Late night eats: the profitability of keeping your kitchen open late

In the fast-paced world of foodservice, adaptability and a keen eye for market demand can be key factors for success. One avenue that you may consider, and we’re seeing many venues explore, is the introduction of a late-night menu to capitalise on the later crowds of revellers. But, what’s the secret sauce behind keeping your kitchen open into the wee hours? Here we explore what to keep in mind and how to assess if adding a late-night menu is right for your venue…

1. Tapping into a Lucrative Demographic

Late-night menus predominantly attract a younger audience – millennials and Gen Zers. This demographic is more likely to stay out late, whether they are night owls, students studying, or club-goers. Catering to this audience, which often seeks out midnight munchies or post-party bites, allows businesses to garner loyalty from a group that's often on the lookout for the next trendy spot.

2. Reduced Competition

Many establishments close their kitchens by 10 or 11 PM. This means fewer options for those seeking food later. By offering a late-night menu, you position yourself in a niche market with less competition. This can translate to more customers and, in turn, higher profits.

3. Simplified Menus, Higher Margins

Late-night doesn’t necessarily mean offering your entire menu. Many establishments opt for a simplified version, focusing on items that are quicker to prepare and have higher profit margins. Think gourmet pizzas, sliders, or specialty fries. This not only ensures faster service but can also lead to better profitability per dish.

4. Optimised Staffing and Overhead Costs

With a late-night crowd, there's no need for a full roster of staff. A limited crew, focused on the essentials, can keep operations smooth. Moreover, with the main costs (like rent and utilities) already accounted for during the primary business hours, the added hours can reap more benefits than the additional incremental cost they represent.

5. Building a Unique Brand Identity

Being known as the go-to spot for late-night cravings can help in creating a strong brand identity. It gives an establishment a unique selling point, setting it apart in a crowded marketplace. Consider marketing a specific product that will generate conversation and may earn a cult-like status, for example late night banh mi or a savoury French toast

Some Challenges to Consider

While the benefits are many, there are challenges to running a late-night kitchen. These include ensuring safety for both staff and customers, potential noise complaints from neighbours, and the health and well-being of staff working irregular hours.

Keeping the kitchen open late can be a profitable venture, but it's essential to weigh the pros and cons. When executed correctly, it provides an opportunity to tap into a new customer base, reduce competition, and optimise profits. However, it's crucial to approach this with a strategy, ensuring you maintain the quality of service and food while optimising the overall experience for the late-night diner. In the world of foodservice, adaptability is key, and late-night eats might just be the next big thing for your venue.

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