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Re-Energize your customer base

August 10th, 2010

All I hear from every restaurant owner is how bad business is hurting. I know that the economy sucks right now, but it seems that these people are letting this “excuse” give them a reason to do nothing. The economy shouldn’t drain their ambitions. Great wealth has been created in every bad economic time. Everyone who is in business needs to adjust with the times and march ahead. The best place to start is with their customer base.

Existing customers are the key to almost any restaurants long term success. So how do restaurants re-energize their customer base? There are quite a few ways in which to do this and probably a few hundred more than I could come up with. But in any case, they don’t need to waste their money on trying to bring new faces in the door. Focus on the existing clientele.

Creating relationships with customers doesn’t cost much and can be completely free if need be. If the owners/managers/staff of these establishments engage their customers, this tough economy won’t seem so tough. When times were good and the customers were flowing freely in and out the doors, the value of the individual customer wasn’t too high. These days each and every customer counts more than ever. So it is time to make them understand that they are V.I.P.

How do restaurants make their guests feel special? There are a thousand ways, give or take a few. I will give my top ten:

  1. Create an atmosphere where the employees are happy (Happy Employees = Happy Guests)
  2. Know the customer’s name
  3. Get the customers’ emails or phone numbers (Have a nice guest book for them to sign)
  4. Know any items that the customer always orders (e.g. appetizers or drinks that they always order)
  5. The owner/manager needs to talk to every guest if at all possible
  6. Ask the customer’s opinion on anything (e.g. Thoughts on a new menu item, what they would like changed, how’s the temperature. It doesn’t matter, but people love to give their opinion especially if they think that you value it.)
  7. Figure out what the customer does for a living. Take interest in it.  Ask about their week so far.
  8. Share information between the staff on all the guests. Create a customer log with vital information even what they ordered last.
  9. Sample the guest a food or drink that is new
  10. Find out where else they like to eat and why

There are so many ways to engage customers and make them feel important. Restaurants need to treat their regular customers like family. A vital part to creating this feeling is communication. Of course the communication that exists when the customer is present at the establishment, but also there needs to be off premise communication. This is why every business should be working on a list. The list is how restaurants are going to communicate valuable information to the regular customers that make them feel more a “part” of the establishment. The list can be emails, physical addresses, or cell phone numbers. Or all of the above.

The more a restaurant takes time to care about their customers the more the customers will care about their restaurant.

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SMS Marketing-Will it work for you?

June 3rd, 2010

From the responses I have received about mobile marketing, I can say that everyone should be using it. I have had several emails about the immediate results that have been attributed to mobile marketing. Everything so far has been all positive and I am happy for everyone that this is helping. The possibilities of using mobile marketing campaigns are endless. It doesn’t take much money or time to implement. If I had to suggest a single form of marketing for restaurants and bars, I would say that SMS text marketing is the most effective and easiest to use.

There are three things that keep coming up in the conversations about the text message marketing. I believe that these three things are what set mobile marketing above everything else. For one form of marketing to be able to accomplish these three things is amazing in itself. Most of the people I have communications with have said that they made back their money for their subscription to the marketing platform with ONE text ad, but this is because of these three reasons:

INSTANTANEOUS. The ability to send a text message out to your list and know that around 80% of your subscribers will read that message within 5 minutes is unheard of. Several people have seen results in as little as 30 minutes of sending a text message. This is probably not uncommon for mobile marketing campaigns used in the hospitality industry, but there has to be a way for them to know this. Which leads to the next main point.

MEASURABILITY. Most marketing is not measurable. You pay to advertise and hope that it is being seen or heard, but you never know for sure. With SMS marketing you are able to request the text message to be shown at your table or register for a percent off or a free appetizer with… Bars are using it to offer free cover or other similar offers. The customers cell phones become a traveling coupon and advertisement for your business.

SIMPLICITY. Text messages are simple. They are limited to 160 characters per message. This is great for both the sender and the receiver. As the sender, you don’t have to take a lot of time to make your message attractive. You just need to get to the point. The receiver appreciates his/her time and is grateful that you respect that. A text message requires less than thirty seconds to read and gets right to the point. In our society today, short and pithy is preferred to long drawn out messages that waste time and lose attention of the masses.

When you combine these three components of text message marketing along with the fact that you can write your text messages a head of time and schedule them when to be sent, I believe that you have the most effective marketing available along with the lowest cost. 

Go to www.text2customer.com and give mobile marketing a try. You can shoot me an email afterwards and tell me of your successes.

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Mobile Marketing for your Business

May 20th, 2010

I have recently come across the most effective form of marketing that I have ever seen. SMS text message marketing. It is the future of marketing. This marketing is useful in any business and especially in the hospitality industry. I could brainstorm for days on the different ways to implement a text message marketing campaign into just about any type of business.

The most intriguing aspect of text message marketing is that it is almost instant. 80% of cell phone owners have their cell phone with them at all times. On top of that is the fact that close to 97% of text messages get opened. This is compared to under 10% of emails if you are very lucky. So now the power of instant marketing is at your fingertips.

The possibilities are endless when it comes to using this marketing. The obvious way would be to send out your specials of the day. This in itself would help create a lot of business for you. Even if the people aren’t interested in the specials, your business is in the front of their mind right around lunch time or dinner time (being that you scheduled your message to send at that time). Any time you have a new menu item. Keep subscribers updated on any news or awards that your company has received. The list can go on and on. Be creative.

The other exciting aspect of text message marketing is that it is measurable. With so many forms of marketing and advertising out there, there are very few that can be measured on their effectiveness. With text message marketing it is easy to text “Free app w/ purchase of 2 entrees. Just show this txt 2 your server” . Now you have a mobile coupon that you can see measurable results with.

So how hard is it to set up a Mobile text message marketing campaign? Not hard at all. If you use www.text2customers.com , you could set up an effective campaign in less than ten minutes. After the set-up all you need to do is get people to subscribe to your campaign. With the Text2Customers service, you get html code that you can use to add a sign up form on your current website or if you don’t have one, Text2Customers creates a link to where you can direct people to sign up. Use all means necessary to direct consumers to the sign up page link. Post it on your menus, on the bottom of your receipts, facebook page, myspace, on your store front, etc. 

The possibilities are endless when it comes to text message marketing. It has done wonders for some of the restaurants and bars that are using www.text2customers.com  and I think it will do wonders for your business also.

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Restaurant Business Plan – What makes a great business plan for a restaurant

September 10th, 2009

Whether you are starting a restaurant or operating one for years, a business plan is an essential element of your success. A restaurant business plan is your business on paper. It should encapsulate everything that your restaurant is or should be in a perfect world. Do not think of  a business plan for your restaurant as a daunting task or hardship. Make it your dream on paper. The main goal of your business. The step by step instructions to happiness.

Restaurant business plans need to cover a huge amount of information. They need to describe the concept, the clients, the location, the competition, marketing, financial data, projections, management, organization, and development to name a few things. Do not take this lightly. If you are writing a restaurant business plan for a bank, you need it to be a sales pitch, too. It may seem like a lot of information, but if you do your business plan right you will reap its benefits for years to come.

You can find a restaurant business plan example anywhere on the web. Most of them will be similar as well as they should be. Just like many restaurants are similar. What you need to do is make your plan stand out and inspire.  What makes your restaurant different? Better. Why will people come to eat and drink at your place? What do you offer that none of your competition offers. Service. Selection. ? You need to sell your restaurant in your business plan.

Successful people are usually goal oriented. So are successful restaurants. Think of a business plan for a restaurant as the ultimate goal. You should go back and read your business plan on a regular basis to keep going in the right direction. Let your staff read your business plan in hopes of inspiring them. A business plan is not something that you write for the bank to get a loan and never touch again. Restaurant business plans need to grow with the company. Revise your plan on a regular basis. Keep focusing on your ultimate goal.

Along with your goals of your restaurant add lots of facts to show how your business is going to thrive. Add projections of money spent in restaurants. The amount the average family eats out in a week. There are all kinds of statistics that will help you prove that your restaurant will be successful today as well as in the future. Include your pricing of meals and food cost percentages that you will strive for.

Remember that a restaurant business plan needs to inspire you, first and foremost. After that it needs to set a clear plan on how you are going to accomplish the goal of operating a very successful business that will bring joy to people from all over. Be creative and have fun.

 

I have found a restaurant website that offers templates, forms, software and just about everything else you need to start or improve your restaurant. With these planning tools and templates you will be able to construct a business plan to be proud of. The resources at this site cover just about all aspects of running a restaurant operation. Please do yourself a favor and visit Restaurant Management Center.

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Cheers, The most valuable restaurant philosophy from a sitcom.

August 11th, 2009

“Sometimes you want to go, where everybody knows your name.”  I think everyone can relate to this song. I believe that it is this concept that sets a business apart from their competition. When you try and figure out why guests come back to a restaurant, you might say great food, nice atmosphere, good prices, etc. These things may have an influence on restaurant or bar guests, but everyone loves to go where they will receive attention. Where everybody knows their name.

The concept is simple and has been written in many forms. People like to do business with their friends, hands down. It is the personal attention to a patron that will keep them coming back. If you can create an atmosphere in which everyone receives attention and is recognized when they arrive, then you could serve the same food as down the street, at the same price, and you will crush your competition. So how do you develop the relationships that will ensure a steady flow of customers?

It all starts with the owners or managers. The Sam Malones if you will. The act of talking with all of your customers, google them, find out who they are. You need to get personal if you want to develop a lasting relationship that will put money in the bank. Keep a database with the names of the people you talk to. The names of their kids and pets. Find out what they like to talk about. You need to be engaging with your guests and truly take an interest in their lives.

The trickle down effect comes to play when the employees also take the time to know the people they are serving or cooking for. It is the friendly smile and knowing what someone drinks or how they like their food prepared. When a staff member can remember that a guest doesn’t like onions or ask them how the ribeye was on the last visit, it creates a sense of caring that will demolish your competition. Can you teach your staff to create these relationships? You most certainly can. It may take a little coaching on your part, but that is why you are there in the first place. It is the personal touch that will pay off in the long run.

A big part in creating this environment is the maintaining of staff. If you can create a low turn-over with your employees, this atmosphere will grow and so will your business. An employee can’t know every one’s name if they are new. People in general do not like change. They are opposed to it even if it is for the better. The less you change your employees, the less guests will go other places to eat or drink. If the guests become comfortable at a particular restaurant or bar, it isn’t because they know where the bathrooms are. It is because they know the people there. If your changing staff left and right, there is no sense of loyalty on your part and in turn there is no loyalty from your guests. Happy employees = Happy Guests.

Here are some tips to make your guests feel welcomed and create loyalty from them.

  • Know their names
  • Know their jobs
  • Know what they drink
  • Know what they eat
  • Know what they like to talk about

By opening up the lines of communication between staff and guests, you will create the “Cheers” setting that will bring you more money by creating loyalty. It doesn’t cost you a thing. It is what separates you from your competition. It will define you. It is the attention that leads to satisfied customers and creates the buzz around town that no bill board or advertisement can create. Start today and you will create a steady flow of income from regular customers. “…and they’re always glad you came.”

P.S. A successful restaurant chooses the type of customers it serves. Figure out the type of customers you want and cater to that customer.

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