Great Food, but the Seats are Empty

Posted by Blog Author on January 31st, 2008

Did you know that food quality represents only about 40% of the motivation for returning to a restaurant according to most studies? When I hear a restaurant owner working feverishly to improve menu items to boost sales, it makes me wonder if he or she is missing the majority of the guest’s expectations.

The Restaurant Ebook points out that service may account for up to 25% of customer motivation, location can be up to 15% and ambiance, atmosphere, value and menu comprise the balance. Few restaurants really serve bad food. Those who do must execute the balance of the equation perfectly - few do that either. Is there anyone who really believes those diners under the golden arches are getting gourmet food? So why are the lines so long?

Learn a lesson from the QSR’s. Watch the customers and you can figure out why they are there. Many care about consistency, convenience and speed. Some are motivated by value. Some guests are re-assured that cleanliness and bright surroundings enhance the perceptions and willingness to return. How many of these points do you focus on when trying to meet your customer’s expectations?

If your restaurant can meet the customer’s expectations in the key elements of perception for making a decision to return, you will fill those empty seats.

Price Increases Threaten Restaurant Industry

Posted by ewriter on January 30th, 2008

Are you ready for a volatile 2008? Dairy products are up 15 to 30 percent depending on your location. Eggs have almost doubled in price from last year. Almost all canned and frozen foods have gone up at least 8 to 10 percent. Meats and poultry are following suit, particularly if the feed is a corn product.

The causes can be reasoned, argued and debated. The real issue for restaurant owners is finding ways to keep up with the price changes as they occur. If you haven’t scrutinized your invoices since the first of the year, you better start today.

Here are some of the ways restaurants can cope with price increases;

  • Compare pricing at least monthly on every item in your inventory.
  • Have a spreadsheet that calculates your plate costs on every menu item.
  • Change your menu style to allow for weekly and monthly price changes without a huge cost to reprint.
  • Force suppliers to keep you abreast of price changes and trends BEFORE they occur.
  • Menu more stable items that aren’t increasing at an escalated rate.
  • Build anticipated cost increases into menu prices.
  • Run more daily specials that can be priced according to the market.

2008 will be a battle to keep your margins from ending the year in the red. Plan now, put the procedures in place and hold on for the ride!


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