Lets face it the food and beverage industry is taking its share of hits these days - rising costs in fuel, labor and product costs are taking there toll and causing many casual dining restaurants to call it quits. Impendent operators without the benefit of deep pockets are at a loss as to what they should do just to keep the bills paid let alone attempt to throw money at new ways to attract new guests to walk through the doors. What is the solution? What can a restaurateur do to weather the storm in times like these? Well my suggestion is to quit thinking like a restaurateur and more like an average guest.
What I mean is that it is time to think outside the box - step back and put yourself in the shoes of those who dine out verses being the one that is trying to attract them. What do they want? Why are they staying home? Perhaps you would see that the answer is not all that complex. In a recession money is tight, most people are unsure and insecure therefore they tend to frequent places that are within their perceived comfort zone - they work, they go home and they visit friends - other than that their social life is placed on hold. So how can you change that? Your right - you can’t , but you can assist your guests in having their cake and eating it too. How? While there is not one specific answer I can share with you a few ideas that have been working for several restaurateurs that have been and are currently weathering this storm.
1. Since more people are eating at home these days, offering your guests a selection of family sized entrees and side dishes on a cost plus basis can drive sales and offset a nice part of your idle labor cost and still add a few bucks to the contribution.
2. Be more active within your four walls. Take this slow time to get to know your guests better and the go the extra mile to make them feel at home. Build that comfort zone, make daily features with guest recipes, make a big deal out of birthdays, anniversaries or any special event one of your guests have.
3. Forget the rules - forget the 20-30% food cost, forget the 15-21% pour costs, forget the cut labor until it hurts rule - forget being a restaurateur and try to remember what we are in this crazy business for - which is of course to provide hospitality to our guests. Give them a great experience at a great value and there is no doubt their frequency of visits will increase.
4. Embrace and empower your staff - they are your front line and your ambassadors. They are the heart, soul and voice of your operation. If you rally their confidence you will not only rally them but your guests as well. If you cut their hours, threaten them or give them any reason to believe they are respected or secure you may as well yell it from the roof top that you are on the run.
5. Have Fun. Remember that when time are tough - times are tough for most, so keep a smile on your face, pepper in your shaker and a stiff upper lip until the fat lady sings - like a band that plays on a sinking ship - your courage will not go unnoticed or forgotten regardless of the end result.
I wish everyone the best through these difficult times and if there is anything I can do - please feel free to ask.
Sincerely
- H
Never underestimate the power of a sincere "Thank You."
Join Date: May 2005
Location: Upper Midwest
Posts: 1585
Some other things to add:
1. Make it easy to order from you. Tonight, I was at an "all you can eat pizza place". The price was $4.75 per person unless you ordered more than two toppings and then it was an additional $1.50 per person (or was it pie) for each topping. When a nurse, computer engineer, insurance sales rep, master electrician, teacher, and yours truly can't figure out the bill, then youse gots problems.
2. Stop with the sky is falling. We know it is. If you keep reminding us we will go to the happy bar to forget our troubles.
3. Be reasonable. This Friday, I need a place at 10am for about 10-15 people to have a semi-hush hush meeting. Of the four places that I called - none could or would take care of it. Huh? And you want me to come back?
4. Even if you can't pay for the renovations, you can make sure that the front is neat and clean. Wash the windows, shovel the sidewalk, sweep the parking lot. If it looks like a garbage dump, then we won't come in.
Food Write The Responsible Serving of Alcoholic Beverages
Lately, many customers are requesting POS menu modifications... more than normal. The general theme is "raise prices" and/or change (cut) portions. I think this is a mistake. Tightening the "value" of the drink/meal can back fire. Do you think rasing prices and cutting portions is the wrong thing to do right now?
Join Date: Feb 2002
Location: in the zoo
Posts: 1140
Welcome back to the fold Henry. Good to see your posting again.
Great points.
"This "recession" isn't nearly as bad as peoples attitudes about it" - Jeffery Summers
Don't particpate in the recession yourself and don't cut your prices. You will be still be playing to a half empty room and only get half the price. When everyone is doing the same thing be bold and do the opposite - raise your prices instead.
Keep training. It seems to be the first thing to go. Right now even the little things are being scrutinized make sure your staff is doing the little things.
Market even more- Find ways to market differently and cheaper. If you don't have a database with your guests emails, birthdays, anniversarys addresses and telephone numbers get one started, yesterday.
Turn off the television news. Bad news in = bad news out. Turn it off for 30 days, you will see a difference in your attitude.
life is like plastic wrap
"The difference between excellence and mediocrity is a very small effort." Flatlander
Join Date: Dec 2003
Location: Algona, IA
Posts: 996
I had a staff meeting. I was frank and direct. Told them that these are tough times. That we were struggling to pay bills. I really didn't need to do this. They have seen how business has dropped huge since the holidays. But, I told them I wasn't going down without a fight. That we were changing our menu and lowering our price points drastically. (I am able to maintain about the same gross margin per plate - that's another discussion).
I also told them that the success of this business (the ability to still have a job) was up to them. That I would do my part through restructuring the menu, promotions and what not - but any success beyond that would be only due to what they do or don't do. I reviewed with them of our steps of service and told them how excited I was about these changes because it will completely recalibrate our position in the market. From the percieved high end/special occassion restaurant to a more price friendly - Joe Six Pack kind of place.
I am amazed at the level of excitement in my staff. Things are getting cleaned and organized without my direction. The level of service has drastically improved and there is an excitement in the air.
I'm excited too. I think that a smart operator can make the best of this and perhaps come out better than before with the closure of some competition (we are overbuilt around here in terms of restaurants).
There's no saying I won't be closed this time next year. But, I won't be going down alone. I feel I have my staff behind me.
Being from the restaurant side of the business first, I understand where you are coming from. I left the Restaurant Business to go into the POS side, to consult with restaurant/Bar owners on how POS systems actually help if you use all the tools your POS can provide. Now I am specifically dealing with our Liquor Monitoring Service. It is amazing what Bars/Restaurant owners can save once you hold every Bartender accounable for every liquor pour. I have Financed bars/restaurants for under $500 on 100 spout systems, and they see savings & Higher revenues in the $1000's
You all have some brilliant observations and ideas -- it is the creative, innovative approach that will win out in the long run. In my own area, one local family restaurant has taken to door-to-door sales ... an approach that seems ridiculous on the surface, but when you listen to the sales pitch, it makes sense -- and it's having results. They're offering coupon books specifically for their restuarant that offer two completely free entrees (valid at different times), two 50%-off coupons, plus a number of "buy one, get one" coupons, all of which can be detached and used. And when I spoke to their owner, I learned that their restaurant has seen business increase dramatically.
Door-to-door sales might seem illogical in today's tech-savvy market, and I have to admit I was dubious when the salesperson came to my door. But I bought the coupons for $25 (which is split with the marketing company), and have used them several times in the past month. Much more effective than being in a big coupon book, because the entire flyer is dedicated to this restaurant, including a menu and price guide.
There are a number of ways to be creative, and it is great to see such spirit thriving! Never forget the value of local publicity (media exposure), as well as creative marketing opportunities. Sometimes it is even worth the relatively small expenditure to seek the input of an established marketing or publicity agency.
