How is the buffet profitable?

Buffet is a very unique catering business model.

Buffet is not ordered by customers, and then the restaurant serves according to the contents ordered by customers, but all kinds of food are placed and selected by customers. ..... and there is no limit to how much customers can eat.

Because of this, buffet has become a popular eating pattern.

Some people may ask, since the buffet allows customers to eat and drink at will and eat as much as they want, then the hotel will not lose money!

But the fact is that running a cafeteria doesn't make money.

The reason why this happens is that the operation of buffet has its unique business model and profit space.

Specifically, the profit margin of buffet includes the following aspects:

1, small profits but quick turnover.

The profit margin of buffet is really low.

However, the number of customers in the buffet is very large.

In this way, the total profit brought by a large number of customers makes up for the low profit rate of buffet.

So overall, the profitability of buffet is not low.

2. The operating cost is low.

Buffet is a state in which customers eat and drink by themselves.

This reduces the demand for waiters.

The labor cost of waiters is a relatively large expenditure for hotel management. ..... The buffet business model reduces this part of the expenditure, so the total profit of the buffet is not low.

3. The total cost of dishes is low.

This problem involves two aspects.

First, the buffet has a large number of customers, so there is a great demand for all kinds of dishes.

Because of the large purchase volume, the purchase cost can be reduced.

Secondly, the buffet looks dazzling, but there are not many really expensive dishes. ..... There are many inexpensive dishes ... These dishes reduce the total cost and create conditions for improving the profit margin.

It is precisely because of the above factors that the buffet can make so much money.