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

Several months ago, when finishing The Restaurant Ebook, I wrote an Epilogue to the book that outlined a marketing program that we implemented at one of the restaurants. To briefly set the stage, I reported that through September of 2007, the restaurant had lackluster results with only a 2% increase in sales for the year. Even the 2% was questionable if price increases were factored in.

During September, I challenged one of our Managers to choose four or five new low cost marketing ideas from Chapter Seven, 100 Ways to Increase Sales and Market Your Restaurant, of The Restaurant Ebook and implement them. We wanted to keep track of costs and results. The goal was to report the effect on our sales and keep readers and buyers of the book informed of the progress. At the end of February, 5 months into the program here are the results;

• Sales over the same period in 2006-07 have increased a total of $60,312.
• Total restaurant sales have increased over 10%.
• The month of February had an increase of over $17,000 alone!

There is more great news;

• None of the marketing programs used discounts, coupons or margin cutting ideas.
• The total cost so far is less than $200.
• Not a single newspaper ad, magazine ad or other form of media advertising was used.
• It should be noted, although undocumented, most other restaurants in this area are reporting a difficult time as a result of the economy, cost of fuel and consumer’s reduction of luxury spending. Our restaurant is considered upscale casual and guests could certainly find less expensive alternatives.
• We firmly believe we are building solid repeat business, not some promotion that lasts for a few days or weeks and ends when the incentive wears off.

How was it done? Very simply. We created a six month Marketing Plan using the checklists and instructions in The Restaurant Ebook. We planned and implemented each step. We involved staff and kept our commitment to get this done.

There are no quick fixes to marketing. No gimmicks, no overnight magic and if you ever find a quick fix, please report it here for your fellow restaurateurs!

You can listen to the restaurant “witch doctors” or use your common sense to spend a few dollars on knowledge to build your business. You can be in the process of opening a new restaurant, buying a restaurant or just re-vitalizing an existing operation - solid marketing and planning works, even on an eight year old restaurant!

Larry Edger, Author

The Restaurant Ebook

P.S. Come back in a couple of months to get the final report before we begin our next six month plan.

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

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