eTundra Categories

Tag Archives | restaurant management

20 Restaurant Marketing Tips

20 Restaurant Marketing TipsHere at The Back Burner we try to provide as many resources as possible for your success.  Over the past six months we have published a treasure trove of restaurant marketing tips that can help you get more butts in seats.  I don’t have to tell you that it’s been a tough year.  The good news is, if you’re still here, you’re obviously doing something right.

This is also the time to grab more customers.  Their favorite eatery might have recently gone out of business, or they’re looking for a place with good eats, good service, and above all, good value.  Now is your chance to shine.  And here are 20 marketing tips that will help you get more customers and remind your existing ones to come back and visit:

1.  Should Your Restaurant Have A Website? – In a word, YES!  Learn how to get your website up and running here.

2.  Use Twitter To Marker Your Restaurant (4 Strategies For Success) – Yeah, yeah, I’m sure you’re tired of hearing about Twitter, and if you haven’t signed up already, chances are pretty slim you will now.  But give this a read and make sure you really do want to pass this opportunity up.

3.  Email Marketing: 7 Tips For Restaurants – Email is one of the most effective marketing tools out there, and if you’re not using it to reach your customers, you’re missing out on one of the best Return On Investment (ROI) marketing strategies out there.

4.  Improve Restaurant Sales At Food Festivals – even though the summer food festival season is mostly over, it’s never too early to start planning for next year.  Learn the why and the how here.

5.  4 Steps To Managing Your Reputation Online – With the advent of social media and user generated content on the internet, people are talking about your restaurant somewhere.  While most of this chatter is probably positive, it only takes a couple disgruntled customers to ruin your online reputation.  Learn how to manage that reputation here.

6.  Restaurant Marketing Goes Hyperlocal - New apps for mobile devices break down restaurants and bars by the block.  Some urban eateries are taking advantage of this “hyperlocal” trend to advertise very specifically to customers in their neighborhood.

7.  Restaurant Promotion Gone Afoul: The Most expensive Free I’ve Ever Seen – In this guest post by Jaime Oikle, learn how a coupon scheme run by restaurant.com can actually hurt your bottom line.

8.  For All The Hype, Are Restaurants Really Using Social Media? – Everyone, including me, is telling restaurants to get into the social media game.  Are restaurants listening?  A new study suggests they aren’t.

9.  The Casa Bonita Secret To Being A Successful Restaurant – Good food, good service, and good prices all play a role in a restaurant’s success.  But being unique is probably the single most important factor in a restaurant’s success.

10.  Menu Pricing’s Theory Of Relativity – Every customer looks at price when selecting their meal.  Behavioral psychology also shows that value is decided based upon the prices around the item they select.  Learn how to set up your menu to make your customers believe they’re getting a great deal every time.

10 More Restaurant Marketing Tips Here

Continue Reading

California & Vermont Restaurants: Are You Compliant?

California & Vermont Restaurants: Are You Compliant?If you’re in the food service industry in either California or Vermont, then this blog post is for you. New legislation in these two states changes the kind of faucets and pipe fittings that can be installed in restaurants and commercial kitchens starting early next year.  California Assembly Bill 1953 and Vermont Senate Bill S152 mandate all plumbing and fixtures that come into contact with water intended for human consumption through drinking or cooking must contain less than 0.25% lead by weight.

The new limit on the lead content of plumbing fixtures goes into effect January 1, 2010.  After that time, any new plumbing fixtures purchased in the states of California or Vermont must comply with the new lead limit.

Here’s the breakdown on how your restaurant will be affected:

You don’t have to replace existing fittings.  Whatever you’ve got now in your kitchen can stay until it needs to be replaced through normal wear and tear.  Just make sure that when you do buy new fittings, they comply with the 0.25% by weight lead limit and are properly certified.

Only plumbing fixtures that dispense water intended for human consumption must comply.  Hose reels, washdown stations, service sink faucets, and mop bucket sink faucets are exempt from the new standard.  Pantry, lavatory, hand sink, and pot filling faucets must all comply with these new standards, as well as pre-rinses.  Pipe fittings must also comply, so keep this in mind when you’re repairing an old faucet or installing a new one.  This includes faucet installation kits, foot pedals, and pre-rinse assemblies.

Fittings and fixtures that comply with 1953 and S152 must be certified by an independent third party organization.  Make sure the plumbing parts you buy are certified as containing less than 0.25% lead by weight.  These products will usually be stamped or labeled with a California & Vermont Restaurants: Are You Compliant?compliance certification.

For restaurants in Vermont and California, coming into compliance with the new lead standard is as simple as purchasing properly certified plumbing fixtures and fittings after January 1, 2010.  Some manufacturers have products that are already compliant with the new standard, and several more are planning to offer compliant fixtures and fitting by January next year.

Find compliant plumbing fixtures here.

Continue Reading

Restaurant Management: No Training Budget? Spend Nothing But Time And Succeed

According to a new study by the Council of Hotel And Restaurant Trainers (CHART), 53% of the restaurants surveyed had cut back on their employee training budgets.  Only 19% increased their budget, with the rest remaining the same.  The study covered a wide variety of restaurants, from small independents to large national chains, with the largest number of respondents falling into the small to mid-sized regional category.

These numbers obviously reflect the lean economic reality in which everybody in the food service industry is operating presently.  Cuts are inevitable as revenues fall.  But how much is too much?  Where is the line between trimming back and damaging a key pillar in your business: professional, experienced service?

New employees get some pretty good training for the first 90 days after hire, according to the respondents to this survey.  After that, wait and kitchen staff receive very little or no training, while management tends to receive more.  No matter what the size of your restaurant is, ongoing training should be a cornerstone of your overall strategy.  Research shows that employees who are given regular career training and whose company philosophy revolves around a reputation for service are much more likely to stay longer and perform better, which attacks the biggest monster in restaurant staff: high employee turnover.

Okay, you say, I get it, employee training is important.  But I can’t afford it right now, so what should I do?  Well, as long as you are willing to take the time, staff training doesn’t necessarily have to cost a lot of money.  Sure, supplemental training materials and videos are more efficient, but when you need to cut back, canning expenses on training materials doesn’t have to spell the death of your training program.

Some ideas for training on the cheap:

Role play with employees.  Don’t take it the wrong way (and at least one person on your staff is going to snigger in the back every time you bring this up) but role playing customer service situations with your employees is a very effective way to train.  If you hold regular role playing sessions, the awkwardness will eventually wear off and very positive employee interactions will develop.

Start a mentoring program.  Assign your top servers and kitchen staff to one new employee each.  Have the new employee do nothing more than follow the more experienced members of your staff around for a shift a month.  Not only will the new employees learn by example, they will form relationships with your best employees, which encourages retention and improves performance.

Cross train employees.  Train servers how to be hosts, hosts how to be servers, line cooks how to expo, etc.  The benefits of cross training are twofold: your staff will be able to fill gaps on busy nights or when you have no shows, and they will better understand how the restaurant operates as a whole, which usually means they will work better as a team.

Whether money’s tight or pouring in, simple, effective training techniques usually translate into one simple principle: taking time out and spending it with your employees.  There is a cost associated with taking time, but the benefits far outweigh this costs.  Done right, interactive training will form the solid backbone of your business and position you to succeed no matter what the economic climate is like.

Continue Reading

The Casa Bonita Secret To Being A Successful Restaurant

The Casa Bonita Secret To Being A Successful Restaurant

Want to know what makes a restaurant succeed where others fail?  Is it because your food is the best around?  Do you offer customers an incredible value for their buck they just can’t get anywhere else?  Or is your staff so professional, so incredibly well trained, that customers just can’t get enough of your efficient, friendly service?

Well, all those things are factors in your success, but there have been hundreds of restaurants, if not thousands, that have done all of those things relatively well and still failed.  So, how do you identify the key factor that makes one restaurant succeed where another fails?

To answer that question, think back to some of the most memorable restaurants you have ever been to.  I personally have been to hundreds of restaurants all over the United States, Mexico, and South America, and out of all those establishments, one pops up in my head first, just about every time: Casa Bonita in Denver, Colorado. If you’ve never heard of Casa Bonita, it’s a Mexican themed restaurant with a summer carnival feel.  There are games like skee-ball.  There’s a massive waterfall in the middle where cliff divers regularly plunge at least 60 feet.  And, of course, there’s Black Bart’s Cave, which goes behind the waterfall and is full of treasure and dead pirates.  In short, the place is a kid’s paradise, and when I was young, it was the best restaurant I had ever seen.

The place is so unique the popular cartoon series South Park even devoted a whole episode to it (yes, South Park fans, Casa Bonita exists!). To be honest, the food is at best mediocre.  I don’t even remember what the service was like and I don’t care.  And I know the prices were outrageous.  But just writing about Casa Bonita makes me want to go back. Why?  Because you can’t get Casa Bonita anywhere else.  Out here in Colorado, Mexican restaurants are a dime a dozen.  Some are good, some are bad, and many struggle to attract customers.  They all compete on price.  They all have hard working wait staff.  Most have great food.  None of them are unique enough for me to remember, with the exception of the Rio in Boulder, which has the best margarita in Colorado – hands down. The point is that you have to make your restaurant unique.  No matter what kind of food, what segment of the population you’re targeting, where you are located, your restaurant must stand out.  You don’t need a 60 foot waterfall to be unique… maybe your happy hour features the only all-you-can-eat nachos in town.  Or perhaps your patio is lush with flowers and greenery every summer.  Something must make your restaurant stand out. Some restaurant concepts even use rude service as a gimmick to make themselves different.  It’s not about the best entrée in town.

It’s about the atmosphere.

This is not to say you don’t need well trained staff and great food that’s competitively priced.  It is to say that word-of-mouth is your best weapon, and when people think back to the experience they had at your restaurant, are they going to mention the incredible enchilada dish that was better than any they’d ever had before, or are they going to mention the free salsa dancing lessons?  You decide.

Continue Reading

Why Your Restaurant Should Start Catering… And 4 Simple Steps To Start

Why Your Restaurant Should Start Catering... And 4 Simple Steps To StartIn a recent study by Technomic, 36% of consumers said they are doing their socializing at home more often than a year ago.  In addition, 40% said they’d like to entertain at home more often in the next year.

For a restaurant owner, those are some sobering numbers.  The corresponding 4% decline in restaurants nationwide over the last year tells you just how serious the situation is.  If your restaurant has made it this far, then hopefully the worst of it is behind you.  And now might be the perfect time to turn the crisis into an opportunity.

That’s because although consumers are staying home, they’re not necessarily wanting to cook at home.  That means you can find willing customers if you’re willing to venture out from the restaurant.  In fact, 53% of consumers said they bought prepared foods for the 4th of July 2009.  That reveals a market that’s available for what you do best: prepare great food.

Catering for small and mid-sized parties (10 – 100 people) is on a steep rise, and some restaurants have already started offering their services as a way to drum up business, even if those customers aren’t seated in the dining area.  So how can your restaurant get in the game?  Some ideas:

Get equipped. Don’t try to translate what you do in the kitchen of your restaurant so well into a foreign venue without the proper tools.  Catering requires some specialized equipment that allows you to be mobile and quick on your feet.  Don’t get into the catering game without investing in some good equipment first.

Specialize your menu. Stick to the items on your menu that are high margin and require minimal prep work.  Whatever your bread and butter entrees are, the ones you can whip up in your sleep, slap them on a special menu for catered events.  This keeps things nice and simple, especially when you’re starting out.

Try to reach known customers. If you have an email list or other way to market to customers you know haven’t been in for awhile, use it to advertise directly to the people who are probably staying home but like your restaurant.

You probably will want to try a few dry runs before you hit the big time with your new catering operation.  Maybe try catering your own family function or a similar low-stress event so you can work out the kinks.  That will ensure you’re making the best impression possible when you start.

If you choose your menu items carefully and back up some effective marketing with a well prepared mobile operation, your restaurant can stand to make some pretty good money in catering, which gives you another stream of revenue and a little more stability in the uncertain world of food service.

Continue Reading

Email Marketing: 7 Tips For Restaurants

In the marketing industry, email remains one of the most popular and most effective ways to reach customers.  In the restaurant industry, email marketing can be a great way to build customer loyalty and brand recognition.  It’s cheap, it’s easy, and it’s proven to bring customers in the door.  So why aren’t more restaurants using it?

If you have yet to market to your customers with email, here are some simple steps and best practices to maximize your campaign:

1. Ask your customers to sign up.  There’s no point in sending out an email if you don’t have anyone on your list.  There’s also no point if the people on your list don’t patronize your restaurant.  Tantalize your customers with deals and prizes to collect their email addresses.  For example, use a raffle to collect email addresses, or offer 10% off coupons in exchange for signing up through your restaurant’s website.

2. Don’t send emails unless it’s requested.  Sending unsolicited email is also known as SPAM, and we all know how annoying that is.  That’s why the best way to collect email addresses is to offer a little something in return and get your customer to volunteer their email address.  It’s also important to make sure your customers understand that they are signing up to receive emails.  Make it clear that they will be hearing from you in the future.

3. Offer something every time you send an email.  Every email marketing beginner thinks it’s a great idea to send out emails full of information about themselves and their business.  The hard truth is, however, that your customer really doesn’t want to be bothered reading an email about a restaurant.  What they do want know is when your happy hour is and what days you offer specials.  Don’t send an email unless you have something to offer.  Otherwise you’re just clogging up an already busy email inbox.

4. Track conversions.  Use coupon codes or some other system to track the success of your email marketing campaign.  Try different types of offers and see which ones have the highest conversion rate.  In other words, does a 10% off coupon on any meal over $25 work better than a buy one, get one free drink during happy hour deal?  The only way to know for sure is to get customers who heard about the deal through your email campaign to use a code when redeeming their discount.

5. Create a schedule and stick to it.  In general, you shouldn’t be sending out emails more than once a week, and twice a month is probably a better route.  No matter how frequently you decide to send out email, stick to the same schedule so that customers begin to expect your emails on the same day.  This will improve the chances that your email will be opened and read.

6. Use a proper email marketing system.  There are a variety of options out there: Feedblitz, MailChimp, ConstantContact, Emma.  These services usually charge you per email or per number of subscribers.  Choose one that works for you and pay the money for a proper system.  Don’t try to send emails out from your Hotmail account.  For one thing, it looks unprofessional.  For another, you will get labeled as spam sooner or later.  These email services also have great tracking functions that provide important information, like how many people opened your emails, how many clicked links in your emails, etc.Email Marketing: 7 Tips For Restaurants

7. Avoid spammy words and punctuation.  Words like free and buy now cause automatic spam filters to flag an incoming email message.  Punctuation like lots of exclamation marks and all capitalized letters will also set off the alarm.  Avoid these spammy looking words and punctuation in your emails like the plague.  For more info on avoiding spam filters, check out this blog post.

The most important thing to remember when it comes to email marketing is to experiment.  Best practices only take you so far.  Every restaurant is different, and every one has a different type of customer.  The email marketing campaign strategy you employ for your restaurant will be different from every other one, and the best way to optimize it is to try different types of offers and presentations until you find the one that gets the most customers in the door.  This is also why tracking is so important.  If you can’t tell if you’re having a busy Tuesday night by chance or because of last week’s email, then you can’t improve and refine your campaigns.

When used properly, email marketing can be one of the most cost effective ways to bring customers back to your restaurant again and again.  A little time, a little testing, and a lot of experimenting can turn email into one of your top advertising moneymakers.

Continue Reading

Restaurant Management Tips: Stay Safe With Alcohol Service Training

Restaurant Management Tips: Stay Safe With Alcohol Service TrainingThe level of liability restaurant managers and owners face in alcohol related incidents can be shockingly high.  Protecting yourself, your staff, and your customers from dangerous alcohol related situations should be a top priority for your business.  And the best way to protect yourself is to make sure your staff is properly trained for alcohol service.  Some tips on how to train your staff:

Be aware of local and state laws.  More than likely you learned the local and state laws that apply to alcohol when you applied for your liquor license.  However, your staff may not be aware of these laws and there may have been changes or amendments since you applied for a license.  Make sure you take the time to educate yourself and your staff on all liquor laws that apply to your establishment.

Create a standardized alcohol service policy.  Set a standard policy and train your staff to follow this policy strictly.  While you will probably need to include some unique clauses for your particular situation, here are some good ideas on what to include:

Train staff to observe patron behavior and identify those who are becoming intoxicated.  Many establishments use a color coded system: green for little or no intoxication, yellow for becoming intoxicated, and red for time to cut off.

Mandate communication between staff, customers, and management.  Staff should know how to communicate your establishment’s alcohol policy to customers.  They should also be encouraged to notify managers of potential problems before they become situations.

Train staff to count drinks and know the difference between alcohol types.  Counting drinks helps avoid problems with patrons who do not exhibit an obvious change in behavior as they become intoxicated.  However, your staff should also know the alcohol content of what they’re serving.  Four domestic beers is very different from four long island ice teas, so make sure your staff knows the difference.

Also train staff to factor in time and food consumption when evaluating the intoxication of a customer.  Four drinks consumed over the course of four hours is much different than four drink consumed in half an hour.  Food, especially fatty or high protein foods, help slow the rate of alcohol absorption into the bloodstream, which in turn affects the likely intoxication level of the customer.  Encourage “yellow” intoxicated customers to eat and make sure appetizers or quickly prepared menu items are readily available to drinking customers

Implement strategies to avoid alcohol related situations.  A well trained staff with a clear set of guidelines to follow is the first and most important line of defense in helping you mitigate alcohol liability.  The second line of defense is the implementation of some key strategies that will help you avoid alcohol related problems.  Some examples:

Encourage parties to identify a designated driver and incentivize DD’s by offering free non-alcoholic beverages and appetizers.

Form a good relationship with a reputable cab company and advertise their number for free in your establishment.

Include local police when setting your alcohol service standards and use them as a resource for avoiding and handling alcohol related incidents in your establishment.Restaurant Management Tips: Stay Safe With Alcohol Service Training

How to protect yourself if an incident does occur.  If an alcohol related incident does occur in your establishment, make sure you document as much as you can.  Record eyewitness accounts of what happened and what you and your staff did to control customer intoxication.  This documentation will prove to be worth its weight in gold if litigation arises as a result of an incident connected with your business.

Having clear strategies to control intoxication in your establishment is no longer an optional  policy.  Cases that have been settled in the past five years have shown that you are not only potentially liable for injury that occurs as a result of an alcohol related incident in your establishment but outside it as well, most notably in drunk driving cases.  Such litigation can ruin your business and your life, so taking precautions when serving alcohol is a vital part of operating in the food service industry.

Continue Reading

Boost Sales With A Free Meal

Boost Sales With A Free Meal

The Laguna Grille in Long Island, NY

An increasing number of restaurateurs are looking to boost sagging sales with value-minded deals to lure customers back into their restaurants.  A particularly successful strategy has been employed by the Laguna Grille in Long Island, NY: a “Bailout Program,” which randomly awards free meals to a table per shift.

The ensuing buzz packed his two locations on a recent weekend and generated some great PR in the local press.  Not only do customers feel that you are commiserating with them about the hard economic times, free meal promos also build brand recognition and loyalty, which in turn can boost word-of-mouth marketing.

Denny’s Restaurants has embraced this hot marketing technique fully.  On Super Bowl Sunday the chain announced it would offer a free Grand Slam breakfast to customers from 6 a.m. to 2 p.m. on Tuesday, February 3.  Denny’s market share has been slipping in the face of intense competition from fast food chains like McDonald’s and Burger King and breakfast-only chains like IHOP.

The Denny’s gambit was a complete success.  2 million customers showed up for their free Grand Slam, and sales have ticked upward since the promotion.  It was so successful that Denny’s followed up recently with another promotion that gave away a Grand Slam for every one purchased.

There are many ways to creatively apply a free meal campaign to your own restaurant, whether you’re a small independent operator or a mid or large sized chain:

  • Encourage customers to sign up for your email list and randomly select a monthly winner from new signups to receive a free meal
  • Follow Laguna Grille’s example and randomly give away a free meal per shift
  • Give away a free entrée or appetizer in exchange for filling out an online or paper survey and providing an email address
  • Hold “happy hour” specials featuring a buy one, get one free entrée, appetizer, or drink
  • Have customers bring in a down economy related item like a pink slip, stimulus check, or foreclosure notice to receive a free meal

The best way to leverage a free meal offering is to gather some information from your customer while they take advantage of it.  The more you know about your customer, the better you can target them for repeat business in the future.  And the more you build your base, the more likely you are to survive hard times.

Continue Reading

Should You Cut Costs In Payroll?

Should You Cut Costs In Payroll?My recent post, “Missouri Legislature Debates Wage Cuts For Servers” sparked some debate about cutting payroll expenses in your restaurant.  Finding places to cut expenses as revenue falls is never an easy endeavor.  And since labor is almost definitely your number one expense, it’s easy to look there first when considering ways to save money.

There may definitely be some places where labor costs can be reduced, such as cutting back employee hours or eliminating underperforming staff.  All businesses look to their human resources department for cost cuts in tough times.  But be careful here, because cutting labor is a task best left to a scalpel rather than an axe.

That’s because the one thing you need now more than anything else is good customer service.  Actually, you need stellar customer service.  When consumers start cutting back, their expectations of service go up, and the only way to get them to spend at all is to take care of them in every way possible.

Your staff is the best tool you have to make sure every hungry customer that walks through your doors leaves satisfied and full.  If you start cutting back on staff to save money, you could start hurting your chances at increasing future revenue.  Overall morale goes down when people are let go because of hard times rather than performance.  And no matter what, customer service will suffer when you lose experienced staff.

Now is the time to focus on fulfilling the needs of your customers even better than before.  If some staff have been a drag on your operation, by all means cut them now.  But look for other ways to reduce costs before you start cutting quality staff.  Your best customers will appreciate the attention, and hopefully maintain their regular visits to your restaurant.  And new customers will be blown away by your commitment to quality service and hopefully come back, even if times are hard.

While Circuit City isn’t in the food service industry, a lesson can be drawn from their experience.  When sales started declining, Circuit City decided to cut staff as a way to reduce costs and boost profits.  It worked for a while.  But then customers stopped coming in altogether.  Circuit City’s rival Best Buy refused to cut back on customer service, and soon customers were flocking to their stores, not because Best Buy’s prices are better or because they have a better selection, but because Best Buy staff were always there to help.

Circuit City has since declared bankruptcy.  Best Buy may not be breaking any profit records, but they’re still in business, and their customers are happy.  Things could be a lot worse.

What do you think about this issue?  Leave a comment below!

Continue Reading

Missouri Legislature Debates Wage Cuts For Servers

In 2006, voters in the state of Missouri overwhelmingly passed Proposition B, an initiative that mandated a minimum wage increase for hourly workers.  Prop B passed with a 75% majority, and after some debate, Missouri decided that workers who receive an hourly wage plus tips were eligible for the pay increase.

Times have changed since 2006, to say the least.  The economic downturn has hit Missouri’s restaurant industry hard, and now the state’s restaurant association is backing a Republican bill to cap hourly wages for tip earners at $3.52, half the hourly minimum wage of $7.05.  A compromise amendment would cap the minimum wage after a planned increase this summer.

Neither servers nor restaurant owners are happy with the bill.  Servers say the cap is tantamount to a wage cut, something they can ill afford in a down economy.  And restaurant owners say their payroll expenses have skyrocketed since 2006, something they can ill afford in a down economy.

Interestingly, the catch in this whole debate is who would actually be affected by the passage of the bill. 

The average server earns $10 – $15 an hour in tips, which means most if not all of their hourly wage goes to taxes, regardless of whether their wage is capped or is raised slightly.  And this bill would not change a Prop B clause that requires restaurant owners to pay their servers the $7.05 minimum wage if they don’t make at least that in a given week.

So servers who claim they’re taking a pay cut aren’t really getting hit that hard since the vast majority of what they make is in tips.  And they’re guaranteed a minimum wage if tips aren’t sufficient.

At the same time, restaurant owners who claim they can’t afford the current wage are not going to get the wage cut they were looking for.  At best, wages will be capped at their current levels, which does nothing to help restaurateurs who blame the current wages and the recession for their problems.

That means Missouri restaurant owners are going to have to look elsewhere to cut costs and increase revenues.  And in the end, looking to cut costs in staff first is probably not the best option on the table.  After all, wait and kitchen staff are what make every restaurant tick, and in the long run, well paid staff means better sales and reduced turnover, both of which translate into more profits.

Perhaps it’s time for restaurateurs in Missouri to look at other operational costs and see how they can streamline their business before they start putting a lot of energy, money, and time towards targeting their payroll.

Continue Reading