Get An Instant 20-30% Increase In Restaurant Sales By Following These Year-End Tips

The New Year is almost here. I can smell sweet ham cooking in the kitchen, and at the same time I’m writing down the ways I figured to make 2010 the most profitable year for your restaurant.

But let’s get one thing straight. Looking forward to a prospective new year doesn’t mean you won’t learn anything from the one you’re leaving behind. New opportunities are a result of careful observation of your experiences.

Here are some of my tips for 2010.

1. Where’s your profit coming from
Where’s your money coming from? Do most of your customers order take-out? Do you have delivery? Is it booming?

What you should do is list down on a spreadsheet which of your services generate how many dollars as well as the percentage of your total sales. This is how you’re going to plan what you’re going to do in the coming months. If 65% of your earnings come from lunch, then you’d do well to allocate 60% of your budget to advertise your lunchtime offers.

2. Establish a marketing calendar
One of the most painful mistakes you could make as a restaurant owner is to bite into every single marketing gimmick your ad rep throws your way. That is—and believe me on this—a complete waste of money.

But like I said earlier, it pays to look back once in a while. Which is why you should put up a marketing calendar. Make notes on your calendar which advertising gimmicks worked and which ones blew. The idea is to weed out the gimmicks that failed and keep the ones that succeeded.

3. Talk with your customers
So okay. This one doesn’t really apply to a specific year, and it is pretty much self-explanatory. Talking to your customers allows you to build a relationship with your most important resource. I wonder how most restaurant owners would react if I tell them that it’s six times easier to sell to a long-time patron than it is to find a new customer.

4. Explore niche restaurant marketing
Niche marketing is the future of restaurant advertising. Period.

Fact is many restaurants are already doing it. Why not attend a local bridal show to promote your Asian dishes and diet-friendly cuisines? Take note of Valentine’s Day and advertise your dinner specials as early as January. Before summer vacation, why not promote an event where graduating high school students get as much as 20% discount if they bring in their parents?

Niche marketing will really boost your sales, if done right.

My last piece of advice: stick to your plan, put it into action. A new year is an opportunity to begin with a clean slate. In your case, take what you can from the previous year, turn it into a learning experience, and then use that as leverage to bring your restaurant to new heights.

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Hire A Restaurant Manager You Can Be Proud Of

A restaurant can be big or small, fine-dining or casual, Italian- or Japanese-themed – it doesn’t matter. If you’re a restaurant owner, you need a restaurant manager to take care of things for you. You need someone who has personality and is in the business of running a restaurant, every day, from opening time to closing hours.

A restaurant without a manager is like a ship without a captain. There’s really no other way than down.

Sometimes the restaurant owner also functions as a manager. But unless you’ve got some managerial experience to back you up, I suggest you hire one who satisfies the qualifications of a restaurant manager. The expense of hiring and keeping the real thing, a truly experienced restaurant manager, is worth the investment.

Here are some responsibilities of a restaurant manager.

1. Hiring and Firing Employees
You hired the restaurant manager. Now it becomes his duty to hire the rest of the staff. A restaurant manager should have a good eye for spotting genuine workers. On the other hand, kitchen positions should be commissioned by the head chef.

2. Scheduling
The restaurant manager is in charge of scheduling the staff and making sure all the positions are covered for every minute the restaurant is open for business. Request for days off and undertime should also be taken up with the restaurant manager and not the owner.

3. Inventory
The owner pays for the ingredients and other items needed in the restaurant, but it’s the restaurant manager who prepares reports on what to buy and where to buy it from, if he knows a good place. The restaurant manager is in charge of ordering house items such as cleaning supplies, paper napkins, etc. while the head chef may take care of the ordering of food items.

4. Events
Small events are overseen by the restaurant manager. For example, scheduling of the event and filling the positions of the staff needed for the event.

For large events, the restaurant owner may consider hiring a catering manager for the occasion.

5. restaurant marketing
No one knows the capabilities of the restaurant more than its manager. So it only makes sense that he, or she, should be in charge of its marketing.

The restaurant manager is responsible for overseeing the budget for advertising, as well as update social networks on the status and current offers of the establishment. Marketing the restaurant online only requires an internet connection and can be done at home.

When hiring a restaurant manager, make sure he or she is fit to fulfill all these duties. As a restaurant owner it’s up to you how much you want pay your manager, but make sure to compensate accordingly. Restaurant managers aren’t paid by the hour, but instead receive a steady salary. Find an able manager, pay him well, and you’re halfway to establishing a strong and successful restaurant brand.

Did I miss anything? Share your opinions by leaving a comment after this post.

You Don’t Have To Be Rich To Establish Your Own Restaurant Website

The saying goes,

Necessity is the mother of all inventions.

So looking back, advertising came about when early businesses needed a voice. There was a time when we read brochures and pamphlets about the newest chocolate-flavored milk shake in Rudy’s countryside diner. Brightly colored flyers took our attention and offered discounts, coupons, special offers, etc.

Those were the days. Back then flyers were popular because no one had access to the internet. In fact there was no internet at the time. Simply black and white letters printed on recycled paper.

Today most restaurants struggle to establish a brand name by building and maintaining a website. The internet generation has grown to the point that people nowadays turn on their laptops and computers to look for products and good places to eat. For a restaurant owner, having a restaurant website is essential. It’s going to cost you an arm and maybe even a leg, but the investment is worth it.

On the topic of the costs involved in creating a website, there are four main areas: hosting, domain name, designing, development, and maintenance. The first four factors are a one-time investment. You shell out for them one time and they’re done. Maintenance on the other hand is a continuous effort and investment.

Necessity is the mother of all inventions.

There’s a need, and once again there is a solution.

An economic alternative to a restaurant website is applying for the services of an Online Food Ordering System (OFOS). OFOS service providers take care of the technical details of developing and running a restaurant website. The restaurant owner gets his or her hands free of this burden and finally has time to focus on the operations of the restaurant – and simply enjoy the sales.

Online Food Ordering System service providers can upload your menu online, check your inventory and stocks and even manage your customer database. Lastly they can accept delivery orders for you.

As someone who’s been in the restaurant industry for some time, I find the Online Food Ordering System a cheap and efficient way of testing the waters out before opting to develop your own website. We are in a recession, and every dollar counts. The OFOS offers a quick way to experience the pros and cons of operating a restaurant website without spending as much.

Especially if you’re a small business owner, I suggest you consider checking this one out. You’ve got nothing to lose and a successful restaurant business to gain.

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Old School Versus New School: Do You Struggle With Traditional Restaurant Advertising Methods?

It’s fair to say that advertising can make or break a restaurant business. The purpose of restaurant advertising is to inform, but it goes both ways – the restaurant owner should also be well informed about the advertising options available to him or her.

Let’s look at the different advertising mediums and compare their pros and cons.

Traditional Methods
Free brochures - You know what it is. Free brochures with your restaurant’s name and address and contact number are distributed in high-traffic areas, stuck in windshields and inserted in mailboxes in residential neighborhoods.

But the problem with this method is that most of the time people treat these brochures are junk. They get thrown away and your effort goes down the drain. Tell me – when was the last time you read one of these flyers?

Magazines and newspapers - Advertising via print media is effective, I’ll give it that. And, unlike free brochures, people actually read magazines and newspapers.

But the problem here, unlike free brochures, lies in the fact that print advertising isn’t free. It costs hundreds of dollars for your restaurant’s name to appear on a black and white page in the back of the morning paper. Small restaurant owners generally can’t afford this much advertising fees.

Word-of-mouth - The best form of advertisement in the business. Do it right, and you’re all set for the next cover of TIME magazine.

The problem is that it is by no means to get right the first time—or the second time, or even the third time. Bruce Springsteen said, “You can’t start a fire without a spark.” Only a select few restaurants in the world have that spark to start a unique flame that would spread quickly and generate good publicity for the restaurant.

Modern Method
The Internet - Believe me, the only thing you need to do to top all three media I mentioned earlier is to invest in online restaurant marketing.

Internet restaurant advertising is a lot cheaper than traditional marketing strategies, making it a great point-of-entry for small business owners. It’s more effective than print media and word-of-mouth combined, since you can reach out to thousands of people at all times through your restaurant website. Testimonials and review sites are also effective ways to generate positive buzz for your restaurant.

Traditional advertising methods are still worth a look at. But these days, these tough times, it doesn’t hurt to think outside the box once in a while. Ask a consultant about your potential marketing options, and weigh theirs pros and cons. Aside from a delicious menu, this one of the most significant investments you’ll be making for your restaurant business.

So make it a good one. Your success rides on how well your marketing goes.

Five Ways To Make Your Restaurant Stand Out In Oversaturated Locations

There’s good reason why certain locations are a sucker for restaurant establishments. Look at New York, Paris, London, Tokyo, etc. These locales are high-traffic spots, and a prospective entrepreneur would do good to consider opening a foodservice establishment in such areas.

But the thing is, there’s also the problem of oversaturation. These spots are filled with food lovers, but the market is also teeming with competition. As someone who’s been working in the foodservice industry for some time, I know a way around this issue, and this is where effective restaurant marketing comes in.

Here are your options.

1.    Print media
Print media is always a good medium to have on your corner. This option includes magazines and newspaper where you can attract customers with discounts and other exciting offers.

Take a look at it this way. Print media is considered one of the most effective forms of advertisement, since magazines and newspapers are common between high profile and low profile populations.

2.    Internet
The internet is a close cousin of print media. A product of modern technology, advertising on the internet makes it easy to reach millions of people all over the world, with just a click of a mouse. And it’s cheaper, too. Fact is it’s probably a lot cheaper to build and maintain your own restaurant website than to put up a small ad in the paper.

3.    Decor
Decor is important too. It’s crucial that every piece of furniture in your restaurant complements the overall theme and design you’re going for. Otherwise you’re just decorating for the sake of decoration, and it’s going to throw some people’s appetites off, trust me on this.

The golden rule is to tempt your customer’s eyes first before going for their taste buds. Make them feel hungry simply by looking at your decor.

For more information on restaurant decor, visit the article Want To Attract More Customers? Take A Good Look At Your Restaurant Furniture.

4.    Trade shows
A trade show is where you get to showcase your food and products to potential customers. The great thing about trade shows is that customers will come to you and not the other way around. Now the only thing left for you to do is to make sure to impress them with what you’ve got to offer. So when they get home they’ll remember your name and maybe even look you up on the internet.

5.    Value
The best form of advertisement is still word-of-mouth, and nothing sets that going better than to make your customers feel they are being served good value for their money. Find ways on how you can offer delicious cuisines at low prices. Not everyone can afford an expensive meal all the time.

Take these suggestions to heart, and you’ll be running a successful restaurant even in oversaturated locations in no time.

Did I miss anything? Tell me by leaving a comment below.

Want To Attract More Customers? Take A Good Look At Your Restaurant Furniture

This is a short post, but I’ll leave you something good to think about by the end of the article.

Let’s talk about restaurant furniture. Yes, your tables, chairs, magazine stands, bar stools, the pictures hanging on the walls, etc. Furniture. Thing is people have a habit of looking at something from a biased perspective. Want proof?

Step outside and take a long hard look at your restaurant from the front door. It looks good, right? Perfect. Everything is in place. But then again from whose perspective are you looking from? You are the restaurant owner. Saying your restaurant couldn’t be better is like your mother saying you have a beautiful voice and believing her.

Believe it or not, restaurant furniture is a marketing tool. I can’t remember how many times I’ve looked through a restaurant’s front window and then kept walking when the establishment’s style of furniture and layout didn’t appease my appetite.

First impressions count.

I thought we all believed in this statement. I guess some restaurant operators don’t.

Some establishments—Burger King, McDonald’s, etc.—could arrange their tables every which way and still get customers. These are world-famous franchises. They don’t need a good seating layout to make a sale. These establishments could sell burgers like hot pancakes even on Good Friday.

The trick is to put yourself in the shoes of your customers. Again step outside and look at your restaurant from the front. Does your restaurant furniture complement your desired theme? Are the tables too close together? Is it too dark inside? Or do you need curtains to filter some of the sunlight coming in from the windows?

If this is the first time you laid eyes on your restaurant, what would be your first impression?

In the end, always be open to change. When you step outside, if you see something you don’t like, change it. Before you tempt customers with your dishes, first you need to attract them to take a seat at one of your tables, and this is where restaurant furniture and layout, as a marketing tool, comes in.

Put in the effort to try and see things from your customer’s perspective from time to time. After all, they are the lifeblood of your business and who will spell the difference between failure and success of your restaurant.

Tell me what you think by leaving a comment after this post.

If You Don’t Hire A Restaurant Consultant Now, You’ll Hate Yourself Later

I know some people who’d started their restaurant business without taking the services of an outside consultant. They said they wanted to save the money that would otherwise go to the consultant, or else use it to buy an additional table or a coat rack. A couple months later, the business fell apart like a house of cards.

Simply put, a consultant is essential to the development of a restaurant establishment. This phase is where you lay down the foundations of the business. If you get this wrong, you get everything wrong.

I’ll point out some of the basics.

1.    Do you want to become part of a franchise or go it alone? Any restaurant owner will tell you that this is a crucial decision. Aside from electronics, foodservice happens to be one of the most dependent when it comes to franchise names and brands.

For example, everyone knows applying for a McDonald’s franchise isn’t cheap and by no means an easy task. But if you do however get the green light, then congratulations, you just killed your financial problems for life. An experience restaurant consultant can help you decide whether to open an established franchise or start your own based on your current budget and expertise.

2.    You need outside assistance to help you consolidate a business plan. Admit it, this is your dream restaurant. You must be very proud of your new business. But thing is you might get a little too emotional when it comes to making hard decisions, and right decisions at this time is all that matters.

For a business to work long-term, you need to produce a high quality feasibility study backed by raw data, and later a solid business plan that would put the pieces of your workflow operations together. I suggest you hire a consultant for this one—that is, unless you have an MBA in business administration.

3.    A business is only as strong as its weakest employee. So when it comes to hiring staff to work for you, no amount of fees is too much for the services of an experienced consultant who specializes in this area. A restaurant consultant can fill you in on the employment law, help you draft employee policies, training and other tasks, such as staff scheduling.

Consultants are also helpful in getting you started in talks with vendors both foreign and local.

An outside consultant is responsible to work with you only for a few sessions, but the results are long-term. If you really love your business, if you really want to make this thing work, take my advice and hire a restaurant consultant to help you get down the basics of running your dream restaurant.

See How Easily You Can Boost Sales By Connecting Your Restaurant Services Through Your Blackberry

These days business owners need to be quick on their feet. Especially restaurant operators, you need to secure every little advantage if you want your business to get anywhere in a market full of competition. I’m not exaggerating. Go to the nearest shopping center and tell me how many restaurants and foodservice establishments do you see.

The first rule is to separate yourself from your competitors. How do you do this? Better service, ambiance, reasonable pricing, improved parking and decor. But there’s something else—a huge advantage to take in more customers—most restaurant owners are taking for granted. Accessibility.

Here’s a fact. When a customer wants to reserve a table in advance, he looks up a couple of websites from his home or office computer. Here’s another fact: restaurant staffs aren’t early risers. So most reservations in the morning are simply recorded on an answering machine or sent as email to be read later on.

Most restaurants are already doing this. But this is no time to be “like most restaurants“. Remember, separate yourself from the competition. Do this by connecting your restaurant’s reservation system through your Blackberry.

The Blackberry is a handy tool for most restaurant operators, though only a handful is aware of it. With a Blackberry, you don’t have to be in front of the computer to accept a reservation, nor do you have to get up in the morning and answer the phone every time a customer dials your number. A Blackberry allows you to send customers personalized replies from anywhere!

If anything, and believe this, customers appreciate getting personalized feedback instead of a canned message from some automated answering machine.

A good deal is to let your general manager handle the Blackberry. A plan should cost you around $15 per month, more or less, but it’s a good trade for putting your restaurant at your customer’s fingertips. Tell your general manager he or she may use the Blackberry as a personal phone, which should encourage him or her enough to respond to customer inquiries professionally at all times.

Now in the event you need to change managers—you found a better person for the job or your manager has decided to leave your employment—you can easily transfer ownership of the Blackberry to the new person. It’s as easy as that. A Blackberry is indeed a restaurant operator’s best friend.

I’ve been in the foodservice consulting industry for some time now, and the use of a Blackberry to improve customer relations is one of the few innovations I’ve seen that actually work. It’s simple, it’s cost-effective, and most importantly, it succeeds in bringing restaurant franchises closer to their customers than their competitors. Separate yourself from competitors by bridging the gap between you and your customers.

The technology is already here, and the only thing left for restaurant owners to do is use it.

For comments and feedback, please leave a message below.

See How Easily You Can Incorporate E-Coupons Into Your Restaurant Marketing Mix

Let’s talk coupons.

No doubt coupons are a great way to attract attention and boost sales around this time of year. Everyone loves to eat out during the holidays it’s almost tradition. And with the economy at its current state, people are going to be looking for ways to cut back without, hopefully, sacrificing too much quality time.

Coupons make that happen.

As a restaurant operator, there are a number of ways you could get creative with incorporating coupons into your marketing mix. For example, you could offer incentives to waiters who distribute the most coupons that comes back to the cashier. Not only do you encourage customers this way, but you also motivate your staff to work beyond their assigned roles – as individual marketing tools.

Then there’s e-coupons. E-coupons are coupons distributed on the internet. You may put up e-coupons on your restaurant website or elsewhere, mostly on websites with high traffic. For instance, the Coupon Publisher shows a great example of how it’s done. Check out their website for more details.

Coupons and e-coupons go a long way for any restaurant business. It’s one of the oldest tried-and-true methods to boost sales during slow times, and it is effective even today.

Depending on your location and range of business, you can opt to offer coupons on a regular basis or during extended holidays. The coupons may range from discount coupons to offering free desserts and entrees. It’s this kind of flexibility that makes coupons a popular marketing tool for foodservice establishments. As a restaurant owner, the good implementation of restaurant coupons is your best friend.

Coupons attract customers. They motivate your employees. What more can you ask for?

Tell me what you think by leaving a comment below.

Get Rid Of Restaurant Marketing Campaigns That Don’t Work Once And For All

I had a good talk with a friend the other day about his restaurant business. Like most restaurant owners trying to crawl past the recession, he was having some problems, and he had hired a couple of consultants to help him get to the bottom of things.

This is what he had to say.

“You know something?” he said, putting down his cup of coffee, “These days so many people are trying to get your money, and I had to figure that out the hard way.”

“What made you say that?” I said.

“My consultants want to me give away coupons. They want to me build a website, to invest in a couple magazines, in the Yellow Pages. Heck, I’m not rich!” he said. “I wouldn’t have hired them if I could afford all those things.“

And he was right. These days marketing professionals have tendencies to recommend expensive restaurant advertising campaigns like they’re talking to Bill Gates. Small restaurant owners simply can’t afford all those stuff.

The truth is, all those restaurant marketing campaigns don’t mean anything—unless, that is, you have a vision in place.

Before you spend a single cent on your restaurant marketing campaign, ask yourself these questions:

• Is your restaurant struggling seven days a week and you’re looking to attract more clients?
• Or is it more like there are specific days where business is slow and you’d like fill them up?
• Did you just open your restaurant and you’re looking to generate awareness for it?
• Are you promoting an event?
• Are you targeting a specific market niche or customer profile?

So do you see where this is going?

A restaurant consultant should get these questions out of the way as soon as you sit down with him or her at the table. If he or she starts handing out your marketing options before these circumstances have been established, then you need to fire one consultant off the payroll.

Learn your situation first, what your restaurant needs, before figuring out which way to go. Doing it the other way around is business suicide, wasting your time and thousands of dollars in the process.

Play smart. Know your situation first before deciding on a restaurant marketing campaign. That’s what I told my good friend.

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