Who is most likely to visit your restaurant right now, given the fact that most consumers are eating out less:
A. A new customer, one who has never visited before but is looking to try something different OR
B. An existing customer, one with a tighter dining budget who has little tolerance for risk (that is, trying something new and possibly wasting their limited dining dollars)?
Consumers are eating out less and share of wallet is going to those restaurants we've already tried and liked. Those restaurants where we know the owner get higher ranking over restaurants that simply have good food. It's human nature, we're risk averse.
If your transaction and customer counts are down, remember that they are down across the board. It's not just a lack of new customers trying your concept, it's existing customers whose frequency of dining has dropped off. Here are 5 ways to market to existing customers to increase their frequency, their ticket average, or both.
1. Bounce-backs. You already know where to find existing customers, they're in your unit. Invite them back (soon) with a bounce-back coupon. Make the expiration date tight (one week) and make the offer for something specific on your menu (modify behavior) instead of a blanket $ or % off.
2. Email marketing. They've given you their contact information, they've told you it's ok for you to contact them, why aren't you contacting them?
3. Fishbowls marketing. You know their name, telephone number, and email address. You also know their company, job title, and physical address. Choose folks who are candidates for catering, boxed lunches, or large carry-out orders.
4. WOW! them with the experience. Now's your chance to make everyone feel special. No excuses (or leeway, in the customers' minds) for dirty bathrooms, indifferent cashiers, poor quality or slow service.
5. Walk the tables. Nothing makes customers feel more special. Nothing introduces the brand (the brand is YOU!) like walking the tables. This will build a bond with your customers that will outlast the present economic downturn by far.
Wednesday
Bad News for Restaurant Marketers
From Baron’s, November 17, 2007 – Survey by RBC Capital Markets:
- 43% say they’re eating out less now than 6 months ago (vs. 39% in August)
- 59% of those polled plan further cutbacks on eating out
- 20% of people were willing to purchase higher price entrees or desserts, vs. 27% in August
- 90.3: latest current-conditions index, a predictor of restaurant sales, down 10 points
Scary. Your choices, however, are to curl up and wait for it to end or to do what you can. Many studies indicate that doing something now, even if you don't see immediate results, will help you to emerge from the downturn stronger than your competition.
Suggestion 1: Advertise
Really? Advertise? Yep. Studies show that those who advertise consistently during economic downturns fare better than their non-advertising competitors. Don't blow it out, but be consistent. Another benefit is that advertising clutter is probably lower now than it has been in a long time. Others are pulling back ad dollars waiting for times to get better.
Suggestion 2: Show even MORE love
Your current customers are your most loyal. The fly-by-night folks have already flown. Make sure your customers know how much you appreciate them. Don't take every sale for all that it's worth, work the relationship to create a life long customer. Discount future visits, walk the tables, give Lagniappes to groups and individuals. Show them you are thankful for their business.
Suggestion 3: Modify your local store marketing plan
Guerrilla marketing was made for these economic conditions. Modify your local store marketing plan to be less event focused and even more personal contact focused. You'll need to pare back on the size of your audience, choosing more intimate gatherings, but the effects will be lasting. Your competition isn't doing this.
- 43% say they’re eating out less now than 6 months ago (vs. 39% in August)
- 59% of those polled plan further cutbacks on eating out
- 20% of people were willing to purchase higher price entrees or desserts, vs. 27% in August
- 90.3: latest current-conditions index, a predictor of restaurant sales, down 10 points
Scary. Your choices, however, are to curl up and wait for it to end or to do what you can. Many studies indicate that doing something now, even if you don't see immediate results, will help you to emerge from the downturn stronger than your competition.
Suggestion 1: Advertise
Really? Advertise? Yep. Studies show that those who advertise consistently during economic downturns fare better than their non-advertising competitors. Don't blow it out, but be consistent. Another benefit is that advertising clutter is probably lower now than it has been in a long time. Others are pulling back ad dollars waiting for times to get better.
Suggestion 2: Show even MORE love
Your current customers are your most loyal. The fly-by-night folks have already flown. Make sure your customers know how much you appreciate them. Don't take every sale for all that it's worth, work the relationship to create a life long customer. Discount future visits, walk the tables, give Lagniappes to groups and individuals. Show them you are thankful for their business.
Suggestion 3: Modify your local store marketing plan
Guerrilla marketing was made for these economic conditions. Modify your local store marketing plan to be less event focused and even more personal contact focused. You'll need to pare back on the size of your audience, choosing more intimate gatherings, but the effects will be lasting. Your competition isn't doing this.
Tuesday
Gift Cards
I've had several questions lately as to how to sell more restaurant gift cards, so I figured I'd write it out so everyone can see it.
The first thing to keep in mind is that gift cards can only be sold to people who have tried your food. Would you ever purchase a gift card from a restaurant at which you had never eaten? Not likely.
So your audience is existing customers, and that means using media that you KNOW reaches your existing customers.
The next thing to keep in mind is that, while you may WANT to sell $20 cards to everyone, many people will treat gift cards as an easy solution to their shopping list. Few would purchase $20 cards for their mail carrier, barber, son's soccer coach, or daughter's ballet teacher. But many people will purchase 5 $10 cards to keep on hand for just such an occasion.
Merchandising
In-store POP is critical. Take down your other promotions and focus on gift cards at the point of sale. Train your staff to suggest cards. Know the cards' place in someone's gift-giving strategy: mailman, hair stylist, teachers, neighbors (who got you something but you forgot), co-workers, etc.
Answer the phone "Thanks for calling. Would you like to buy a gift card?"
Fishbowl
"Drop business card here to win a $20 Gift Card!"
Email
Send a message with all the reasons to give a Gift Card / Certificate (see above for suggestions). Send another one later with an incentive (FREE sandwich with GC purchase of $20 or more!).
Catering
Do you have contact information for every person who has ordered a catering from you in the past year? You should. Now is a great time to go back to them with a special "catering card" - a gift card of $25 or more to be used toward catering.
Complementary Audiences
You have several new complementary audiences that can help you both market your restaurant and sell your gift cards / certificates at the same time. Focus on small businesses who purchase holiday gifts for clients (large businesses will have a process for this, focus on the smaller people).
- Pharmaceutical Reps
- Real Estate Agents
- Insurance Agents
- Financial Planners
- Mortgage Brokers
- Hotel GMs / HR
These businesses typically spend more money on smaller gifts (because they work in a referral business and they use gifts to thank existing customers). Because of this, they often buy cards of $25 in value (which can be written off).
In fact, many people I know in these types of businesses will purchase $25 cards for their own use because the entire $25 can be written off as a gift, whereas lunch isn't completely deductable.
In any case, focus on your audience and be realistic about your goals. You won't sell a ton of $20 cards in-store, but you will to the right people. Likewise, if you're sitting in front of someone with a budget, sell larger cards for use toward catering (you'll get two sales for the price of one).
The first thing to keep in mind is that gift cards can only be sold to people who have tried your food. Would you ever purchase a gift card from a restaurant at which you had never eaten? Not likely.
So your audience is existing customers, and that means using media that you KNOW reaches your existing customers.
The next thing to keep in mind is that, while you may WANT to sell $20 cards to everyone, many people will treat gift cards as an easy solution to their shopping list. Few would purchase $20 cards for their mail carrier, barber, son's soccer coach, or daughter's ballet teacher. But many people will purchase 5 $10 cards to keep on hand for just such an occasion.
Merchandising
In-store POP is critical. Take down your other promotions and focus on gift cards at the point of sale. Train your staff to suggest cards. Know the cards' place in someone's gift-giving strategy: mailman, hair stylist, teachers, neighbors (who got you something but you forgot), co-workers, etc.
Answer the phone "Thanks for calling. Would you like to buy a gift card?"
Fishbowl
"Drop business card here to win a $20 Gift Card!"
Send a message with all the reasons to give a Gift Card / Certificate (see above for suggestions). Send another one later with an incentive (FREE sandwich with GC purchase of $20 or more!).
Catering
Do you have contact information for every person who has ordered a catering from you in the past year? You should. Now is a great time to go back to them with a special "catering card" - a gift card of $25 or more to be used toward catering.
Complementary Audiences
You have several new complementary audiences that can help you both market your restaurant and sell your gift cards / certificates at the same time. Focus on small businesses who purchase holiday gifts for clients (large businesses will have a process for this, focus on the smaller people).
- Pharmaceutical Reps
- Real Estate Agents
- Insurance Agents
- Financial Planners
- Mortgage Brokers
- Hotel GMs / HR
These businesses typically spend more money on smaller gifts (because they work in a referral business and they use gifts to thank existing customers). Because of this, they often buy cards of $25 in value (which can be written off).
In fact, many people I know in these types of businesses will purchase $25 cards for their own use because the entire $25 can be written off as a gift, whereas lunch isn't completely deductable.
In any case, focus on your audience and be realistic about your goals. You won't sell a ton of $20 cards in-store, but you will to the right people. Likewise, if you're sitting in front of someone with a budget, sell larger cards for use toward catering (you'll get two sales for the price of one).
A Time to Reflect
Over the past two months, I've had several owners confess to me that they are tired. Not just tired of working the store, but bone tired - that weary that comes from grinding it out, day after day, with few results.
That's where many of you are, especially in this economy. Local store marketing is rarely easy, but it's usually at least fun. Not so much these days.
Vacations or long weekends don't seem to be the cure. It takes 2 days to stop thinking about your to-do list and the work seems to pile up while you're gone. The risk of burn-out is high, and there doesn't seem to be an end in sight.
But now (as the holidays approach) might be the time for you to find exactly the time you were looking for to spend ON your business instead of IN your business. More on that at the end. First, some perspective - for which we'll turn to football.
University of Georgia football coach Mark Richt is an offensive-minded coach. He was offensive coordinator at Florida State and, until very recently, he created the game plans and called plays during the game for UGA. This year, however, he turned that responsibility over to someone else, freeing him to think about how to make the team better in smaller ways.
Since then, he's focused on being a leader instead of a doer. Since then he's engineered team buidling moments, helped the fans connect with players, and led his team past a turning point in its season - maybe its program.
Richt is still involved in the game plan, but he doesn't construct it. He still offers suggestions in play calling, but someone else has the responsibility. The result is that his players are happier, his assistants are better coaches, and the team is experiencing more success. They might be playing as well as any team in the country right now.
The lesson here is that he didn't "get away from it all" - he took a step back. The holiday season offers you the chance to do the same, to pull back from the nitty-gritty and to focus on leadership and employee development.
How can you get better? How can your team get better? What things can you do in and for the community - because you want to and now have time for, not because you might get a catering deal from it?
The holidays offer you a unique opportunity to spend more time ON your business instead of IN your business. The perspective gained from that, even if for only a short period of time, might just help rejuvenate you.
That's where many of you are, especially in this economy. Local store marketing is rarely easy, but it's usually at least fun. Not so much these days.
Vacations or long weekends don't seem to be the cure. It takes 2 days to stop thinking about your to-do list and the work seems to pile up while you're gone. The risk of burn-out is high, and there doesn't seem to be an end in sight.
But now (as the holidays approach) might be the time for you to find exactly the time you were looking for to spend ON your business instead of IN your business. More on that at the end. First, some perspective - for which we'll turn to football.
University of Georgia football coach Mark Richt is an offensive-minded coach. He was offensive coordinator at Florida State and, until very recently, he created the game plans and called plays during the game for UGA. This year, however, he turned that responsibility over to someone else, freeing him to think about how to make the team better in smaller ways.
Since then, he's focused on being a leader instead of a doer. Since then he's engineered team buidling moments, helped the fans connect with players, and led his team past a turning point in its season - maybe its program.
Richt is still involved in the game plan, but he doesn't construct it. He still offers suggestions in play calling, but someone else has the responsibility. The result is that his players are happier, his assistants are better coaches, and the team is experiencing more success. They might be playing as well as any team in the country right now.
The lesson here is that he didn't "get away from it all" - he took a step back. The holiday season offers you the chance to do the same, to pull back from the nitty-gritty and to focus on leadership and employee development.
How can you get better? How can your team get better? What things can you do in and for the community - because you want to and now have time for, not because you might get a catering deal from it?
The holidays offer you a unique opportunity to spend more time ON your business instead of IN your business. The perspective gained from that, even if for only a short period of time, might just help rejuvenate you.
Thursday
Frequency?
You may have noticed a slow down in sales. Not everyone is experiencing a reduction in business, but many are. The most likely culprit - frequency of visit.
Competition is high, the economy is uncertain. If you're in a primarily residential area you've probably noticed it more than those in, say, a business district. Share of wallet is even more important now that folks are hesitant to spend $40 per week for lunch, or are eating out once a month as a family instead of twice.
For marketing purposes, the best place to start is with those already visiting you. Your existing customers don't require brand awareness or product education, they just need a reason to come back (preferably sooner rather than later).
Important marketing competencies for frequency of visit:
Bounce-backs
Put a tight deadline on a great offer (thru Friday only!). If it gets redeemed, you know that the redeemer is on his/her second visit of the week.
Specials - Lunch
Be sure to change your specials board, but not too often. If you sell a lot of chicken sandwiches, and you promote steak on your board, remember that each day brings new people. Why change the board every day? Leave it up for 10 days or 2 weeks so that infrequent customers can see it too.
Specials - Dinner
Dinner specials are different. The typical Monday evening customer is usually different than the typical Thursday or Friday customer, treat them accordingly. Sunday-Wednesday might be "get an extra side for free when you purchase a platter", but Friday-Saturday might be "kids eat free with every adult meal".
Advertising during a slow down
This is one area when advertising is most helpful. A consistent presence in a publication will help to soften the beaches for sales. Studies show that companies that advertise during recessions usually emerge in a stronger position than those who don't.
Offers
In slower times it's a good idea to go with deeper discounts or better offers to stimulate trial or frequency. Sacrifice profitability for volume of customers for the short term, but put caveats on your offers. "After 6pm"; "Buy 2, Get 1 FREE"; "thru Friday only!" Use the offers to generate visits, but also to modify behavior.
Don't forget about email and fishbowls. Both of those offer a great opportunity to reach out to existing customers and invite them back more often. External marketing is necessary, but should be a lower priority to gaining frequency of visit.
Competition is high, the economy is uncertain. If you're in a primarily residential area you've probably noticed it more than those in, say, a business district. Share of wallet is even more important now that folks are hesitant to spend $40 per week for lunch, or are eating out once a month as a family instead of twice.
For marketing purposes, the best place to start is with those already visiting you. Your existing customers don't require brand awareness or product education, they just need a reason to come back (preferably sooner rather than later).
Important marketing competencies for frequency of visit:
Bounce-backs
Put a tight deadline on a great offer (thru Friday only!). If it gets redeemed, you know that the redeemer is on his/her second visit of the week.
Specials - Lunch
Be sure to change your specials board, but not too often. If you sell a lot of chicken sandwiches, and you promote steak on your board, remember that each day brings new people. Why change the board every day? Leave it up for 10 days or 2 weeks so that infrequent customers can see it too.
Specials - Dinner
Dinner specials are different. The typical Monday evening customer is usually different than the typical Thursday or Friday customer, treat them accordingly. Sunday-Wednesday might be "get an extra side for free when you purchase a platter", but Friday-Saturday might be "kids eat free with every adult meal".
Advertising during a slow down
This is one area when advertising is most helpful. A consistent presence in a publication will help to soften the beaches for sales. Studies show that companies that advertise during recessions usually emerge in a stronger position than those who don't.
Offers
In slower times it's a good idea to go with deeper discounts or better offers to stimulate trial or frequency. Sacrifice profitability for volume of customers for the short term, but put caveats on your offers. "After 6pm"; "Buy 2, Get 1 FREE"; "thru Friday only!" Use the offers to generate visits, but also to modify behavior.
Don't forget about email and fishbowls. Both of those offer a great opportunity to reach out to existing customers and invite them back more often. External marketing is necessary, but should be a lower priority to gaining frequency of visit.
Monday
Audience vs. Daypart
Choosing complementary audiences in the early going of a new restaurant is relatively easy: where are my customers immediately before or immediately after they visit? What other businesses are before me or after me in the sales cycle? What types of businesses cater to, but don't conflict with, my target audience?
Health clubs, high schools and smoothie bars; office buildings and coffeehouses; churches and family restaurants. Form partnerships, cross-promote, and sample on-site with these businesses and you can see your customer base take shape.
It's more difficult, however, to identify the audience that can help your business right now. For example, say you want to build your lunch business. Your existing relationships with churches, little league teams, and movie theaters won't do you much good here. What you need are people who are in the 1-3 mile radius of your unit during lunch.
It sounds simple, but you'd be surprised how many owners don't take that simple truth to the next level. Would you run a lunch special in the local newspaper? The newspaper reaches households, members of your community for sure, but are residents in your area during lunch? It's doubtful that your daytime population is the same as your evening pop.
So for a store that's been open for a while, you need to add "daypart" to "audience + objective" in order to make your time and effort more effective.
It does you no good to run entree specials, or family carry-out deals, if you want to build lunch. Lunch specials to the Little League baseball teams (usually dinner and weekend targets) isn't effective either.
What do you want to accomplish?
What is the complementary audience for that objective (ie: most likely to take you up on the offter)?
What channels make the most sense in promoting that item to that audience?
Thinking like a customer, instead of like an owner, will help you with those answers.
Health clubs, high schools and smoothie bars; office buildings and coffeehouses; churches and family restaurants. Form partnerships, cross-promote, and sample on-site with these businesses and you can see your customer base take shape.
It's more difficult, however, to identify the audience that can help your business right now. For example, say you want to build your lunch business. Your existing relationships with churches, little league teams, and movie theaters won't do you much good here. What you need are people who are in the 1-3 mile radius of your unit during lunch.
It sounds simple, but you'd be surprised how many owners don't take that simple truth to the next level. Would you run a lunch special in the local newspaper? The newspaper reaches households, members of your community for sure, but are residents in your area during lunch? It's doubtful that your daytime population is the same as your evening pop.
So for a store that's been open for a while, you need to add "daypart" to "audience + objective" in order to make your time and effort more effective.
It does you no good to run entree specials, or family carry-out deals, if you want to build lunch. Lunch specials to the Little League baseball teams (usually dinner and weekend targets) isn't effective either.
What do you want to accomplish?
What is the complementary audience for that objective (ie: most likely to take you up on the offter)?
What channels make the most sense in promoting that item to that audience?
Thinking like a customer, instead of like an owner, will help you with those answers.
To Coupon Or Not To Coupon, 6 Tips To Do Them Right
That's the question. Customers love them, businesses hate them, but what's the right balance.
A recent article in the NY Times details how Macy's felt the results of eliminating coupons where it hurts most - at the register. Terry Lundgren, the company's CEO, has since changed the company's policy and promises lots of coupons for the upcoming holiday season.
According to the article, Macy's isn't the only one who has felt the pain of weaning customers from coupons. Ruby Tuesday's and Procter and Gamble have also had horror stories.
Basic human nature says people want coupons. Same store sales show coupons drive sales. Everyone knows addicting customers to coupons leads down an unhappy path. What's the solution?
The answer is two parts: embrace coupons for what they are and use them to modify behavior, not bribe customers. Macy's reports distributing 15%-20% off coupons to customers, the goal being to remind folks "we're still here". But this type of coupon makes them hoes for the dough. There's no behavior modification in it.
Restaurants, hear this: the dumbest coupon you can do is $1 off. It conditions customers to wait for a coupon. You might as well be in the pizza business.
Here are 6 ways (you get a bonus) to make sure your coupons don't create a welfare state out of your customer base:
1. Focus your objective. Do you want more customers? More frequency? A higher ticket average? Make your offer reflect that goal. Buy one, get one free after 6pm; FREE upsize with any purchase; come back tomorrow and get 20% off. Don't give something for nothing, but make it look like you are.
2. Think like the customer. Too often we see stores give out offers they don't mind giving, regardless of whether or not the customers want it. 10% off bookmarks, for example. Another problem is that the audience isn't right. Buy one, get one free is worthless to someone who is driving to work, or working out, alone.
3. Use a loss leader. Grocery stores are good at this. Buy one, get one free gallons of milk, for example. Nobody stops at the store just for a gallon of milk. If they win share of wallet from their competitors the coupon held a strategic purpose as well as a tactical one.
4. Daypart the coups. We alluded to this earlier, but special offers "before 9am", "after 6pm", or "weekends only" help to build other dayparts. No one should mind giving away something that builds other dayparts.
5. Encourage trial of new items. Anyone who is currently in your store or restaurant is already a fan, they don't need too much more convincing. Coupons to try different menu items or purchase complementary items simply increase frequency and ticket average. If you can make it a habit to always get a scone with my morning coffee, I only need the coupon once.
6. Incentivize your core, don't discount them. Dollar off coupons distributed through the same media again and again erode profitability. The same people will see them again and again. It's like standing at your door and giving people a discount - you might as well lower your prices and be done with it. Incentivizing your core with short expiration dates for additional purchases or to bring a friend, however, modify their behavior to your advantage. Likewise, if you find a new pocket of potential customers, don't be shy on the discount. Make it a killer offer to incentivize behavior.
Remember, coupons modify behavior (sometimes on the current visit, sometimes on future visits). They are neither inherently bad nor good. It's how you use them that counts.
A recent article in the NY Times details how Macy's felt the results of eliminating coupons where it hurts most - at the register. Terry Lundgren, the company's CEO, has since changed the company's policy and promises lots of coupons for the upcoming holiday season.
According to the article, Macy's isn't the only one who has felt the pain of weaning customers from coupons. Ruby Tuesday's and Procter and Gamble have also had horror stories.
Basic human nature says people want coupons. Same store sales show coupons drive sales. Everyone knows addicting customers to coupons leads down an unhappy path. What's the solution?
The answer is two parts: embrace coupons for what they are and use them to modify behavior, not bribe customers. Macy's reports distributing 15%-20% off coupons to customers, the goal being to remind folks "we're still here". But this type of coupon makes them hoes for the dough. There's no behavior modification in it.
Restaurants, hear this: the dumbest coupon you can do is $1 off. It conditions customers to wait for a coupon. You might as well be in the pizza business.
Here are 6 ways (you get a bonus) to make sure your coupons don't create a welfare state out of your customer base:
1. Focus your objective. Do you want more customers? More frequency? A higher ticket average? Make your offer reflect that goal. Buy one, get one free after 6pm; FREE upsize with any purchase; come back tomorrow and get 20% off. Don't give something for nothing, but make it look like you are.
2. Think like the customer. Too often we see stores give out offers they don't mind giving, regardless of whether or not the customers want it. 10% off bookmarks, for example. Another problem is that the audience isn't right. Buy one, get one free is worthless to someone who is driving to work, or working out, alone.
3. Use a loss leader. Grocery stores are good at this. Buy one, get one free gallons of milk, for example. Nobody stops at the store just for a gallon of milk. If they win share of wallet from their competitors the coupon held a strategic purpose as well as a tactical one.
4. Daypart the coups. We alluded to this earlier, but special offers "before 9am", "after 6pm", or "weekends only" help to build other dayparts. No one should mind giving away something that builds other dayparts.
5. Encourage trial of new items. Anyone who is currently in your store or restaurant is already a fan, they don't need too much more convincing. Coupons to try different menu items or purchase complementary items simply increase frequency and ticket average. If you can make it a habit to always get a scone with my morning coffee, I only need the coupon once.
6. Incentivize your core, don't discount them. Dollar off coupons distributed through the same media again and again erode profitability. The same people will see them again and again. It's like standing at your door and giving people a discount - you might as well lower your prices and be done with it. Incentivizing your core with short expiration dates for additional purchases or to bring a friend, however, modify their behavior to your advantage. Likewise, if you find a new pocket of potential customers, don't be shy on the discount. Make it a killer offer to incentivize behavior.
Remember, coupons modify behavior (sometimes on the current visit, sometimes on future visits). They are neither inherently bad nor good. It's how you use them that counts.
Friday
You'll Never Find the Time to Market
It's not like I'm telling you anything you don't already know, but running a business is tough work. With all of the compulsories, like placing the food order, doing the scheduling, payroll, cleaning the bathrooms, etc. it often feels like there's no time left for the other things.
Like marketing.
Marketing is not within the comfort zone of most people (buying advertising is a different thing, we're talking marketing) so it's common that it gets pushed to the bottom of the list. Every week. "I can never find the time to do marketing."
And you never will. No one finds the time to do what they aren't comfortable doing. The problem is that sales either stagnate or drop off if you don't. You won't FIND time to market, you have to MAKE time to market.
Below are the top 5 ways to make time for one of the most important jobs in your unit:
1. Start with an objective. Do you have a trial, frequency, or ticket average issue? What daypart are you going to focus on? A clear objective decreases the amount of time you need to spend on marketing in order to see results.
2. Plan your work. Choose a specific audience (schools, office parks) and prepare your materials (coupons, ads) in advance. Schedule meetings and make contact with catering prospects in advance. If you plan your audiences out 4 weeks ahead of time you won't have a overwhelming sense to talk to everyone at once. You know you'll get to them next week so you won't try to do too much.
3. Work your plan. Make an appointment with yourself and treat it like a catering meeting or payroll: show up prepared, on time, cell phone off, your spot in the schedule covered. Do what you planned to do. No more, no less.
This appointment should mirror the daypart you wish to build (see Recency Marketing). If you want to build lunch, get out at 11:00am. Dinner, do your marketing in the evening when your audience is about. There are exceptions (schools, churches, and others have specific hours), but Recency is a powerful tool that can save you time.
4. Stay focused. Too many objectives to too many audiences creates chaos and makes you feel like you're just spinning your wheels. It's easy to mix up objectives and audiences when you have too much going on (we've seen stores who say they want to increase lunch sales, but their tactic was to place an ad in the newspaper - wrong audience).
If you plan your work, and you always keep your appointments with yourself, you won't feel the need to say everything at once. You know you'll get to it and when it's going to happen. Being organized can be a great relief in the present.
5. Use the 7 Core Competencies. Making the 7 Core Competencies a habit will save you all kinds of time, in addition to making your marketing more effective.
Choose a specific product or service to focus on (carry-out, dessert), then use all of your communications media to surround your customers. Send email, use bounce-backs in-store, sample product, call fishbowl "winners" to receive a freebie, feature the product prominently on specials boards. Once the process is in place, 80% of marketing becomes a checklist that can be done anytime by even unskilled employees. Your external job is 80% easier.
Marketing is not the easiest job for many small business owners. If you plan your work, utilize your tools effectively, and schedule the time though, it's not nearly as time consuming as most people think it is either.
Like marketing.
Marketing is not within the comfort zone of most people (buying advertising is a different thing, we're talking marketing) so it's common that it gets pushed to the bottom of the list. Every week. "I can never find the time to do marketing."
And you never will. No one finds the time to do what they aren't comfortable doing. The problem is that sales either stagnate or drop off if you don't. You won't FIND time to market, you have to MAKE time to market.
Below are the top 5 ways to make time for one of the most important jobs in your unit:
1. Start with an objective. Do you have a trial, frequency, or ticket average issue? What daypart are you going to focus on? A clear objective decreases the amount of time you need to spend on marketing in order to see results.
2. Plan your work. Choose a specific audience (schools, office parks) and prepare your materials (coupons, ads) in advance. Schedule meetings and make contact with catering prospects in advance. If you plan your audiences out 4 weeks ahead of time you won't have a overwhelming sense to talk to everyone at once. You know you'll get to them next week so you won't try to do too much.
3. Work your plan. Make an appointment with yourself and treat it like a catering meeting or payroll: show up prepared, on time, cell phone off, your spot in the schedule covered. Do what you planned to do. No more, no less.
This appointment should mirror the daypart you wish to build (see Recency Marketing). If you want to build lunch, get out at 11:00am. Dinner, do your marketing in the evening when your audience is about. There are exceptions (schools, churches, and others have specific hours), but Recency is a powerful tool that can save you time.
4. Stay focused. Too many objectives to too many audiences creates chaos and makes you feel like you're just spinning your wheels. It's easy to mix up objectives and audiences when you have too much going on (we've seen stores who say they want to increase lunch sales, but their tactic was to place an ad in the newspaper - wrong audience).
If you plan your work, and you always keep your appointments with yourself, you won't feel the need to say everything at once. You know you'll get to it and when it's going to happen. Being organized can be a great relief in the present.
5. Use the 7 Core Competencies. Making the 7 Core Competencies a habit will save you all kinds of time, in addition to making your marketing more effective.
Choose a specific product or service to focus on (carry-out, dessert), then use all of your communications media to surround your customers. Send email, use bounce-backs in-store, sample product, call fishbowl "winners" to receive a freebie, feature the product prominently on specials boards. Once the process is in place, 80% of marketing becomes a checklist that can be done anytime by even unskilled employees. Your external job is 80% easier.
Marketing is not the easiest job for many small business owners. If you plan your work, utilize your tools effectively, and schedule the time though, it's not nearly as time consuming as most people think it is either.
Wednesday
5 Principles to Increasing Ticket Average
Everyone wants to increase ticket average, but too often the only thing they do about it is to ask "Do you want fries with that?" That's fine, increase items and their sizes to get more at the register.
But it's not all you can do. It's common for stores to add anywhere from $500 to $2,000 per week to their sales totals by not only selling more on each visit, but to modify customer behavior to purchase more on future visits.
1. Suggestively sell. It's easy to tell when someone is new to your unit. Offer suggestions that are both popular and profitable. Suggest dessert and appetizers (full-service restaurants do, why not you?). Sample dessert and other menu items in the dining room - you won't increase this sale, but you might increase the next sale (plus, it's a lagniappe - it makes them feel special).
2. Daypart specials. Splitting in-store specials by daypart drives menu trial and helps to discourage ordering sandwiches for dinner. Change your in-store specials at 4:00 to encourage higher ticket dinner items.
3. Build carry-out. Carry-out tickets are generally larger than in-store. Bounce-back "$5 off any carry-out order of $20 or more", create frequency/punch cards for each carry-out order (free sandwich when completed), offer curb-side service.
4. Catering as a marketing tool. Free 10-person caterings introduce your service and show your product in action. Remember, though, that you can't sell catering to people who are not your current customers. (See 5 Principles to Driving Trial).
5. Earn trust. Everyone loves to know the owner, to feel special at a restaurant. They also love to be the first to discover a place and to show that they know the owner. It's human nature. When you earn trust, and become the Mayor of Mayberry, your customers will bring their friends. Party size is a great way to increase your ticket.
It's key to remember one thing about ticket average: It doesn't usually happen all at once. How can you get 25 cents more from each customer? How can you grow ticket average by 25 cents each week?
Ticket average is built with customer loyalty and trust (read: a relationship). New customers don't spend as much.
But it's not all you can do. It's common for stores to add anywhere from $500 to $2,000 per week to their sales totals by not only selling more on each visit, but to modify customer behavior to purchase more on future visits.
1. Suggestively sell. It's easy to tell when someone is new to your unit. Offer suggestions that are both popular and profitable. Suggest dessert and appetizers (full-service restaurants do, why not you?). Sample dessert and other menu items in the dining room - you won't increase this sale, but you might increase the next sale (plus, it's a lagniappe - it makes them feel special).
2. Daypart specials. Splitting in-store specials by daypart drives menu trial and helps to discourage ordering sandwiches for dinner. Change your in-store specials at 4:00 to encourage higher ticket dinner items.
3. Build carry-out. Carry-out tickets are generally larger than in-store. Bounce-back "$5 off any carry-out order of $20 or more", create frequency/punch cards for each carry-out order (free sandwich when completed), offer curb-side service.
4. Catering as a marketing tool. Free 10-person caterings introduce your service and show your product in action. Remember, though, that you can't sell catering to people who are not your current customers. (See 5 Principles to Driving Trial).
5. Earn trust. Everyone loves to know the owner, to feel special at a restaurant. They also love to be the first to discover a place and to show that they know the owner. It's human nature. When you earn trust, and become the Mayor of Mayberry, your customers will bring their friends. Party size is a great way to increase your ticket.
It's key to remember one thing about ticket average: It doesn't usually happen all at once. How can you get 25 cents more from each customer? How can you grow ticket average by 25 cents each week?
Ticket average is built with customer loyalty and trust (read: a relationship). New customers don't spend as much.
5 Principles to Generating Frequency
Your sales will increase by 40% if you can get your customers to visit once every 10 days (36.5 visits per year) instead of once every 14 days (26 visits).
There is now one restaurant for every 664 people in this country. That's different than 30 or so years ago when there was one restaurant for every 1,029 people. People are eating out less frequently these days (consumer confidence is waning), but they have more choices each time they do.
Share of wallet makes all the difference to your customer count (and, therefore, your advertising costs). Here are 5 principles to getting customers to visit more often.
1. Invite them back. Don't assume their experience was great, invite customers back (and soon) with a bounce-back coupon. Make it a BOGO or half off a scone with purchase of coffee. Make it a Trial offer for a different menu item. Put a tight expiration date on it (get them in the habit of coming back and bringing friends).
2. Let them try everything. Sample at the counter. Sample to those standing in line. Walk the dining room with little Lagniappes (New Orleans for "a little something extra"). The more menu items guests have tried, the more likely they will have to choose between two favorites when they visit you. Meaning they'll crave you more often.
3. Tell them when you'd like to see them. You can eat at the same restaurant more than once in a week more easily if one meal is lunch (sandwich) and the other is dinner (meal). Give bounce-back coupons for specific dayparts or for carry-out. Use your current traffic to drive more traffic, with more occasions to love you.
4. Surround them with messages. Studies suggest that RECENCY (the time gap between seeing your message and making a buying decision) is more important than either reach or frequency in advertising. This means that if you can deliver a message to lunch customers at 11am you have a better shot at getting them. You have a better shot at reaching them at 11am if your message is out there in several forms (email, bounce-backs, direct mail, etc.).
5. Let them know you love them. None of your marketing matters if the experience sucks. Don't just be polite, be genuinely happy to see your customers. Walk the tables, ask for feedback, offer samples. In my experience, one of the most critical factors for success is whether an owner/manager walks the tables. It puts a face on the ownership.
More customers visiting more often. If you have a high traffic count, you'll be amazed at what increasing frequency can do for sales (as much as $3,000 per week - honest). All without spending any more money or eroding profit.
Next up:
5 Principles for Increasing Ticket Average
There is now one restaurant for every 664 people in this country. That's different than 30 or so years ago when there was one restaurant for every 1,029 people. People are eating out less frequently these days (consumer confidence is waning), but they have more choices each time they do.
Share of wallet makes all the difference to your customer count (and, therefore, your advertising costs). Here are 5 principles to getting customers to visit more often.
1. Invite them back. Don't assume their experience was great, invite customers back (and soon) with a bounce-back coupon. Make it a BOGO or half off a scone with purchase of coffee. Make it a Trial offer for a different menu item. Put a tight expiration date on it (get them in the habit of coming back and bringing friends).
2. Let them try everything. Sample at the counter. Sample to those standing in line. Walk the dining room with little Lagniappes (New Orleans for "a little something extra"). The more menu items guests have tried, the more likely they will have to choose between two favorites when they visit you. Meaning they'll crave you more often.
3. Tell them when you'd like to see them. You can eat at the same restaurant more than once in a week more easily if one meal is lunch (sandwich) and the other is dinner (meal). Give bounce-back coupons for specific dayparts or for carry-out. Use your current traffic to drive more traffic, with more occasions to love you.
4. Surround them with messages. Studies suggest that RECENCY (the time gap between seeing your message and making a buying decision) is more important than either reach or frequency in advertising. This means that if you can deliver a message to lunch customers at 11am you have a better shot at getting them. You have a better shot at reaching them at 11am if your message is out there in several forms (email, bounce-backs, direct mail, etc.).
5. Let them know you love them. None of your marketing matters if the experience sucks. Don't just be polite, be genuinely happy to see your customers. Walk the tables, ask for feedback, offer samples. In my experience, one of the most critical factors for success is whether an owner/manager walks the tables. It puts a face on the ownership.
More customers visiting more often. If you have a high traffic count, you'll be amazed at what increasing frequency can do for sales (as much as $3,000 per week - honest). All without spending any more money or eroding profit.
Next up:
5 Principles for Increasing Ticket Average
5 Principles to Driving Trial
We all want more cusotmers, but some ways of gaining them are better than others. Mass media and awareness creation are one thing if you have brand presence, quite another if you're the new kid on the block.
And keep in mind, if you're a midwestern franchisee of a brand that is well known in the southeast, you're the new kid on the block.
So here are 5 principles to driving trial:
1. Volume solves everything. There's not a problem in your restaurant that can't be solved by driving more traffic. Make it a habit to always invite people in (as your guest, see #2) and to make new relationships. If your store is packed, you can sample other items and promote different services like catering. Having people come to you lowers your messaging costs.
2. Generate cash flow, worry about profitability later. If you want people to come in make the offer great, don't skimp. Keep in mind the lifetime value of a customer. If it takes "free" instead of "1/2 off" to do it then do it. Most people will bring a friend and you'll break even on the deal.
3. You're food rich and cash poor. Advertising costs are measured in cost per thousand (CPM). Your results should be measured in cost per customer. If product cost is $1.25, and you WOW! them with it, your cost per customer is $1.25. 100 customers cost $125. Compare that to sustained (read: effective) advertising.
4. If your product is good, prove it. Put your product into people's mouths every chance you get. Your product may sell itself, but it has to be introduced. Sample at events, give free product to small groups (where word of mouth spreads faster), and sample in-store.
5. Love me, love my product. People in communities love to know the owner, it makes them feel part of the business. If you support what the community supports (HS, band, youth sports, library) they'll support you. Again, word of mouth spreads faster from small groups than it does from large ones. Word of mouth about advertising doesn't spread at all. Support your local groups, get to know the people in your community, run for Mayor of Mayberry.
Marketing to Mayberry isn't all that hard, you just have to shed some of the "mass appeal" thinking. You don't need an entire city to love you, only about 3,000 people or so. If they know you, if you give them something for nothing and it's fantastic, they'll love you.
Next up:
5 Principles to Generating Frequency of Visit
5 Principles to Increasing Ticket Average
And keep in mind, if you're a midwestern franchisee of a brand that is well known in the southeast, you're the new kid on the block.
So here are 5 principles to driving trial:
1. Volume solves everything. There's not a problem in your restaurant that can't be solved by driving more traffic. Make it a habit to always invite people in (as your guest, see #2) and to make new relationships. If your store is packed, you can sample other items and promote different services like catering. Having people come to you lowers your messaging costs.
2. Generate cash flow, worry about profitability later. If you want people to come in make the offer great, don't skimp. Keep in mind the lifetime value of a customer. If it takes "free" instead of "1/2 off" to do it then do it. Most people will bring a friend and you'll break even on the deal.
3. You're food rich and cash poor. Advertising costs are measured in cost per thousand (CPM). Your results should be measured in cost per customer. If product cost is $1.25, and you WOW! them with it, your cost per customer is $1.25. 100 customers cost $125. Compare that to sustained (read: effective) advertising.
4. If your product is good, prove it. Put your product into people's mouths every chance you get. Your product may sell itself, but it has to be introduced. Sample at events, give free product to small groups (where word of mouth spreads faster), and sample in-store.
5. Love me, love my product. People in communities love to know the owner, it makes them feel part of the business. If you support what the community supports (HS, band, youth sports, library) they'll support you. Again, word of mouth spreads faster from small groups than it does from large ones. Word of mouth about advertising doesn't spread at all. Support your local groups, get to know the people in your community, run for Mayor of Mayberry.
Marketing to Mayberry isn't all that hard, you just have to shed some of the "mass appeal" thinking. You don't need an entire city to love you, only about 3,000 people or so. If they know you, if you give them something for nothing and it's fantastic, they'll love you.
Next up:
5 Principles to Generating Frequency of Visit
5 Principles to Increasing Ticket Average
Tuesday
Recency Marketing
We often talk about reach and frequency of our advertising, but here's a new term for you: Recency.
The thought is that a single message may indeed be enough to move someone to purchase your product, if it is seen/heard/read close enough to the buying decision. It turns "I'm hungry" into "let's eat here."
So we have to decide where to advertise and how often to advertise and the resulting matrix can be overwhelming, expensive, and still completely miss the mark (do you carry magazines around all day, just waiting until you're hungry to look up a restaurant? No, but the customer was probably exposed to 15 different food messages since they read the magazine).
Below are ways you can utilize frequency in order to achieve recency (and get customers to come in):
1. Coupons. Pizza places have given them a bad name and, certainly, the majority of couponing is not just bad but conditions consumers to take advantage of you. But a good coupon strategy (trial, frequency, or ticket average) that modifies behavior in your favor can make the consumer clip the coupon so that the message remains on their 'fridge. They'll see it more often.
2. 7 Core Competencies. By using all 7 Core Competencies within an 8 week period, you're likely to be in front of your target audience at least once at the time of a purchase decision.
3. Word of Mouth. When was the last time you sat around with your buddies talking about a great ad you heard on the radio or anywhere else? "Hey, Jim. You ever see that magazine ad with the duck? You know, the one for that one company that sells tires or something?" It rarely happens to anyone with smaller budgets than Geico or Aflac. Frequency of message to a closed group (school, church, office) in the form of something personal (catering, VIP offer) creates word of mouth (and further increases your frequency of message).
4. Sting like a bee. Heavyweight boxers stand toe to toe and duke it out. If you want to do that with your competition (think fast food chains and their budgets) you're welcome to it, but it's often better to "stick and move". A lot of little punches can wear down your opponent, instead of looking to knock him out.
5. More personal. Personal touches can decrease the effective frequency of your message (the number of times someone is exposed to your message before purchase) simply because they feel a connection to you, the owner. A free sample in-store or out, a complimentary beverage, or dessert can move someone to be more loyal. "Love me, love my product."
Your marketing needs to be where your customers are at the time they're ready to buy. Do your local store marketing at the times when people are in the mood for your product, be everywhere, and encourage customers to take control of your message (in a good way) and your frequency of message will go up.
So will your chances of Recency.
The thought is that a single message may indeed be enough to move someone to purchase your product, if it is seen/heard/read close enough to the buying decision. It turns "I'm hungry" into "let's eat here."
So we have to decide where to advertise and how often to advertise and the resulting matrix can be overwhelming, expensive, and still completely miss the mark (do you carry magazines around all day, just waiting until you're hungry to look up a restaurant? No, but the customer was probably exposed to 15 different food messages since they read the magazine).
Below are ways you can utilize frequency in order to achieve recency (and get customers to come in):
1. Coupons. Pizza places have given them a bad name and, certainly, the majority of couponing is not just bad but conditions consumers to take advantage of you. But a good coupon strategy (trial, frequency, or ticket average) that modifies behavior in your favor can make the consumer clip the coupon so that the message remains on their 'fridge. They'll see it more often.
2. 7 Core Competencies. By using all 7 Core Competencies within an 8 week period, you're likely to be in front of your target audience at least once at the time of a purchase decision.
3. Word of Mouth. When was the last time you sat around with your buddies talking about a great ad you heard on the radio or anywhere else? "Hey, Jim. You ever see that magazine ad with the duck? You know, the one for that one company that sells tires or something?" It rarely happens to anyone with smaller budgets than Geico or Aflac. Frequency of message to a closed group (school, church, office) in the form of something personal (catering, VIP offer) creates word of mouth (and further increases your frequency of message).
4. Sting like a bee. Heavyweight boxers stand toe to toe and duke it out. If you want to do that with your competition (think fast food chains and their budgets) you're welcome to it, but it's often better to "stick and move". A lot of little punches can wear down your opponent, instead of looking to knock him out.
5. More personal. Personal touches can decrease the effective frequency of your message (the number of times someone is exposed to your message before purchase) simply because they feel a connection to you, the owner. A free sample in-store or out, a complimentary beverage, or dessert can move someone to be more loyal. "Love me, love my product."
Your marketing needs to be where your customers are at the time they're ready to buy. Do your local store marketing at the times when people are in the mood for your product, be everywhere, and encourage customers to take control of your message (in a good way) and your frequency of message will go up.
So will your chances of Recency.
Friday
Tight Restaurant Market
As of 2003 there was one restaurant for every 664 people in America. Consider that 30 years ago there was one restaurant for every 1,029 people, according to the National Restaurant Association. That's a big increase.
With the proliferation of fast-casual and Bar and Grill places, there is more choice (and clutter) for consumers, and more competition for share of wallet for owners.
Now, maybe more than ever, two things stand out clearly:
1. Consumers can be choosy. You need them and they know it. Poor customer service is always a knock-out factor, but today nothing short of a WOW experience can compete. Knowing the owner, being treated special, is a critical factor in choosing where to eat.
2. Advertising clutter is off the charts. Coupons, mailers, billboards, cable ads - everyone is fighting to be heard. Local Store Marketing and word of mouth are more relevant than ever.
Combine this glut of restaurants with the current economic environment. High gasoline and fuel prices coupled with rising food costs (everything from milk and dairy to chicken, pork, and beef) are conspiring to keep more people at home. People are not cutting back on gasoline, they're cutting back elsewhere.
Frequency of visit has always been a decent measure of unit health and this summer many restaurants are feeling that pinch. Fewer meals being eaten out makes the competition for each visit more fierce.
Hope lies in the basics. Rather than faceless advertising, small businesses can solidify relationships with their complementary audiences and win them over, one at a time.
Knowing the owner gives the consumer a stake in the business. We recommend businesses where we know the owner, we patronize our neighbors because we're all in it together.
Make sure the customer experience in your store is top-notch, get out into the community to forge and strengthen relationships, and focus on your 7 Core Competencies to maintain a high frequency of message and you have a chance to maintain a high frequency of visit.
It's that or hold on until consumers are more confident.
With the proliferation of fast-casual and Bar and Grill places, there is more choice (and clutter) for consumers, and more competition for share of wallet for owners.
Now, maybe more than ever, two things stand out clearly:
1. Consumers can be choosy. You need them and they know it. Poor customer service is always a knock-out factor, but today nothing short of a WOW experience can compete. Knowing the owner, being treated special, is a critical factor in choosing where to eat.
2. Advertising clutter is off the charts. Coupons, mailers, billboards, cable ads - everyone is fighting to be heard. Local Store Marketing and word of mouth are more relevant than ever.
Combine this glut of restaurants with the current economic environment. High gasoline and fuel prices coupled with rising food costs (everything from milk and dairy to chicken, pork, and beef) are conspiring to keep more people at home. People are not cutting back on gasoline, they're cutting back elsewhere.
Frequency of visit has always been a decent measure of unit health and this summer many restaurants are feeling that pinch. Fewer meals being eaten out makes the competition for each visit more fierce.
Hope lies in the basics. Rather than faceless advertising, small businesses can solidify relationships with their complementary audiences and win them over, one at a time.
Knowing the owner gives the consumer a stake in the business. We recommend businesses where we know the owner, we patronize our neighbors because we're all in it together.
Make sure the customer experience in your store is top-notch, get out into the community to forge and strengthen relationships, and focus on your 7 Core Competencies to maintain a high frequency of message and you have a chance to maintain a high frequency of visit.
It's that or hold on until consumers are more confident.
Wednesday
What "locals" say about Local Store Marketing
Not only do I live and breathe local store marketing, I live in an area that relies heavily on it as well. Most of my neighbors are experts in LSM, but from a different perspective: they know what it takes to get them through the door and to keep them coming back. As customers.
I thought it would be helpful to show just how empassioned your neighbors can be about their local businesses. Below is a flyer, printed by the neighborhood association entitled "Think Local First" - a Top 10 list of reasons to "Think local, buy local, be local".
This is an interesting point because it was the residents who put this out, not businesses. The members of this community, East Atlanta Village (located, you guessed it, just East of downtown Atlanta), realize that when businesses succeed the community thrives.
To underscore that, just try to criticize one of the older establishments in the village on a neighborhood discussion board, EAVbuzz.net. Community members will come out of the woodwork to defend any slight.
And it's not just blind loyalty to the community. The amount of defense is in direct proportion to the amount of community service of the business and how well known (and liked) is the owner. You can criticize the food and service at one establishment that is fairly new, with an owner who lives in the neighborhood but isn't very well known, but don't bother making the same criticism to a 10 year old establishment with similar quality food and service. Everyone knows the owner and they (rightfully) stick up for him.
The successful local store marketer knows that the more people you know, the more people there are to defend your product and service when you're not around. Let's face it, mistakes happen within your store. The question is whether people care enough about your business to stand up for you, give you the benefit of the doubt.
Top 10 Reasons to Support Local Business:
Top
I thought it would be helpful to show just how empassioned your neighbors can be about their local businesses. Below is a flyer, printed by the neighborhood association entitled "Think Local First" - a Top 10 list of reasons to "Think local, buy local, be local".
This is an interesting point because it was the residents who put this out, not businesses. The members of this community, East Atlanta Village (located, you guessed it, just East of downtown Atlanta), realize that when businesses succeed the community thrives.
To underscore that, just try to criticize one of the older establishments in the village on a neighborhood discussion board, EAVbuzz.net. Community members will come out of the woodwork to defend any slight.
And it's not just blind loyalty to the community. The amount of defense is in direct proportion to the amount of community service of the business and how well known (and liked) is the owner. You can criticize the food and service at one establishment that is fairly new, with an owner who lives in the neighborhood but isn't very well known, but don't bother making the same criticism to a 10 year old establishment with similar quality food and service. Everyone knows the owner and they (rightfully) stick up for him.
The successful local store marketer knows that the more people you know, the more people there are to defend your product and service when you're not around. Let's face it, mistakes happen within your store. The question is whether people care enough about your business to stand up for you, give you the benefit of the doubt.
Top 10 Reasons to Support Local Business:
- Significantly more money circulates in the neighborhood when purchases are made at locally owned, rather than nationally owned, businesses.
- Our one of a kind businesses are an integral part of our distinctive character.
- More new jobs are provided by local businesses.
- Public benefits far outweigh public costs.
- Encourages investment in East Atlanta Village.
- Competition and diversity leads to more choices.
- Reduced environmental impact.
- Better customer service. [Editor's note: Not necessarily, but clearly the perception is that service is better. Maybe because when you know the owner you're more forgiving because you know you can always "go to the top".]
- Non-profits receive greater support.
- Local business owners invest in the community.
Top
Catering Tips
Summer has hit hard in some areas, not so much in others. Finding where everyone went when school ended can be a
challenge, but a renewed emphasis on catering and boxed lunches (think picnics and small groups) can help fill the
gap.
Here are a few tips from those of you kind enough to give us feedback:
Talk to others. Partners that routinely talk to other partners, corporate members, and customers never seem
to be at a loss for ideas as to how to build catering. Not all ideas are right for each location, but most are.
Ask for referrals. Salesmen of every ilk ask for referrals and most of them get them. Don't be afraid to ask
your existing customers if they know of someone who'd like to try your product for free. Give the refer-er a little
"thank you" as well. The ideal time to do this, of course, is during delivery or during your follow-up call (you
do make follow-up calls, don't you?).
Work your eixsting customers. Bounce-backs and flyers to your most supportive group (existing customers)
creates awareness. Packaged offers make the sale easier. Tip from a partner: Offer "5 people free for caterings of
20 or more". It's a good incentive, but the original party size tends to creep up as people start to think of others
to invite. The greater the size, the less the discount.
Use the fishbowl. Too few of you use the fishbowl for leads at all. Even fewer of you use it to the fullest
extent. There are a few stores for whom a fishbowl is their only form of marketing - and they do pretty well with
it. If you need help, see the first suggestion above.
And for heaven's sake, don't turn down new leads. A recent lead for "Mega Corp" was given to a unit. The manager,
however, said "we already do caterings for Mega Corp, we don't need to give a new person there a free sample."
So, the lead went to someone else. Now this unit has competition within a current customer. Plus, they didn't take
the opportunity to "own" the whole company (this lead had never ordered from the unit before, we checked). Mega
Corp. is, after all, a large company. Penny wise. Pound foolish.
Plan your work so you're more effective. Work your plan so you're more focused. Lack of focus costs more and
generates less in return. Drop us a line or give us a call at 404.588.0863 if
you have questions.
challenge, but a renewed emphasis on catering and boxed lunches (think picnics and small groups) can help fill the
gap.
Here are a few tips from those of you kind enough to give us feedback:
Talk to others. Partners that routinely talk to other partners, corporate members, and customers never seem
to be at a loss for ideas as to how to build catering. Not all ideas are right for each location, but most are.
Ask for referrals. Salesmen of every ilk ask for referrals and most of them get them. Don't be afraid to ask
your existing customers if they know of someone who'd like to try your product for free. Give the refer-er a little
"thank you" as well. The ideal time to do this, of course, is during delivery or during your follow-up call (you
do make follow-up calls, don't you?).
Work your eixsting customers. Bounce-backs and flyers to your most supportive group (existing customers)
creates awareness. Packaged offers make the sale easier. Tip from a partner: Offer "5 people free for caterings of
20 or more". It's a good incentive, but the original party size tends to creep up as people start to think of others
to invite. The greater the size, the less the discount.
Use the fishbowl. Too few of you use the fishbowl for leads at all. Even fewer of you use it to the fullest
extent. There are a few stores for whom a fishbowl is their only form of marketing - and they do pretty well with
it. If you need help, see the first suggestion above.
And for heaven's sake, don't turn down new leads. A recent lead for "Mega Corp" was given to a unit. The manager,
however, said "we already do caterings for Mega Corp, we don't need to give a new person there a free sample."
So, the lead went to someone else. Now this unit has competition within a current customer. Plus, they didn't take
the opportunity to "own" the whole company (this lead had never ordered from the unit before, we checked). Mega
Corp. is, after all, a large company. Penny wise. Pound foolish.
Plan your work so you're more effective. Work your plan so you're more focused. Lack of focus costs more and
generates less in return. Drop us a line or give us a call at 404.588.0863 if
you have questions.
Friday
Marketing to Schools
It's great if your store is near a high school, middle school, or elementary school, but you can't simply rely on the students and families to know you are there. You have to reach out to them, support their causes.
Below are the basics for reaching the different types of schools (the ones above, plus colleges and pre-schools), along with some helpful tricks to getting things done.
High Schools / Middle Schools
Below are the basics for reaching the different types of schools (the ones above, plus colleges and pre-schools), along with some helpful tricks to getting things done.
High Schools / Middle Schools
- Become a partner in education (this is the hoop you jump through to getting in with all schools)
- Invite admin and staff to visit you, do this with free product (thank them for all the hard work they do)
- Spirit nights don't work as well with HS as they do with elementary kids. Focus on a specific group within the school (eg: cheerleaders or student council). Let them promote the event.
- Fundraising for clubs. Everyone wants the sports teams, but remember that the band is a larger group with very loyal followers. If you support them, they'll support you.
- Trade banquets for advertising dollars
- Hire through the school's DECA program (or something similar)
Elementary Schools
- Become a partner in education
- Invite staff, admin, and PTA/O to see you for lunch or dinner
- Fundraising for special projects
- Spirit nights for this age group are great (remember to make them fun to encourage word of mouth and to post a sign on your door during those nights - you'll get credit from the rest of your customers for being a good guy)
- Give teachers stickers to remind parents
- Put signage in their carpool lanes
- Make sure the admin promotes the event
- Offer gift certificates to Office Depot to the teacher with the most kids at the event (make it a contest)
Pre-Schools
- Pretty much the same as with elementary school kids, but here are a few twists
- Fundraising is key for many of these schools
- Mom's are more likely to get together after they drop kids off (if you're a coffeehouse, smoothie shop, health club take note)
- Make sure you're kid friendly if you go after this group (high chairs, kid friendly menu, and always have a give-away and distraction for the kids - the happier they are the happier mom and dad will be)
Colleges
- This is a community unto itself
- Fraternities/Sorrorities: fundraising, spirit nights
- Athletics: think intramural, club, and fraternity level
- Pan-Hellenic council
- Be a guerrilla marketer in the library (book marks, flyers on tables)
- Coffeehouses: bottomless cups during finals week
- Study break specials
- Tailgating
- T-shirts: ever seen a college kid turn down a free t-shirt?
The tactics can be different depending on your products, but the strategy is the same: care about what they care about, surround students and parents with your message, and put food into their mouths.
7 Complementary Audiences
Now that the lease is signed and the concept has been finalized, the big question for a restaurant is: who is my customer?
The answer doesn't involve household income, education level, or 2.4 children. It's a question of who works in the building next to you. Once the lease is signed the demographics are almost irrelevant. The trick is to get more of the 48,000 daytime population to visit, more of the 60-90,000 cars per day to stop.
Your audience, then, is whoever is there to buy your product. Niche marketing (Local Store Marketing) will help you to create a message for each group within your trade area. We'll look at each of these in detail in future posts, but the 7 Complementary Audiences for nearly any restaurant are:
The answer doesn't involve household income, education level, or 2.4 children. It's a question of who works in the building next to you. Once the lease is signed the demographics are almost irrelevant. The trick is to get more of the 48,000 daytime population to visit, more of the 60-90,000 cars per day to stop.
Your audience, then, is whoever is there to buy your product. Niche marketing (Local Store Marketing) will help you to create a message for each group within your trade area. We'll look at each of these in detail in future posts, but the 7 Complementary Audiences for nearly any restaurant are:
- Schools
- Houses / Apartments
- Large office buildings
- Small office buildings (there are different strategies for each)
- RE Agents / Pharm Reps / Financial Planners
- Current customers
- Employees
There are more, of course, but these are the groups that make up nearly any trade area. RE agents, pharm reps, and financial planners are catering engines. Create a message for each of these 7 audiences (again, more on each in future posts) and results should come quickly.
Notice that this is backward from traditional brand marketing. In brand marketing you determine your target audience, craft a message, and then deliver the message repeatedly.
Why doesn't that hold true for restaurants? Because your lease is signed. You're paying rent. Target audiences are great for lots of reasons, but when it comes time to move the needle you need to tailor your message to the people who live and work in your community. For better or worse.
Surround your customers with messages
I was reading an article on employment strategies for those out of work. The common lament was that resumes were sent, phone calls were not returned, no employment was found (their marketing didn't work). The recommendation of the experts was to surround the hiring manager with a message. Resume, phone message, snail mail letter, and, whenever possible, have existing employees mention your name. Showing up at the office in person would be a big plus.
That might look like an 'it's who you know, not what you know' strategy and you're right, it is. That's the point. One of them anyway.
The other point is that multiple mentions of the same message through multiple media makes you look like you're everywhere, like you're bigger than you really are. Multiple media have a higher frequency than a single medium.
By now, we all know that customers need to hear your name somewhere around six or 7 times in order to remember it. We also know that it takes a few more mentions in order to get them to purchase from you.
Contrast that with this fact: people remember the names of their acquaintances after only two or 3 meetings.
The lesson: if you want to use media to promote your business, plan on at least 7 contacts (7 times cost of the ad). If you want to get people to remember you faster, go out and meet them. Put a face with the name, put product in their mouths and a coupon in their hands.
Surround the customer with your message. People buy from people they know.
That might look like an 'it's who you know, not what you know' strategy and you're right, it is. That's the point. One of them anyway.
The other point is that multiple mentions of the same message through multiple media makes you look like you're everywhere, like you're bigger than you really are. Multiple media have a higher frequency than a single medium.
By now, we all know that customers need to hear your name somewhere around six or 7 times in order to remember it. We also know that it takes a few more mentions in order to get them to purchase from you.
Contrast that with this fact: people remember the names of their acquaintances after only two or 3 meetings.
The lesson: if you want to use media to promote your business, plan on at least 7 contacts (7 times cost of the ad). If you want to get people to remember you faster, go out and meet them. Put a face with the name, put product in their mouths and a coupon in their hands.
Surround the customer with your message. People buy from people they know.
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