Yep. It's always worked. The author of this article asks a great question: If it works so well, why doesn't every store and restaurant use its tactics?
And then she answers the question: Because it requires a commitment.
You can read the article here.
And you can give us your thoughts on it here.
Monday
Speaking of marketing...
Holding a workshop for a single franchise or a single type of restaurant (coffeehouses, for example) are great, because we can get into the specific issues of each brand or type. I've done many of these marketing workshops and the ideas generated are usually really creative and inspiring.
However, I find that the more brands represented the better. The reason is that owners/managers stop focusing on their individual perceptions ("That might work for you, but people in MY are are different.") and start coming up with ideas for other people. It's amazing how we open our minds when we're working with someone else's budget and time.
To that end, I've created a forum where many people, from many brands, in many different types of restaurants, can come together to share ideas. Ask questions, make statements, help others, just participate. The forum is located at forum.commonmangroup.com and is just getting started - you can be a charter member.
You can start your own threads or just comment on the ones there. Either way, join us to become part of the community.
However, I find that the more brands represented the better. The reason is that owners/managers stop focusing on their individual perceptions ("That might work for you, but people in MY are are different.") and start coming up with ideas for other people. It's amazing how we open our minds when we're working with someone else's budget and time.
To that end, I've created a forum where many people, from many brands, in many different types of restaurants, can come together to share ideas. Ask questions, make statements, help others, just participate. The forum is located at forum.commonmangroup.com and is just getting started - you can be a charter member.
You can start your own threads or just comment on the ones there. Either way, join us to become part of the community.
Sunday
Where do you want to be in a year?
Even if you don't believe the sky is falling (I don't), you probably recognize that it's a tight market for restaurants. The NRA put out stats showing that the Restaurant Performance Indexhas hit an all-time low, the University of Michigan's consumer survey indicates consumers are less confident about the future, and most media outlets are predicting doom and gloom.
Regardless of the reality (this economy compared to other downturns in the past), consumer perception is a powerful force that is affecting your business. Many people, myself included, see this economy as a chance to grow your business, to gain market share and position yourself for the years to come.
I wanted to share, then, a blog post that focuses on the positive and offers some good advice as to how to control your own perceptions, project a feeling of prosperity, and attract more customers. It's called Is Your Mindset Holding You Back? and it offers some thoughtful questions as to how all of perceive our current situation, and what to do about it.
Regardless of the reality (this economy compared to other downturns in the past), consumer perception is a powerful force that is affecting your business. Many people, myself included, see this economy as a chance to grow your business, to gain market share and position yourself for the years to come.
I wanted to share, then, a blog post that focuses on the positive and offers some good advice as to how to control your own perceptions, project a feeling of prosperity, and attract more customers. It's called Is Your Mindset Holding You Back? and it offers some thoughtful questions as to how all of perceive our current situation, and what to do about it.
Friday
Bad LSM
When people ask for local store marketing advice for their restaurants, chances are what they really mean is: "Do you have any new ideas?" For the most part, local store marketers are confident in their tactics and if something isn't working then they don't need to modify their tactics, they need new ones.
Those who know me know that I usually examine what is currently being done before I'll give any new ideas. The reason is because, for the most part, the value in LSM is being face to face. Nearly any tactic will work PROVIDED you have the right objective and give the right offer.
The manager of an English pub asked me for some new ideas. He was already doing LSM, but he needed new ideas to get people through the door. The restaurant was (past tense) at the base of one of the largest office buildings in the Southeast.
I asked what he was currently doing and he said he had been taking food over to the buildings, trying to get on the good side of the gatekeepers so he could get more business. The problem? The "food" was cupcakes, items that aren't even on his menu.
So instead of making up some appetizers in his kitchen, he was spending time going to a bakery and spending money on something that, even if they were to-die-for cupcakes, the recipients couldn't get at his location. Well, at least his food costs were still in line. The business closed one week after our initial conversation. By the time he asked for help, the restaurant was already close to closing.
Good Local Store Marketing for office buildings:
- Going to the buildings is a good idea, so he didn't need a better one
- Take food that you serve - you're providing an example of your food, if it's good people will visit
- Don't just "drop food by", find an audience before you leave (your fishbowl is a good place to start)
- By-pass the receptionist / security guard: by saying "you've won free catering for 10" you get invited past the gatekeepers
- Bring them to you: pull winners from your fishbowl a few times per week; those people don't eat lunch alone and you'll expose new people to your menu
- DO NOT offer standing discounts (10% to all employees, just show your badge); you can't ever back off of these discounts and people will become addicted to the discount
- INSTEAD, offer a value-add to employees: 'FREE drink with purchase' one month, 'FREE cookie' the next; 'FREE upsize' the next; keep them coming back by making them special, NOT by discounting
- Use your newfound traffic to promote party size, happy hour, or dinner specials (only one at a time, please)
Good luck, and let us know how things worked out for you: Gossamer Marketing
Those who know me know that I usually examine what is currently being done before I'll give any new ideas. The reason is because, for the most part, the value in LSM is being face to face. Nearly any tactic will work PROVIDED you have the right objective and give the right offer.
The manager of an English pub asked me for some new ideas. He was already doing LSM, but he needed new ideas to get people through the door. The restaurant was (past tense) at the base of one of the largest office buildings in the Southeast.
I asked what he was currently doing and he said he had been taking food over to the buildings, trying to get on the good side of the gatekeepers so he could get more business. The problem? The "food" was cupcakes, items that aren't even on his menu.
So instead of making up some appetizers in his kitchen, he was spending time going to a bakery and spending money on something that, even if they were to-die-for cupcakes, the recipients couldn't get at his location. Well, at least his food costs were still in line. The business closed one week after our initial conversation. By the time he asked for help, the restaurant was already close to closing.
Good Local Store Marketing for office buildings:
- Going to the buildings is a good idea, so he didn't need a better one
- Take food that you serve - you're providing an example of your food, if it's good people will visit
- Don't just "drop food by", find an audience before you leave (your fishbowl is a good place to start)
- By-pass the receptionist / security guard: by saying "you've won free catering for 10" you get invited past the gatekeepers
- Bring them to you: pull winners from your fishbowl a few times per week; those people don't eat lunch alone and you'll expose new people to your menu
- DO NOT offer standing discounts (10% to all employees, just show your badge); you can't ever back off of these discounts and people will become addicted to the discount
- INSTEAD, offer a value-add to employees: 'FREE drink with purchase' one month, 'FREE cookie' the next; 'FREE upsize' the next; keep them coming back by making them special, NOT by discounting
- Use your newfound traffic to promote party size, happy hour, or dinner specials (only one at a time, please)
Good luck, and let us know how things worked out for you: Gossamer Marketing
Wednesday
Party Size - Lunch
It's more true this time of year than at any other (at least for restaurants): If you want effective marketing for your restaurant, you need to know both your audience and your objective.
First, objective: Get more people through the doors. You always want more customers, but your big issue now is likely frequency of visit (everyone is on vacation). It's a double whammy: your regulars have changed to their summer schedule and pockets of new customers are less predictable.
The one constant you have is current customers, those walking through your door.
Second, know your audience. Office workers tend to take longer lunches in the summer. Whether it's because their office is slow, or because the weather is nice, or because they're running errands, they're more willing to eschew the cafeteria and venture out. When they venture outside their office building, it's more of an event ("I invited Dan to join us").
Your goal, then, should be to encourage party sizes. Consider your offer carefully. Is it worth it to give something away if it's the difference between a group of 4 choosing you over the place next door? Is it worth incentivizing the "ring leader" who will influence three of his friends to join him at his place of choosing? 'Yes' to both questions.
- Free 10 piece wings with combo meal purchase (11am - 2pm only); the rationale is that one person can't eat that much and will bring friends, you give 10 wings to get three or more combo sales
- Free dessert to parties of 4 or more
- Have a patio? Use your fishbowl to find a "winner" of a free app (after 3:00pm). When the patio has activity your visibility is increased. The timing of the offer, on a nice day, will cause some to cut out of work early
- Use email to offer Free dessert (or side or drink) to the first 25 (or 50) people of the day; the email will get forwarded within the office, even if the customers don't come as a single party the effect will be the same
First, objective: Get more people through the doors. You always want more customers, but your big issue now is likely frequency of visit (everyone is on vacation). It's a double whammy: your regulars have changed to their summer schedule and pockets of new customers are less predictable.
The one constant you have is current customers, those walking through your door.
Second, know your audience. Office workers tend to take longer lunches in the summer. Whether it's because their office is slow, or because the weather is nice, or because they're running errands, they're more willing to eschew the cafeteria and venture out. When they venture outside their office building, it's more of an event ("I invited Dan to join us").
Your goal, then, should be to encourage party sizes. Consider your offer carefully. Is it worth it to give something away if it's the difference between a group of 4 choosing you over the place next door? Is it worth incentivizing the "ring leader" who will influence three of his friends to join him at his place of choosing? 'Yes' to both questions.
- Free 10 piece wings with combo meal purchase (11am - 2pm only); the rationale is that one person can't eat that much and will bring friends, you give 10 wings to get three or more combo sales
- Free dessert to parties of 4 or more
- Have a patio? Use your fishbowl to find a "winner" of a free app (after 3:00pm). When the patio has activity your visibility is increased. The timing of the offer, on a nice day, will cause some to cut out of work early
- Use email to offer Free dessert (or side or drink) to the first 25 (or 50) people of the day; the email will get forwarded within the office, even if the customers don't come as a single party the effect will be the same
Tuesday
Grab Market Share
The Bad News
According to the National Restaurant Association, there is one restaurant for every 662 people in the U.S. Based on the following, there will likely be a few to fall off this year:
- surcharges due to increased fuel costs
- proteins increasing due to feed costs
- dairy prices increasing due to feed
- average American families eating out less due to increased gas, tighter budgets
- don't even want to think about minimum wage increasing
Technomic forecasts a 2.1% increase in restaurant sales nationwide this year, a figure that also assumes a 4% increase in menu prices. Guest traffic is down, mainly due to frequency of visit (207 outside meals per year vs. 211 two years ago).
The Good News
The above data (it's data only, not information) assumes that the pain will be spread equally, that everyone is in the same boat. Not true.
A scenario: a family of four eats out an average of four times per month. They rotate between four restaurants that both the kids and the parents enjoy (or at least can tolerate). Their economic circumstances cause them to cut back to twice per month.
Which is more likely:
a) they continue the same rotation of restaurants, each getting a visit from them every other month (decreasing the restaurants' revenue by half); or
b) they eliminate the restaurants they merely tolerated, continuing to dine at the restaurants they truly enjoy (no effect on two of the restaurants)?
Most of us will consolidate our dollars, meaning two restaurants have no share of wallet and the other two are unaffected. It's human nature.
Clearly, customer service, perceived value, and overall experience are critical at this point in time.
But what of the restaurants that lose their customers? If they don't survive the downturn, where will their existing customers go?
Now is the time to grab market share. Total number of customers is more valuable now than overall profitability (I said profitability, not profits - read on).
Would you rather have 4,000 customers with a profit margin of 14%, or will you settle for 3,000 customers but cling to your 16% margins?
4,000 x $10/week x 25 weeks = 1,000,000 x .14 = $140,000 profit
3,000 x $10/week x 25 weeks = 750,000 x .16 = $120,000 profit
This is at a time when people are eating out less. Use the same figures in a better economy:
4,000 x $10/week x 35 weeks = 1,400,000 x .14 = $196,000 profit
3,000 x $10/week x 35 weeks = 1,050,000 x .16 = $168,000 profit
And if you can gather those customers, and that frequency, without purchasing media you'll save another 2%-3% toward your bottom line. The next Local Store Marketing Newsletter provides suggestions for doing just that.
According to the National Restaurant Association, there is one restaurant for every 662 people in the U.S. Based on the following, there will likely be a few to fall off this year:
- surcharges due to increased fuel costs
- proteins increasing due to feed costs
- dairy prices increasing due to feed
- average American families eating out less due to increased gas, tighter budgets
- don't even want to think about minimum wage increasing
Technomic forecasts a 2.1% increase in restaurant sales nationwide this year, a figure that also assumes a 4% increase in menu prices. Guest traffic is down, mainly due to frequency of visit (207 outside meals per year vs. 211 two years ago).
The Good News
The above data (it's data only, not information) assumes that the pain will be spread equally, that everyone is in the same boat. Not true.
A scenario: a family of four eats out an average of four times per month. They rotate between four restaurants that both the kids and the parents enjoy (or at least can tolerate). Their economic circumstances cause them to cut back to twice per month.
Which is more likely:
a) they continue the same rotation of restaurants, each getting a visit from them every other month (decreasing the restaurants' revenue by half); or
b) they eliminate the restaurants they merely tolerated, continuing to dine at the restaurants they truly enjoy (no effect on two of the restaurants)?
Most of us will consolidate our dollars, meaning two restaurants have no share of wallet and the other two are unaffected. It's human nature.
Clearly, customer service, perceived value, and overall experience are critical at this point in time.
But what of the restaurants that lose their customers? If they don't survive the downturn, where will their existing customers go?
Now is the time to grab market share. Total number of customers is more valuable now than overall profitability (I said profitability, not profits - read on).
Would you rather have 4,000 customers with a profit margin of 14%, or will you settle for 3,000 customers but cling to your 16% margins?
4,000 x $10/week x 25 weeks = 1,000,000 x .14 = $140,000 profit
3,000 x $10/week x 25 weeks = 750,000 x .16 = $120,000 profit
This is at a time when people are eating out less. Use the same figures in a better economy:
4,000 x $10/week x 35 weeks = 1,400,000 x .14 = $196,000 profit
3,000 x $10/week x 35 weeks = 1,050,000 x .16 = $168,000 profit
And if you can gather those customers, and that frequency, without purchasing media you'll save another 2%-3% toward your bottom line. The next Local Store Marketing Newsletter provides suggestions for doing just that.
Subscribe to:
Posts (Atom)
Posts
