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.