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Archive | Technology and Marketing

Stay on the cutting edge with technology and marketing news and trends hot off the presses right here.

Yelp Has Restaurant Owners Suspicious

The online restaurant review site Yelp has become increasingly suspicious to the small business owners who the site supposedly supports.  The website is based in San Francisco, where it is also the most popular, although Yelp does post reviews about restaurants in 24 cities across the United States.

Restaurant and small business owners in San Francisco, Chicago, and New York have complained that Yelp employees use bad reviews as a way to cajole them into becoming a sponsor of the site, which costs anywhere from $300 to $1,000 per month.

Many owners have reported receiving repeated phone calls from Yelp representatives, particularly after a couple bad reviews appeared on the site’s entry for the owner’s business.

Since it is known that Yelp employees and third party contractors hired by the company have written reviews for the site, suspicion runs high among restaurateurs that Yelp is posting bad reviews as a way to get them to sign on for the monthly sponsorship fee.

For its part, Yelp denies manipulating bad reviews as a sales technique.  But the main problem is that the review ranking system on the site isn’t transparent.  Nobody really knows how Yelp decides which reviews go to the top of an entry on the site.  Sponsors paying the monthly fee are able to decide which reviews appear in the top 5, and this is the primary motivation for them to sign up.

But restaurants that refuse to shell out the money and have many positive reviews seem to be dogged by unfair reviews that consistently appear at the top of their Yelp entry.

Others pay the money, but only because they feel they have no other option to preventing bad publicity.  This is especially true in San Francisco, where Yelp is used by a majority of customers searching for restaurants and other service based businesses in the city.

One popular San Francisco restaurant, Delfino’s Pizza, has fought back by taking some of the more ridiculous negative reviews posted to their Yelp entry and printing them on T-shirts that staff wear while at work.

This subversive tactic has stimulated some good response from customers, and it raised another question about the site: how much do anonymous, unqualified reviews help or hurt a small business?

Either way, Yelp clearly has a customer relations problem, which they have begun addressing in earnest on their blog.  It remains to be seen if Yelp will be seen as a valuable asset or an annoying liability to the small businesses it covers.

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Restaurant Marketing: Can Facebook Help Your Sales?

Restaurant Marketing: Can Facebook Help Your Sales?As social media matures and becomes one of the leading elements of Web 2.0, business owners, including those in the food service industry, have started to look for ways to engage customers through sites like MySpace and Facebook.

But just how effective is it to make a Facebook page for your restaurant?

Dunkin’ Donuts launched a two-day Facebook event recently that allowed fans to weigh in on the national chain’s new line of healthy menu options, including bagels, lite specialty coffees, and healthy breakfast sandwiches.

The purpose was to engage customers, boost email signups for Dunkin’ Perks, which runs promos for local markets and reinforces national Dunkin’ Donuts messaging, and get feedback on new items.

Their Facebook page has been up for a year and Dunkin’ has 370,000 fans.  They won’t reveal how many people are on the Perks email list, but it’s at least that many.

Those are some pretty impressive numbers.  Independent restaurants are starting to get in the game as well, with more and more pages popping up for local eateries across the nation.

So are sales going to go up the minute your Facebook profile goes up?

Well, maybe, maybe not, but the bottom line is having a profile definitely can’t hurt you, and may very well help.  If you don’t start bringing in loads of new customers, you’ll at least improve retention among existing ones.

That’s because you can easily keep a conversation going with loyal customers through social media like Facebook.  A Facebook profile can be a great way to collect information about your customers and get feedback about your restaurant.  You can leverage this information to connect with customers in new ways and expand your email marketing and other campaigns.

You’ll also have a direct way to find out what’s wrong with your establishment and what needs fixing.

And as your restaurant’s Facebook page gains popularity and fans, more people are bound to find out about you as friends of your friends end up on your Facebook page.  This form of marketing is still in its infancy and remains an inexact science.

The beauty is that Facebook costs nothing but your time, and at that price a little experimental marketing is too cheap to avoid.

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What Are People Saying About Your Restaurant?

The restaurant-specific internet marketing company BooRah announced recently they have developed a way for restaurateurs to track online reviews of their businesses, although this service doesn’t appear to have gone live yet.

Recent years have seen the exponential boom of user generated content online, or content posted by internet users to websites, from YouTube to Rotten Tomatoes to Consumer Reviews.

This wave of information, often posted anonymously, is starting to have a powerful effect on consumer behaviors.

Increasingly, consumers look to the internet for information on products, movies, books, and restaurants.  And while the reliability of the content can sometimes be shaky, and other content can be disingenuous or even malicious, internet users have learned to sift through the mountains of content to find gems of truth about a given product or brand.

Identifying trends and flagging problems culled directly from the masses can be an invaluable resource, allowing restaurateurs unprecedented access to exactly what their customer thinks after they leave.

It is vital that you know what people are saying about your restaurant online.

Invariably the anonymous nature of posting on the internet is going to lead to undeserved criticisms and smears, but by analyzing all the content that exists referring directly to your establishment, you can weed out the bull and uncover some truly valuable information.

Even if you don’t have the budget or the inclination to purchase BooRah’s service, take some time on a regular basis to go online and read reviews of your restaurant.

Don’t get offended when the ubiquitous jerk says something completely untrue and probably off-color about your beloved establishment.  Instead explore a range of comments, look for trends, and keep an open mind about what customers actually think.

The days of one professional critic coming to your restaurant and making or breaking your reputation are long gone.  Now you have to impress an army of customers and hope they give a genuine review online.

The internet doesn’t have to be your nemesis.  Use it as a tool to make your business better.  So the next time you’re on the internet, take a look around.  You never know.  You just might learn something.

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Is Yelp Helping or Hurting You?

If you responded to this question with a confused look and the response “What is Yelp?” then you’ve got a lot of catching up to do.  Forces have been at work that you didn’t even know about, and that can be a scary thing.

Yelp is an online review site for restaurants, bars, retail stores, and spas.  Users post their reviews of these businesses, and many others read reviews to help them decide where to eat when dining out.  Which means that Yelp could be helping or hurting you right now, depending on the nature of the reviews posted about your restaurant.

The problem is, your competition can also post a review about you that is probably less than accurate, hurting your chances of converting those increasingly scarce customers into visitors to your restaurant.

It’s a dog eat dog cyberworld out there and Yelp has become a key battleground for the hearts and minds of stingy customers.

Yelp takes advantage of this situation by allowing restaurants to pay to have bad reviews suppressed and good reviews highlighted.  These “sponsorships” start at $150 per month and comprise Yelp’s primary source of revenue.

Some restaurateurs love Yelp.  Their clientele use the site on a regular business and the favorable listings and review postings given to sponsors means a noticeable increase in business that more than justifies the cost per month.

Others view the monthly payment as necessary to prevent bad reviews from hurting business.

Regardless, less than 1% of the businesses reviewed on Yelp have become site sponsors, which is probably more a function of restaurateur ignorance than an unwillingness to pay for a sponsorship.

No matter what, anonymous, user-generated online reviews are the trend of the future, and the day is not far off when most potential patrons of your restaurant will learn about you through Yelp or a similar site on the internet.

It’s therefore up to you to at least know what is being said about your business online, and figure out how your customers are hearing about you.

Conduct a survey of customers to gauge how many came to you as a result of an online review site like Yelp.   Track reviews on the site and ask loyal patrons to post reviews.  You could even offer a free appetizer or other incentive for posting a review.

And if you find that a large portion of your clientele is using Yelp to find and learn about your restaurant, perhaps a sponsorship is the right route to take.

The younger and more urban the customer base, the more likely the need for you to reach customers through new media like Yelp.

Either way, take the time to learn where your customers are coming from and what people are saying about you on Yelp.  Knowledge is power, and you can’t afford to not know what’s being said about your business out in cyberspace.

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Welcome to The Back Burner

The food service industry is an amazingly diverse and complex world.

Every day millions of meals are served by all kinds of establishments across the country.

Small independent restaurants function as local hangouts where neighbors enjoy coffee or a beer while watching the game.  Huge commercial kitchens serve thousands of people at once every day in prisons, hospitals, and schools.  And national chain restaurants and quick service outlets feed millions in thousands of locations across the country.

Every kitchen in this vast constellation uses specialized equipment and tools to prepare each meal.

Staff, managers, and owners use strategies particular to food service to make their businesses successful.  The world of food service is uniquely separate from most other business, and yet few other industries are so pervasive.

Welcome to The Back Burner, a blog written by employees of eTundra.com, an online food service equipment, parts, and supplies distributor.  Tundra is based in Boulder, CO, and has been distributing food service products for over 16 years.

Let us just say now that this blog isn’t about Tundra; it’s about the complex and infinitely interesting world of food service.

Yes, we make our living here, and yes, we’d love to sell more of every product we carry.

But we’re also fascinated by how food service works, and we’ve spent years accumulating knowledge and experience about the industry.

And now we’d like to share that knowledge and experience with you, and, in turn, continue to learn.

The Back Burner is intended to assist in that endeavor by functioning as a medium for the wide dissemination of food service information.

We hope that you benefit from our contributions.  We also hope to benefit from yours.

Life in food service can be hectic and crazy.  It can also be incredibly rewarding.  Regardless, it’s always interesting, so no matter which way the pot’s boiling, take a moment to visit us here on The Back Burner.

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