houstonrestaurants.com

Competing for Wallet Share

Published: 06/25/2010 by Mark Collins - Restaurant Consultant

» Dining

by Mark Collins, Consultant & Retail Industry Team Lead, TR Moore & Company

The bad news: May retail sales figures released this month showed the largest decline since September 2009, raising concerns about the strength of the economic recovery, according to the Retail Industry Leaders Association.

The good news: There are several proactive measures restaurateurs can take to bring in the business – and keep it coming back – in difficult times.

The better news: Master the restaurant pillars of great food, great ambience and great service now, and you’ll position yourself well ahead of the competition when customers start reaching into their wallets again. Here are six ideas to consider.

Do what it takes to drive traffic into the door right now. Few restaurant owners will actually take action to attract business in times like these. Most will focus on cutting costs versus increasing revenues.

This business is competitive even when shrinking wallets aren’t in the equation. To stay in the game, restaurateurs must give customers a reason to choose them over the place next door, the cheap fast food joint or the economical dinner at home. Implement special offers to bring customers in. Advertise to stay top of mind. Consider social media and e-mail marketing as less expensive alternatives to traditional marketing. 

Know your customers. Whichever method you choose to drive traffic, your message must be targeted and relevant to your customer base. Some words of wisdom from TR Moore & Company clients who serve the restaurant industry:

“Target, target, target,” says Tami Weitkunat, owner of media buying company Media Comp. “Know exactly who is walking through your door and give them a reason to walk through it.”

Sean Burnett, who handles retail industry accounts for Sugar Land-based Freed Advertising, agrees. “Restaurant customers who are doing it well are reaching out to their customer bases in very personal and intimate ways,” he says.

Noting customizable methods such as e-mail subscriber lists, Facebook fan pages, Twitter feeds and mobile messaging systems, Burnett says the key is staying relevant to customers’ lives. “For example, a very successful restaurant company in Houston is doing a great job filling its wonderful patios by reaching out to its growing customer base with daily 'patio weather' alerts,” he says.

Perfect your menu. Great restaurants feature items that people start to crave. Once you have items that customers can’t live without, you have perfected your menu. Build some creative menu options and look for ingredients that can help set you apart. Stick to the freshest products and avoid frozen items. Get back to making items from scratch.

In addition, perfecting your menu in today’s environment might include adding value items to provide a less expensive alternative, recommends Burnett.

Maintain quality. Don’t skimp on your procedures related to quality. When food products enter the store, check for freshness and ensure proper storage. In the kitchen, ensure food is properly prepared and served. Have your chef and general manager taste food to ensure quality. These are ongoing tasks that must be performed throughout each day.

Keep ambiance fresh. Never let the restaurant’s look get stale. Pay attention to the details – your guests will be. Start with the basics, such as changing burned out light bulbs and fixing broken toilet seats – you’d be surprised how many businesses ignore basic maintenance. Next, consider small, economical changes that can make a big impact. Ideas include new table lamps, staff uniforms, and fresh paint and colors. These are subtle changes that can help freshen up your look while maintaining the comfortable and personable feel of the restaurant your customers enjoy.

Provide superior service. Once you have perfected the food, created the ambiance and driven the customers in, it all comes down to service, and superior service starts with effective training. Training must be constant, and must be conducted by people who take pride in their work and care enough to monitor service on an ongoing basis.

As Consultant and Retail Industry Team Lead at TR Moore & Company, Mark Collins leverages more than 25 years in the restaurant industry and COO/CFO roles to help clients in areas such as operations, training, and sales and marketing. He can be reached via e-mail or at 713.789.7081 x 342.

 

Copyright © 2010, TR Moore & Company, P.C.