Restaurant Consultants and Marketing “Experts” Just Don’t Get It

Filed Under (Marketing a New Restaurant, Planning a Restaurant, Uncategorized) by Larry on 26-07-2009

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While doing some research, I stumbled across the following paragraph from a restaurant marketing site:

Say you’re a restaurant.  People with these devices can now be driving home from work and open an app that shows local restaurants…choose from a list…. get ratings and reviews… click the link to your site… look at the menu and photos….see that your restaurant is what they’re looking for and tap to make a reservation… all in mere moments from their phone.

Amazing times we’re in.  Make sure your site is ready.

Now the big news in marketing for many businesses has been the use of cell phones that now have the same applications as desktop computers. The restaurant industry has a long way to go before mobile marketing should be a big part any one’s restaurant marketing plan.

Yes, the chains will rush to find ways to make mobile marketing a part of their toolbag of tricks. Most of the larger companies have an IT staff that has nothing else to do but try to find ways to create small minute markets. For the vast majority of restaurants, mobile marketing is way down the line in order of marketing importance. Why? Primarily because the customer doesn’t choose a restaurant by clicking an app on a cell phone. Some, although relatively few, do use the Internet. By far, most restaurants get the majority of their new business from personal referrals through word of mouth.

Certainly people use their computers and cell phones to make reservations and some order food to go. That is a growing trend, but not mainstream by any means. If you want a very easy way to confirm my statement, but far too simple for consultants and marketing gurus, just ask your guests as they come in for the first time. Keep your own stats. This not only opens a dialog with your customers, but shows you care about your business.

So if you have other ways to allocate marketing resources, use them. Mobile restaurant marketing isn’t taking over the world as the “experts” want us to believe in the restaurant industry. Our business is a little more personal than ordering a tie for your uncle or finding the closest gas station or WalMart. Spend your time on things that keep the guest engaged, impressed and rewarded. Being bedazzled with technology will never bring them back in your door.

Start a Restaurant - 100 Days That Count

Filed Under (Costs to Start a Restaurant, Marketing a New Restaurant, Menu Development, Planning a Restaurant, Restaurant Equipment and Supplies) by Larry on 14-05-2009

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A new restaurant operation is like bringing a puppy home from the dog pound. Everybody loves it, but you are the one who is up all night with the crying and yelping, cleaning up the messes until trained, picking up the chewed new pair of shoes and tripping over the ball of fur with every step.

From the outside, the puppy is cute and cuddly - just like a new restaurant. No one sees that you are scrambling to train staff, get the food out of the kitchen perfect, adjusting schedules, paying unforeseen invoices and hoping there is enough cash flow to make at least your break-even point. It’s a nightmare.

The first 30 days of any restaurant operation cannot be evaluated. Sales are driven in many cases by the curious who just visit because you are new. Costs are escalated due to extra staff, over ordering of product and the usual smallwares you need that were not in the plans. Throw the first thirty days out. Don’t try to judge your future based on your first month.

The days that count are the 100 days that follow the opening month. These are the days when reliable and predictable trends begin to develop. The “Big 100″ (100 days following your first month) are the days that can tell you what you need to do and set the tone for further growth and profitable enhancement. Here are some things that should emerge with your analysis;

  • You should be able to accurately discover what your exact daily break-even number is.
  • You should see a trend of lower operating costs that should be going down due to tweaks you make as you age. Food costs should be concise as compared to sales.
  • There should be a clear picture of what your marketing has done and the demographic draw of existing business.
  • The Big 100 should have produced the numbers that allow you to go back and compare to your plan. Are there adjustments necessary to the plan or your operation? What were the biggest surprises? What were the biggest disappointments? What new goals do you need to establish? Is your menu where it should be?

The Big 100 is the platform for you next 6 months of planning. What marketing changes do you need to make? What food trends do you want to expand? What internal changes need to be made to reduce costs or waste? Staffing changes? Hours of operations? Does the seating, lighting, decor and customer areas need adjustment? All of these questions and many more become the basis for your new business plan.

Codes Require Design Changes - Already!

Filed Under (Costs to Start a Restaurant, Planning a Restaurant) by Larry on 12-08-2008

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Just when we thought things were getting ready to move to the demolition and construction stage, the HVAC contractor says the air handler for one of the A/C units must be moved from a closet in a stairwell to the main interior of the space. The only alternative is to take up about 10 square feet of the kitchen that will have to be re-designed. Losing any kitchen space is the same as losing seating - not good.

Yesterday we finally got the general contractor (the original), architect and HVAC contractor all together to finalize rough drawings. All three, of course wanted to tell me how busy they were. All three got my direct standard response to contractors - “If you don’t want this job or cannot meet the time frames of this job, tell me right now and we will part as friends. If you continue the “busy” routine and can’t devote the time to get this job done quickly, I will know and replace you - which is it?” All three decided they wanted to move forward.

The first portion of the drawings are to be done tomorrow for subssion to the county, landlord and municipality for permits to do two things; demolition and fireproof rating drywall on the supports for the second story space (not ours). This is tenant separation for fireproofing.

The rest of the drawings showing all the other steps will be done a week later. The remaining items to be included in the next set of plans includes:

  • electrical
  • HVAC
  • plumbing
  • grease trap
  • gas lines
  • hood installation
  • seating
  • equipment location
  • walls
  • restrooms

Restaurant plans are one of the most complicated to draw due to the wide range of utilities and equipment necessary to function. Multiple regulatory agencies complicate the permitting and planning even further.