Buffet or “Eat All You Can” restaurants have been gaining a popularity boost in the Philippine food service industry. Much more when Samgyupsal (samgeopsal) was introduced as part of the booming K-pop culture here in the country. This fixed-priced-all-you-can-eat restaurant set-up allows foodists to enjoy wide variety of foods in just one sitting.
The “economization” mindset of Filipino consumers has prodded a common goal whenever they enter a buffet house: “Kailangang sulitin ang bayad”. What if most consumers share the same mindset? How can buffet restaurants satisfy this demand, and more importantly, how can they stay profitable with the unlimited food serving model?
There are three features of the business model of buffet restaurants that they have to balance: food costs, operations and customer satisfaction which for inexperienced businessmen will find it hard to do. But not at all times, perhaps at least for the cash flow side, since its fixed pricing allows for a predictable cash flow for them to better manage expenses and inventory. But the fixed price set-up has a drawback more especially if the demand decreases and customers consumer large food quantities.
Another challenge is the management of food cost more especially that buffet restos has to maintain wide variety of food options for customers to cater to the latter’s satisfaction. The only key that I am seeing here is for the buffet restos to minimize food wastages. The reason why these buffet restos are having policies appertaining to left-overs. But some restos are reluctant in the strict implementation of these policies for they fear that they might lose future customers. But I have already encountered a resto which will unfairly put almost unconsumable portions of the first serving which makes it hard for the customer to finish.
Buffet restos are also having some strategies when it comes to food cost management and food display. For instance, they will strategically place pastas, rice and salads in the front of the set-up for these foods offer lower costings than meats and seafoods. Added that these foods also make customers full easily which will do the magic of savong food costs. For products that has significantly high food costs (seafoods, meats, etc) they are tactically placed in distant table locations in small quantities and some are portion-controlled by their servers.
Another feature of buffet restos worth noting which may add up to the profitability potential is its self-service business model. This ensures that the business will not incur additional expenses for manpower who will be stationed in the dining area aside from receptionists, cashiers and table bussers which are usually measly in numbers. Lastly, buffet restaurants capitalizes on large volumes instead of high margins enough to keep them profitable and operate sustainably.
