Restaurant Social Media
Driving new revenue - now more than ever.
If you are like me, you are watching the markets and waiting to exhale.
We can expect belt tightening, which will impact the restaurant business, make no mistake.
People still have to eat, though, and there is opportunity out there as well.
Employees - relieved to have a job - will be more motivated than ever. Bosses may have more leverage for mobilizing them; one way to increase productivity is to bring back the business lunch - with a twist. Casual drop off catering, for instance, could be on the rise as bosses use lunch times as an affordable way for team-building and to gain extra productivity.
With 2 adults in the family working, sit-in restaurant experiences aren't the only way to go. The way also opens up for selling out the back end - ready made meal helpers, and not just low quality ones - that is, fresh or frozen entrees sold to customers or 3rd parties.
Agree? Disagree? What other revenue streams should there be a focus on?
We can expect belt tightening, which will impact the restaurant business, make no mistake.
People still have to eat, though, and there is opportunity out there as well.
Employees - relieved to have a job - will be more motivated than ever. Bosses may have more leverage for mobilizing them; one way to increase productivity is to bring back the business lunch - with a twist. Casual drop off catering, for instance, could be on the rise as bosses use lunch times as an affordable way for team-building and to gain extra productivity.
With 2 adults in the family working, sit-in restaurant experiences aren't the only way to go. The way also opens up for selling out the back end - ready made meal helpers, and not just low quality ones - that is, fresh or frozen entrees sold to customers or 3rd parties.
Agree? Disagree? What other revenue streams should there be a focus on?
Replies to This Discussion
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Permalink Reply by Jason Lane on -
I've actually been doing well trading the markets, but it has definitely put a damper on my businesses. I mentioned on here about a month ago when many were being, to quote the guy who started this mess, Allan Greenspan, "Irrationaly Exuberant" about the state of the market - I can only hope anyone with investments to the long side listened.
As far as revenue streams I like the idea of fresh or frozen ready to eat meals to go a lot.. people are probably going to be working extra jobs and longer hours now that their IRA and 401k accounts are 40% lower than they were a year ago, and with no home equity loans available, and some good, inexpensive, fast food seems like a good answer.
Another avenue in that same neighborhood would be group classes - teach a weekend class giving people some quick & inexpensive recipes to feed the family - let them do some cooking, do som eating, then send them home with some new skills and a few recipes.
As far as marketing and promotion I continue to feel that the internet is by far the best bang for one's buck - it is relatively cheap, or if you're clever & willing to spend some time it can be free, and has beenproven that it's the only growing form of media out there. (Well TV isn't decreasing but with the advent of TIVO and DVR about 50% of viewers no longer watch commercials so TV advertising has become much less effective and still costs a lot in comparison.
There are a million ways to get your business out on the internet, obviously a website is a great place to start, from there you can start blogging, putting out promo videos, bid on pay per click ads, etc - the key is to do your keyword research. You can google "Google Keyword Tool" and they have a free, user friendly tool that will tell you what terms in your market and area get searched for most - by targeting these keywords you allow the people who are looking for you to find you.
For more ideas on marketing on the internet please check out my profile or send me a message... and if you're playing this market, I'm covering short positions and looking for a bounce in the next few days, but I don't think it's going to be the end of this mess, just a bounce in the overall scope of a bear market. I'm also open to discussing trading strategy, let me know. Best of luck!
Jay
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Permalink Reply by John Dumbrille on -
Thanks Jay. So clearly, marketing can be a revenue driver. Also like the idea of giving classes - as indirect promotions tool.
I recently visited a place in town that sells its sells (branded) restaurant food to a local convenience store... this seems a wave of the future right now. Wondering if any restaurant people here have had valuable experience doing this, or other food service diversification.
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Permalink Reply by Roy MacNaughton on -
Hey John:
This is the topic everyone is talking about these days.
If you take another look at my recent e-book on page 27,
(readers can get it free at: http://www.RestaurantMarketingforFree.com )
you will see where I list the 5-6 different ways to generate new
sales.... any kind of sales...in a restaurant or food service outlet.
At the bottom of that page, I have added: take-out, delivery and/or catering as
three other ways to improve the top line...if you're set up to offer those services.
Number one on my list of the only ways to increase the top line is to increase
menu prices...BUT .I immediately add a severe caution about doing that in this
particular environment/economy....for obvious reasons.
I agree with Jason Lane when he said: "As far as marketing and promotion I continue to feel that the internet is by far the best bang for one's buck - it is relatively cheap, or if you're clever & willing to spend some time it can be free, and has been proven that it's the only growing form of media out there."
That is exactly why I wrote this book!
In my judgment, the ONLY sure way to survive and stay in this hyper-competitive business, during these turbulent times, is answered with two words: (1) music; and (2) marketing.
First, we have to face the music: we have to come face to face with the stark reality that this industry has changed radically in the last five years; the consumers, the culture, pricing, labor, expectations of service delivery, competition, spending power and most certainly the technology that we now have at our disposal....have all combined to create the perfect hurricane of change for the way we must now operate.
Secondly, by adopting a "marketing" focus or stance in our business and trading area....in addition to a pure "operations" one, as in the past.....is...in my opinion, the only way to go.
I'm not saying that operations is not super important; but let me ask you this: what good is superlative food ....if there are no customers?
Nothing happens until someone sells something.
That's how we get ourselves out of this mess....
Roy
Don't agree? Let me know why!
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Permalink Reply by David Mark on -
I like where you're going with this. I'm not sure what's going on in other markets when it comes to fine dining (i.e. - Ruth's Chris, Morton's, Sullivan's, etc...), but the high-end diners are thriving in my market (Indianapolis). It appears thhe fast casuals and indie restaurants are the ones taking a hit here. Many are down 40-50% since January.
I like your thought on the business lunch. I dine out at lunch daily and I can't see an apparent decline for this crowd. Sullivan's Steak House opened for lunch a few years ago. They're in the niche popularly known for being open from 4:00 until close. Indy is a competitive market for high-end steakhouses and I believe (my humble opinion) what gave them an advantage was opening for the biz lunch crowd.
Admittingly, this doesn't work for everyone. Ruth's Chris decided to follow suit and they abandoned this concept after a couple of years. The irony, as I see it, is this particular Ruth's Chris location is downtown where there's a heavy business crowd and Sullivan's is in the burbs. They both have similar products and both have a white collar audience near by. It's basically an enigma to me.
Good Day...
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Permalink Reply by Tony on -
I have always believed that marketing and PR like, charity events, neighborhood fairs, wine tastings and the like are great PR for a restaurant. Spreading the name. Yes, it costs money to make money but marketing in the right circles will be worth it in the long run.
I must admit though, your comment about employees, relieved to have a job means "bosses" will have more leverage. What does that mean exactly? That they will work better under the threat of NOT having a job? Does being more motivated than ever mean that they can be taken advantage of in terms of longer hours, less day's off, lower wages? If I were that boss, ( and don't you think the term "Boss" is a little outdated) I might re-consider my management approach. All that will achieve is losing your people when another good option comes along!.
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Permalink Reply by Marshall Bishop on -
I have a restaurant in the Central Valley of California. I am serving local organic ingredients and need to get the word out there to the area about our food. I have everyone telling me different things about marketing, I would like to try the internet way but am not familiar with how it works. Any help or guidance would be greatly appreciated. Please check out my site which is currently going through a major makeover. www.BishopsontheSquare.com, thanks for your assistance. Chef Bishop
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Permalink Reply by Roy MacNaughton on
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Marshall:
Here is some advice that won't cost you a dime!
Go to my download page to instantly download your free copy
of my new e-book, RESTAURANT MARKETING for FREE.
Just go to: http://www.RestaurantMarketingforFree.com and it's yours.
Then before you go any further, sit down and invest the time to READ it.
The most important part firstly is the Underground Umbrella System. Once
you grasp this concept of marketing, the other things (there are 30 of them
in this one book) you might look at in terms of the Internet, will start to
sensibly "fall in line."
The problem for most restaurateurs is that they get what needs to be done
first, then second etc. wrong.
Before you start to work out "what" you need to do.....you must first figure out
"where" you are now; "who" you want and must attract to your restaurant....then
and only then....you can decide "HOW" will I do that?
Marshall.....enjoy the book....the price is right.
If you have more questions, send them to me at: roymacnaughton@gmail.com
I'll try and point you in the right direction.
Take care......give care.
Roy
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Permalink Reply by John Dumbrille on
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Hi Marshall.
I think that you want to get the word out about what you do - which is fresh, good, local. One way is to involve yourself in what you care about on many different levels. Your 'bioregional' niche is forward looking and also has to be pulled off - you have to make food people love. Next...
think of internet marketing as leadership. To paraphrase someone else, motivated people are the engines of growth. How to motivate a "tribe" around your restaurant is the puzzle for any restaurateur.
You could blog, but maybe you don't like blogging. You could go on online forums, but maybe you don't have time, and that seems like a contrivance. You could try to directly push your brand, but that ruse might get stale. The key isn't so much the specific internet technologies at this point. Because you have to first dig into your real resonance: the real leverage has to do with what you are about. You need to translate that into activity, rather than brand noise. There is alot of that out there already.
I'm a fan of marketing leader Seth Godin. Im a fan because he moves me into action. As a restaurant, you should think of yourself as a leader of fans. People who love food more because they eat there. To thrive, all restaurants, even QSR operators have to find a way to instigate and deserve this kind of fan loyalty.
Here's a quote from a recent interview with Godin:
"The punchline is that the only way to lead a tribe is to lead it. And that means that marketing is now about leadership, about challenging the status quo and about connecting people who can actually make a difference."
You might sponsor local food events, give 'dinner for two' prizes to fundraisers for the local organic growers association. Arrange a visit to a local shelter, and try to organize better access to fresh food for the homeless or poor. You could point to the growing food community that you find constellated around your restaurant by publicizing these kinds of things on your website and via your email newsletter. Get people to give you permission to send emails once in a blue moon, and then give them something in return. Insight, humor, community linkage. A sense of forward direction. But above all, do what's in alignment with the real enthusiasm of you and your place.
I guess what I'm suggesting it to lead by evangelizing not just your brand, but the movement you find yourself in.
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