Quick Service Restaurants (the politically correct words for fast food joints) have been a thorn in the side for many independent restaurateurs. They can decimate a lunch trade when two or three open up within a few blocks of your establishment. You can fight them or use them to build a better trade and niche.

Chains like Burger King, McDonald’s, Pizza Hut and Subway spend millions of dollars on research. They study food trends, marketing techniques, workflow, cost controls, equipment uses and even the colors that motivate people. The QSR’s have hundreds of employees working in various departments producing consumer information on just about any subject you can imagine.

How can you utilize this information? Try a few of these ideas.

• When researching new menu items, look at new products released by the chains. If they think smoked Gouda and pears are a hot combination, you can bet they spent tens of thousands of dollars to test the flavor combinations. You can use the flavor profiles they may develop to create an entirely new dish of your own.
• If you want to find the best brands and newest equipment technology, just look at the QSR’s. A few years ago Dunkin Donuts got into the lunch business with hot sandwiches. Most of their facilities and franchisees couldn’t retrofit their kitchens with traditional cooking equipment, so they went to the “Turbo” ovens that could turn out crisp hot sandwiches in seconds. The oven needed no hood, no vent and was affordable. Now these quick ovens are being utilized in a growing number of fast casual and upscale restaurants.
• Want to control costs? No one does portion control better than QSR’s. That is the only way they can produce a profit and maintain consistency. Watch what they control and how they do it, right down to the napkins.
• Watch economic trends by watching the fast service restaurant’s emphasis. This year, as some say we may be moving toward a recession, watch the advertising of more “dollar” meal values. They will cater to the consumer’s pocketbook. You may want to do the same thing.
• Want to redecorate your restaurant? Just look at colors used in QSR’s and DON’T use them. Fast food locations want to move people in and out. They have researched color combinations to the point where they know what colors and seating will keep the customer from being a fixture. They want to get them out the door!

How do you find out what the QSR’s are researching, marketing and releasing? Just check out their websites. There is a wealth of information you can use. Test markets for food, new consumer nutrition data, trends for cooking and even supplier data.

Remember, QSR’s don’t have a niche. They merely want to serve the customer quick with a value. You can find their weaknesses as well as their strengths. Use the weaknesses to build your competitive brand. Note what you don’t see such as fresh vegetables that spoil easily such as avocados, meats that take long cooking times and care like brisket, breads that have a short shelf life and quality desserts.

Studying the QSR’s can make their research and develop department a a part of your strategy.

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

When it comes to marketing your restaurant, sometimes it’s the little things that count. Word of mouth referrals are the strongest method of any for acquiring and keeping new guests.

Since this post is just before Valentine’s Day, here’s an idea out of The Restaurant Ebook, Chapter Seven, 100 Ways to Market Your Restaurant and Increase Sales.

As customers call for Valentine’s Day reservations, provide a unique service that can be added to the guest’s check. Offer a couple of roses in a flower vase with a red Valentines ribbon placed on their table. The ribbon would include a card saying “Happy Valentines Day Becky” (the recipients name).

Can you imagine the phone lines burning up the next day with ladies who received this special treatment!

There are two ways you can provide the flowers. You can work with a local florist or buy your own supplies and put them together. Remember this little add-on service can be used for Mother’s Day, birthdays, anniversaries and almost any other special occasion.

Little things cause big chatter!

Larry Edger, Author

The Restaurant Ebook

Restaurateurs come from many backgrounds. Most never had formal training or experience with marketing. Commonly I see the term advertising used interchangeably with the word marketing. Advertising is just a small part of marketing.

One of the key errors I made in the early years of operating restaurants was that I thought media advertising was the way to get new business and keep old customers. I followed what I saw the competition doing. Newspapers, magazines and other publications were full of restaurant ads. I just thought you had to do that!

When business wasn’t growing as fast as it should, my old business skills reverted to basic marketing techniques to build a plan. We needed to find out why customers were coming in our doors for the first time. We found that very few were motivated by ads. Most came because of a referral from a neighbor, friend or family. Even more surprising was the extremely high cost to acquire new business through traditional advertising. One new customer may cost as much as $75 to obtain! We might as well have sent a $75 check to random people just to try our restaurant! Not very smart.

By applying techniques of basic marketing we determined;

• Who our potential customers were.
• Methods to communicate directly with them.
• What motivated them to act.
• What made them want to return.

It sounds like heavy business school stuff and typical “consultant” drivel you read every day. Really it was simple, just ask! Managers, owners and servers need to communicate with new customers as they come in the door. First time visitors like the interaction and are more than open about why they are there. You can create a little form used by employees to fill out after visiting with guests. Record their responses to the questions above. After a few days a pattern will emerge.

There are many aspects and components to the marketing function. The Restaurant Ebook details exactly how to go about creating a marketing plan and executing each step. The size of your operation is insignificant. A small coffee bar and a 300 seat theme restaurant must do the same thing to keep growing and maintaining a customer base.

Rarely is advertising successful economically for the independent restaurateur. Advertising cannot produce the results a well thought out marketing plan can produce, usually for less than the cost of traditional ad media.

Larry Edger, Author

The Restaurant Ebook

One of the most inexpensive, but powerful marketing tools a restaurant can use is email. It’s fast, responsive and relevant. There are many articles out there about how to use email, but few on collecting those email addresses that should be treated like our industry treats saffron - use it occasionally, sparingly and protect it carefully.

Email addresses are now used like fax numbers, phone numbers and other communication methods. They are published on many documents and advertisements. Below is a list of methods to begin your collection;

• Business cards you accumulate including your suppliers.
• Advertisements in local newspapers. Don’t forget the critics and food section editors.
• Property advertisements in newspapers, flyer’s and real estate magazines that are on every street corner. Pick the ones in your area. No one eats out more frequently than real estate agents.
• Social, business and fraternal organizations have emails in their rosters.
• A simple form at your counter or hostess stand asking if they want to be added to your email list for valuable coupons and specials.
• Offer a promotion that has a prize. To enter they must give you their contact information.
• Offer a free appetizer, entree or dessert on a guest’s birthday. They must fill out a form to be added to your database.

All of these methods will start your email collection quickly, but as a marketing tool you will want to perpetuate your data as a regular ongoing function. Remember, it costs the same to send out one email or 1000 emails. It works!

Larry Edger, Author

The Restaurant Ebook

Buying an existing restaurant is a little like buying a used car. You can kick the tires, look under the hood, check the mileage and get a great deal - until you drive it for a few days. Thats when all the imperfections start becoming rattles, dents you didn’t notice, sputtering engine noises and the flat spare tire you didn’t check until you needed it.

Restaurants all have their imperfections. Finding them before you buy can be extremely difficult. In The Restaurant Ebook, I spend quite a bit of time explaining the benefits and pitfalls of buying an existing restaurant. There is also a checklist to evaluate just how good the opportunity may be, but in the end it is “caveat emptor” - buyer beware!

A few of the benefits of a restaurant purchase rather than starting a new operation are;

• Existing customers that may cost time and money to attract in a new operation.
• Stiff regulations for new restaurants may make an existing restaurant attractive due to being “grandfathered” in around new requirements.
• Staff may already be in place.
• Equipment and furnishings that cost a lot less than new.

Some of the pitfalls of buying a restaurant are;

• Liens and debts that are difficult to find unless you know where to look.
• Equipment that looks ok, but quickly falls apart due to temporary fixes.
• More unhappy guests than happy ones. Old dissatisfied customers are harder to get back than attracting than new ones.
• Regulatory violations that may cost you thousands to fix.

Unless you have the experience, never try to buy a restaurant without a lot of research and discovery. You have to know what to look for and where to find it.

If you would like a copy of our Checklist for Buying an Existing Restaurant, just email us.

Larry Edger, Author

The Restaurant Ebook

In Chapter Seven of The Restaurant Ebook, there are 100 ways to market your restaurant and increase sales. Several of the marketing tips revolve around the last few minutes of your guest’s visit. The book explains how to keep on selling after the check is presented.

There are numerous ways to send the customer on their way with a marketing message. Here are a few of the ideas;

• If you use a check presenter, tray or book, always have a label on the presenter highlighting things like your gift cards, next event or special occasion.
• Attaching a coupon to the check is another alternative if you use coupons.
• The check itself can be printed with a message at the bottom.
• Have businesses in your area? Offer them a listing on a small generic coupon that lists their business. In exchange, ask them to display your marketing materials, menu or coupon at their cash register.
• Have a big tourist trade? Use the idea above, but make the coupon a “Things To Do in the Area” coupon.
• Have multiple locations? Include a list of locations with the guest check.
• Long term servers can build return guests with a business card for guests as the leave.

The Restaurant Ebook not only offers these type of marketing ideas, but explains how to do them. If these don’t work for you, there are 99 more in the book that may.

Larry Edger, Author

The Restaurant Ebook

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.