The success of banquet halls in Chennai follows the very same path as other businesses in the city. You must minimize expenses and maximize income. A competent and honest staff, great advertising and fair pricing with quality service are the necessary keys to making any business more profitable. That said, there are a few steps that banquet hall owners and managers can take to fatten their profit margin. At times, these steps can be the difference between a struggling wedding venue and a thriving one, especially considering the cut-throat environment of today.
1. Invest In The Décor
Banquet halls in Chennai are not merely a service. When they market themselves to a client, they sell an experience. And for an experience to be unforgettable, the appearance of the place is paramount. Therefore, invest in the architecture and décor of the venue. Once you’ve got the best-looking hall in the city, invest in regular maintenance. Even the most gorgeous site will fail to attract customers if it is not maintained.
Furthermore, keep the highest cleaning standards. Weddings are chaotic and messy affairs. If you fail to tidy up after every event, you’ll soon have a hall drowning in dirt and debris. Keep in mind – the better the venue looks to the eye of the client, the more it will sell.
2. Cater To More Than Weddings
There are two busiest times for banquet halls – the wedding season and the weekends. The rest of the time, they are dead spaces that earn no money. So, cater to more than weddings to make your hall more profitable. These events not only keep the hall busy but require fewer services than a wedding.
Offer customers discounted prices for mid-week bookings or early morning bookings. Even by charging less than your standard rates, the hall earns more than when it is empty. Some events the hall can host are:
- Local club gatherings
- Corporate parties
- Product launches or promotions
- Trade fairs
- Award ceremonies
3. Have In-house Vendors
One of the easiest ways to make money with a banquet hall is in-house vendors such as catering. When the hall caters to an event, they can mark-up the price of each drink, snack, and plate. In the long run, that turns out to be a considerable sum. If you don’t have a kitchen, then subcontract the catering and then add a commission.
It is not just catering that can be provided in-house. In-house vendors for décor and DJs also help make extra profit.
4. Deliver Event Planning Services
Clients rarely want to take on the headache of organizing and planning an event, be it a birthday party or a wedding celebration. It takes too much effort, time and energy. As banquet hall owners, you have considerable experience in planning events. Use that to your advantage. Sell your organizing skills. Patrons will be more than happy to hire you. You can either include the event planning services in your basic contract or offer it as an additional facility.
5. Charge More During Peak Season
A Sunday is always busier than a Tuesday. Holiday-period bookings are more in demand than off-season. Your prices should reflect this. When it is peak season or the banquet hall schedule is particularly busy, charge a premium for your services. Even a small addition to the price can make a massive difference to the margin. Similarly, for events that require more maintenance such as bachelor parties, charge extra.
6. Network With Other Providers
An event requires many elements such as flowers, security, décor, furniture, and music. If you don’t cater to all these in-house, then have partnerships with local service providers. Every time you recommend a local vendor to a client and they are hired, you can ask for a commission from the vendor. It is a win-win situation for all. The service provider gets a client, and you get to make an additional profit.
Banquet halls are extremely popular in Chennai. All it takes is a little bit of ingenuity to make the business highly lucrative. Try the steps elucidated above, and your venue will be attracting customers left, right and center!