Better Profits

Restaurant Marketing In A Downturn

Posted on Nov 18, 2008 in Better Profits, How We See It Blog by Jeffrey Summers 0 Comments

My last post dealt with an very broad approach to your business overall during a downturn. Now let’s talk about a few things that address marketing your business in a bad economy.

1. Know your guest. Who is your core guest in your target market? Is this who you truly want? Need? Should you be targeting a different market? How price sensitive are they? What is selling and what is not? High margin items or low? Why? If you can’t answer these questions, you are in for a much rougher ride.
2. Put the focus back on families. If your business includes a family component then realize that families pool resources and hunker down together so specifically targeting them with offers and products that hold superior value compared to your competition, will get you more business. If you do not have a family focus, maybe you should have?
3. Roll out new menus and items. This is the perfect time to revamp and renew your menu offerings to create buzz and keep your concept fresh in the minds of your guests. It’s also the most cost effective way of innovating your business to help sustain momentum. Don’t forget to look at signature items, daily specials, limited time offers, etc… to drive buzz. Also, if you took a menu price increase to offset rising costs – and you should have – do not roll back those price increases, thinking you will drive more business. What if costs go back up? Can you afford to keep your guests on a pricing roller coaster? Accept the new pricing levels and reconfigure your business plan accordingly – your guests have.
4. Look for ways to add value to your large check business guest. Do you have a business credit program for area businesses to charge lunches for its employees or catering and pay for it over time? A gift card/certificate program for them that offers increased value with their purchases? Is it time to start delivering in order to set yourself apart? What are you going to do/offer different for seasonal events or corporate functions? How will you market it?
5. Continue to look for ways to cut the fat out of your operation without cutting into the meat of your concept that can hurt the guest experience. Use this savings to address the opportunities to reward high LTV (lifetime value), loyal guests more.
6. Make sure you are executing the basics on an “every guest, every table, every day” basis. Maintain and stress your core values of service and excellence to ensure great guest experiences. Coach your staff at the point of action to help drive home the appropriate level of urgency and thinking that is necessary to make great decisions and build the best culture in your business.