Why Valet Parking Increases Restaurant Revenue

Restaurant Valet Parking Increases Revenue

They have become a common sight in most large city’s, valets waiting outside restaurants ready to relieve you of your car, and that annoying problem of finding a parking space. There is a reason for this, not only does it attract more customers, valet parking increases restaurant revenue in several ways.

As more and more restaurants continue to open in busy city centers and downtown areas parking is getting harder and harder to come by in many metropolises and small towns alike. Many restaurant owners overlook figuring out a parking solution when providing sufficient parking, especially during the peak seasons may be their key to success. This is why a growing number of restaurants, bars and retail stores are now offering guests valet parking.

Keep Regulars Consistently Coming Back

Parking is sometimes a major issue depending on where you’re located. If your restaurant is snugly situated downtown customers have to drive specifically to your restaurant or bar to eat. Not knowing if they’ll be able to find a parking space will seriously deter many potential customers, especially regulars. It’s important to ensure that regulars and newcomers will all have a place to park even when it’s the busiest time of the year.

Why Its Time to Valet

When you’re applying for a permit with the city but can’t afford (or find) a nearby lot to purchase or rent, you may feel dead on arrival. Thriving cities are simply running out of parking spots and developments where parking is feasible. Even if you’re planning on providing parking spots the block surrounding your restaurant may already be full.

One way to circumvent this issue is to purchase a valet podium and start your own valet service or hire a valet company to handle it for you. It’s an investment, but the promise of carefree parking will bring in enough additional business to pay off the investment in full. In fact, if you add your own valet service it actually creates an additional source of revenue.

Demand-Based Parking Pricing is Increasing the Use of Valet Service

Demand Based Parking

Demand-based parking is a relatively new concept that is currently only being used in San Francisco but due to parking congestion, large cities nationwide will likely soon be creating their own versions of demand-based parking.

With this system, meter rates go up or down based on demand, which encourages faster turnover on overly crowded (more expensive) blocks and increased use of underutilized parking (where the fee is cheaper). According to the MTA, San Francisco is the first in the U.S. to implement such a program citywide but more are soon to follow.

Meter pricing is currently a minimum of 50 cents per hour and a maximum of $8 per hour. Rates are set block by block and rates change throughout the day to reflect peak hours and off hours. Beginning in January 2018, the city will start adjusting those rates every three months. If a block is consistently at 80 percent or more occupancy, the hourly rate will go up 25 cents. If it’s at 60 to 80 percent occupancy, the rate will stay the same. Below 60 percent, the price drops by 25 cents.

When the city implemented these new rates on the public parking lots and garages private parking lots throughout San Francisco also increased their rates. If you review rates on BestParking.com the average daily parking rate is now almost $30.

The fact is consumers are now taking the cost of parking into account when deciding to go to a restaurant, a movie or pretty much any other activity that involves them having to drive somewhere and park their car.

Savvy business owners have realized this and are implementing ways to offer free parking to their customers. This is usually done in three ways.

  1. Create Your Own Valet Parking ServiceACTUALLY GENERATES ADDITIONAL REVENUE
  2. Hire a Valet Parking Service – Not as much of an initial cost but still an ongoing expense
  3. Validating Parking – this is usually the most costly option

If you are looking to start your own valet service we recommend taking a look at our full line of valet podiums and other parking equipment.

How a Lack of Parking Can Ruin a Business

Portable Valet Podium at Coyo Taco Restaurant

A successful business is one that attracts customers and keeps them coming back. Everything about a business should aim for that goal. Despite having a great line-up of products and excellent service, not every business achieves that goal because of one simple, yet fairly common problem: a lack of parking space and failing to offer valet parking service.

One of the aspects often overlooked by restaurants, cafes and many other businesses that rely on a steady flow of customers coming in and out of their business is parking. In order to have a successful business, it is essential to find a business that is equipped with enough parking spaces to cater to the needs of the customers and the employees or manage your parking spaces by offering a valet parking service. Simple parking space shortages can cause a lot of problems for the business in the long run. It’s important to maximize the potential of your business by managing your parking spaces just like a restaurant manages seating for guests.

Nobody likes to drive around the block several times to find a space to park, it could potentially drive clients away to look for a similar business with better parking space options. This is particularly true when it comes to customers with disabilities. For some people, it is simply not an option to use anything other than valet parking.

The best way to determine what the actual parking requirements are for your business is to conduct research on similar businesses around your location. Determine the volume of traffic during peak hours to have a reference on how much parking space your business would require. If you come to the conclusion you have a lack of parking, look into offering valet service before searching for a new place to do business.

A parking shortage is a serious problem, but it is something that can be avoided or remedied by managing your parking lot by offering valet service or hiring a management company to do it for you.

 

Parking Management Market Industry Forecast 2016-2021

Parking Management Industry Forecast

 Parking Management Industry Overview

MarketsandMarkets forecasts that the Global Parking Management Market is estimated to grow from USD 3.03billion in 2016 to USD 5.00billion by 2021, at an estimated CAGR of 10.6%. An increase in the number of vehicles across the world is impelling the demand for an effective system to find solutions to parking concerns. The issues of traffic congestion are rising at alarming rates across the world, impelling the need for effective and flexible park-assist solutions. According to industry data, 30% of traffic congestion occurs due to vehicle drivers struggling to find parking space. This, in turn, is magnifying the necessity of smart and efficient parking systems and valet parking operations. Today’s intelligent parking management systems are capable of providing convenience to the drivers, as well as simplifying and automating the business operation and administrative functions of the parking site owners.

The escalating adoption of park-assist systems at avenues such as corporate campuses, airports, and shopping complexes, among others is projected to energize the market growth.

Parking Management Growth Projections

The table to the right highlights the expected parking management revenue from 2014 to 2024. The parking management market is estimated to grow from $1,517.6 million in 2014 to $8,630.76 million in 2019.

Why is Parking Technology Triggering Growth?

Parking management systems are apt for the smart transportation environment. It automates the parking management functions by providing solutions such as access control, revenue management, parking enforcement and permit management, security and surveillance, automated valet parking, and parking guidance and slot management. These solutions result in efficient parking management in terms of automating and easing parking payment method for the vehicle drivers, saving their time, and also increasing vehicle holding capacity of the parking garage.

The high growth rate in the registration of new cars will open the window of opportunities for parking management business. The ongoing and upcoming smart city projects will create room for intelligent parking management systems across the nation.

The market is expected to grow in tandem with the growth in vehicle ownerships and parking facilities development. Need for smooth traffic flow, business benefits to the parking site operators, and decreasing hardware and connectivity costs are the key drivers for the parking management industry.

 

Parking Management Technology AdvancementParking Technology Advancements

The ongoing and upcoming smart city projects are creating business opportunities for smart parking management systems nationwide. License Plate Recognition based technologies are gaining high popularity in the parking management sector. The major License Plate recognition based parking management solutions such as Automatic Vehicle Identification and Pay-by-Plate are expected to experience high adoption rate reducing the market share of the traditional technologies used in parking access control and parking revenue management.

The world is moving towards intelligent transportation systems, which is broadening the space for smarter ways of parking. With advanced parking management systems, the parking spots operators can offer their customers various parking conveniences such as minimal time wastage, cashless and contactless payment options, enhanced vehicle security, and options for pre-booking parking spots. The parking management systems are also useful for ensuring security through vehicle and cargo surveillance, vehicle registration, and dynamic parking tariff management. These customer-centric and business operation-centric advantages are making parking management system extremely lucrative. The major companies who are focusing on the parking management sector are Parking Technology Services, StreetLine, ParkWhiz, SpotHero, ParkingPandaLuxe, T2 Systems, SKIDATA, and various others.

Episode #04- How To Build A Lead Generation Machine with Taylor Pearson

taylorTaylor is the marketing manager for The Valet Spot. He joins Alasdair on this episode to share some awesome insights into what the most successful valet companies can do to grow their online presence.

This interview will help you create a lead generation machine on your website, even if you’ve never had a website before. It includes a step by step method for optimizing your website.

Listen to This Interview to Learn:

  • 8 steps for optimizing your website for generating leads.
  • 3 ways to build an effective website on the cheap, even if you have no idea how to code.
  • Why putting yourself on your website is crucial.
  • The two key points of contact to have on your website.
  • How to best build trust right on your website.

Mentioned in This Interview: