The Multi-Hyphenate Business Model
What the heck is it and what does it mean for you?
Simply put, a multi-hyphenate approach means diversifying your revenue streams through non-core offerings1. It’s nothing new to the food world. Movie theaters, gas stations and sports stadiums have been doing it for decades through concession sales, retail offerings and branded products and memorabilia.
What’s interesting to us is how more and more restaurants — including independents — have adopted this model. The pandemic accelerated the need for alternative revenue sources and it forced restaurants of all sizes to get creative2. Enter in a new era of multi-hyphenate offerings that blur the lines between retail, restaurants, events, online experiences and more2.
Restaurants selling groceries. Retail stores offering online cooking classes. What used to be straight, vertical lines of business are now blending into one. The restaurant-bar-store model, for instance, translates to serving food and beverages along with offering mixology classes, retail gear and tastings2.
For consumers, access to multiple products and services from businesses they already trust can turn them into lifelong fans2. In fact, 59% say they’re likely to buy items from restaurants that aren’t part of their core business3.
Another way to look at this is to consider your current customer base. If you have a good connection with them and understand what they might want, now could be a perfect time to experiment with adding new revenue streams.
Part of being in the restaurant business means you’re always having to learn, adapt and embrace new ideas and tech capabilities. Attempting a multi-hyphenate approach is no different. It’s about setting up your business so you have the flexibility to try new things and can keep up with quickly-changing consumer behavior2. To help, here are few tips:
- Connect With Your Customers. Looking at the analytics of your social media, online sales and emailing marketing can help you understand what diners are interested in. Are certain social posts garnering more engagement? Which email subject lines tend to get high open rates? Utilize the data you already have on hand to help you figure out which new products, menu ideas and services to offer1.
- Test and Learn. Casting a wider net doesn’t always result is a larger return. Look for existing efficiencies and make sure you’re expanding your business in thoughtful ways instead of throwing things at a wall and hoping something sticks2. For instance, you can turn new product offerings into loyalty perks for top customers2. It’s the perfect way to start small and get some honest feedback before putting too much time or money into something that might not work.
- Offer Discounts and Be Flexible. No surprise here, but it’s a whole lot easier to encourage sales of new offerings when you bundle big discounts with core favorites1. If one offering doesn’t work, consider trying another. It might take some initial trial and error before landing on what works best for your business.
The simple answer is this: everyone’s doing it. Think about it. Today’s consumers can blend their favorite restaurants with other aspects of their lives like never before1. They’re able to visit a coffee shop, order a latte and get their motorcycle fixed. Or the local breakfast diner they love is now offering a hoodie they just have to have.
In other words, a multi-hyphenate business approach not only helps your diversify your revenue, it also allows you differentiate your business while deepening your customer relationships. In fact, the practice itself is becoming quite commonplace. Half of restaurant owners added new products or services to their businesses in 2022, and that number is expected to jump to 88%1.
Not only that, this approach can also make a tangible impact on purchasing decisions1. Half of consumers have purchased a retail item (57%) or pre-made frozen meals (41%) from a restaurant in the past year. So, continuing to grow beyond your primary offerings is not only smart business, it’s a good way to give diners what they want on a variety of different levels.
HOW WE CAN HELP
We might not be able to offer much assistance in the realm of retail clothing lines or housewares, but we do know a thing or two about creating craveable dishes that draw diners in. Whether you’re branching out with meal kits, looking for recipe inspiration or simply wanting to save on time and labor so you can focus on other aspects of your business, we can help.
All of our premium offerings are fully prepared and meticulously crafted. Think Texas-style, pit-smoked brisket that was smoked over real hardwoods by seasoned pit masters. Or prime rib that’s cooked sous vide style and ready to impress.
If you’d like to see how Heritage Premium Meats can elevate your menu without adding back of house complexity or help you turn business challenges into opportunities, please get in touch.
LET’S CHAT
Who is Heritage Premium Meats?
Born to two legacy brands, Heritage Premium Meats is a distinguished collective built on listening, collaborating and sharing ideas that solve real business problems. We offer authentically crafted protein solutions that are rooted in tradition and ready for the future.
For you, that means getting exactly what you need, just the way you want it. Whether it’s a private label product or flavor that’s uniquely yours, you can let your imagination lead the way when you partner with us. Because together, anything is possible.
1Square, 2023
2Fast Company, 2021
3Square, 2021