Yes – restaurants with outdoor terraces can significantly increase revenue, often by 15–35%, by expanding seating capacity, attracting more customers, and increasing dwell time. In cities like London, where outdoor dining is in high demand, terraces can become one of the most profitable areas of a venue.
Why do outdoor terraces increase revenue?
Outdoor terraces at Designer Shade Solutions, such as our retractable louvred roofs, increase revenue by adding more covers, attracting passing footfall, and creating a more desirable dining experience.
Key drivers include:
- Increased capacity without expanding the internal footprint
- Higher visibility to passing customers
- Stronger first impressions, especially in busy urban areas
- Experience-led dining, which encourages repeat visits
In competitive hospitality environments, the venues that stand out visually – and offer something different – tend to capture more attention and bookings.
How much more money can a restaurant make?
Many UK hospitality venues report revenue increases between 15% and 35% after introducing outdoor seating.
In some cases:
- Turnover increases by up to 30%+ when outdoor areas are well-designed and covered
- Additional seating translates directly into higher service volumes
- Peak periods become more profitable due to increased table availability
The key factor isn’t just adding space — it’s making that space consistently usable.
Why are terraces especially valuable in London?
In London, outdoor terraces benefit from high foot traffic, premium positioning, and strong demand for al fresco dining.
They also support:
- Walk-in conversions from passing footfall
- Social and visual appeal (particularly for rooftop and street-facing venues)
- Premium dining experiences that justify higher spend per table
- Private hire and event bookings, especially in well-designed spaces
In high-density areas, a well-executed terrace can become one of the most commercially valuable parts of the venue.
Do outdoor spaces increase customer spend?
Yes — outdoor spaces often increase customer spend because guests stay longer and engage more with the experience.
This typically leads to:
- More drinks ordered per table
- Increased likelihood of desserts and additional courses
- Longer dwell time, especially in relaxed outdoor settings
With 79% of diners staying longer when outdoor seating is available, the impact on average transaction value can be significant.
Can outdoor terraces be used all year in the UK?
Yes – with the right design approach, outdoor terraces can operate as true year-round spaces, rather than being limited to warmer months.
At Designer Shade Solutions, this is achieved through systems specifically engineered to adapt to changing UK weather conditions while maintaining comfort and visual appeal.
Modern terrace solutions include:
- Retractable fabric roof systems that provide flexible shelter, thermal comfort, and open-air living when desired — with smooth, automated operation and the ability to respond to changing weather conditions
- Retractable and tilting louvred roof systems that actively control sunlight, shade, ventilation, and rain protection — transforming the environment instantly as conditions change
- Retractable glass roofs and fixed glass roof systems that deliver high levels of insulation, weather resistance, and natural light — creating bright, protected spaces with strong thermal performance
These systems are designed not just for protection, but for continuous usability.
When combined with:
- Integrated heating
- LED lighting
- Motorised side screens or sliding glass enclosures
they allow terraces to function as fully enclosed or open environments on demand.
The result is a space that can shift seamlessly between:
- Open-air dining in warmer weather
- Covered, sheltered use during rain
- Enclosed, comfortable environments in colder months
For hospitality venues, this level of control is what turns an outdoor terrace into a consistent, revenue-generating space throughout the entire year, rather than a seasonal feature dependent on the weather.
What is the ROI of installing a retractable roof or pergola?
For many hospitality venues, the return comes from three key factors:
- Increased seating capacity
- Higher spend per customer
- Consistent usability regardless of weather
As Andrew at Designer Shade Solutions puts it:
“You can make your money back in 4–6 months if you can fill the space.”
This highlights a critical point – the real value lies in turning underused outdoor areas into reliable, revenue-generating space.
Turning Outdoor Space into a Revenue-Generating Asset
For restaurants, hotels, and hospitality venues, unused or weather-dependent outdoor areas represent missed opportunity.
Well-designed terrace solutions enable:
- Consistent service in unpredictable UK weather
- Greater control over the customer environment
- A more premium, design-led dining experience
At Designer Shade Solutions, we help venues to operate confidently across seasons, while enhancing both aesthetics and functionality.
Final Thought
Outdoor terraces are no longer a “nice to have” — they are a core revenue driver in modern UK hospitality.
For venues in London and the South East, where demand for outdoor dining is strong and competition is high, the ability to deliver a flexible, all-weather experience can directly influence:
- Customer attraction
- Time spent on-site
- Overall revenue performance
When designed correctly, an outdoor terrace doesn’t just add space — it unlocks the full commercial potential of it.
