Help!

I have a upscale casual bistro/wine bar in a small resort town on the Chesapeake Bay in VA. I have $30+ check av.  However given the present state of the econ and my segment (fine dining) of the market shirking, I am consitering  rebranding.  I can't stay the same, it's a slow and painful death. Should I take what little cash I have left and rebrand? I'm thinking something more casual, putting in a bar (we have full ABC and a small service bar), pool table, stage for live music, etc. What do you think???

Robb

Depends.

Before changing your entire concept and a new customer demo (pool tables, stage, liquor, etc) examine every inch of your business;  my 2cents:

How was food/service/value etc etc.  - A YEAR AGO??

Can you keep the same layout and change the menu/prices and name of the business?  Relaunch and press on?

Will doing all of this bring folks in anyway? (are people absent from the resort area or just your place?)

The same folksy neighborhood places that had crowds two years ago still have have crowds today....

If it's your dream it's worth fighting for.  Good luck!

 

I would put in a larger bar, could you have a bar/appetizer section separate from the fine dining area?  I'm just thinking keep the upscale menu but tap into the bar sales, 60% of my profit is through liquor sales.

The Edge... there is no honest way to explain it because the only people who really know where it is are the ones who have gone over.  -HST

Thanks for your 2cents Boogie,

 

 

 

How was food/service/value etc etc. - A YEAR AGO??

A year ago biz was off about 30% from the year before, but I rode it out. This year we lost a restaurant on the row (bar & grille) but her lost was partly due to poor mang. as much as a souring econ. I don't want to be the next, I know my prices are high and I thought that total re-branding would give me a fresh start.

Can you keep the same layout and change the menu/prices and name of the business? Re-launch and press on?

Yes I can. However being in a small town with everyone already with an opinion about the place being expense, my thinking was to create a new brand with lower prices and less formal surroundings. As always with me the answer lies in a moderation of tactics. You make a good point re-launching instead of re-branding maybe a wise choice. Nevertheless, that's why I'm here, to get ideas.

Will doing all of this bring folks in anyway? (are people absent from the resort area or just your place?)

Who knows! If I had a crystal ball would I be in this biz? LOL! But I do know I have to do something. The people are not coming to town as they used to, which is another problem that I must address. With the help of the biz community here I'm proposing a joint ad campaign for the entire town. This should help some and offset some of the ad budget of each place, as there is strength in numbers.

The same folksy neighborhood places that had crowds two years ago still have have crowds today....

The crowds are off everywhere here as in the whole industry. Too many seats chasing too few butts. So I have to do something to stand out.

I don't want to burn my loyal cust, but I need new ones. Maybe re-launching with the addition of live music, lower prices and a less formal attitude could work.

Thanks for your input BryonO

No it is not feasible to have a separated bar/app section. As I have a small place, just one large room. However, I am putting in a larger bar and hopefully that will help boost bar biz. As for the upscale menu,  here the gravy is the tourist, but the meat is locals (pardon the little restaurant pun), and the locals cannot afford my prices. It was ok when the tourist would come in season, but giving the present state of our economy they aren't coming as they used to. Thank you. I welcome all suggestions.

When times are tough, the better value you offer, the more people will choose you over other restaurants. I know many restaurateurs that are having record months so far this year. People aren't eating out less, they're just making sure they're getting more for your money.

Rebranding is probably a good idea if your business is seen as "expensive", "upscale" or a "special occasion" place. You may be a luxury that people can no longer afford, or at least think they can't afford. If this is you, then you would benefit by retooling your brand to focus on value.

Brandon O'Dell
O'Dell Consulting
phone: (888) 571-9068
email: brandon@bodellconsulting.com
web: http://www.bodellconsulting.com
blog: http://blog.bodellconsulting.com

Just remember if you have live music..you also have the cost of the Ascap and Bmi license.  They can be pretty costly.

KAYLINDA
"THE BEST IS YET TO COME"
WWW.JUSTUSRESTAURANT.COM

Welcome back Robb (says you joined back in '02 - where've you been?),

There's a lot of if's to rebranding.  Consider your menu: Is your kitchen equipped to handle the new one? Is your staff equipped to pull it off (both FOH/BOH).  You realize if you change your name (more on that later), you'll probably have to refile liquor license, business license, tax licenses, blah, blah, blah.  Possibly, you may be required to undergo a new health inspection (no biggie, but if you're retooling during your rebranding, it can be a pain).  You may need the fire marshall to reinspect as well.  Don't forget stationary, menus, websites, POS (print outs) will all need updated to new name, if used.

There's good news, bad news to your name.  You've established yourself under your name.  Can you afford (see above) to give it up?  If no, can you manage to change the mindset of your patrons to your new image?

Are you seasonal?  SHOULD you be seasonal?  When you rebrand it's usually best to close down during the rebranding phase.  This gives you an opportunity to get your duckies lined up, create new buzz, apply new paint, clean the place up, train the new menu, etc.  And yeah, you're NOT earning money when this happens and you ARE spending money to MAKE it happen.

You might want to sit on this idea until your summer season ends and then look back and see if it's still right for you.  If it is, then you've got time to get things in motion and possibly be ready for the holiday season.  Truthfully, you've missed your best window of opportunity right after the last holiday season.  Not only did you have the time, you probably could have easily lined up any contractors you might have needed.

So where are you?  I know a good many VA restauranteurs having lived there on/off about 12 years in the Hampton Roads area.

Ciao,

Hi Robbin, The Restaurant business is the hardest business to succeed in. Even in the best economy it has the largest failure rate. This may be a time to take what you have and save yourself. This downturn in the economy will be here for 3 to 5 years. .We didn't get into it over night and it will take years of tax hikes to pay it all back. I grew up with depression parents so I had to hear about it at ever Sunday meal. What would be wrong with bitting the bullet now, and reopening at a better time.

If a person swims to the side of a riptide they survive and get out of the water. If a person fights it ,they go out into deeper water and drowned..........................I hope your ideas work, and you succeed..............Bill

Chef Bill,

Thanks for your input. But I just can't quit. Trust me I thought about it, but what would I do. Be the night mang. at McDonald's. Unfortunately quitting is not a option that I can exercise at this time. Everything I have is invested in here. Selling a restaurant, as you may know, in this market is only a liquidation of equipment. I can't even sell my liquor, beer and wine inventory. I would only get .10 to .25 on the dollar, if I'm lucky. So staying open and making a go of it is all I have left. Remember "Be careful what you wish for, because you just may get it."