The restaurant industry continues to debate the value of celebrity chefs with their reality shows and entertaining “cooking” shows. Most of us know the public’s perception of these fictional programs is based on the entertainment value as opposed to the real cooking element presented. I am sure I am not the only restaurateur that has laughed as Emeril flubs another dish as they go to break for a million dollar commercial. Personally, I am not convinced these TV personalities have much of an impact on the food business other than their own ability to sell products and advertising.

One thing is clear. Just because they can brand their name and open restaurants across the country, that doesn’t mean success is guaranteed. The customer still has expectations that must be met for an extended restaurant life. No one truly believes the fantasy of Gordon Ramsay’s Hell’s Kitchen or the business mess of Rocco’s. Few of these stars have escaped the pad locks that decorate their closed ventures. Ramsay has three closures in the last six months. Under the marketing conditions in the coming year, there will be many more celebs packing it in.

The difference between the celebrity restaurants and the “real” operations that open up is the amount of initial publicity. Robert Irvine, recently deposed from the Food Network, has been planning two restaurants in the St. Petersburg, Florida luxury district downtown for many months. The publicity has been non-stop for six months since the announcement. No independent food operation garners such attention. We do it the old fashion way - one customer at a time.

The basic elements for long term survival must be employed by any venture. You have to create a real connection with the customer. The connection cannot be based on  short lived hype or legend. It must offer an experience that guest will savor, send and save. They will savor the experience by meeting their expectations. Customers will send the experience on to friends and family by word of mouth. Finally they save the visit in their mind for many return visits. If your restaurant doesn’t capture the guest with a connection, no amount of publicity will salvage your ultimate fate.

Larry Edger, Author

The Restaurant Ebook

It’s clear 2008 will challenge even the best restaurant owners. Prices are rising faster than operators can respond. Cost controls  are essential, but how does the restaurateur get ahead of the trends? How can you adjust menu prices before the increases hit your bottom line because you are retroactive to the suppliers’ charges?

Here are some guidelines.

• First, check our commodity trends link in restaurant resources section. Weekly visits will give you an idea of where prices for beef, pork, chicken and dairy products are headed.
• Second, many major suppliers have a Trend Report that they will release to customers. These releases report notices of price increases from processors, manufacturing representatives and other purveyors.
• Third, try to negotiate locked in prices from any suppliers you can. Many will hold pricing for items that you can anticipate usage for the next 90 days.
• Fourth, listen to stock market reports and commodity prices. If a bushel of corn has an extended upward trend, you are going to feel it. If pork bellies look like the they are making a move, you are going to see your prices going up.
• Fifth, use common sense. If wheat and flour are increasing, bread is going up. If sugar takes a jump, desserts are going to follow suit. Oil prices will effect any petroleum products used in manufacturing everything from trash bags to portion cups.

Take these five steps and review your menu every month. You can stay ahead of the game and keep those numbers in the black.

 Larry Edger, Author

The Restaurant Ebook

What if a major mid-priced steak chain put a smaller version of their steakhouse in an area that was growing with hotels, condominiums and thousands of tourists annually all within a two mile range. The location was on a corner of a shopping strip at a traffic light with access from all directions and street parking as well as excess parking in a lot behind the restaurant. To make the package even more attractive was the fact that no other chains existed within at least four miles.

A “no-brainer” you say. That’s what Outback Steakhouse thought about one of its locations. After five years and many thousands of marketing dollars, they closed the restaurant.

In The Restaurant Ebook it was predicted as well as another similar anecdote about a famous chain and one of their corporate decisions.

Placement of a restaurant is critical. Demographics and clear understanding of your potential guests’ demand and habits have to be part of the decision making process.

In the case of Outback, the location was on an island beach resort. There was a mix of residences within their target market, but not enough to sustain the location year round. A large part of the equation was that the thousands of tourists who visited the area were incorrectly counted heavily as potential customers. Outback failed to understand that a large contingent of travelers don’t want to go to a carbon copy restaurant they can visit at home. They want local unique restaurants that provide the travel experience they are seeking.

Another blunder was the fact that a gulf front island means a demand for seafood, not beef. To survive, Outback would have to change their menu, name and probably act more like a quaint independent than a cookie cutter chain. Big companies don’t do this very well except when looking for acquisitions and new concepts that someone else has successfully developed.

It is not particularly pleasant to be right about the prediction of this closure. It is always sad to see people lose their jobs. However, maybe the lessons from Outback’s errors can give entrepreneurs cause for taking a better look at their location and escape a similar fate.

When doing research for opening, planning and operating your restaurant, consider The Restaurant Ebook your guide to increasing the odds of survival.

Larry Edger, Author

The Restaurant Ebook

There is a study done by Restaurant Hospitality magazine that says 27% of restaurant diners have quit going to a particular restaurant in the past year because of “poor service”. That is over one fourth of the people eating out quit going to someone’s restaurant. Was one of them yours?

The problem is defining what poor service means to various segments of the population. Is it rude servers, long ticket times, not visiting tables often enough, forgetting condiments, slow follow up or some combination of these? It may take another survey or more customer feedback to define “poor service”.

Some research I did for the mini-ebook titled “Pardon Me, But Your Customers Want to Talk To You” may be a glimpse into what guests think bad service really is. For about a month I collected individual reviews posted on blog sites, restaurant review websites and newspaper reviews on restaurants that subsequently closed their doors. It was tedious research, but the quotes from the restaurants’ customers were so compelling, I couldn’t stop. The thought crossed my mind that if the owner had read these comments well before he closed his doors, could he have changed his destiny.

The research found that “bad service” was by far the terms most used by customers about the vast majority of the closed operations. Assuming “bad service” and “poor service” are interchangeable, then comments from those who further defined bad service will help define the term. In almost every instance waiting long periods of time for any guest service was an issue and reason given for the restaurant’s closing. In rare circumstances did the customers cite bad food as the cause.

A synopsis of those comments were;· Waiting to be greeted.· Waiting for the table to be visited by a server.· Waiting for drinks to be delivered.· Waiting for the order to be taken.· Waiting for food to be delivered.· Waiting for a return visit by the server.· Waiting for the check.

Obviously, waiting for any facet of the guest’s experience was the single most frustrating part of the dining experience. How many of these bottlenecks do you have in your restaurant? Do you know? What have you done to correct them?

Based on the comments of guests from closed operations, now might be a good time to find out the answers to the questions above.

Larry Edger, Author
The Restaurant Ebook

On a recent trip to Naples, Florida, I was again reminded that location is everything - well almost everything. It is clear that great food can’t cover up a bad location, but why doesn’t good food make it in a great location?

One of my favorite restaurants and watering holes in Naples is the Riverwalk Restaurant. The location is next to the somewhat famous Tin City and along a busy waterfront. Immediately next to the Riverwalk was another restaurant called Pier 41. The Riverwalk was always extremely busy; Pier 41 struggled for many years. They were within 20 feet of each other. Pier 41 was clean, had a reasonable menu and even had better access than Riverwalk. They never could quite be as popular.

On this trip I was pleased to see that a new restaurant with a completely re-juvenated concept had replaced Pier 41. Not only had I noticed, but it was clear from the wait at the door and full tables, the population of Naples had embraced this new concept. It was also apparent that the restaurant didn’t go through any extensive changes to the facility. Why did this new seafood concept work and the old seafood menu fail? I was determined to find out.

Before visiting the new restaurant called Pinchers, I talked with some of the long-term staff at Riverwalk to get their opinions and then ventured a few feet out of the Riverwalk and entered Pinchers. After a few minutes the differences were clear.

• The new restaurant had a more casual feel with staff in polo shirts and shorts. No more white shirts.
• The menu was pricey, but not unlike similar Naples waterfront restaurants. What the menu did have was an abundance of seafood items that neither the Riverwalk or the old concept had. They found a niche of local fresh items that tourists and locals would enjoy.
• The staff was well chosen and more outgoing. The old restaurant had a feel of competence, but lacked that enthusiasm of the new one.
• It was clear that Pinchers understood the demographics of their customer base than the old concept. Many customers went back and forth between the Riverwalk and Pinchers just during my time at the locations. The customers were portable and interchangeable!

The new restaurant had to go no further that 20 or 30 feet to figure out how to become successful. Look at the strengths a long time community favorite, the Riverwalk, capitalized on and re-invent them at Pinchers while offering menu alternatives. The old concept had a slightly more upscale approach to both atmosphere and menu. Apparently, people wanted less formality in a waterfront location. It was clear that atmosphere, menu and customer service will combine to make this new venture a success.

Location is critical, but you can’t forget the customer’s expectations - you have to meet them or exceed them in a robust competitive location.

Larry Edger, Author

The Restaurant Ebook

All the projections are in. The restaurant industry is expected to be hit with upward spiraling food costs and lower consumer discretionary spending on dining out. The National Restaurant Association expects real growth of only .9% for 2008. Most sources blame the economy and gasoline prices.

On the street, I am hearing friends from Chicago to Florida that are showing dismal sales in the last couple of months. Food prices as escalating faster than you can change menu prices. Many restaurants are closing their doors after a lack luster year in 2007. One of the nation’s largest food wholesalers tells me their bad receivables are higher than they have ever been. Chains are are closing many weak performing operations.

What can you do? Stop the madness!

Take eight hours off - right now, to reverse the double whammy. Higher prices are coming. See an earlier post on controlling costs in 2008. At the very least, listen to the consumer, they want reasonable priced entrees. Use menu items where the margins remain high. Offer smaller portions, half size plates and focus on comfort food. These and other details are in the post from January 30, 2008 titled “Price Increases Threaten Industry“.

After getting your cost control plan in place, now focus on increasing sales. You must start now. There are no quick fixes. Implementing plans that will boost sales take weeks to produce long term results. Here are the steps to protect your restaurant in 2008;

• Write a Marketing Plan for the next six months.
• Address each of the marketing functions - communicating with prospective customers, selling those prospects and delivering your product.
• Once you have your plan, involve every staff member. Even if you only have a couple of employees, let them know your plans and get them involved.
• Implement your plan immediately. Many things in your marketing plan can be done overnight with little or no cost.
• Schedule a monthly review of your plan. Keep track of results.

If you don’t know how to write a marketing plan or are new to the industry, you can rely on The Restaurant Ebook to show you all the detailed steps. There are forms for a marketing plan and over 100 ways to increase sales and market your restaurant. Each idea not only tells you what to do, but exactly how to do it.

As an author and veteran of the restaurant business, I am not immune to the whims of economic conditions. My restaurants started an all new marketing plan in October, 2007. So far, we have not felt the downturn many other restaurants are reporting. Did I have a crystal ball and know that conditions were going to be bad in 2008? No, one of my restaurants had flat sales through the third quarter of 2007 and we embarked on a new marketing plan in October. It’s paying off now with sales above 2007 levels.

Again, stop the madness - right now! Turn the double whammy into a whimpering memory.

Larry Edger, Author

The Restaurant Ebook

You must be opening a restaurant!

A friend, who has opened several restaurants, recently visited one of our operations. I inquired about his latest venture and to sum up his answer, he has the fear of opening and no one showing up. He has the nervous tension that comes with finalizing the little details, dealing with contractors and synchronizing staff, food deliveries, training, marketing and menu testing just before opening. Finally, he has the insomnia that comes from falling into bed so tired it’s an effort just to get your clothes off and then the horizontal position is when wide-eyed doubt takes over. Your mind has a sleep schedule of it’s own! You go over the next day’s activities, mentally search for anything you have forgotten and deliberate about things you have already done to see if there is a better way. Then, sleep may sneak up on you sometime during the process.

I recognized his symptoms and knew there was no cure until the first customer walks in his door on opening day. Every restaurateur goes through the cold feet stages just before opening. He or she knows that if the business plan was done right, the marketing plan is in motion and the staff training is complete, then you are ready to raise the curtain on your show. You may know you are right, but you also know the odds are stacked against you. You know that most restaurants fail - no one disputes that fact, just how big the percentage is.

The best comfort I could be to my friend is to put his mind at rest for a few minutes. I asked;

• Are you comfortable with your business plan and concept?
• Have you implemented your marketing plan?
• Can you execute your menu and service to meet the customers expectations?
• Will the customer feel there is value and want to return?

Knowing he would answer these in the affirmative, I left him with his cocktail and steak. He would have a few minutes of relaxation before those creepy crawly doubts started doing their job. There are no guarantees in this business, but knowing you have done the pre-opening requirements gives a better than average chance of keeping your doors open.

If you aren’t sure you have done the right things or if you don’t know what those “things” are, try The Restaurant Ebook. My friend read it and found new ideas, even for a seasoned veteran. If it’s not worth every penny of the price, we will give you a 100% refund. You have my personal guarantee.

Larry Edger, Author

The Restaurant Ebook

Over the last few months I have occasionally blundered onto the websites of hucksters trying to sell ebooks. It amazes me that people will buy just about anything, I think, if these sites are actually selling ebooks.

With a humorous eye, you might want to stay away from any sales pitch that contains some of these;

• Any site that starts out “Dear Restaurant Profiteer” - makes our profession sound like carpetbaggers!
• Any site that offers you “Over $2000 worth of material for $29.95” - do people really believe that stuff?
• Any site that offers “double your money back guarantee” - I considered getting out of the restaurant business and just buy 100 of this guy’s books each week!
• A pitch that says they are going to reveal “dozens of closely guarded secrets of success” - I always wondered what they were guarding them from and how they kept them from McDonalds.
• One site offers “laser-guided accurate information” - Sounds like this “author” has found a secret to using laser beams somehow to make his book more accurate.
• My all time favorite was almost irresistible. It offered, if you buy today, “seven bonus values worth $1800, four super-time bonuses worth $280 and, today only, 2 valuable audio tapes, plus my personal free gifts for budding entrepreneurs” - My neighbors may not appreciate the semi truck that it would take to deliver all of this stuff!

If you have bought any of these books, I apologize. Now if you would just visit my website where I have this great bridge for sale called the Brooklyn Bridge ……….

Larry Edger, Author

The Restaurant Ebook

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!

After month’s of delay due to Internet security issues, the ebook that will simplify the lives of many entrepreneurial restaurateurs is available. The book is packed with details about cash flow, operations, training and managing a restaurant. Perhaps the most valuable chapter is “100 Ways to Increase Sales and Market Your Restaurant”.

The author gives readers more than just WHAT to do to be successful, but exactly HOW to do it. The Restaurant Ebook is more than just a typical restaurant manual that tells owners and managers they need more sales, lower costs and better service. The Restaurant Ebook is a guide that explains the “how-to’s” of marketing. The book has one chapter dedicated to why most restaurants fail and the ways to keep your doors open.

One of the most valuable aspects of the book is that it is NOT written by a consultant, but a business person that has developed three concepts that operate successfully today. The reader gets the real life experiences and anecdotes of what works and doesn’t work from years of experience.

Who should buy The Restaurant Ebook? It is a must for anyone:

• thinking of starting a restaurant
• struggling trying to keep their doors open
• having cash flow problems
• who needs to develop more business
• who discovers that traditional advertising doesn’t work
• thinks great food will bring automatic success
• that is struggling against the big chains
• that is considering buying an existing restaurant
• who wants new ideas for marketing their restaurant
• who is experienced, but is burnt out on consultants with no street experience
• considering opening their next restaurant.

Managers, owners and those dreaming of being one of the 5000 or more people who will open a restaurant, cafe, bar, bakery or food operation this year will find The Restaurant Ebook the best investment they have ever made. It’s less than the cost of their next case of coffee!