Food Service Marketing Blog Articles

Working the Room (Santé)

It's Friday night, and Chef/Owner Chris Hunter is chatting with guests at In Season in Islip, Long Island. "It's a dance I do throughout the evening," he shares. "I fire the lamb, and while it cooks I change into a clean apron and talk to a few tables." At Farm Bloomington in Indiana, Chef/Owner Daniel Orr says, "There is always time to do little 'drive-bys' at the tables and bars." Orr dodges out of the kitchen each night to talk to his patrons about the local farms that supply his restaurant. At Sirocco, in the Renaissance Esmeralda in Indian Wells, California, Chef Livio Massagnani tries to meet the guests as they arrive, "so I can tell them about the evening's special ingredient and discuss how they'd like me to prepare it for them." These masters of face time know that tableside conversations help them serve customers better. Chatty chefs learn guest preferences and make decisions accordingly. They keep their eyes on the staff and increase accountability. Better service may be the most-often-cited reason chefs hobnob with the clientele, but it doesn't describe the practice's most prominent benefit -- increasing profits. The value of this no-cost marketing tool is twofold: short discussions about special ingredients increase sales, and the personal touch encourages return business. In some cases, a chef's reputation for mingling even pulls first-timers through the door. "We notice all the time that new customers come to the restaurant and ask the host, 'Is this the place where the chef comes to the table?' or 'I hear the chef will speak to us,'" Hunter confides.

The Drive to Socialize

Preferring not to associate their personal attention with dollar signs, chefs typically associate chatting with improving service rather than making money. Chef Bob Waggoner of the Charleston Grill in South Carolina claims that quality is the principal reason to establish a relationship with customers. He does his first nod-and-grin walk-around at about 7 p.m. Diners can be assured that the chef is in the house, and he knows that the staff is on point. "I can guarantee the quality of the food will be better if you have to look each guest in the eye," he assures.

Chef Gavin Kaysen tunes in to guests' body language and conversational tone to time his tableside visits.

"I can guarantee the quality of the food will be better if you have to look each guest in the eye."    -- Bob Waggoner

Orr is in the dining room to hear the comments. He likes praise but finds it's equally valuable to hear negative responses. "Then, I can try to fix [the problem]," he admits. In his opinion, diners who leave a restaurant without expressing a negative experience are more likely to discuss it with others -- possibly with people who might be dissuaded to try or return to the restaurant. "Give them a soapbox to air their complaints in the restaurant, and they are less likely to gossip around the watercooler the next day," Orr asserts. Customers who are satisfied that the chef cares about them are more likely to remember that positive reaction instead of the initial disappointment. Others hope that a hostlike demeanor will make their guests feel more comfortable.

When Daniel Boulud selects a candidate to be chef within the Dinex Group, his multilocation restaurant management company, he looks for culinary skill and a tableside personality. He knows that effective communication skills charm diners. These qualities convinced Boulud to offer the executive chef position at Manhattan's Cafe Boulud to Gavin Kaysen, a 2007 Bocuse d'Or contender and current nominee for the James Beard Rising Star Chef award. Kaysen's youth and approachability make his mingling all the more appealing, especially when it comes to a younger set of guests who are often newer to the fine-dining experience.

Sparking Conversation

For some, starting a good conversation requires practice. In 1994, when Alison Barshak was the debut chef at acclaimed Striped Bass in Philadelphia, the largely self-taught cook felt completely comfortable in the kitchen. Nevertheless, it took some time before she was at ease speaking with strangers in the dining room. Now as chef/owner of the cozy, 65-seat Alison at Blue Bell in Blue Bell, Pennsylvania, Barshak considers the customers like guests in her own home and has developed personal relationships with many of them. When Orr cooked at Manhattan's Guastavino's, a party for 1,000 people wasn't uncommon. He gained his mingling confidence by writing a miniature script to describe each menu item. After memorizing them like an actor's lines, he recited his descriptions to his staff for practice. That repetition improved his delivery with guests and created a well-crafted sales tool. According to Orr, inspiring guests to try something new increases their check totals and brings them back for more. Some chefs just need a good hook to get guests talking. Hunter engages customers by showing off his ingredients: "I usually carry some beautiful examples of fresh produce -- recently it was a bunch of icicle radishes -- from table to table and spark conversation." During the growing season, he invites interested patrons out to his kitchen garden. Customers return to taste how he prepares the vegetables that were growing during their last visit. Orr uses a similar technique. "I go to the table with waiters and tell guests about produce and products from certain farms. When I tell the customers, it becomes a better sales tool," he explains.

Talking    the talk Prepare and practice short descriptions of key menu items that you can use to begin conversations with diners. Engage customers by taking one of the evening's most appealing ingredients from table to table. Invite guests to attend special events personally. Show off your restaurant's efficiency by offering private tours through your kitchen or wine cellar. Consider using a computer program to remember frequent customers' birthdays, anniversaries, and favorite menu items.   Chef Alison Barshak, who overcame years of shyness to greet her customers with confidence, makes a point to speak with every guest.   All or Nothing Despite the obvious benefits, many chefs advise caution when making conversation in the dining room. Distributing attention evenly and knowing when it is appropriate to interrupt can be tricky. Barshak makes it a rule to speak to all. "Recently, when I couldn't circulate and chat with customers as I usually do during the dinner service, I made sure to greet guests as they arrived." She notes that she very rarely sits with or dines with guests in her own restaurant, because she doesn't want her other guests to feel slighted. Orr agrees: "Having done a lot of ‘face work' in New York and the Caribbean, it has become part of me, so people kind of expect it. Being back home

in Indiana, I already know a lot of my guests, so they would probably never forgive me if I didn't go talk to them." Kaysen's style at Cafe Boulud is fundamentally more cautious. He reads the guests' tone of voice and body language within the first few seconds of his approach. By determining whether or not he will be welcome, he avoids interrupting romantic interludes and tense moments in business meetings. Sometimes it's just a question of timing. "While guests usually really like a personal visit from the chef," he adds, "we also know it's not the primary reason they came to the restaurant."

Up Close and Personal

Getting personal with guests is a great way to latch on to return business. Waggoner frequently invites guests to attend special events himself. He asks clients, "We're going to do a wild-game dinner. Do you want in on it?" The events frequently sell out without any formal advertising. Orr finds that letting guests into the inner sanctum makes them feel special. During restaurant tours, he shows customers all of the nooks and crannies. By including the restaurant's basement bar, called the Root Cellar, on the tour he turns guests on to the opportunity to host private parties in the space. "You might not even know it is there, so it is nice to take guests down for a visit," he adds. Barshak knows many guests' birthdays, how often they come for dinner, and their favorite menu choices. Waggoner uses his computer list to remember special-occasion information. When guests make a reservation, they're asked if they're celebrating. The program even records guests' orders so the same dish can be recommended on the next visit. Waggoner also encourages guests to celebrate events at the restaurant by making a big deal of each occasion. He and the restaurant manager personally sign birthday and anniversary notes and deliver them with a chocolate plaque and petits fours. The technique is paying off. Waggoner has greeted the same well-dressed couple every Friday night for the past decade.

Irvina Lew is the author of Romantic Weekends in and around New York. Her food and wine articles have appeared in many publications, including Chocolatier, Culinary Trends, Pastry Art & Design, Pennsylvania Wine & Spirits, and Wine Enthusiast.

This article first appeared in the June 2008 issue of Santé.

Target Advertising

Many independent restaurateurs do not advertise as consistently as they should with a marketing plan and suitable budget in place. Unlike the chains that set aside a reasonable percentage of their annual net profits to adequately produce a strategic advertising plan, smaller operations tend to advertise impulsively and only as extra funds are available. The problem with this 'seat-of-the-pants' marketing approach leaves owners unable to pinpoint specific results with the general feeling that advertising is a waste of money.

The following tips may be helpful in formulating an effective plan:

1. Identify your customers. Look around your restaurant at peak meal periods and develop a typical customer profile by average age, income, profession/trade, and where they are located. There are often two categories of patrons that must be reached if you are in a major city or near an airport corridor: locals and transient guests (visitors from other cities). Based on this assessment, secure information regarding special dining promotions and supplements, rates and production costs from your area's base of advertising providers and be sure to review who the audience will reach and match up cost vs. value to various vehicles. Parallel your market with the readership or viewing/listening audience -- including the often-neglected periodicals that reach business or pleasure travelers.

2. Frequency. A one-time ad, unless it is targeted to a specific promotion or grand opening with significant reach to your prospective audience, is usually a waste of money. While owners wait for their big return, the prospects who did see the ad the first time cannot find it again when they are ready to plan that special luncheon or evening out on the town. By advertising regularly, you will be visible in your market even if it means running a smaller ad more frequently than a larger one infrequently. To determine the appropriate ad size or message buy, you'll want to keep your message short and to the point and avoid being overly clever. You simply want to attract the reader to your message sans inundating them with too much information so they will call now and book a reservation.

3. Production. Whether it is print, radio, television or Internet development, this task is best left to professionals. We may feel that we know better how to market our operation effectively, but an ad agency or graphic designer will do a much better job. Homemade scratch food is wonderful; homemade advertisements are not. As a final test, lay your print ad in position on a page in the specific publication next to your competitors or review the demo and evaluate it objectively. Would you want to call your restaurant?

4. Avoid ego buys. Yes, you are an avid golfer who is participating in the local golf challenge. But are your customers? While there may be a handful of customers who are interested in a vertical market where your associates, friends and family will see your ad, is it worth it? Not if it sacrifices your run in the weekend dining guide in the main newspaper where you have planned a bimonthly insertion to one million readers promoting seasonal specials.

5. Be creative. One exceptionally creative GM and Chef experienced Tuesday business slumps (following Monday closed) during the dinner hour. So they hired their finest waiters and discussed renting tux's and contacting the local florist to buy dozens of long-stemmed roses. The restaurant decided to tag all roses with a simple message: "Ladies Night Every Tuesday -- All Drinks 5 to 7 PM Free" and passed out roses to dozens of ladies all over the city at lunch time and the waiters had a wonderful time. Needless to say, the restaurant by week two was packed with guys and dolls. Of course, all the ladies who received the roses on their lunch break went back to the offices and told everyone. They added a jazz trio and Tuesday soon became one of their busiest nights.

Cost of the program:
600 Roses: $300.00 (Retail: .50 to .55 cents Summer to Mid November; .60 to .65 Mid November to May)
Tags: $60.00 (Black ink on colored stock, punched and cut at Quick Printer)
Assembly: Office staff
Tux Rental: Negotiated no charge in exchange for "Compliments of" ad on reverse side of tag for Tux Rental Provider.
Waiters: $120.00 (Six @ $20. ea.)
TOTAL: $420.00

Good things always happen to those who wait. Especially if they plan effectively.

 

Maren L. Hickton is the principal of MAREN INCORPORATED, a hospitality consulting company based in Pittsburgh, PA. Maren can be contacted by e-mail at info@mareninc.com.

Developing an Effective Marketing Plan

Developing a business plan for your restaurant is extremely important - it helps you plan for your future instead of reacting to changes in your business. Additionally, it gives you credibility and lenders will always ask for one if they consider lending you money.

Equally important and part of a business plan is developing an effective marketing plan. Marketing, in its simplest form, is getting out into your marketplace, observing what is taking place and making decisions based on that which you have observed. A marketing plan basically puts all the information you have gathered into a readable format.

The steps in developing a marketing plan include:

Determine Your Market
Determine where your business comes from. This could be a four-block area for a small deli or a 40-mile area for an upscale destination restaurant.

Check Out The Competition
Gather some "competitive intelligence" through scouting. Develop a competition profile. Things you should include in a competition profile include Name, Address, Hours of Operation, Restaurant Theme (e.g. Continental, Italian, American) and Entree Prices. Set it up like a chart and include your restaurant for easy comparison.

Identify Your Business
Identifying who dines with you is the crux of your marketing plan. Determine who your customers are (e.g. business people, social people) and why they dine at your restaurant.

Determine If There Is Additional Business Available For Your Restaurant
Based on your current customer base, determine if there are groups of people not dining at your restaurant for certain meal periods that could be. For example, maybe you have a good lunch trade but it consists totally of social people and not business people.

Anticipate The Potential New Business Segments
Once you determine where you can generate new business, advertising and promotion decisions become more focused. Reach these new market segments with advertising specifically oriented toward them. Determine Your Competitive Edge
Find out what makes you stand out from your competition - do you have the best location, do you have the best quality of food or do you have the best atmosphere relative to your competition. As soon as you determine your competitive edge, exploit it.

Menu Price Points
Determine specific dollar amounts that influence a consumer to make a purchase and price all your menu items accordingly. For example, one price point might be that a bottle of wine priced jut under $30 might sell more than a bottle priced just over $30. Of course you must take into account costing issues as well.

Develop Strategies to Enhance Increases in Average Check
Some restaurant chains do this very effectively. The wait staff is very proactive in trying to sell things such as soups, salads, appetizers and desserts in addition to customers ordering entrees. Develop written strategies on how you will "upsell", include them in the marketing plan and communicate them to your wait staff.

Determine Your Restaurant's Annual Revenue
This will serve as the basis for your annual marketing budget and should be done as part of the overall budgeting process.

Evaluate the Need for Professional Memberships
Since "people do business with people they know", it is important for you as a restaurant owner or manager to participate in professional organizations. Determine what professional organizations you are a member of and evaluate their effectiveness in promoting the restaurant.

Employ the Good Neighbor Strategy
Be a good neighbor and take part in community affairs. Do things such as provide meals to the underprivileged or offer the your services in catering-related events. Obviously, you need to carefully choose the beneficiaries of your donations since nearly everyone will be asking. The recognition and publicity received from the right contributions is invaluable.

Develop the Marketing Expense Budget
Develop a schedule of expenses which would be a breakdown of your Marketing expense included in your budget for the year. These line items include such things as:

Direct mail
Entertainment costs (including complimentary meals)
Internet & Email
Newspapers
Magazines
Civic and community projects
Donations

Marketing expense should average in the range of 2 to 4 percent of your total revenues.

The Action Calendar
Introduce an action calendar to organize the myriad of activities and strategies you select for implementation. This can take the form of a calendar where your have specific dates blocked off for your marketing endeavors.

Recap
This plan is for owners and managers to follow. It is a blueprint for achieving your revenue goals.

 

Restaurant Advisory Services provides full-service consulting services to the restaurant and hospitality industries. The firm offers a full menu of advisory services focusing on every aspect of the life cycle of restaurants and other hospitality organiza

Restaurant Marketing

Restaurant marketing is both an art and a science that is shrouded in mystery for far too many restaurant owners. Unfortunately, many advertising sales people don't want you to know what's really working. They want you to think that the television spots your competitor is running with them will be the answer to all of yours sales-building challenges. Not so. This brief report seeks to outline some of the restaurant marketing techniques and principles that are working in successful restaurants around the country.

Let's get started with some of the most frequently asked questions restaurant owners ask when seeking a better way to market their restaurants.

What are the keys to great restaurant marketing? There are several components of successful restaurant marketing. This isn't an all inclusive list, but some top strategic marketing issues include:

BRANDING: There has been lots of hype over the last few years about branding. We're all being told we need to do more branding and a better job branding, but no one has really stopped to explain what a brand is and how you build it. A brand is a promise. It's what customers, employees (Internal Customers), vendors, the media and all other key constituents come to expect in dealing with your restaurant. Brand-building is closing the gap between what you promise and what you deliver. A strong brand is one that has alignment between the promise and execution. It's not something that happens when you advertise, and it's not that people recognize your logo or recall your advertising.

POSITIONING: Positioning is an underleveraged restaurant marketing component. Positioning is the place you hold in the customers or prospects mind relative to the competition (the cheaper choice, the higher quality choice, et cetera). Effective positioning involves incorporation of your Unique Selling Proposition (U.S.P.). The USP is the one thing that only you can claim. It's a point of differentiation that the competition either cannot or does not claim. An example is Burger King versus McDonald's. If Burger King can convince you that a flame-broiled burger tastes better than a fried burger, they've won the war because McDonald's will never go into all 14,000 stores and rip out fryers to install char-grilling pits.

DUE DILIGENCE: Restaurant marketing doesn't happen in a vacuum. Effective restaurant marketing must be built on a foundation of fact and knowledge about the market, your competition, your customers, your Internal Customers, financial history, marketing history, the industry, and outside forces that will impact your business. It's a lot to worry about, but restaurant marketing has to factor these considerations into the overall strategy. Not even Coca-Cola can afford to market to everyone all the time, so effective market research and due diligence can help you be more effective in your restaurant marketing efforts.

MENU MIX: Every six to twelve months, you'll want to conduct an analysis of your menu. This will include profitability analysis and competitive menu analysis. To keep your menu fresh, relevant, and profitable, you'll need to know specifically how each item on your menu is performing and also how it stacks up next to your top competition. Think of each item on your menu as a tenant leasing space and it has to earn its right to the space you've granted it.

TRAINING: Marketing, human resources, operations and training are inextricably connected. You've heard before that great marketing will just kill a bad operation faster. That's because if you send people into an operation that is performing at a B- level or below, people will have a bad experience and your money would be better spent on operations improvement rather than marketing. Training is a vital component of restaurant marketing for this reason. Your training will have to go beyond just employee orientation. You'll need an ongoing program that constantly improves and evolves your staff competencies. It's also a good idea to include a restaurant marketing component in your training program so that you have a staff of ambassadors to help your sales-building efforts.

There's only 4 ways to increase sales for your restaurant:

Sales-building is so much easier when you know how it works. And fortunately, the methodology is much easier with the following definitions. Every effort you could make to build sales falls into one of just four categories. Every promotion, advertisement or offer will push one of the following four buttons:

NEW TRIAL: These are first-time customers buying from you for the first time. They will establish their opinion of your company during this first purchase and decide what percentage mindshare to award you in the future. New trial is the most expensive of the four sales-builders as acquisition costs are typically 7-10 more costly to execute than the other sales builders. However, it is impossible to increase frequency, check average or party size without customers to start with. After a customer base has been established, however, it is advisable to focus considerable efforts on the sales-builders listed below.

FREQUENCY: Is how often existing customers return to you for future purchases. Frequency is generated by developing enduring relationships and loyalty among customers. While it is rare to disagree that frequency is important, an alarming number of businesses fail to appropriate the needed mindshare and resources to developing successful programs. Consider that the average Pizza Hut loyalist purchases a pizza every 30 days. If Pizza Hut can get this group to purchase just one more pizza in those 30 days, they'd double their sales. So why do they blast the airwaves versus developing more successful frequency programs, such as bouncebacks, loyalty programs and the like? You've got me.

CHECK AVERAGE: Often refers to the total purchase for each transaction. In this instance, however, we are referring primarily to per person check average - the amount each guest or customer spends at purchase. Check averages can be built through price increases, suggestive selling programs, effective internal merchandizing, and through add-ons or upgrades to name but a few techniques. You'll want to make sure that the increase in check average remains consistent with your overall positioning strategy.

PARTY SIZE: As the name would suggest, Party Size refers to the number of people in each party. Do customers primarily visit alone, in groups of 2, groups of 5 or more? Whatever the number, you'll want to devise programs that encourage customers to bring more of their friends with them for each visit. Examples of programs include bus drivers eat free, birthday clubs and refer-a-friend tactics. Encouraging party size turns customers into advocates and enlists them as part of your sales-building team.

When asked what was the single most important event in helping him arrive at the theory of relativity, Albert Einstein was reported to have said, "Figuring out how to think about the problem." Use the above definitions help you better frame the challenge of growing your sales.

How much should we spend on marketing our restaurant?

There are several rules of thumb and ratios in the restaurant industry and there are some for restaurant marketing as well. A typical restaurant should allocate 3% - 6% of sales to marketing. It's also a good idea to allocate this money proportionally to your sales volume. Meaning, if July is your busiest month, you should spend a proportionate amount on your restaurants marketing budget in that month. Fish where the fish are biting. Some restaurant owners look at slow periods and think that's when they need to spend money to drive sales, so they spend a big chunk of cash trying to build a happy hour business and forgo building on top of their busy periods. Fact is, there is a reason people aren't coming in from 4:00 PM - 6:00 PM and you'll be sending valuable marketing dollars down a black hole if you try to build this period. There are nearly one million restaurants in the United States and probably only 2% of them are busy from 4:00 PM - 6:00 PM. Marketing can't change behavior; it can only influence existing behaviors. Spend your marketing dollar where it will have the best return for your restaurant.

How do most restaurants market themselves?

It's sad really, but 80% - 90% of restaurant marketing budgets are spent against new trial - getting a new customer to visit for the first time. This is the least effective place to spend your money. The majority of new trial efforts are spent against mass media advertising, which is costly and has dismal return on investment. The fact is, new customer acquisition is 7-10 times more expensive than building restaurant sales through increased frequency, check average and party size. But restaurant marketing isn't always about what's most effective, more often, it's about what everyone else is doing. Restaurant operators see that their competitor is on television or in the yellow pages or on a billboard and that they should be too. They do this without regard for what's working. Restaurant owners have to wear so many hats that sometimes they just do what's easiest - they write a check for mass media advertising and hope for the best. Mass media is often more about feeding ego than driving sales. It's also impossible for most companies to compete in a toe-to-toe battle with the big guys. Subway spends $290 million per year on television. They can do that because they are a multi-billion dollar enterprise - a title less than 100 restaurant corporations in the world can claim. The question you'll have to ask yourself is do we want to jump off the bridge just because so many other people are?

Who is doing a great job marketing their restaurant and what works about their restaurant marketing efforts?

There are several examples of companies large and small that are doing a great job. I'll give you some examples of each. On the larger side, Starbucks is doing an awesome job. They spend more money on training than they do on advertising. They do a great job with their internal merchandising and their menu is very focused. They don't spend money on mass media and instead focus on a core product line and flawless execution. They are now the fastest growing take-out operation in history. A great example of a regional chain that's doing an impressive job with marketing their restaurants is Firehouse Subs. They have strong internal merchandizing, training and culture programs. They also have a very impressive direct mail program. They send out quarterly saturation mailers offering a free sandwich with no strings attached. The mailers draw double-digit responses and drive equally impressive comparable store sales improvements. Research showed that 70% of the people that redeemed the cards became loyal customers visiting with a much higher frequency than the industry average.Examples of successful independent restaurant marketing abound. Charlie Trotters is world-renowned, but you've probably never seen a billboard or television spot for them. Charlie Trotters does an incredible job with promotion and positioning the namesake chef as a culinary expert. When you visit Chicago, you want to go to his restaurant just for that reason - not because of any advertising he has done.

What are some examples of good restaurant marketing tactics?

There are literally thousands and thousands of marketing tactics that you could employ to lift sales at your restaurant. This causes many restaurant operators to think that there is a silver bullet out there that they need to find. There are no silver bullets. One hit wonders may be out there to give you a big spike in sales, but those are rarely sustainable over time. Great marketing is about solid operational execution, effective positioning and the cumulative results of marketing inside the four walls of your restaurant and in the immediate trading area - not taking over the airwaves.That being said, some good examples of successful restaurant marketing tactics are email marketing, bounce-backs, affinity marketing programs, publicity through event marketing, partnerships with other local retailers and, of course, internal merchandizing such as bathroom signage and menu merchandizing.

How do I measure the effectiveness of our restaurant marketing?

If you cannot prove the dollars you spend persuade people to do business with you, you should not advertise. If you can't see a direct relationship between marketing and increased sales, your marketing isn't working.One piece of analysis we have conducted for Clients is to compare the variances, period over period, for sales and marketing expenses. We look to determine a correlation. It's amazing how frequently we find that there is absolutely no correlation between sales and marketing. The graph here is an actual Client chart that shows this relationship. This was an independent restaurant operation that had a steady period over period sales increase of around 8%. The other line represents their advertising expenditures. As you can see, there is absolutely no correlation between the two lines. For this independent operator, that represented about $150,000 in advertising dollars that could have gone straight to the owners back pocket instead. This restaurant owner had solid operations and he wouldn't have felt any change in his sales volume for at least a couple of years by canceling his advertising. The advertising wasn't working. After some modifications, we ran the analysis again and found that each dollar spent had a direct impact on sales and showed a positive return on investment that could be measured. Before the measurement wasn't there, so it was hard to say with absolute certainty if the advertising was working. The poor marketing was masked by the increases in sales, but one had nothing to do with the other.

The fact that marketing in not easy is part its competitive advantage.

Effective restaurant marketing isn't easy. It takes a lot of careful research, analysis and testing. It's also ever evolving, which makes it even more difficult to master. The most difficult part is that restaurant owners are in the restaurant business, not professional marketers. But don't be discouraged. It's not all gloom. The fact that effective restaurant marketing is difficult to master is what can give you the competitive advantage. Resist the temptation to change everything at once or to go it all alone. You can start small and build your marketing competencies over time. In the beginning, do simple programs so you can execute them well and measure the results. And if you're not sure if your current marketing is working, save your money until you can prove the dollars invested persuade customers to buy more and buy more often.

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Aaron Allen is Founder/CEO of Quantified Marketing Group, an Orlando based strategic marketing consultancy that specializes in the foodservice and hospitality industry. He can be reached at aallen@quantifiedmarketing.com

 

Guerrilla vs. Gorilla: Independent Restaurant Operators Adopt Guerrilla Marketing Tactics to Shake Off the Chains

Independent restaurant operators represent the American Dream to its finest core. The individual distinction and character the independent restaurant operator brings to the American consumer, should never be outwit by the chains that daunt them. In the 1970’s the independent restaurant held a commanding 85% of the market share. During the 1980’s, chains perfected their strategies through their own survival, and mastered their ability to identify with consumer demand. Today, chains now hold 88% of the market share, leaving independents scrambling to find their voice in the industry.

In times like these, independent restaurant operators are finding themselves tough squeezed by the ever-growing restaurant chains. In some areas of the country, independents have gone out of business faster than the national failure rate, because chains are capturing the majority of the market share. While chains measure consumer demand in terms of macro-economics based on large audiences, independents adopt their strategies based on local or regional demand. When independents let their guard down, they pay for it!

Enter the independent restaurant guerrilla. Jay Conrad Levinson, author of "Guerrilla Marketing" defines a guerrilla as “one who adopts frugality and thrift.” In this essay, we apply this term to the independent restaurant operator and how he adopts “guerrilla” techniques into his everyday working logic. This essay isn’t about pointing out ideas of “try this or try that,” rather it centers its attention on the overall working schematics of what an independent restaurant operator is, and how they can embrace their individuality to their advantage.

Traditionally, chains were not considered a major threat to independent restaurant operators because they were always considered to be fast food. Everyone knew exactly what they were going to eat before they got to the restaurant, and had a good idea of what they were going to spend. The drive-thru windows became symbolic landmarks that people lined up for (which is still the case), but radically different. Chains are now very prevalent in the fast-casual market, and continue to grow into the middle price range of demographics. Restaurant “rows” are confining metro diners in many parts of the country, causing chains to cannibalize their own markets to gain market presence.

It all comes down to money. When chains have large national advertising campaigns, buying power with suppliers, and celebrity or name brand recognition to solidify their position in any given market, the independent operator is always at a disadvantage to compete. The key is finding what advantages the independent restaurant operator has over the chains, and how well they capitalize on the unique characteristics they can offer. In many cases, independent restaurant guerrillas are generally smaller and can embrace their customers’ experience much more personally than chains. Yet, nothing annoys an independent restaurant guerrilla more than seeing a line of customers waiting outside to hear their name called over a loudspeaker. The independent restaurant guerrilla knows that these people are not typically interested in great food, ambience, or service; they’re in line because they already know what to expect and know the consistency. Realistically, they’re in line because they saw the menu or price from a creative television ad. But that’s an entirely different subject, so let’s not go there.

The independent restaurant guerrilla is left with little to compromise. They must turn to what instinctively draws them to the business, define the unique characteristics, and set a new competitive agenda. Independent restaurants can easily modify their prices and standards to meet local demand, which works in their favor. While chains tend to provide “manufactured” products (both quality and presentation), they are much less flexible for adjusting to local consumer demand. It’s the difference between the cookie-cutter. One uses it, the other doesn’t.

It’s widely viewed that if an independent operator has made it past the five-year mark in a community, his chances of survival (even with chains as primary competition) are much better. In spite of this, the independent operator is usually forced into changing his patterns not just because of the fierce competition, but also for the sake of retaining his staff and his customer base. In the long run it can weigh the balance of consistency and making money, which is not a position most independent operators would ever want to be in. This motivates the independent operator in different ways:

First, it causes the independent operator to be more aware of their customer base. Learning and listening to customer demand and meeting those demands, is something that the independent restaurant operator has at his disposal.

Second, it causes the independent operator to coordinate with his staff unique incentives to enhance the customer’s experience. Adjusting the mechanics of your front and back of the house routines can be a huge advantage over chains.

Lastly, it causes the independent operator to review his fixed and variable operating costs which previously may not have been considered.

Resourceful operators fine tune their unique capabilities, and use that as their first line of defense against chains. At times, it can mean an entire overhaul of the operation in order to save it. Chains take a little bit from everyone, (which naturally is a part of our free market system), and it’s important to remember that chains will provide healthy and provocative competition that can bring in dollars for independents. It’s the difference between a limited scope and a wide scope, which puts the independent at an advantage.

Three principles provide an advantage to independents:

 

• Ambience

   

• Menu

   

• Staff

The ambience is obviously the most prevalent factor in defining a unique capacity for independent operators. Ask yourself what options you have in making your environment a warm and welcome experience. This doesn’t mean you need to invest in remodeling, it means adjusting what you have on hand. Light, air quality, condition of the fixtures, and general cleanliness will all affect the “ambience factors” an independent operator can provide. It should be regular maintenance to change light-bulbs, dust fixtures, and keep the house clean. However, the slight alterations an independent operator can make is a tactic to his disposal.

But it goes further. It’s no secret that department stores play music that is conducive to consumer spending. You won’t hear tired, worn out love songs being played at K-Mart. Rather, they’ve adapted to the listening habits of their customers. Restaurants do this, too. Smart operators will always play music that fits their environment or the customers listening habits. Independents can defy corporate radio in their establishments and can use this to their advantage. Using your music selection can be an asset, particularly during holidays.

Time of day or “daypart” analysis can benefit an independent restaurant guerrilla, as well. For instance, if you have a nice view of a sunset or waterfront property, the guerrilla can have the advantage every time. But other factors such as parking, entranceways, and other landscape fixtures can also benefit the guerrilla. Though these traits are never overlooked by chains, independents can use this to their advantage and modify them, too.

Traffic volume is a factor that a guerrilla should consider as either good or bad, and here’s why: If an independent is located in a high volume traffic area, is it something that works to their benefit during peak traffic hours? How accessible are their parking areas? Is their outdoor promotion logical or attractive? These are the first and obvious concerns you should ask when benefiting from high volume traffic areas. If your dinner rush hour is between 6:00 pm and 10:00 pm, guerrillas should always seek to maximize their potential by implementing ideas that bring in customers during non-peak hours.

A report released by Cornell University’s Center for Hospitality Research on April 30, 2004 confirms this position by indicating that 75 percent of respondents said they would in fact dine during off peak hours if there was an incentive to do so. This is important to remember because the independent restaurant guerrilla can ease the waiting time for tables during peak hours, and increase sales and customer satisfaction simultaneously by inserting off peak hour incentives for their customers.

But it goes both ways. The chains can throw their weight in areas that can dramatically sway attention to the public. Most notably in the jingles created for menu items such as “Chili’s Baby Back Ribs,” or the McDonald’s Big Mac songs. Did this lead to sales? You bet it did! While guerrillas are left humming these songs as they go to work, Chili’s and McDonald’s succeeded in grabbing your attention. By viewing these ads carefully, you’ll see that they are designed to garner demand at certain times of day.

It all relates to the menu. Because the menu is the most adjusted and most often victimized element for an independent operator, putting the menu under the blade before the microscope is a fatal error, and should be avoided. Rather, consider how some simple tweaking on your menu would be more rational.

Just because the chain down the road specializes in ribs, doesn’t mean you need ribs on your menu. Why not use a chop instead? The point is this: instead of improvising a popular chain menu item, create a similar item of the same product (such as pork in this case) that the chain won’t offer. One case that comes to mind is how an independent restaurant guerrilla offered a one pound stuffed pork chop, where the nearest chain was known for their ribs. Chains are slow to make extraordinary menu adjustments, which is an advantage that independent guerrillas should always benefit from.

Independent restaurant operators also have the flexibility for menu development that chains cannot offer. For instance, the low-carb diet is extremely popular right now. Providing a daily or temporary low-carb selection for your guests will keep them coming back. Some independent operators have adopted a low-carb menu for their guests, but going this far is not always an option for others. Providing distinctive menu items for low-carb guests, or other trendy dieters such as vegetarians, will give you market share that chains are not ordinarily known for.

Chains are often in the position of gaining consumer trust while providing trendy and appealing food items simultaneously. Chains invest heavily in consumer demand, product research and development, and pricing structures that coincide with consumer interests. Obviously, the independent restaurant guerrilla does not have the resources or capacity for the R & D the major chains can utilize, so if you can’t beat the research, use it instead. For instance, if a chain has a martini drink list that has become their hallmark, why not adopt a house martini or more to satisfy consumer interest. This doesn’t mean duplicating the specialties of the chain, it means confronting that hallmark and profiting from it the same way the chain does. Through careful training and input from customers or your staff, an independent restaurant guerrilla can benefit from the same research and product development that chains invest in.

Which poses this question: Can the independent restaurant guerilla convey this tactic easily through their staffs?

The staff to an independent restaurant guerrilla is a primary concern to the nature of their establishment. While the competition for skilled, experienced and honed labor is fierce and competitive, both sides seek to obtain the best employees to appease the customers’ experience. Picking off key employees from one restaurant to another, between the independents and chains is not uncommon. There are three parts to any restaurant staff:

Your front of the house (FOH) should always be treated as professional sales people. Insuring that they are in tune with your menu, knowing the dishes and their presentations adds big sales. Having attractive daily specials to offer is symbolic of the guerrilla establishments. There has always been a “myth” that guerrilla establishments offer nightly dinner specials because they have to get rid of old or leftover food product. But that is myth. Daily or nightly dinner specials work to the benefit of the guerrilla because it gives them a chance to market new dinner items and show their flexibility and talent.

But what good is a nightly dinner special if your waitstaff can’t sell it? There’s a certain and real bond that should exist between the menu and nightly dinner specials. Going wildly out of tune to meet a market niche is a dangerous proposition, and should be reserved for holidays or special events. Creative training techniques can help your waitstaff maximize their potential while selling your menu to customers. The better they understand your menu, the greater your sales.

Your back of the house (BOH) is the most essential organ to an independent restaurant guerrilla. The kitchen is where it all begins. Chains have been successful in developing fail proof mechanisms to control the consistency of food products. Large commissaries provide large quantities of food and distribute it out to the units. Its mechanization is so large that when McDonald’s recently changed their chicken nuggets from dark meat to white meat, the entire chicken market in the United States felt the change. Independent restaurant guerrillas are then forced to absorb the price structures that can be set by chains. If a chain as large as McDonald’s (with 30,000 units) makes a change to their menu, the entire foodservice industry can feel the impact of that demand.

How is your back of the house measuring up to standards? Are there proper training techniques in place? Are food safety and handling techniques in place? Is turnover affecting your food quality? Are they satisfied with their jobs? These are things that cannot be overlooked or ignored, and can often vibrate the morale of the entire house. Insuring that your BOH can produce quality in times of peak business hours is highly important to independent restaurant guerrillas. Chains elude this issue by inserting bells, whistles, and buzzers to remind the kitchen staff that food is ready. Independent restaurant guerrillas more often rely on the experience and talent of the BOH to produce without such “reminders.” Training becomes the safety net toward consistency for independent restaurant guerrillas, and must always be viewed as the most powerful weapon in the guerillas' arsenal.

Management is the binding factor for an independent restaurant guerrilla. It is the trifocal responsibility of management to bring the BOH, FOH and the customer together. There is no such thing as a natural ability to bind these three together, creating a daily challenge to find comfort and happiness with all three. The most effective managers understand their customer base, their community, their staff and their operations. If any of these components are missing, one can expect weaknesses in the overall performance of their establishment. However, finding this composition is not always an easy chore for either a chain or an independent. Having management that can articulate, analyze and be responsive to both the needs of the establishment and customer simultaneously is pivotal to any business.

What’s the distinction between the independent restaurant manager and the chain manager? As Ron Yudd, author of “Points of Profit Leadership,” indicates, it’s this: “The company or shop is often driven by the operations manual - the product looks like this, the food cost should be this, the delivery time must be less than this and service to the guest sounds like this - and on it goes.” For independent restaurant guerrillas its nothing like this, rather they acclimate to the characteristics of their environment, establishment, location, customer base, staff and menu. Guerrilla managers adopt these traits on a case-by-case basis, making decisions based on the nature of the issue at hand. Because nepotism is a strong peculiarity among guerrillas, finding continuity in the decision making process continues to be an issue for independent restaurant guerrillas.

Finally, independent restaurant guerrillas should always seek to benefit from catering or banquet functions. This is the biggest advantage guerrillas have over chains! Michael Attias, founder of The Results Group, says that “catering and banquets can add up to 30 percent to the bottom line.” Why not look at it this way: it’s an additional 30 percent advantage independents have over the chains. With rare exception, chains typically do not offer these services, which leaves the market wide open for guerrillas.

Functions (as we call them in the industry), allow independent restaurant guerrillas to serve large numbers of people and allow an opportunity to flaunt the products and services that they offer. Everything from hog roasts to lobster boils, and on down to the basic birthday party, the independent restaurant guerrilla is able to accommodate the needs of large groups of people, whereas the chains, (if they do accommodate groups of people), are often left without the capacity to handle large functions, and typically are not designed to accommodate large functions.

In summary, it’s important to remember that independent restaurant guerrillas (as we have defined them here) have unique capabilities that distinctly separate them from corporate chains. Finding those capabilities and capitalizing on them will enhance the survival rates of independent restaurant operators. Utilizing theses characteristics and modifying them in creative and unique ways will bring customers to the door, dollars to the till, and satisfaction to your employees. You don’t have to do as the Romans do to compete, rather let the Romans do as you do to identify their audience. Keeping your product quality high, your staff well-trained and knowledgeable of your menu, and keeping your service methods high will cause the chains to fight for every inch of the market share.

 

Eric Hahn, Founder and Research Developer of RestaurantEdge.com is a 25-year industry veteran, who has an extensive background in operations. A Phi Alpha Theta graduate of Indiana University, Hahn is also a former congressional lobbyist researcher with the National Federation of Independent Business (NFIB) in Washington, D.C.

Many Happy Returns (Santé)

For newly opened restaurant bars, getting customers in the door the first time is a significant task. But for operations that have been doing business for some time, establishing long-term relationships with regular customers is success defined. Well-honed marketing programs and employee participation produce the best results.

Making the Connection

For Pazzo, a fine-dining Italian restaurant in the Hotel Vintage Plaza, a Kimpton Restaurant Group property in Portland, Oregon, the combination of an old-fashioned happy hour and awareness of various area trends does the trick. Deep happy-hour price breaks have faded as operators worry about over consumption. But according to Pazzo General Manager Jon Dow, the daily attraction of sizable discounts on drinks and small plates gets neighborhood professionals to return. In addition Pazzo connects with regulars by appealing to the Pacific Northwest’s pride of place, changing menus quarterly and offering seasonal local ingredients.

It’s not only fresh local fruits and herbs that make it onto the changing cocktail list; Pazzo features popular regionally produced spirits, such as brandies made by Oregon distiller Clear Creek. The restaurant also connects to the community by sharing profits from select cocktails with local charities. The drink and the charitable tie-in are promoted in-house. Pazzo has also plugged in to the independent movie scene by turning over once-dead Sunday evenings to screenings of local films on a 60- inch TV. “We fill the room now,” crows Dow.

Rewarding Loyal Customers

Filling many rooms for Old Chicago, a 92-unit operation based in Louisville, Colorado, is its industry-heralded World Beer Tour customer-loyalty program. Corporate Beverage Manager Tracy Finklang explains, “The Beer Tour is all about getting people invested in our restaurants and bringing them back, over and over.”

The promotion invites registered guests to sample 110 beers in any unit. More than 500,000 registered participants use an electronic swipe card to track their list, and prizes are awarded at different completion levels. The ultimate prize is a name plaque placed at the customer’s home restaurant. “Our customers are incredibly loyal, and this matters to them,” Finklang remarks. “They take ownership of the Tour, [and] they get to know our managers and servers through their careers with us.”

At the four-unit Chicago-based Adobo Grill, co-owner Paul LoDuca employs another classic marketing tool to reward regulars: a frequent-diner program. “When we develop a lot of regular customers at the bar, we waive the program’s sign-up fee to give them a little benefit,” he notes. Members earn points toward free meals or gifts with every dollar they spend.

Adobo has also built a following with its monthly Tequila dinners and keeps these events fresh by changing themes—for example, basing the meal on corn, tomato, or mole or focusing on a region of Mexico. A drink served at the dinner is promoted before and after to extend the program’s awareness among regulars.

Involving the Staff

While new Adobo customers are likely to favor margaritas and guacamole at the bar, Adobo’s bartenders are expected to connect with guests by introducing the bar’s range of Tequilas. “When we have a chance to talk to them, show our list and the Tequilas on the backbar, and talk a little about the spirit, they may try a Tequila or a flight the bartender recommends,” LoDuca offers. “The bartenders are the ones making the converts.”

Making certain that staff is trained to convert newbies to regular guests is also important at Old Chicago. “We do a lot of training to get our staff to recognize and greet old customers when they arrive and to introduce new customers to managers and other staff,” Finklang says. A friendly staff welcome has been a core company business-development strategy for years, especially since the chain did not advertise, depending instead on word of mouth. The beverage manager encourages staff to be genuine—not to greet tables with pat phrases—and to sit down and talk to guests. “We want [guests] to feel like our friends, so we are friendly to them.”

Servers and bartenders can resolve issues without going to managers and are allowed to buy guests drinks or desserts, and the chain focuses on making every unit seem like a neighborhood joint. Finklang concludes, “We’re a bunch of individual stores that happen to be part of a restaurant chain, rather than a chain with a lot of different outlets.”

Pazzo’s employees also do the heavy lifting in recruiting return customers, and with much of Dow’s team at Pazzo marking ten-plus years, they’re well aware that this approach has legs. “Inevitably, it’s [our staff] who bring people back,” says Dow. “If we don’t have any return business, we don’t have any business at all.”

 

Jack Robertiello writes and consults about beer, wine, spirits, food, and restaurants in Brooklyn, New York.

This article first appeared in the November 2007 issue of Santé.

 

Restaurant Grand Openings

Hosting a restaurant grand opening is the best way to gain exposure within your community - when it's done right. With a detailed plan, careful preparation and strategic implementation, your restaurant grand opening will leave a lasting impression, which will be essential to the success of your establishment.

Why should I bother with a restaurant grand opening?

Hosting a restaurant grand opening event is a chance to immediately establish yourself as a prominent restaurant in the community. Rather than opening the doors and waiting for your guests to arrive, create a "can't miss" event that will lead first-time guests to become regular customers. A grand opening event provides the perfect opportunity to introduce yourself to the neighborhood and get instant exposure.

A restaurant grand opening does not have to be costly, but it must be unique. The event should tie into the overall theme of your restaurant and somehow differentiate you from your competition. In the end, your guests should leave with a story about your restaurant and anticipation to return.

Since 80 percent of your guests will come from within a 10-mile radius of your restaurant, it is important to become familiar with your neighborhood. Pay attention to local demographics to establish an idea of what will best attract traffic. Consumers are always eager to try the latest and greatest innovations, so as long as you are prepared to meet their expectations, they will hold onto the memory of your grand opening event, which will have a greater long-term effect than any advertisement.

What will I need to do to prepare for my restaurant grand opening?

A restaurant grand opening event should be planned at least 90 days in advance, and the date should be set so that it can still be held even if the opening is delayed. Allowing a few weeks of breathing room will avoid any chance of your public celebration sneaking up on you before are ready. It is better to be prepared well in advance than to throw together an event at the last minute.

First, establish a realistic timeline, including every deadline imaginable. When will decorations be ordered? How far in advance should commitments be confirmed? Assign an employee or manager to monitor the timeline and delegate tasks to others.

As your grand opening approaches, create an event schedule, outlining the exact timing of your event. What time will announcements be made? When will the band or DJ take breaks? When will tours of the restaurant be provided to the media?

What role does Public Relations play in a restaurant grand opening?

Public relations efforts and planning for the media are just as important as the event itself. Both the timeline and event schedule for a restaurant grand opening should include ways that you will generate publicity for the event and handle media representatives who attend. Distributing press releases and media alerts at least two weeks prior to the event will ensure coverage in local "calendar" sections and will provide essential event information to the public.

During the event, a designated "media liaison" should have information available in the form of a press kit, including a fact sheet about your restaurant, biographies on the owners and managers, menus, promotional items and recent press releases. Reporters may also be interested in guided tours of the restaurant, as well as interviews and photo opportunities with the restaurant owners and managers.

There are also opportunities for media coverage after the event, assuming that you have newsworthy information to distribute. Often, the media is unable to attend, so a post-event press releases accompanied by photographs should be prepared and distributed the morning after the event.

How can I get the community involved in my restaurant grand opening?

Getting involved with a local organization is one of the best ways to gain exposure and build support for your restaurant and its grand opening. Consider groups that would gain the most from participating in your event, while simultaneously contributing to the success of your grand opening.

For example, by joining the local Chamber of Commerce, you are contributing to an important local organization while immediately exposing your restaurant to key business-owners and decision-makers. These business-affiliated organizations will give you the opportunity to build relationships with your neighbors, which can grow into a network of resources essential to any business owner. Support from these professionals increases the likelihood of a successful event and the possibility of recognition from political representatives, which in turn, leads to increased media attention.

Teaming with a local charity or non-profit organization is also a great way to promote your restaurant grand opening. It not only increases attendance and supports a good cause, but it also positions your restaurant as a contributor to "good will" within the community and can present more possibilities for media coverage.

Once you have a reputable charity on board, it is easy to find other supporters. Your vendors may be willing to cover some of the hard costs of your event, since it is for a good cause. Other parties involved, such as the entertainers, may offer lower rates in support of your charity affiliation.

What will make my restaurant grand opening fun, memorable and newsworthy?

When planning your restaurant grand opening, think "outside the box" to create an idea that will make a long-lasting visual impression on your guests. Think of something that has never been done before, and do not be afraid to try something that some may think is ridiculous or impossible. This will not only result in a reaction from the community, but it will attract attention from the media as well.

For example, if one of your specialties is chicken wings, host a chicken race and give free chicken wings for one month to the person who bets on the winning chicken. Another idea is to host a chicken wing eating contest. Although these ideas may seem simple, they are visual and unforgettable. The costs associated with hosting an event like this will be minimal to the attention you will receive from your guests and the media.

What are some of the mistakes people often make in planning a restaurant grand opening?

Most importantly, you must be operationally prepared before you consider hosting a restaurant grand opening. Many restaurateurs have made the mistake of being too eager to promote their restaurant before they are ready to handle the large crowd it draws. Be sure that your staff and management are more than capable of handling the restaurant during normal business hours. During the event, do not hesitate to overstaff the restaurant. The first impression you make to the community can be totally altered if you are not operationally stable, regardless of how carefully the actual event has been planned.

The second most common mistake is poor planning regarding the event itself. It is the nature of the restaurant business for things to happen unexpectedly, so it is essential that you plan for the things you can control. Every detail should be addressed prior to the event, so that you are able to deal with other surprises that may arise.

Lastly, the timing of your event must be well-conceived. It is important to consider other events taking place in the area, which can either increase or decrease the interest in your grand opening. Another factor to consider is the weather, especially for outdoor events. The time of day can easily be determined by considering your target audience. Will your restaurant attracted a "happy hour" crowd, or will it be more family-oriented?

There are, however, things that you cannot control when planning your restaurant grand opening event. It is often hard to measure or control the number of people who will attend, including the media. No matter what your grand opening entails, there is always the possibility of something more newsworthy happening at the last minute, preventing the media from covering your event. An old saying states it perfectly - "If it bleeds, it leads." In other words, disasters unfortunately take priority over good will news coverage. This being said, all you can do is plan carefully and hope for the best.

What have others done to make their restaurant grand openings a success?

The following are two examples of restaurants that received tremendous responses as a result of grand opening public relations campaigns:

ZaBella - Winter Park, Fla.

Orlando is one of the premier restaurant locations in the United States, which presented a challenge to ZaBella when it opened in May 2004 in the upscale suburb of Winter Park. A trendy Italian bistro offering gourmet pizza made by an Italian pizzaiolo and diverse entrees reflective of a New York City Italian restaurant, ZaBella had many interesting stories to tell.

In the first month of ZaBella's public relations campaign, it was featured in Restaurants & Institutions, Today's Restaurant News and Plate Magazine. The most influential article was a favorable review from Orlando Sentinel restaurant critic Scott Joseph, which resulted in solid bookings for more than two weeks.

Subsequent favorable reviews in other local publications kept the momentum going, and future article placements were secured in hospitality trade magazines and lifestyle magazines. As a result of these public relations efforts, ZaBella's executive chef Todd Holender has been interviewed on a prominent Orlando radio station and pizzaiolo Francesco Gaudino was featured in a segment on an Orlando television station.

Leila Restaurant - West Palm Beach, Fla.

A chic restaurant located in a historic building that once served as a firehouse, Leila opened its doors in May amid the Clematis Street District in downtown West Palm Beach. Owner Roy Assad, a successful entrepreneur from Syria, believed in his vision for a trendy bistro where Middle Eastern cuisine and culture would be served.

A public relations campaign was designed to educate the public about the tradition and health benefits of Middle Eastern cuisine, and the intriguing cultural elements showcased at the restaurant.

In the two months leading up to the Leila's grand opening, it was featured in Palm Beach Illustrated, the Palm Beach Post, VIVE Magazine, Today's Restaurant News, and several community newspapers. Once the restaurant opened, reviews were secured with the Palm Beach Post and the South Florida Sun-Sentinel. Subsequent features also appeared in prominent regional magazines, including The Palm Beacher and Boca Life. These public relations efforts resulted in requests for more reservations than the restaurant could handle.

 

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Aaron Allen is Founder/CEO of Quantified Marketing Group, an Orlando based strategic marketing consultancy that specializes in the foodservice and hospitality industry. He can be reached at aallen@quantifiedmarketing.com

 

Do Descriptive Menu Labels Influence Customers? (Santé)

The use of descriptive labels such as Jack Daniel’s Chicken, Psychedelic Sorbet, or the Blooming Onion is an emerging trend in the hospitality industry. But does simply changing the menu labels from generic, straightforward names to descriptive names impact sales or make a customer actually believe the food tastes better?

Label Analysis

In my book, Mindless Eating: Why We Eat More Than We Think (Bantam, 2006), we describe a restaurant experiment where we simply made the names of menu items more creatively descriptive (for example, Seafood Filet became Succulent Italian Seafood Filet and Grilled Chicken became Tender Grilled Chicken). Did descriptive labels influence diners’ taste? Definitely. They increased sales by 27 percent over the plain-labeled menu items. In addition, the menu items were viewed as more appealing and tastier, and the restaurant as being trendier and more up to date.

Why? Descriptive labeling allows consumers to concentrate more on the feelings and taste aspects of the products instead of focusing only on the functional or utilitarian properties. For instance, when asked to comment on their entree or dessert, people who were given a descriptively labeled product directed 84.5 percent of their comments to factors related to the taste and sensory nature of the product. In contrast, those who ate the less descriptively labeled products focused only 42.6 percent on these sensory aspects and reserved their remaining comments (such as “good,” “filling,” or “reasonable”) for the more utilitarian or functional characteristics of the foods.

Categories That Connect

How do you generate descriptive or suggestive labels? We analyzed 342 menus and found that most of these descriptive labels can be categorized in one of four ways:

Geographic. Labels that claim to reproduce the flavors that are found in specific geographic areas have proven successful. The key is in deciding which region your spices or products fit into and then choosing which adjectives create that image or ideology. Examples are Southwestern Tex-Mex Salad, London Fish and Chips, “Real” Carolina Barbecue, and Country Peach Tart.

Nostalgic. Alluding to past time periods can trigger happy memories of family, tradition, and nationalism. Customers sometimes like the feeling of tasting something wholesome and traditional because “they sure don’t make ’em like they used to.” Examples are Classic Old World Italian, Legendary Chocolate Mousse Pie, Ye Old Potato Bread, and Nana’s Favorite Chicken Soup.

Sensory. If labels accurately describe the taste, smell, and mouth-feel of the menu item, then customers will be more able to picture themselves eating it. Ice cream shops accomplish this masterfully—note names like Chocolate Velvet—but menus of all types can benefit from creative sensory labels. Examples are Hearty Wholesome Steaks, Snappy Seasonal Carrots, and Buttery Plump Pasta.

Brand. A cross-promotion with a related brand that carries its own important associations makes the menu item more attractive. The idea of cross-promotions is not new, but it is catching on reasonably fast in the chain and franchise restaurant world. One drawback of brand labels is that the legal costs and licensing costs can be too expensive for single-unit restaurants. The use of brands says to consumers, “If you love the brand, you’ll love this menu item.” Examples are Black Angus Beef Burgers, Jack Daniel’s BBQ Ribs, and Butterfinger Blizzard.

Name Game

One method to generate ideas for descriptive labels is to sit down with a pencil and think of food-related associations that tie in to relevant places, memories, or descriptive adjectives. A second means for jump-starting your descriptive labeling talent is to take a pen and paper and to physically note the variety of descriptive labels used at different restaurants. Two excellent places to start are theme restaurants and ice cream stores.

Of course, using descriptive labels can raise consumer expectations, which must be met by delivering a quality product. It’s a bad idea to label yesterday’s goulash as today’s “Royal Hungarian Top Sirloin Blend.” It might generate first-time sales, but those covers may also be the last.

Visit mindlesseating.org for more food research from Brian Wansink and his associates.

 

Brian Wansink is professor and director of the Cornell University Food and Brand Lab and author of Mindless Eating: Why We Eat More Than We Think (Bantam, 2006).

This article first appeared in the November 2007 issue of Santé.

 

Winning The Moments of Truth

One of the essential elements in every business is to recognize where the Moments of Truth are for your guest. One could make a case that every moment is a crucible which may tip the consumer up or down the Raving Fandom Ladder, which looks something like this

 

Ultimately, it takes that kind of fanaticism, where every moment is "The Moment of Truth", to create masterful brand experiences, where your guests are committed Raving Fans, evangelizing to the world the wonders to be found with your brand. It may seem daunting.

The truth is most of the world is asleep, so actually starting somewhere puts you ahead of the crowd. Branding is emotional work, or more precisely, work on the emotions. The consumer most likely already has their conception of your brand personality, flaws and all, firmly embedded in amygdala, the brain's center of pleasure, passion and buying. Your place on the ladder of Raving Fandom is firmly set there. The beauty and curse of the amygdala is that logic will not penetrate its walls. Emotion created through human connection and dynamic aesthetics is the only means to get through. To shift your status up the ladder of Raving Fandom begins here,

Every business needs a Brand Story, a linear description of the ideal branded experience. Within that story are the critical Moments of Truth that drive it. These are the ones with which to start. Regardless of your business, I suggest you have at least five Moments of Truth. They are captured by these sentences:

-- "Hello, come on in."
-- Welcome, what can I do for you?
-- I will do what it takes to make this experience WOW.
-- Thank you.
-- Good bye and come back soon.

Look at these five moments beyond the social niceties, which, by the way, are powerful unto themselves. Look at them through the brand prism.

Hello

This is the shorthand used to staking your brand purpose and values into the sand. Hello isn't just a means of greeting, but a way to establish your brand's essential attitude toward your guest. I don't care what has happened to your guest prior to "Hello", when done properly, it will change poison into ambrosia and be a catalyst to lift your guest up the Ladder of Raving Fandom What are the brand benefits of "Hello"?

"Hello" gives the functional brand benefit of starting the brand journey; the place a guest transitions from 'what has come before' to a new reality. A hello that is genuine and consistently offered eases the guest through that transition. We often think that it is only kids who have trouble with transitions. Don't kid your self. We grown-ups have just gotten slicker at hiding our anxiety.

Hello also offers the emotional brand benefit of confirming that emotional state your guest is really seeking, the one that supercedes the mechanical gain of a particular product or service. Think of Starbucks, whose emotional brand benefit is all about enhancing and deepening their guests feeling. Their Starbucks is a refuge, a Safe Place from the madness of the Outside World. It's not about the coffee.

Lastly, it is an opportunity to make an aspirational brand benefit hit home. For Lexus, hello can connote not just the emotion of elegance and luxury, but of "Having made it and living the Good Life"

Welcome, what can I do for you?

Here the initial emotional impact of 'Hello' (remember we're fighting to penetrate the amygdala) is broadened, deepened, giving you the chance to expand your hospitality from the handshake of hello to the spread arms of 'welcome'. It's a Moment of Truth, where you take this basic social nicety and up the ante. Have it pack a wallop. When Harley says "Welcome", it's to the promise of a ride on the open road with brothers and sisters. "Welcome" is never just "Welcome", but an invitation for your guest to enter your brand's story, in all its color and glory. The "What can I do for you" is the natural follow through as you want the guest to know that they are Captains on this trip. The fastest way to the brain's brand central is to have it feel like it's in control.

I will do what it takes to make this experience WOW.

Here's where the overture of Hello and Welcome is followed by the Show. This Moment of Truth is long, indeed. But the key is responding to the guest's essential emotional and aspirational benefit needs, rather than only the functional. Many operators spend much of their time with their 'actors' focusing on the mechanics of this portion of the Brand Story, but not on the emotion. Mechanics are important, no doubt. A WOW brand is premised on superior product and service as a pre-requisite. The real WOW, the propulsion to lift a guest up the Ladder of Raving Fandom, is rooted in the attitude that you are committed to doing what it takes to make the experience WOW - defined in whatever branded emotional and aspirational way you've devised. If I feel you care that I have a WOW experience, I will overlook a good deal of human frailty.

Thank you.

Few businesses say thank you. The several that do, tend to wait until you're on your way out. You're missing a golden opportunity to WOW. When I get the bill, it is a Moment of Truth. Here the guest makes an instantaneous evaluation of all that has come before. It is rife with pure emotion, the kind that goes to the amygdala and has a party. I would venture to say that if consumers were wired up so their chemical brain activity was recorded; this Moment of Truth would rank high on the Richter Scale. Take this moment and acknowledge the exchange of money and thank the guest for their patronage. Whatever may actually occur at 'check time', recognizing your guest's payment at the moment they give you their cash or credit card is a mighty potent act of thanksgiving.

Good bye and come back soon.

Here, the brand story gains closure and the brain's pleasure center recalibrates its feeling toward your brand. It is a moment where you can intensify the golden feelings of delight you hope to have created for them. It is a moment they recertify (or not) the emotional and aspirational benefits they sought in buying your brand. At the Ritz, it isn't just good manners, but affirmation that I am royalty - at least for that moment.

There are plenty of other Moments of Truth to look at, but I suggest you take these five to heart and really consider how each fits into your brand's story and reflects your Guiding Principles. By revisiting and, perhaps more powerfully imbuing your brand's mechanical, emotional and aspirational brand benefits into these five Moments of Truth, you have a shot at elevating your guest up a rung or two, toward Raving Fandom.

 

Richard K. Hendrie is the Chief Experience Officer of Link Inc., a restaurant consulting and coaching firm.

 

Restaurant Design

Create a memorable experience

For millions of Americans, dining is more than eating out - it's a form of entertainment. That means guests don't want to "feel at home." They want a memorable experience away from home. Savvy eateries understand that restaurant interior design is part of that memorable experience.

Concepts like the Rainforest Café, Planet Hollywood and Mars 2112 have made their mark through innovative interior design. Of course, it's not necessary to create a space-aged theme to provide a pleasant atmosphere for guests. The point is that your restaurant's design should cater to the tastes of its target market.

Well-planned interior design contributes to the success - and the profits - of any dining establishment. It begins with market research, continues with understanding market trends and concludes with strategic execution.

Restaurant interior design has a dramatic impact on the type of guests that restaurants attract. The Rain Forest Café's interior design appeals to environmentally-minded guests who enjoy a nature-made experience, for example, while the 50's Prime Time Café at Disney MGM Studios appeals to guests who get a kick out of a blast from the past.

Creative restaurant interior design, however, does not require a million-dollar investment - if you understand the nuances of consumer marketing. Restaurant design experts are equipped with the knowledge and skill to create a dining experience that fosters word of mouth marketing long after the meal is over.

Fruition, a smoothie concept in Miami, has generated a buzz with its resourceful restaurant interior design. With national smoothie chains grabbing the lion's share of the market, Fruition needed to stand apart from the major brands. Since Fruition bills itself as an "exotic" smoothie shop that only uses fresh, unusual fruit ingredients, the interior design strategy had to be just as exotic.

The strategy is at once exotic and practical. Fruition's interior incorporates the exotic fresh fruit concept through and through. In fact, walking into Fruition is like walking into a third world fresh fruit market with passionfruit, lychee and canistels proudly displayed for guest inspection.

The restaurant's interior design also communicates the smoothie concept throughout the store with swirling designs and a custom color palate drawn from the exotic fruits. Fruition invokes a contemporary and upscale feel with customer booth designs and minimal linear architecture. The concept is designed to give larger brands a run for their money, thanks to a restaurant interior design that corresponds with its unique selling point: exotic fruit.

To be sure, restaurant interior design requires an in-depth understanding of how restaurants flow, how employees will interact with the design, and how site architecture could impact the design. The most successful restaurant interior design, blended with irresistible food and impeccable service, breeds repeat guests, spirited employees and greater profitability.

Build the brand into your design

Every restaurant requires a different flavor, a different flare - and different experience. That's why it is important to build your restaurant's brand into its design.

Building the brand into your design multiplies the value of your interior investment because it communicates your message while guests are waiting in the lobby, on their way to the restrooms, during the meal, and as they pay the bill. Marketing through your restaurant design is not merely a matter of tossing up some signage with clever messages here and there; rather, it requires a top to bottom approach that includes relevant messaging in relevant places.

Your brand should be apparent through your interior design as soon as guests walk in the door. The lobby can speak volumes about the experience awaiting them in the dining room. Is the lobby seating rugged or posh? Is the hostess station a simple podium or does it have a concierge, full-service feel? Do the restrooms offer comfort with accessories appropriate to the theme of your eatery? Building the brand into your restaurant design is as much about subliminal cues as it is about blatant messaging.

Leaving guests with an unforgettable experience is one way to build the brand into your interior design. That's just what Señor Frog's did at its first U.S. location in Myrtle Beach, S.C. The restaurant set out on a re-branding strategy as it developed a restaurant prototype. That prototype centered on a beach theme through and through. But to really make the brand shine through the design meant more than just laying tile to create the look of water and sand on the floor.

Señor Frog's Cancun incorporated unforgettable elements that would send guests away with a good word in their mouths, along with good food in their bellies. Señor Frog's boasts miniature put-put with a $100 bar tab prize, inner tubes in the ceiling, a hot tub in the middle of the restaurant, and a slide that dumps people into the lagoon outside.

Building your brand into your restaurant design is a fun challenge to overcome - and one that can ultimately help justify the cost of restaurant renovations or extra comforts in a restaurant prototype. It demands a strong background in marketing and branding because flooding the guests with too many overt messages could make them feel uncomfortable. The goal is to build your brand into the design and let the vision speak for itself.

 

Aaron Allen is Founder/CEO of Quantified Marketing Group, an Orlando based strategic marketing consultancy that specializes in the foodservice and hospitality industry. He can be reached at aallen@quantifiedmarketing.com