Better Profits

Enough Is Enough

Posted on Apr 10, 2008 in Better Profits, How We See It Blog by Jeffrey Summers 0 Comments

I’ve been in the Restaurant business for 27 years and it still amazes me how so many people think that all business is related – that what worked for GE or IBM or the record store down the street or the hot dog stand across town must also work for you. That’s wrongheaded thinking. If you listen to people who have never been behind the food counter, or in the kitchen, or at the table, or had to manage a payroll, then you get what you deserve. If you need your brain operated on, do you really want to settle for the guy who slept at a Holiday Inn Express last night?

Here’s my top 5 thoughts.

1. Talking about tactics without a sound strategy is just plain dumb.
2. Sampling doesn’t work for restaurants. Why? Because the person you’re giving food to isn’t sampling your product! If you think you’re in the food business, you’re wrong.
3. In an industry with a less than 5% margins, giving away food is insane. See #2 above.
4. Discounts, coupons, etc. won’t do it either – especially when you’re not even at break even!. You can’t buy engagement or loyalty.
5. If you can’t understand the problem. Shut down the effort. Trying to overcome a weakness is not going to get it. Concentrate on what you are doing that’s working – then do more of it! Save the resources for the areas that are making you money – not the one’s that aren’t.
5b. Best practices are the milk of mediocrity. Doing what someone else does will only get you their kind of business. Define yourselves and what you have to offer. Position yourselves accordingly in your market. Target those people who want what you have to offer and talk to them in a media they choose. Listen and change appropriately. Wash. Rinse. Repeat.
5c. Stop whining about the economy and understand the guest making the decision to not sit his butt in your seat is doing so because you are not giving him enough of the right information on the value you have to offer him, for him to make such a decision!
5d. Raise your damn prices already!
5e. Create some value!
5f. Answer a problem, or find a need/want/desire and then fill it!
5g. Stop blaming your staff for your lack of training, Coaching, leadership, etc…Besides, you hired them!

That’s enough. Any questions?