Clever promotions and cheap ingredients are a dangerous combo in the cutthroat restaurant
world.
Did Buca Di Beppo figure out the secret sauce?
We found out why they're so cheap compared to similar restaurants.
The Buca di Beppo chain anticipates high foot traffic during the festive months, which is
why it plans accordingly: They try to maximize the most revenue possible by opening new locations
in time for the annual winter holiday season.
Funding Universe explains that the strategy involves scheduling restaurant openings in
November, with the idea that the chain can prepare for the swell of large gatherings
across major holidays.
Does it work?
Well, the numbers back it up.
A study by the National Restaurant Association finds more than 75% of the U.S. population
eats restaurant food during this season, whether they're dining in or ordering takeout.
Additionally, regional trends are taken into account to schedule where locations will reap
the most financial rewards.
Between generous seating and comforting hot plates, Buca di Beppo can comfortably draw
large groups that make those big portions as budget-friendly as they are.
According to Funding Universe, if a location can potentially pocket roughly $100,000 within
a single week due to good timing, that grand sum can easily subsidize large amounts of
food on the cheap.
According to Bon Appetit, Buca di Beppo's red sauce and breads have garnered a lot of
accolades.
But don't go believing a Sicilian grandmother is responsible for all of the food on your
table.
As a former chef revealed on Indeed -
"A large portion of the menu is frozen product from Sysco."
The revelation was also confirmed by another alleged employee who provides a firsthand
account into working for the chain.
As it turns out, Buca di Beppo is not above relying on microwaves to heat up its entrees.
Nuking entrees in the microwave is probably considered an irredeemable offense to most
highbrow restaurateurs, but it's a necessary one to ensure those massive bowls of pasta
can remain inexpensive.
According to Bon Appetit, when the business got handed over to Joseph Micatrotto in 1996,
the then-CEO reportedly shifted to utilizing pre-packaged marinara mixes over making it
from scratch.
Buca di Beppo's family-style format allows for plenty of taste testing, as the entrees
are intended to be shared.
The small size alone is meant to feed three people, meaning that a handful of plates will
go a long way in satisfying empty bellies.
"We’re having a lovely lunch, and the food is great, and the portions are definitely
satisfying."
Take the Chicken Parmigiana, for example.
At Olive Garden, the menu price is much lower on the surface, according to Fast Food Menu
Prices, but that feeds one person.
The same dish at Buca di Beppo provides multiple helpings for a slightly higher amount.
Perhaps Buca di Beppo would be a pricier affair for small groups, but with enough people,
the check comes out to a surprisingly frugal total.
In a restaurant review from the Troy, New York-based publication The Record, a group
of six was able to buy a communal dinner for less than $15 a person.
Were this scenario to take place at a legit trattoria in one of the nation's Little Italys,
there's no doubt the bill would be double, even triple that amount.
Mountains of food might be a steal at Buca di Beppo, but it hasn't always been what customers
craved.
In fact, the gargantuan portions have often been a complaint among smaller groups, or
customers simply wanting a lighter helping of fettuccine for dinner.
"I'm eating food.
Lots and lots of food."
Too much of a good thing was in fact not so good, and sales slumped in response.
According to Nation's Restaurant News, that explains why, in 2008, the chain made the
call to launch a lineup of individually sized dishes to counteract the rest of the menu's
girth.
The "Best of Buca" selection more or less resembles the standard offerings except shrunken
down to manageable, single-portion levels that come at a lower price point.
In terms of volume, perhaps the regular offerings come out to be cheaper overall than the smaller
sized versions.
However, it's not always about getting the most bang for your buck.
Not every diner wishes to haul a gallon of baked ziti home for leftovers, let alone pay
the higher price tag that comes with it.
Scaling back on portion sizes satisfies customer needs on both counts.
Robert Earl, the industry mogul behind Buca di Beppo's parent company, Planet Hollywood,
has been on a tear with digital brands recently.
One of the brands in his pocket is Wing Squad.
As Restaurant Business reports, the concept specializes in chicken wings and sides that
are prepared off-site and exclusively sold through delivery apps.
Restaurant Hospitality reports that in some cases, orders are carried out in Buca di Beppo
kitchens.
Virtual brands are a smart move for Buca di Beppo.
Even successful eateries have to stay on budget with rent and maintenance expenses.
When up to 10% of a restaurant's earnings can go just to keeping the lights on, that
leaves little room for discretionary spending.
But chains like Buca di Beppo already have the necessities to roll out new products without
added fuss.
Since many people opt for takeout and delivery, and less infrastructure is needed as an off-site
operation, Wing Squad can remain cheap and easy to purchase.
And it stands to reason that the added revenue, sans the extra costs, helps family brands
like Buca di Beppo keep their prices down as well.
When it comes to sheer number of employees, Buca di Beppo is a force to be reckoned with.
According to Zippia, roughly 7,500 workers lend their labor to the chain at the time
of this video.
But according to feedback given by many employees, the family-oriented restaurant treats its
labor pool less like a family and more like robots on an assembly line.
Countless complaints about long hours, messy scheduling, and rare breaks can be found on
the company's Indeed profile, and all from a variety of job titles.
The reason chains like Buca di Beppo can hawk cheap prices, or keep them consistently low,
is often because of the underpaid labor force who make this affordability possible.
The federal minimum wage currently listed on the U.S. Department of Labor's website
is $7.25 per hour.
According to Indeed, with tips, a server at Buca di Beppo can look to pull in around $12
an hour.
Add in the fact that employees juggle multiple responsibilities on shift, and you're looking
at a lot of work that goes unnoticed, and by extension, unrewarded by a company rolling
in plenty of dough.
According to Talk Business & Politics, almost a quarter of diners would venture to a new
eatery under the assumption that they could snag a good deal.
Who wouldn't?
Promotions are just solid business, and Buca di Beppo employs that tactic frequently.
Every week you'll find a new promotion going on at the restaurant.
A look on its website shows you can score half off your spaghetti dinner with Meatball
Mondays or a $5 glass of your favorite vino on Wine Wednesdays.
It goes without saying that Buca di Beppo is a value-oriented chain, and regulars are
already well-aware of its affordability.
Regardless, there's a special psychology behind the promo code subtracting from your total.
Point-of-sales company Toast writes that over 80% of people plan dining out around promotions,
which is too large a number for corporate chains to simply ignore when figuring out
how to lure customers to their establishments.
Buca di Beppo is already affordable on its own accord, but those constant deals make
it surprisingly easy to never pay full price.
Plus, customers may very well spend more when the prices are good, so it works out for everyone.
Another reason Buca di Beppo gets away with such low prices is because many of the entrees
are inexpensive to make.
It doesn't take much, ahem, dough to boil a big pot of pasta.
Of course, as a Quora user points out, commercial restaurants will inflate the price on dishes
that can easily be made at home, and noodle dishes are not immune to this phenomenon.
Sure, you have to account for the money they sink into other ingredients, like sourcing
and prepping ground beef for a meat sauce.
So obviously your pasta plate is going to be more expensive than the dry rotini that's
already packaged and ready in minutes.
But the power of bulk pasta is still its ability to cheaply feed a lot of people.
Even noting the large portion sizes doesn't alter the facts: Buca di Beppo subsidizes
the pricier items like meat cutlets or prosciutto by building those dishes on a base of affordable
ingredients.
As reported by Zippia, the $310 million revenue Buca di Beppo brings in makes it clear that
plenty of people adore eating there.
But getting customers through the doors requires a bit more than meatball puns and Rat Pack
relics.
Loyalty programs are an effective tool, and quite popular among eateries.
TouchBistro, a Canadian software business, reports that 70% of restaurants maintain a
rewards system for patrons, and – you guessed it – Buca di Beppo is one of them.
Joining the Buca E-Club grants guests a host of exclusive perks, including discounts or
outright freebies, such as an enormous brownie sundae on your birthday.
It seems obvious why a family-oriented establishment like Buca di Beppo would use a loyalty program.
Not only are they able to increase foot traffic, but they also widen the net of potential customers
who come back again and again.
Since the program promises cheaper, if not free items, then it's easier to justify repeat
trips.
"They really celebrate family and fun.
It's made this night wonderful."
Visiting Buca di Beppo stimulates the senses, and we're not solely talking about the food.
Immediately when you walk inside you'll be struck by the decor and the immense dining
rooms.
Having marketed itself as a celebration venue, Buca di Beppo maintains appropriately grand
eating spaces tailored to the crowds it welcomes as family.
With five areas total, many locations are capable of hosting up to 300 guests, as a
location in Davie, Florida reveals.
"Buca di Beppo has several different semi-private rooms, that are perfect for any size celebration."
The industry average for a restaurant's size ranges anywhere between 1,300 to 4,250 square
feet total, according to AZ Central.
That's peanuts compared to the staggering stature of the typical Buca di Beppo restaurant.
When expansion started taking place across the southern U.S. in 2012, RestaurantNews.com
reported that new eateries were reportedly being constructed at up to 7,000 square feet.
With abundant seating for larger parties, the establishment is able to generate more
income that trickles down to the rest of the operation, which means menu items can stay
routinely affordable.
If hundreds of people show up on a given night and purchase items at a consistent rate, you're
looking at much higher revenue in the long run.
Groups sitting shoulder-to-shoulder is the kind of dining experience Buca di Beppo prides
itself on, but rising numbers of people are opting for off-site service.
For that reason, you can find the Italian restaurant's family-sized eats on takeout
and delivery platforms.
Onboarding platform service Workstream weighed the pros and cons to restaurants utilizing
delivery apps, and while both sides offer intriguing perspectives, it's important to
remember that delivery apps essentially act as workarounds to hiring long term employees.
For example, you don't have to invest in a pool of drivers if you can get the same labor
from third-party contractors.
Even considering the additional costs businesses have to pay the apps in question, such as
commission fees, it no doubt ends up being less expensive in the grand scheme of things.
Chron reports that eateries might set aside 40% of their budget to wages, while according
to Workstream, the price of implementing a service like Uber Eats, would require a 15-30%
sum overall.
Cha-ching!