As a general statement, social marketing using sites like Facebook, MySpace and Twitter are more time consuming for the return than most independent restaurants can afford. These sites have their dark sides as reported and discussed in previous posts. However, there are niche exceptions.
Recently I was asked to help a bar owner who felt his advertising and entertainment costs were bringing in sales, but the bottom line was suffering as entertainers demanded more money and media costs continue to rise. His venue was a popular spot in a major metropolitan area with a capacity of about 300 people. His success was evident with waiting throngs of people on Friday, Saturday and Sunday nights.
The owner was hesitant to raise prices during this economic storm, but wanted to find a way to cut costs. Social marketing using multiple sites like Facebook and others is a perfect application. By building a presence and followers, he can ween himself away from costly print media. Patrons can find out who the bands and entertainers will be on any given day - at little cost to the owner. The bonus is that he has immediate response to the type and popularity of any band or DJ he may want to feature.
To build a presence on social marketing sites was the owner’s next challenge. He could hire a marketing company to do the work for him, but the cost may equal his adverting costs he is trying to reduce. The owner’s lack of Internet savvy precluded him from becoming an immediate leader for the marketing effort. The solution - pay one or more staff members to become the bar’s emissary online. Most of his staff was in an age group equal to his client base and he was surprised to find out that several spent a lot of time on the top sites he wanted to target.
Recognizing that the transition from print media to digital would take some time, the owner created a six month plan to build his following. The goal is to eliminate 80% of print media costs (about $1300 per week) and employ staff members to create the “buzz” he needed to get started (about $200 per week). The added benefit was also his ability to hire entertainers that were popular.
The plan will work. The case is an exceptional use for an over hyped marketing tool.
Word of mouth is unequaled in the power to get new customers through your doors. Word of mouth marketing is also one of the most universally misunderstood. Just because Aunt Violet made a comment to a neighbor that she visited your operation and the food was “good”, that is not word of mouth restaurant marketing. While it was a positive sign that Aunt Violet made the comment, having “good” food applies to 75% of the independent restaurants in the country.
True word of mouth restaurant marketing includes customer training. That’s right, training the guest to be your ambassador to friends, family and acquaintances. When a customer knows what to say and how to describe your restaurant, the effectiveness of the communication is of far more value. You wouldn’t think of sending a server to a table without training — why would you send your guests into the world without the right things to say?
For instance, if Aunt Violet had told her neighbor, “ Joe’s Restaurant had great food because they used “all local citrus” from farms in the area that reminded her of what “fresh really is”. Where do you think a phrases like that came from? What if Aunt Violet had stated, “Joe’s had rustic bread that tasted like it came from a monastery in France”. Where do you think that description would come from? How about bacon that was “apple cured and thick cut”.
Restaurants communicate with guests in many ways. The common methods are through menus, servers, table POS, signs and advertising. Repetitive phrases that describe your food, your differences and the things that make the dining experience unique can be embedded in your guests mind. I call them “talking points” much like speakers and politicians use in preparation for speeches. Do your servers, menus and signs contain talking points your guests can use when describing their visits to your establishment?
Filed Under (Uncategorized) by Larry on 13-01-2010
Starting a Restaurant Blog was about the building, opening and marketing of a new restaurant in Belleair Bluffs, Florida. The restaurant opened on January 9, 2009 and celebrated its first year January 9th and 10th of 2010. Complimentary mimosas greeted our guests for breakfast and lunch for the two day affair.
To recap the first year in one word - challenging! We started construction in the middle of 2008 without the hint of the difficulties the world would encounter financially from October, 2008 to this day. Through all of the hurdles we faced, we ended up with sales of about $640,000, about $10,000 short of our plan created some 18 months ago.
Our challenges have been;
- assessing the expectations of our guests as they changed during the recession.
- finding appropriate methods to get our message to all parts of our demographic.
- maintaining a high level of food consistency with a new staff.
If we had a scale like the old grade card system, I would give us a B-, even in this economy.
Our year to come will see many of the same moving targets as consumers change with the financial climate. Our goal for the year will be $675,000 in sales. Watch as we compare the benchmark set last year to the coming months. We will post our restaurant marketing plan in the next few days.
As 2009 comes to an end, 2010 begins with hope and positive signs for the restaurant industry. The economy appears to show some trends that indicate the recession is loosening it’s grip. While stocks have recovered to levels of a year ago, they still show some volatility. Retail sales, consumer spending and the housing market each have some growth signals beginning to appear. The real recovery for restaurants will begin when unemployment begins to drop and disposable income is again available for restaurant visits.
While the industry hopes to crawl out of the doldrums late in 2010, restaurateurs cannot afford to wait or rely on shimmering signs of hope. The business has changed and will continue to face challenges for the year to come. That caveat begins our list of resolutions for restaurants in the new year;
- Resolve to not rely on a potential recovery to improve your sales, service and marketing. What if we have a “double-dip” recession?
- Resolve to face the new year with a solid marketing plan the fits your restaurant and demographics.
- Resolve to learn more about your guests and their eating habits that may have permanently changed for the foreseeable future.
- Resolve not to listen to “quick-fix” consultants who tout the imaginary overnight sales boost from mobile marketing, social Internet marketing and other time eating market magic that doesn’t fit the average restaurant.
- Resolve to keep butts in seats by good old customer communications through face to face contact, local network marketing and customer loyalty programs with time versus results rewards.
- Resolve to avoid big discounts that may bring short term returns, but harm your brand forever. Rely on value, creativity and resourcefulness to offer better values to guests.
- Resolve not to be drawn into the loss-leading habits of the big chains who are feeding on their assets and franchisees to keep sales and earnings positive for shareholders.
- Finally, resolve not to ruin your life by feeding a dead restaurant until your family, your friends and customers have long ago abandoned the dream. Live to fight another day, maybe a new dream down the road.
2009 will be remembered as the year that changed the restaurant industry and dining consumer perhaps forever, but at least for the decade to come. Change with the times and build your business with what exists today, not what was in the past or hopeful predictions of the future.
