You Don’t Have To Be An Award-Winning Novelist To Write An Effective Restaurant Newsletter

I once sat down with a relative of mine over coffee to talk about restaurant marketing. We talked about a lot of things, but mainly about her restaurant newsletters. She said she’s had great success as a restaurant owner thanks to her newsletters, which brought her more clients and patrons than she could ever imagine.

Here’s a brief excerpt of our conversation.

Q: Where did you get the idea to start a newsletter?
A: I’m a restaurant owner. I’m a business woman, you could say that, but I also love to write. I guess it’s this love of writing that urged me to sit down and write an “experimental” newsletter for my restaurant. Before I knew it, I was getting calls out of nowhere—take-outs, events, etc.—mostly from people who’ve read the newsletter and had become interested in my restaurant.

I said to myself, I might be on to something good here…

Q: I told you there was something special about newsletters. When done right, of course. How many years has it been?
A: Yeah. When I realized newsletters were actually effective in marketing my restaurant, I remembered your advice about them when I was first starting out. I’ve been writing newsletters for about three years now.

Q: I remember you sending me an email one time about how you were shocked when you stopped sending them for a month or two?
A: I did. I remember that. I think it was about a year ago, when something suddenly came up in my life that I needed to fix, and I couldn’t find the time to write newsletters. So I stopped sending them out for about two months. You wouldn’t believe how much business we lost during those two months. I didn’t expect my newsletters had this much impact on our sales until that time.

I guess you really need to try it out and see things for yourself before you jump to conclusions, especially when it comes to newsletters.

Q: What’s your style in getting more subscribers?
A: I’ve tried lots of approaches. But a really effective one is to tempt them with a promo—say, free wine for three. If they come in and make a reservation for three people, they get to sign up for our in-house wine event and receive the free wine. Right now I have 1,500 subscribers, give or take a few.

Q: Did you think about what I wrote you about putting ads in your newsletters to cut down on costs?
A: There was a time when I did consider the option. But I didn’t follow through. You see, I was too busy managing the restaurant and I simply didn’t have the time to shop around for advertisers trying to pick out the best deal. I could hire someone to do that job, but that would just defeat the purpose, don’t you think?

I guess it depends on how much attention you’re willing to put into your restaurant newsletter. Hiring that sales person could still offset the cost of having to shoulder the entire thing yourself. All you need is time to balance the figures out. Anyway, successful as I’ve been with my restaurant newsletters, I’m not spending too much on them, so in my case I didn’t think it was worth the hassle.

Check back on Restaurant Marketing Zone next week for more restaurant marketing tips.

Discover The Insider Strategies That Make Your Restaurant Menu An Important Part Of Your Marketing Scheme

A friend of mine once asked, “I recently hired a restaurant consultant. What else can I get him to teach me other than how to manage my business?” I raised the coffee to my lips and gave it some thought. Then I said, “The second most important thing you could get a consultant to teach you is how to design your restaurant menu.” I looked at my friend. “Yes, that’s about right,” I said.

Most people think the point of a menu is to show the customer what’s available in your restaurant. But here is the thing. The restaurant menu can also be designed in such a way as to steer the customer away from the unprofitable (but cheap) dishes and draw their attention towards the more profitable (but more expensive) offerings. This is where the restaurant consultant comes in.

But you don’t always need a restaurant consultant to tell you what to do. Here are a few basic tips on how to design an effective restaurant menu that works.

1. Look up, and then to the right
The upper right corner of the restaurant menu is crucial because the customer’s eyes instinctively float to this area upon sitting down at the table and opening the menu. Place a delicious, high-quality photograph of one of your most profitable dishes in this section.

2. No Man’s Land
This is where unprofitable menu items go. No Man’s Land is the most inconspicuous section of your restaurant menu.

3. Menu price anchor
Below the photograph is the restaurant’s menu price anchor. Here you can strategically list expensive dishes alongside menu items with high profit. The aim is to create the illusion of your high-profit offerings being “cheap” compared to your most expensive—but low-profit—dishes, whose main purpose is to create that illusion.

4. Special boxes
Dishes, or beverages, in boxes draw the customer’s attention. What’s so special about that seafood dish that they put it in a box and not in a list alongside everything else? Your customers will find the answer when they order it.

5. No columns, please
Most restaurant owners do this. But top restaurant operators know better than to design their menu items in an ordered list and encourage customers to choose from the cheapest dishes available. If it can’t be helped, at least stay away from leader dots connecting the names of the dishes to their respective prizes.

The restaurant menu is an important part of your – or any other restaurant owner’s – marketing scheme. Design it carefully. If you have to, hire a restaurant consultant just for that purpose. You won’t be disappointed when customers are ordering your most profitable dish offerings.

Why Aren’t You Advertising Your Restaurant To Baby Boomers?

It’s the year 2010, a fresh start, a new beginning. It’s time to put your focus on how to reach out to one of the wealthiest generations in history – the baby boomers. Sit down and take time to realize how some of the most successful restaurant franchises nowadays appeal to baby boomers more than anything.

Experts say baby boomers seem to favor the unconventional. And it makes sense – baby boomers began their lives during the economic boom of the 40s and 50s and then flourished in the 60s during the cultural revolution. It’s no wonder baby boomers respond well to unconventional advertising methods.

Here are a few unconventional advertising techniques you can use to market your restaurant to baby boomers.

In-house advertising – Baby boomers like to eat out more than any other generation before them—or, at least not since Vlad the Impaler. You can place advertisements at strategic locations, such as on the door of the cubicle in the bathroom. Hook them in at their most vulnerable moment!

Advertising in airports – There’s no question that baby boomers love to travel. As a restaurant owner, you should take this opportunity to invite foreigners to dine at your restaurant, and remind out-of-towners to visit your restaurant again when they return to the country.

Advertising in movie theaters – Hollywood made and continues to make a lot of money from baby boomers. Why can’t you, restaurant owner? Advertising in movie theater lobbies and restrooms are unconventional, yet effective, ways to market your restaurant.

Mobile advertising – Everyone owns a mobile phone these days. Even baby boomers. Mobile advertising is a great way to market your restaurant to people on the move.

Advertising in golf courses – If there’s anyone who loves to play golf more than anybody, it’s the baby boomer generation. Look around your local golf club courses and check for advertising opportunities. Baby boomers love to socialize. When they’re looking for a place to talk with friends after a relaxing game of golf, they’ll see your restaurant.

Browse our pages for more information and restaurant advertising tips.

8 Sure-Fire Tips To Improve Your Pizza Menu Design For Your Restaurant

I have a friend who is a marketing major. He drives a car to work every day. But every so often his car breaks down—the engine won’t start or else one of the tires gave out overnight—and he has to commute on his way to work. I have never seen my friend try and fix the car himself. And I bet neither would you. My friend knows something most restaurant owners don’t – just because you own a car doesn’t make you an auto specialist.

The same is true for pizza restaurant owners. Owning a restaurant doesn’t make you a business advertising specialist.

Thing is pizza menus are critical to the success of a pizza restaurant business. Pizza menus help find new customers. They advertise your menu items, the quality of your ingredients, the history of your establishment, and help keep loyal patrons in place.

Here are 10 tips for creating and designing an effective pizza menu for your restaurant:

1. Don’t force yourself to design a pizza menu. Hire a graphic designer to do that job.

2. Put some other purpose on your pizza menu, such as making it a monthly calendar.

3. Remember to include your brand name and contact information (contact nos., address, etc.).

4. Make sure to highlight the company or restaurant logo.

5. Choose your distribution method carefully. Keep in mind your budget for this one. Are you going to distribute it as handouts in high traffic areas? Or are you going to put it in a popular local magazine?

6. Slip in a coupon or two to come along with the pizza menu.

7. Keep the design clean and easy to read. Cluttered and messy designs aren’t very attractive.

8. Use high-quality pictures of your pizzas and menu items. Also use high-quality, glossy paper.

Simply put, a pizza menu is a must for every pizza restaurant establishment. It’s guaranteed to bring a lot of good things on your table. That is, when done right.

Share your tips on pizza menus by leaving a comment below.

Do You Make This Mistake Of Offering Very Low-Price Meals In Your Casual Dining Restaurant?

Last year restaurant owners had it tough when the term “economic recession” entered the household vocabulary. Customers tightened their belts, and only a few restaurant brands—McDonald’s, Burger King, etc.—continued to earn good money. Casual dining establishments were hit the hardest.

This year we’re seeing some good signs of recovery, but not enough to put casual dining restaurant owners back into their comfort zone. My one advice is to be careful with your promotions.

Take the “low prices” concept of fast-food dining chains. In an attempt to attract more customers, some fast-food chains decided they would sell $5 meals, very cheap. $5 burgers, $5 fries and milkshakes. But the thing is some casual dining restaurant owners saw the idea and liked it and thought to implement it in their own restaurant brand.

If anything, it is a recipe for disaster.

Here are five reasons why you shouldn’t even think about offering $5 meals in your casual dining restaurant.

1. Truth is these “low prices” promotions rarely hit it big enough to create a new level of business for your restaurant
2. Cheap prices invite one-time customers and seldom loyal patrons
3. Offer a very cheap value meal long enough and your customers will reject everything that goes out that price range
4. It’s harder to go back to your original pricing than it is for customers to get used to your “new prices”
5. Your restaurant will carry the burden and financial loss coming from the promotion for a very long time

TGI Friday’s had to learn it the hard way when their management decided to jump on the wagon and offer an entree at $5 per order. Friday’s management said they wanted more exposure for their new salads, but no one in the industry was dense enough to believe it. Friday’s wanted to compete with Subway’s QuickServe campaign. Period.

The plan backfired. Long-term sales dropped, thanks to their $5 new salads. It also caused them extensive brand damage, something the management at Friday’s is struggling to put back together to before the promotion. Simply put, the QuickServe promotion has no place in the casual dining market.

As a casual dining restaurant owner, you’d do well to remember that. Cheaper offers are okay. But learn to draw the line somewhere. Don’t be too cheap as to look cheap.

Let me know your opinion on “low prices” promotions and casual dining restaurants by leaving a comment below.

Do You Wish There Was An Easier Way To Control The Gray Areas In Your Restaurant?

Last night you caught one of your waiters take a sip of iced tea from the bar. It was a busy night. The tables were full, and you thought you’d let him off the hook just this once.

You call it shrinkage. The waiter calls it “It’s just iced tea, and it was just a sip.” I call it the gray area.

Gray areas are small things that cause discrepancies in the work place – in this case, your restaurant. It’s just small things. But they add up over time, especially if the employees develop the habit of abusing them. Take a long hard look at your restaurant’s work culture. Does the environment promote honesty? Or do your employees cross the line to the gray area every chance they get?

I say it’s time to put your foot down and get this thing straightened out. Too much gray area is bad for your business.

Let’s see, what are your thoughts on these “gray area” situations?

• Free meals or drinks for every relative or friend who comes to visit.
• The rules allow the staff one drink at the end of the night. They each take two.
• Cooks burn ingredients all the time.
• Employees use the office computer to type a resume for another job.
• A waiter takes the initiative and says to the customer, “Sir, I’m very very sorry for the slow service. If it’s okay with you, sir, I won’t charge you for that.”
• Cook comes to the alcohol bar and says, “I have a friend who I haven’t seen in a long time visit me. Could you spare him a glass?”
• The staff uses the company phone for personal calls.
• Bar managers accepting gifts from food suppliers as bribes to secure an account.

The company’s—or your restaurant’s—Code of Conduct should address these gray areas clearly to avoid confusion later on. If it’s your first time running a restaurant, I suggest you hire a restaurant consultant to help you sketch the blueprint of your Staff Manual.

Leave your comments below.

What Everybody Ought To Know About Restaurant Loyalty Rewards Programs

A steady flow of customers coming in and out the front door is no guarantee you’d still be in business five or ten years from now. Habits change, people change. Especially in this economic situation, you need some kind plan to make sure your customers have a reason to keep coming back in your restaurant.

Here’s a story from QSR magazine.com.

This guy named Brandon Ansel was a regular at Steak n Shake. He was a patron, a pure loyalist in every sense of the word. But for some reason his habits changed, and he stopped going to Steak n Shake completely.

More than one year later Ansel received a promotional coupon from Steak n Shake in the mail. He decided to avail it and—guess what?—he’s back on the bandwagon.

Ansel says,

“That coupon came because [Steak n Shake] knew I was once a regular, and it got me back in the door. I’ve now been back there five times in the last month alone.”

He knew exactly what happened. Ansel owns a Roly Poly and a Biggby Coffee in his local town, and he acknowledges the importance of loyalty rewards programs to retain old patrons and customers. He goes,

“We are creatures of habit, and loyalty programs reinforce habits. If we don’t have a way to constantly stay in front of customers, we run the risk of them forgetting about us and developing other habits.”

As a restaurant owner, you should seriously contemplate on developing your own loyalty rewards program. Like Ansel, who knows when some of your patrons decide all of a sudden that the coffee tastes better across the street? Think up of a plan that would give your customers a reason to keep choosing your restaurant over your competitors.

But take note the ultimate goal of loyalty rewards program is to establish a long-term relationship with your customers. Don’t confuse that with a sudden, but brief, spike in sales. CEO of IdeaStudio Lori Walderich says,

“Quick-service operators need to remember that programs work best if they’re structured in a way that rewards customers when they step up their loyalty just a notch,”

Find a way to reward not just repeat visits, but also the frequency of those visits. You’ll see your sales will improve and, more importantly, sustain itself over time.

You can read the full article here.

Share your tips on loyalty rewards programs by leaving a comment below.

How To Attract New Customers And Keep Loyal Patrons Through Restaurant Marketing On Twitter

An amateur restaurant owner goes, “What’s so great about online marketing for restaurants?” I go, “It’s simple, it’s easy, and it will only cost you as much as you’re willing to spend on the promotions alone. The advertising itself is free, or almost free.”

As online restaurant marketing goes, one of the most popular and effective medium right now is Twitter. Yes, that social networking website that lets users post small messages comprised of 140 characters or so. It’s amazing what technology can do to help businesses these days.

Here are some tips on how to work your restaurant marketing on Twitter.

Let them in on a little secret
The works: Tell our waiters the password “I like it shaken and stirred,” to get your free martini. I only have 50 glasses to give away.

Effect: This kind of marketing works because it lets your customers feel they’re getting some inside information that you feel only they deserve to enjoy.

Offer a tempting impromptu special
The works: Our bartender seems to have hit something good this time. Come in before 10PM tonight and be the first lucky 20 folks to taste it – free!

My pasta chef is feeling creative tonight. Be the first 5 customers to say “creative” in front of him to try out his new limited time-only dish.

Effect: This is great for transforming slow days into busy nights. The trick is to get customers through the front door using Twitter marketing. Keep them seated long enough and they’ll get hungry and spend more.

Reward your patron customers with specials
The works: Sign up for our free monthly newsletter and get another thing for free – entree coupons for Valentine’s Day!

Effect: You invite them into your restaurant and get valuable information in the process. Two birds with one stone.

Twitter is simply amazing for the attentive restaurant owner. Share your tips on restaurant marketing on Twitter by leaving a comment below.

Get An Instant 20-30% Increase In Sales By Recreating Your Restaurant Menu

Some restaurant owners like to rearrange their tables. Some make changes to their operations. Some fire and rehire servers and kitchen crew, in an effort to increase sales.

But if you really want to boost your restaurant sales, you only need to take a look at the menu. Here are some tips to get your started.

1. Make smaller denominations work to your advantage
Flat menu prices are good. But they could be better, especially since most customers tend to ignore anything less than a dollar. Instead of prices ending in .00—for example, $5.00 or $12.00—why not create adjustments to make them $5.50 or $12.80?

It’s easy money waiting for you to earn.

2. Put the most profitable items at the top of the menu
Here’s something most restaurant owners don’t know: the top menu items often sell more than the ones at the bottom.

So what you should do, as a restaurant owner, is asses which menu items nets you the most profit and move them to the top of your menu where customers are most likely to order them. The same applies to the wine and beverages menu.

3. Insert a decoy price into the menu
This is a time when everyone’s looking for value, and this simple trick is going to make your menu items stand out knowing this fact.

Insert an expensive dish into your menu. Let’s say most of your menu items are within the $5 to $15 price range. Now if you add a single dish that costs $29.80 at the bottom of your menu list, the other prices are going to look more reasonable, right?

I understand that the $29.80 dish isn’t going to sell very well. But that’s not the point. It’s a decoy item after all.

What do you think? These are simple ways to renovate and increase sales without the hassle of firing one of your servers.

Check back tomorrow for more restaurant marketing tips.

Finally Revealed! What Makes A Solid Restaurant Business Plan?

Everybody wants to start a nice business. Easy to manage, a steady flow of profit, gives a sense of accomplishment at the end of the day. Most people want their first business to be a restaurant. It’s possible, but before you sit down and begin imagining your menu, first you need to imagine your business plan.

A business plan is essential in starting a business – any business. If you’re looking to start your own restaurant, here are some tips on what to include in your business plan.

1.    Executive Summary
The executive summary opens the vision of your restaurant to possible investors. It is the opening paragraph in a novel. So you need to make it interesting, and grab their attention by the balls.

Discuss your choice of theme, the style of the restaurant, and other ideas for the business. Explain why opening a restaurant is best and not a hardware store or a computer cafe.

2.    Business analysis
This section explains the technical side of the restaurant in greater detail—location, style of interior decoration, legal name—as well as a brief overview of the market study, including the local competition.

3.    Marketing Strategy
This section is divided into three parts: Industry, Competition, and Marketing.

Industry. What is your target market? Are you going to be serving fine dining to adults? Or cheeseburgers and chocolate milkshake to young kids?

Competition. This is pretty much self-explanatory. Here is where you go into detail about the competition in your local area of business.

Marketing. How are you planning to promote your restaurant?

4.    Products and Services
This section discusses the operational flow of the restaurant. For example, how many hours you plan to open for business and how many employees you intend to hire.

5.    Ownership and Management
Who gets to take the director’s chair, or the helm as captain of the ship? Who’s in charge of bookkeeping, general management, human resources, etc.? Explain it in this section.

6.    Funding
When all is said and done, the last part of your business plan – Funding – should get down and dirty and discuss who is going to shoulder what expense? How well you write and plan this section might very well spell the difference between multiple investors and sole proprietorship.

When it comes to opening a restaurant, before you become a restaurant owner, first you are a businessman or business woman. Don’t let your hopes and dreams get ahead of you. Think objectively, how you’re going to go about this and that thing, before approaching your friends for business partnership. You need to write a solid restaurant business plan to convince them your dream restaurant is worth turning into a reality.

Tell me what you think by leaving a comment below.

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