Source: articles
The Chains are winning, and it’s all in the Marketing.
- By Bob Bradley
Independent Restaurant Survival in a Mega-Chain World
- By Ron Gorodesky and Ed McCarron
Bob’s articles are given evidence of how and why the chains are having stronger position in the food service industry, it’s all about marketing.
“When it comes to marketing, the independents imply can’t compete with the chains, because when it comes to advertising, money wins, and by definition, the independents can’t compete. One guy is talking about his “word of mouth” advertising, and the next guy is spending millions on a national TV campaign. And people do watch lots of television, and they are absolutely influenced by advertising. the best proof that advertising works is that customers stand in line at the chains, and guess what - according to the survey to some 200 chain exucutives, 2% of those customers are concerned about the quality of the food and the service. 98% don't care or they just assuming that the food and service is fine. what's really important to them is the cost and the atmoshere, (and all that fun as portrayed in the commercials). "
SO, how do independent restaurants survive? Based on Ron and Ed's article, they spent years of observing and tracking the restaurant industry and working with restauranteurs to develop highly successful operations. There are 5 key points for continued success fo indepedent restaurants.
1. Emphasize Quality
Remember that quality food and quality service is what keeps customers coming back. Additionally, remember that most chain restaurants do not have an owner in the store, giving you, the independent restauranteur an advantage - the care and passion of the owner involved in the day-to-day operation of the restaurant.
- with your presence add a personal touch and get to know your clients - the food and drinks they enjoy, their favourite table, etc... let the guests know you remember and appriciate them.
- regularly check the food : Is it hot enough? Does it taste as it should? Dose it look appealing?
- regularly watch the service style: Are the tables set correctly? How long are people waiting for the food? Does the server explain menu items and answer guest questions appropriately?
Your attention to detail and emphasis on quality will transfer to your employees by their understanding and striving to reach the standards you set and exhibit. And Again, talk to your guests, make sure they are receiving food and service that is beyond their expectations.
2. Flaunt Your Uniqueness
As an independent operator, you are not a cookie cutter replica of fifty other restaurants. Let your current and prospective customers know what makes their experience at your restaurant unique. Play up the elements which constitute the magic of your restaurant.
- Feature Chef or owner specilties and have he Chef circulate in the dining room, interacting with your guests.
- Exploit your ability to react quickly and make changes based on customer needs and suggestions.
- Project the magic in your marketing. Highlight the phenomenal view, service style, Chef masterpieces, atmosphere or the combination that makes your restaurant different. Let people know that an incredible experience awaits them at your restaurant.
3. Empower Your Managemet Staff
Independent restaurateur must compete with chain restaurants for the best and brightest managers. Chain restaurants can promise upward mobility to other units in the chain and attractive benefit packages; features that are not as predominant at indepedent restaurants. To counteract this, you need to give your managers a sense of ownership of the restaurant and a meaningful incentive compensation program which rewards them for your joint success.
Empower your management staff by giving them the resposibility and authority to run all aspects of the restaurant. Involve them in all areas of the operation including menu item selection, hiring personnel, equipment purchases and the compensation program details. Provide your key managers with financial information to make effective decision. Giving your managers a pivotal role in the success of the operation, allowing them to take care of the business, results in increased commitment from your managers and a well-managed operation.
4. Be Wary of Discounting
Indepedent restaurants are the primarty target of numerous coupon books and other discounting schemes. To restaurants in trouble - tax problems, supplier problems, mortgage problems - the money offered by discount houses seems appealing. However, afer you've given out food (and been paid approximately 50% of its value by the discount house) and the old debts are paid off, new debts have arisen and you think about starting all over again, and again and again...
Coupon clippers are loyal to the coupons, not to your restaurant. Discounts water down the value of your product. Remember, coupon clippers are paying what the meal is worth. Everyone else is overpaying.
5. Understand the Business of Your Business
Go beyong the passion you have for good food and a great dining experience - understand the business part of the business. Independent restauranteurs do not have the advantage of a well-staffed accounting department to watch the financial statements that chain operators have. You need to create a management information system that provides you with meaningful, accurate and timely information. Standardize your numbers so you can compare them with industry averages and previous performance.
It is not only about great food and service. It is the uniqueness and enthusiasm that excite consumers and keep them coming back.