Minimum Spend: What Does It Mean and How to Use It for Your Restaurant Business

Have you ever wondered what minimum spend actually means when you dine at an exclusive place? 

It’s not just a fancy rule—this strategy can significantly boost your revenue without relying on discounts. Let’s break it down.

What is Minimum Spend?

Minimum spend is the minimum amount of money a customer must spend when booking or sitting at a venue. It’s commonly applied in restaurants, cafes, lounges, and beach clubs. 

Places like La Brisa or Finns Beach Club in Bali use it strategically—based on location, ambience, and branding strength.

Read Also: What is the importance of restaurant SOPs and what are examples of their implementation?

Why Do Many Restaurateurs Misunderstand Minimum Spend?

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A common misconception is that this only works for luxury venues and makes customers uncomfortable. 

In reality, the key lies in perceived value. If customers feel the experience matches the price, they’ll gladly comply. 

La Brisa and Finns succeed because they package strong branding and memorable experiences around their minimum spend policy.

Minimum Spend Strategies for Your F&B Business

Not all places can simply set a minimum spend. But if you have a strong concept, this system can actually be a lifesaver when sales drop. 

Here are some strategies you can try:

1. Adjust by Time of Day

Charge higher during peak hours, lower during off-peak to stay flexible and fair.

2. Bundle Menu with Minimum Spend

Offer package deals that naturally fulfill the spend requirement so customers don’t feel forced.

3. Apply to Premium Areas

Rooftops, cabanas, or VIP rooms are perfect for minimum spend policies.

4. Events or Live Music

Free entry, but with a required minimum spend—common in nightclubs and entertainment venues.

5. Rewards or Loyalty Points

Customers who reach the minimum spend earn bonuses like free dessert or loyalty points for their next visit.

These strategies ensure every table contributes optimal revenue, especially during high-demand hours.

Read Also: Understand the Definition of Hot Kitchen and Cold Kitchen to Avoid Misunderstandings!

Lessons from La Brisa & Finns Beach Club

Both venues don’t just sell food and drinks—they sell the experience. 

From ambience, service, to aesthetics, everything makes guests feel their minimum spend is worthwhile, not a burden. 

This shows that experience selling can outperform product selling.

Minimum Spend Must Be Realistic

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The biggest mistake? Setting the bar too high. If your average check is Rp80,000, but you suddenly set minimum spend at Rp150,000 without added value, customers will walk away.

Instead, start with a realistic range (Rp70,000–90,000), aligned with customer spending patterns and peak hours. This makes the strategy sustainable and fair.

FAQ: Minimum Spend in Restaurants

1. What does minimum spend mean and how does it work?

It’s the minimum amount a guest must spend when reserving or visiting a venue. Instead of charging rent for space, the amount is spent on food and beverages.

2. What are the benefits for restaurants?

It increases revenue per table, filters unserious bookings, and encourages guests to order more.

3. Is minimum spend only for upscale venues?

No. Even small cafés or mid-tier restaurants can use it, as long as the value delivered matches customer expectations.

4. How can it be implemented fairly?

Base it on average customer spend. Clearly inform guests via menus, booking systems, or signage to avoid surprises.

5. Can it upset customers?

Yes—if it feels excessive without added value. But when framed as part of a better dining experience, customers often accept it.

Conclusions

Minimum spend isn’t about forcing customers—it’s a smart way to raise average spending per guest. 

For example, if the minimum spend is Rp100,000, someone who originally came just for coffee may order an extra pastry instead of canceling. This creates natural upselling while boosting revenue.

To make this seamless, use ESB as solutions: ESB POSLite for small restaurants needing practical POS management. ESB POS for businesses with multiple branches and real-time integrated data.

Contact the ESB Team today and find the best solution to optimize your restaurant’s revenue strategy!