Restaurants don’t just make money from selling food and drinks; with the right commercial kitchen equipment, a measure of creativity, and some good publicity, many smart operators tap into unexpected or non-traditional revenue streams to boost profitability. Here are the top 10 creative and lesser-known ways restaurants make money:
1. Private Events & Space Rentals
One of the additional ways restaurants generate revenue is by renting out their dining rooms (and other private areas) for birthday parties, corporate events, weddings, or rehearsal dinners.
- A restaurant might charge about $500 to $5,000 for these events, depending on the group size, menu, and day of the week.
- For some restaurants, high-end venues or wedding-related bookings can bring in more than $10,000 per year.
Here’s how you can adopt this practice to generate some additional income for your restaurant:
- Designate a private dining area or rent out the entire space during off-hours or slow nights.
- Offer custom event menus, group discounts, or per-person pricing.
- Market through your website, local event planners, and Google My Business.
This is a good revenue-boosting activity to try, not just during slow seasons (usually January to March), but also during off-hours, such as weekday afternoons.
2. Selling Branded Products (Retail)
Restaurants, especially those with a strong brand presence, also generate significant revenue from selling branded products, such as sauces, spice blends, jams, or even house vinaigrettes.
Restaurants like Starbucks, with high popularity and extensive distribution, can generate approximately $2,000-$10,000 per month from the sale of branded merchandise.
If the merchandise is made in-house and sold directly, profit margins can be as high as 60–70%.
To implement this income-generating activity at your restaurant, follow these steps:
- Start with your most-loved condiments or baked goods.
- Package them with branded labels and sell them near the register or online.
- Partner with local grocers or gift shops to expand your reach.
You can even consider branded T-shirts, mugs, or hats. You can always explore more retail product ideas to sell at your restaurant.
3. Hosting Cooking Classes or Tastings
Many restaurants generate revenue by hosting chef-led classes or demonstrations on topics such as pasta making, knife skills, wine and cocktail pairings, and other areas of culinary expertise.
Some restaurants charge about $60 to $150 per class, and depending on capacity, they are able to make up to $600 to 1500 per class. These classes generate additional revenue through add-on sales of wine, utensils, and merchandise, which would increase profits.
Here’s how you can start cooking classes or tasting at your existing restaurant:
- Offer monthly workshops (e.g., pasta making, wine pairing, sushi rolling).
- Use slow weeknights to host them.
- Promote on social media, Eventbrite, or through your regular customer list.
4. Running a Ghost Kitchen or Virtual Brand
Creating a ghost kitchen/restaurant has become a viable source of income for many restaurants, and according to reports on ghost kitchen profitability, they are capable of generating between 15%-25% more income compared to traditional restaurant setups.
By creating a second food brand from your existing commercial kitchen, specifically for delivery apps, you can significantly increase your profits and achieve a much higher ROI since you're using the same kitchen and staff.
Follow these steps to set up a ghost kitchen for your restaurant
- Create a new identity (e.g., “Wing Empire” or “Vegan Bites”) with a niche menu.
- List it on apps like Uber Eats, DoorDash, or Grubhub.
- Prep the food with your existing staff during slow shifts.
5. Selling Meal Kits or Subscriptions
Another smart way restaurants generate extra income is by offering meal kits or subscription services. Usually, this takes the form of weekly or monthly boxes with pre-portioned ingredients from their best dishes, or packages for take-home or delivery.
Margins for this method may vary, but depending on the volume and loyalty of your customer base, you can generate a decent income in a month. Besides, the subscriptions provide predictable income, which is invaluable in the restaurant business.
How to implement this strategy:
- Offer weekly or monthly boxes with pre-portioned ingredients from your best dishes.
- Package for take-home or local delivery.
- Target families, busy professionals, or health-conscious eaters.
6. Themed Nights, Pop-Ups, or Chef Collaborations
Fun activities like themed nights, pop-ups, and chef collaborations are also a fun way for restaurants to make money, generate positive PR, and enhance customer loyalty. Events like guest chef takeovers generate thousands of dollars, especially if they are ticketed or premium.
How to implement this idea at your restaurant:
- Host special nights (e.g., wine pairings, “Tour of Italy” dinners, guest chef takeovers).
- Sell tickets in advance through your website or social media.
- Collaborate with local breweries, distilleries, or influencers to boost turnout.
7. Monetizing Social Media & Content Creation
Nowadays, restaurants are increasingly making money through social media and content creation. The Starbucks Coffee YouTube Channel has hundreds of thousands of subscribers and receives millions of views on its videos.
In addition to the direct income this provides, it also provides an excellent platform to invite stars like K-pop stars BlackPink and others to promote their brand and products both at home and abroad.
Sponsored posts, affiliate links, and YouTube/TikTok ads all offer income streams.
Here are some tips for leveraging social media and content creation to boost your restaurant revenue.
- Share behind-the-scenes, recipe demos, or “day in the life” videos.
- Grow a following on Instagram, TikTok, or YouTube.
- Partner with local brands or food equipment companies.
8. Publishing a Cookbook or E-book
Restaurants, especially those led by renowned chefs, also make money by publishing cookbooks and/or e-books for sale. These are usually compilations of recipes, stories, and pro-tips that are sold online or in-store. Self-publishing allows higher profits per book (up to 70% royalties online).
Follow these steps to generate more income for your restaurant by publishing cookbooks:
- Compile recipes, stories, and pro tips into a digital or printed book.
- Sell online, in-store, and via platforms like Amazon or Shopify.
- Promote through email newsletters and social media.
9. CSA Pick-Up or Farmstand Partnerships
Restaurants in rural areas make money by partnering with local farms to host produce pick-ups and similar income-generating activities. The increased foot traffic and goodwill generated during these events also increase profit both in the short and long term.
How to implement:
- Partner with local farms to host produce pick-ups at your location.
- Sell extra local goods like eggs, bread, or flowers.
- Offer discounts to CSA customers for dining in.
10. Franchising or Licensing Your Concept
More successful restaurants make money by franchising or licensing their concepts to create a long-term, scalable revenue stream. Royalty rates for restaurant trademarks generally range from 1% to 4% of revenues, with a median of 2%.
Follow these steps to prepare a good quality brand for potential licensing or franchising.
- Standardize your branding, menu, and operations.
- Hire a franchise consultant or legal team to develop materials.
- Start with one or two trusted partners to test the model.
Final Thoughts on How Restaurants Make Money
Many of these ideas work even better when stacked together. For example, offer cooking classes that upsell branded sauces, or host pop-ups that grow your social media presence.
The most important is to have the right equipment, an attractive concept, and a solid base to build from. Wilprep Kitchen offers the most affordable equipment for expanding the scope of your business, at a price that will not break the bank, and maximize your profitability in the long run.
You might also be interested in this list of the best commercial refrigerators you can afford.
