stats we’ve seen from them in a while.
Revenue declined by 1% YOY, North American sales dropped by 3%... things were not great for Starbucks in Q2.
Despite the not-so-great numbers, Starbucks’ slow season was quickly explained away by the not-so-great state of the U.S. economy — namely rising prices, lower wages, and individual financial strain.
But what about slow seasons that can’t be explained away by the capital E “Economy”?
The slow seasons that restaurants grapple with every winter or after the holidays?
The slow seasons that seem to be a non-negotiable for restaurateurs?
Don’t worry — we’ve got answers for those kinds of slow seasons, too.
In this blog, we’ll take you through:
- The 2 slowest restaurant seasons (and why they’re slow)
- 3 strategies to help you survive the slow seasons for restaurants
- 3 ways Craver can take your slow seasons from “surviving” to “thriving”
Let’s get into it.
What Are The Slowest Seasons for Restaurants?
Now, before we get too deep into which seasons are the slowest for restaurants… there’s good and bad news you should know about, first.
Let’s start with the bad news:
Slow seasons are inevitable for restaurants.
Every restaurant has slow seasons — no matter how big, popular, or successful. And, what’s more, each restaurant’s susceptibility to slow seasons is unique, too. A restaurant’s Slow seasons are heavily influenced by location, target market, menu, and other highly variable factors.
Now, the good news:
There is some predictability to slow seasons for restaurants.
Despite how restaurant-specific slow seasons can be, industry research has found a few patterns in slow season trends throughout the year. There are 2 data-informed slow seasons for restaurants that all owners and operators should pay close attention to (and prep early for).
1 — Winter
Research shows that the cold, wintry months of Q4-Q1 are one of the slowest seasons for restaurants (outside of the December holidays).
In March 2024, Black Box Intelligence and Blue Book Service shared a report of restaurant performance across the United States. Data showed a 4.5% drop in same-store sales growth in January 2024, the weakest month of growth reported since February 2021. Black Box suggests the greatest factor in this drop was the weather, with much of the US “[experiencing] unusually cold weather fronts or rainfall” that negatively impacted sales and traffic in January (especially compared to December 2023, which was an unusually mild month with unusually high sales).
Source: Blue Book
Consumer attitude toward cold-weather dining also plays a role in winter’s “slow season” status. In a consumer survey by Rewards Network, 25% of respondents said they wouldn’t dine out this fall/winter more than once a month at max. An Ohio State University study also found that diners are more negative about their restaurant experiences when the weather is bad or cold.
Combine wintertime negativity with the fact that some diners might not have wanted to go out in the first place, and you’ve got a clear path to lower spending and non-repeat customers.
2 — Post-holidays/New Year
Data shows that the “post-holiday” months of January, February, and March are another typically slow season for restaurants.
In March 2024, Ipsos asked consumers if they gave up anything in January to start the New Year fresh. “Dining out” was the most-mentioned answer, with consumers citing prices as the main influencing factor. Statista’s 2024 New Year’s Resolution survey revealed similar consumer sentiments, with 26% of respondents resolving to “reduce spending” on expenses like food.
And, considering how directly consumer resolutions target dining out, it’s no surprise the New Year brings slow restaurant sales.
84.51°’s New Year’s Resolutions survey found that 57% of respondents plan to reduce spending on “dining out/carry out/food delivery services” in 2024. Instead, respondents plan to eat at home more ( ~30%), reducing their “on-the-go” and take-out/dine-in habits (~31% and ~30%, respectively).
Source: Statista
3 Strategies To Help Your Restaurant Thrive During Slow Seasons
Now that you’ve got a few of the industry’s slowest seasons in mind — and what that means for your consumers — some worried thoughts might have started brewing.
“If slow seasons are inevitable, what am I supposed to do about them?”
Well, let’s start with doing these two things, first:
1 — Accept the inevitability of having slow restaurant seasons
2 — Understand that a slow restaurant season ≠ restaurant failure
Just because there are certain times of year when slower sales can be expected, doesn’t mean your restaurant has to accept those slow sales in defeat.
The inevitability of slower sales — or rather, their predictability — empowers your restaurant to plan, prepare, and employ new strategies to counteract traditionally slow sales.
That’s where the next part of your “Slow Sales To Do” list comes into play:
The three strategies that’ll help your restaurant survive (and thrive) during slow seasons.
Strategy #1 — Get Your Guests to Order More Often
Did you know acquiring a new customer costs up to 7x more than retaining one? That’s why our first strategy to combat slow restaurant sales isn’t getting “new” customers — it’s getting your existing customers to increase their average order value (AOV)!
One of the best ways to increase AOV is by making the “spend” more enticing with a restaurant loyalty program.
Offering your customers exclusive discounts, members-only promotions, and redeemable rewards incentivizes a higher AOV with a “spend more, get more” philosophy. The more they spend at your restaurant, the more handsomely you’ll reward them with discounts and deals. Then, they’ll spend more again to get even better rewards from you… and the cycle keeps on repeating because it’s one where everyone gets to win.
How Craver Can Help
With Craver, you can create a custom restaurant loyalty program to reward your regulars with everything from points and free items to member discounts and promotions. Or, you can uplevel your loyalty (and secure recurring revenue) with our Memberships & Subscriptions program!
Build loyalty that lasts with a custom-branded mobile app by Craver.
Strategy #2 — Entice Your Guests to Spend More with More Value
According to Joe Yetter, General Manager of Par Technology, “[guests] that are most price sensitive are gravitating toward value promotions.” Our second strategy to combat slow restaurant sales reflects exactly that — offering more value to your customers, and having them increase their AOV in return.
And, the best way to do that? Upsells and add-ons.
Say your large coffee only costs $0.50 more than your medium. By showing that a massive value upgrade comes at a negligible price point, you can encourage a higher AOV than originally intended. Now, with their upsold coffee, your customer is spending $0.50 more than before and getting a better bang for their buck — all because you showed them how a little more money means a lot more value.
How Craver Can Help
Craver’s custom-branded mobile apps offer easy-to-use upsell and add-on features. With the touch of a button, guests can add a side to their order or make their “medium” into a “large,” increasing their AOV and improving their value perception of your restaurant.
Ready to increase your AOV? We're here to show you how.
Strategy #3 — Use Delivery to Reach More People
In a dining habits survey, Rewards Network found that 48% of respondents planned to dine out less during fall and winter, instead opting for delivery. That’s precisely what our third strategy to combat slow restaurant sales is — delivery!
Delivery is a great option for expanding your restaurant’s reach because it solves problems for your diners, especially during the winter. For example, if a diner is craving a dish from your restaurant but doesn’t want to make the cold-weather trek, they don’t have to — you deliver! Or, if a family had to cancel their birthday reso because of a storm, you can deliver dinner, instead.
Amplifying your delivery services during the slow season means everybody gets what they want and need — your restaurant makes sales, and your customers enjoy your food.
How Craver Can Help
Thanks to Craver’s wide range of delivery integrations, our ordering platform gives your restaurant access to large networks like UberEats, DoorDash, and Relay — without the painful commission fees. You’ve also got the option to use your own delivery fleet, too!
See how Craver can make your restaurant delivery services better, faster, and stronger.
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