Coaches, Consultants, Trainers - Or Restaurant Witch Doctors?

Posted by Ebook Author on February 28th, 2008

The Internet is a beautiful thing! Behind the keyboard you can be anything you want. There is even a song that tells the tale of a guy who becomes 6 feet 5 inches tall, dark and handsome - online. He becomes a millionaire with big fancy cars and expensive habits - online. His fantasies become reality - online.

When it comes to finding help for ailing restaurants, its amazing to me that websites, blogs and articles hype the achievements of the fabulous marketing gurus who become magicians - online. They apparently have crystal balls, taro cards, boiling pots of potions and withered skulls that produce overnight results for anyone willing to pay. There are so many of them that I have to believe someone is believing their hype.

I may be a little naive when it comes to Internet marketing, but are there really restaurant owners who are hiring these online marvels? Are there really business people who believe there are quick fixes for sales, marketing and operational problems? What happened to knowledge, experience, learning and planning?

Visiting other websites and blogs have become my daily humor exercise. How can anyone not be amused by someone selling the restaurant “W.O.W. Factor” for $29.95 and offering a guarantee that if it doesn’t work, they will work for free (by email) until it does? More belly laughs can be had by the people who offer thousands of new customers by purchasing their mailing lists of people who are moving into your area. I don’t know where you live, but the real estate agents in my state are looking for jobs. I am wondering if these “thousands” are homeless and all the mail is going to shelters?

Of course, then there are the “marketing experts” who just came out of a national restaurant chain who were responsible for “397 multi-unit operations”. This person is now offering their “coaching” skills for as little as $25 per hour to give you the “secrets” of restaurant marketing. Now if you are sitting in Podunk, Idaho with a restaurant that just lost $10,000 last month, what do you think some character out of a public restaurant chain based in Atlanta can do for you?

Restaurateurs who fall for these voodoo, knee jerk pitches online should walk out the door, go to the closest McDonald’s, spend five bucks on a burger and shake and then just watch, look and listen for about an hour. You will learn more about marketing, service, cost control, customer expectations, operations and training in an hour than a $25 an hour witch doctor will teach you. There, I just saved you $20! Send me a fee.

To survive in the restaurant business you need knowledge, not quick fixes. You need to learn what marketing really is. You need to know what your customers expect. You need to know the differences between cash flow and profits. You need to find how to develop a marketing plan while tweaking your customer service system. You need ideas that work for your restaurant, not the chains. You need to know about analyzing you demographics. You need to find out why you have advantages the chains can’t match.

There is no substitute for experience. Of course, I am kind of fascinated by the thought of becoming a witch doctor. Might be fun concocting these quick-fix potions in some 40 quart pot. Maybe I can get the staff to do a little dance around the kitchen at the same time.

Larry Edger, Author

The Restaurant Ebook

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Chain’s Location for Restaurant Off Target

Posted by Ebook Author on February 25th, 2008

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

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Down Economy - Up for Independent Restaurants

Posted by Ebook Author on February 23rd, 2008

Now is the time for independent restaurant to really show their skills in meeting the consumers demand. All the signs show that the average family will have to tighten their budget. Higher gas prices lead the way for inflationary pressures on almost every commodity your guests are buying.

Chains will take months to respond to consumer spending trends, but the independent restaurant can start now.

While food costs are are escalating, there are some comparative bargains that can be passed along to your customers. You can also modify your menu to include new items and serving methods that lets your customers know you understand. Economic woe’s are also the time when diners look for comfort foods. Coincidentally, comfort foods generally have the highest margins for restaurateurs.

Here are a few ideas to keep your guests coming back, but spending less;

  • What are bargain foods? Pork, still a low priced protein. Ground beef has gone up, but the versatility can fill your menu.
  • Many less expensive beef cuts can produce the best comfort foods like pot roast, corned beef, sirloin and chuck.
  • Some seafood has remained steady such as shrimp. New fish species, both farm raised and wild, are being offered at reasonable prices.
  • Try new serving ideas on your menu. How about a whole roasted chicken dinner? A stuffed pork tenderloin is an inexpensive entree with great presentation options. Family style servings of vegetables, potatoes and sides can reduce your plate costs, save time and reduce waste.
  • Rice, beans and pasta continue to offer a value for the diner. Pasta servings can be produced for less than the cost of a candy bar and offers wide latitude for preparation. Now is the time for spaghetti, fettuccine and lasagna.

Now is the time to sit down with your food purveyors to seek out those bargains. They will give you ideas about what others are doing and new products that meet your goals. You don’t need to replace your entire menu, just find those dishes you can identify as pocketbook friendly.

By the time the chains respond to the trends, the economy will be improving if the cycle holds true to form. You will have built your loyal base through a marketing phase that will emphasize your economic friendly menu. The opportunity exists to build your brand as consumer responsive.

Larry Edger, Author

The Restaurant Ebook

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What is Poor Service?

Posted by Ebook Author on February 21st, 2008

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

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QSR’s - Study Them!

Posted by Ebook Author on February 19th, 2008

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

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Location, Location, Ooops……..

Posted by Ebook Author on February 17th, 2008

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

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Making Your Restaurant Better

Posted by ewriter on February 15th, 2008

One way to improve service, food, procedures and get pointed feedback is to ask your servers and other employees what can be done better. Encourage anonymous responses to pointed questions. Examples may include:

  • What is the food item most wasted on return plates?
  • What do we get requests for that is not on the menu?
  • What is the weakest item on the menu in terms of quality?
  • How can we serve the guest faster?
  • What procedures would you most like to see changed?
  • How can we help you earn more tips?
  • What would you change in the kitchen?
  • How can we sell more beverages?
  • If you were owner or General Manager, what would you change?

Your operation may have additional focus with the questions. Only use this about three or four times a year to be effective and not a regular bitch session. Give each employee an envelope that makes the responses private.

Finally, publish the results eliminating any personal names. Follow up with additional questions if some of the responses are unclear. These semi-annual forms have produced marketing ideas, menu changes and cost saving procedural changes many times in our operations. The ultimate beneficiary is the customer.

Larry Edger, Author
The Restaurant Ebook

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Stop the Double Whammy in 2008

Posted by Ebook Author on February 13th, 2008

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

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Fear, Nervous Tension, Insomnia?

Posted by ewriter on February 12th, 2008

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

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Wake Up and Smell the Roses

Posted by Ebook Author on February 10th, 2008

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

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