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

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

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

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

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!