Restaurant Merchandise

Updated September 30th, 2013

Selling non-food items can cause a proliferation in your restaurant’s profits, but it is an entirely different business with principles that you should be aware of.

Contrary to what many restaurant operators mistakenly believe, selling merchandise is an endeavour open to restaurants other than chains and theme restaurants. Truth be told, restaurant merchandise can be a hot commodity, but it requires the establishment of a loyal customer base beforehand and the development of originality. Uniqueness can be marketed, for it is uncommon and extraordinary for that reason. People hardly ever spend large amounts of money for a product that is typical or so overdone that it’s a cliché.

The following are reasons to sell merchandise:

• To Boost your Proceeds

 

Every year, restaurants across the globe sell more than 700 million T-shirts. In fact, some of the most successful chains such as Hard Rock Café, Planet Hollywood and Cracker Barrel make a hefty portion of their profits from this area of business expertise. And it is unnecessary that the merchandise have grandeur; simple, but transferable and treasurable items such as gift certificates, coffee mugs, cookbooks, and calendars will do!

• To Get Paid to Market your Restaurant

 

Each piece of branded merchandise that exits your restaurant generates profit on two levels: immediate and eventual. A T-shirt with your logo on serves as a mini-advertisement for the restaurant. In essence, people are paying YOU to market for your establishment. It’s a cycle: customers buy the t-shirts or merchandise, exposing other people to the logo and the existence of your restaurant, eventually leading them to support your restaurant until they buy a t-shirt of their own, continuing the sequence.

If you have decided at this point that merchandising is a worthy enterprise, consider these items:

• Gift Certificates

 

Gift certificates are made easily and cost efficiently, and are extremely desirable during the holidays. To give you something to wrap your head around: ¼ of the gift certificates will never actually be used, which means that you are capable of actually earning something for nothing- receiving money for supplies that you never have to expend. They are also decent at forging new customer relationships, since people usually give the gift certificates to their friends and family who have never visited your restaurant. You will benefit whether the certificate is redeemed or not.

• Cookbooks

 

No matter how much your customers may admire your dishes, ensure that you are not giving away any secrets. You should include only your simplest dishes and recipes for discontinued specials or former menu items that you are no longer serving. You wouldn’t want to accidentally put yourself out of business attempting to make a few extra dollars. The competition is fierce.

• T-shirts, Hats, Mugs, etc.

 

The centrepiece of your souvenirs should be your logo or slogan because this business is all about getting your name out there as definitively as you can. There are companies that are able to print your logo on hats or t-shirts, or you can purchase logo printing equipment for your glassware. Bars and coffee shops should predominantly consider selling glasses and coffee mugs before all other merchandise, as THOSE items are their legacy- their identity.

• Packaged Food Items

 

Food and drinks are the lifeblood of your establishment, propelling it further into success. Selling your edibles to be taken home is an idea worth turning into reality. For example, if your restaurant has gained fame for its BBQ sauce or salsa, consider offering packaged bottles or jars that your customers can use at home. For whole pre-prepared dishes, you can use a machine to package your goods and sell them to customers in an airtight, vacuum-sealed manner.

Selling Your Merchandise

When you price your merchandise, you will want to follow the same guidelines that you use when pricing your menu items. If your restaurant is value-oriented, your merchandise should be, too. You can sell your retail through any of the following means or networks:

• The Display Case

 

Put your merchandise on display in a prominent place of the restaurant for everyone to see.  It could be adjacent to the point of purchase or behind the bar. The point of purchase is generally the most suitable place for merchandise, since it facilitates impulse buying. Make sure the display is easily visible and appealing, since a messy display will never sell merchandise; nobody buys into clutter, so make the first visual experience a powerful one. Also be sure the prices are visible, as the majority will not make an effort to decode any difficult messages.

• Online 

 

If you have not already created a restaurant website, do so, because it is arguably one of the most populated markets of our day. People enjoy the ability to remain at home, yet accomplish the things they have planned. Connecting with the Internet opens your restaurant up to a brand new pool of untapped clientele. Social media will also benefit the welfare of your business by allowing you to communicate with millions (upon the millions you’ve already made contact with through being on the Internet) through a measly couple of taps on the keyboard.

• Local Retailers

 

Finally, ask local stores for their support of your small business, namely through vending your products as well. Many gift shops will sell your restaurant’s souvenirs on commission. If you are selling your own packaged food items, you can distribute them in the refrigerated or frozen section of a local grocery store if the manager clears it.

Even if you think you will never make profit selling merchandise, it is probably worth a try. Purchase one set of merchandise and see how it goes. If you cannot sell the items, you can always use them as promotional gifts. If you can sell them, you will reap double the awards in the form of extra profits and free advertising.

Written by Daniel Grossmann

Advertising within a Restaurant

Updated September 29th, 2013

Learn how to increase your sales and strengthen your restaurant’s brand awareness with merchandising, POP displays and advertising inside the doors of your restaurant.

Though it is effective, you should not limit yourself to advertising only outside your restaurant, as that is similar to applying only half of your resources towards your work. In fact, the interior of your restaurant is a wide expanse of space, a canvas of sorts that can be utilized for displays, merchandising or food photography. For example, the area near the point of purchase (POP), where customers pay for their food, is ideal for marketing your merchandise and depending on the service type, the POP can be the counter near the cash register, the area behind the bar or even a table where customers eat and receive their bill.

If you are a fine dining establishment, you should be careful not to display gaudy ads in your dining area, as it detracts from the sophistication of your restaurant. However, casual full-service and quick-service restaurants can experience a tremendous growth in profits by making full use of their empty space. In particular, merchandising and POP advertising can benefit your restaurant and its name with the following:

Impulse Buys

When a customer is standing near the cash register, ready to pay their bill, it isn’t very difficult to sway them into spending a few extra dollars and this can be done without words. Display merchandise, mints and candies, pre-packaged food and baked goods near the counter to encourage impulse buys when customers pay their bills. Humans are visual creatures and a well placed, quality image or product can seal the deal.  You can also appeal to humans’ attraction to beauty before they even get to the bill-pay counter. Table tents are a simple way to incite impulse buys of appetizers or desserts. Showcasing homemade baked goods in a bakery display case near the entrance of your restaurant can also increase dessert sales. Either they’ll crave them coming in or they will remember them at the POP and purchase them on the way out. Moreover, according to research published in Bakery Production and Marketing, half of casual dining customers would visit a restaurant more often if it had a bakery. This is definitely an option to explore to bring in more revenue.

Promoting New/Profitable Items and Upcoming Events

Promotion is a process that should occur on a regular basis. Customers tend to forget about a special item if they are not presented with it regularly. Again, the most suitable route to earning the attention of clientele is through the eyes, as people do not want to hear a 30-second spiel about much of anything. A quick, snappy, memorable poster or photo is the proper medium to launch the sales of new menu items or increase profits by selling more often. The former applies also when discussing upcoming events, in addition to the use of small (eye-catching) flyers or miniature reminders. The customers you already have are the ones that are most likely to attend special events and promotions in the future, so it is essential that you keep them informed.

Branding

In the vein of visuals and their vitality, reinforce your positioning and include the SAME logos, slogans and designs on your marketing materials. The more frequently customers see your name and designs, the more they will remember you, since they have an “image” to associate with your brand. Ponder for a moment the importance of brands in our culture. When people buy, they buy based on the name, for they know that it will guarantee them quality and a particular sort of service. Make sure that your name makes a name for itself.

Types of Merchandising and POP Advertising

To recap, there is probably a bit of free space in your restaurant that can be used for advertisements, whether for other businesses or for displaying your own restaurant’s design concept and products. You should consider showing off your own food, merchandise and events in a similar way with table tents and the following tools:

Wall hangings and signs

Posters and signs with your logo and/or photos of your menu food can stimulate customers’ appetites, increasing the likelihood of those particular items being sold.

Digital advertising displays

As long as it does not begin to look cluttered, merchandising and advertising displays can support your branding efforts and help you increase profits. Digital advertising displays work exceptionally well for quick-service restaurant.  This is because they give customers something to avidly do as they wait in line to order and more often than not, the order of a customer will positively alter, as their hunger is amplified by the desirable images. Create your own displays if you are artistically talented, or hire a professional to design your merchandising and advertising displays. Either way, be sure to feature your newest or most profitable items. You can also use these digital displays to advertise upcoming events or products.

Written by Daniel Grossmann

Inverted Deals versus Daily Deals

Updated September 28th 2013

Many business owners use daily deal sites to attract new customers, and some find that these promotions do not provide sufficient return on investment. Here are some research results indicating that inverted deals represent a solution to daily deal problems.

Daily deal sites such as Groupon and Living Social take a cut from the profits and offer menu items at a lower price. Owners have become increasingly doubtful that this is an effective tactic for reaching future regular customers. But what is certain is that it helps to promote the restaurant to a new audience so we fully acknowledge the magic of this promotional tool.

Inverted deals are similar to daily deal promotions, but the consumer does not need to purchase a coupon online. Under this system, consumers sign up and pay a small amount for a deal online and pay for the discounted item on location rather than in advance. Companies such as LevelUp or Mogl provide the platform for customers to find out about these deals as well as the means for businesses to track how well a promotion is working.

It does not seem like such a small adjustment could have such a great impact on profits, but this type of deal provides a solution to the two main problems associated with daily deals:

The first problem with daily deals is referred to as “price renormalization.” Price renormalization is the phenomenon in which consumers begin to perceive the value of a product based on its discounted price. By paying for a discounted product upfront, consumers are no longer willing to pay the regular full price for any given item. The reason that this is not a problem with inverted deals is that consumers are required to think of the item or service in terms of the full price before the discount is applied. This makes it more likely that they will come in to a business and pay full price in the future.

The second problem is known as “benchmarking.” When a customer buys a coupon that has a value of 10 dollars he or she is likely to try to keep purchases under that amount, which means businesses are losing upselling opportunities and therefore profits. With inverted deals, consumers make their purchasing decisions before the deal is applied and therefore do not have a fixed limit in mind.

It was with those solutions in mind that inverted deals were invented, and indeed they sound all very nice in theory but below are some general findings:

• On average, customers that use inverted deals return three times after trying the program.
• More than 50% return within the first 30 days.
• Consumers pay 20% more than the amount offered by the deal.

 

Promotion through daily deals has a great impact on bringing people to a venue for the first time and is recommended for anything extraordinary so that people have more fuel to virally promote the message further. The main issue that still remains is whether the same client will come back. Inverted deals could provide the right balance between value for the customer and value for the business owner in order to be a winning marketing tool.

Written by Daniel Grossmann

Restaurant Marketing with Cooking Classes

Updated September 27th 2013

Share your cooking knowledge and let people engage with your kitchen and learn from your professionalism.

In an era of “do it yourself,” many people today are looking for ways to create something of their own. These same people are looking to understand how something is made in order to place special value on it. In short, they want to cultivate a better appreciation for the things they spend money on. Combine this desire for creation and value by providing a new and interactive experience for your customers, host educational cooking classes. That’s right, cooking classes. The best about it is, it goes viral and people like to talk about you, the business, the Chef and the experiences or know-how gained.

Organization

Pick an item from your menu that is commonly ordered and even more commonly prepared incorrectly at home. Learn the history of that item, its ingredients, the origins of the recipe and possible variations to accommodate allergies or dietary restrictions.

Popular kitchen workshop themes are:

• Sauces
• Stews
• Special meat or fish dishes
• Holiday Dishes

 

Who to Invite

Make sure to create an interesting crowd. Invite maybe another entertaining Chef, celebrities and other personalities to add spice to the event. From your customers make sure to ask your regulars first to show appreciation for their business and friends of theirs. Also offer your workshops through gift vouchers which people can buy for others. Make sure you know how many you can invite.

Pairing opportunities of menus and demographics:

• Teaching families how to make a pasta party with 4 sauces
• Entice couples to learn about wines and aphrodisiac dishes.
• Mix with the single crowd in a wine and fondue event.
• Cater to the advanced home foodie with creative tapas and sophisticated baked dishes.
• Celebrate 2 weeks before a public holiday with all ages and teach guests about the history of popular holiday dishes and how to prepare them.

 

How to Market Your Event

Viral online marketing increases the ability for your event information to be shared. The information can then be shared among friends and social forums. For in-house marketing tactics, program your point of sales system to include a small blurb about the upcoming event. Keep it short and direct. Consider using menu inserts or table tents, to advertise the event as well.

Consider the following time slot ideas:

• Pick a slow business night and close the restaurant to the general public.
• Plan a Sunday afternoon workshop for people planning weekly home menus.
• Choose Saturday afternoons to cater to the “dining at home” crowd.
• Host a Wednesday “live” soiree to decorate the cooking with life music so your guests know you really care about the entire event.

 

Such events should be fun where participants gain knowledge, have fun and feel appreciated to be part of it. It is not meant to be a show with a wannabe Gordon Ramsey.

Written by Daniel Grossmann

Mobile Marketing for Restaurants

Updated September 26th 2013

Mobile Devices are the biggest companions of adults with one device for every second person in the world’s population. The number of sold tablets has surpassed the number of sold PCs in August 2013 for the first time.

For the past 8 years, experts forecast the take-off of mobile marketing and it seems to remain stuck in its beginnings. Marketing everyone in its pocket seems like the next big hit in the advertising industry but how can you get ready for it?

New gadgets in the tech world usually lead to spending money and time to get involved, understand and use it. Unfortunately we spend often so many resources on a new technology that the time saving factor of it in the future is minimal. The general recommendation is to really know what you want and why you need it.

Mobile devices let you view websites using mobile browsers, use applications or be connected through social networks or sms. Shall I use Facebook on my browser? Download the application? What other applications do I need to download to make full use of my smartphone and Facebook? These are the regular questions that arise when you are a ‘connected’ user and know what options are available.

While this seems confusing for the user, the confusion was actually built up by the businesses going online. Old websites are not responsive, meaning they do not adapt automatically to various mobile device platforms, so either are advised to create a ‘mobile.’, or ‘mob.’ or ‘m.’ alternative of the website for mobile device users. And some recommend to develop a mobile application for iOS or/and Android, which is the most costly solution of all.

So here is my advice:

1. Check out the option of having a mobile responsive website before you engage into spending more money on applications when you do not even know if you are an interesting service provider for the mobile world.
2. If possible do not engage into mobile version ‘mobile.’, or ‘mob.’ or ‘m.’ Google does not like it and splits all your SEO efforts among your online presences as logically Google will not promote both your online presences with the same weight. But if you have to, there are tools like bluetrainmobile.com or dudamobile.com that simplify a mobile adaptation of your website.
3. From Google Analytics you can find out how many people are visiting your website from their mobile device. If the numbers are significant enough then you should consider developing a mobile application that would be suitable for your clients. The more complex your service is offering, the more costly the Mobile apps can become. So make sure you are fully aware of all development costs and the time required.

 

Now that you are set up with your own presence on mobile devices, let us look into mobile marketing opportunities. Here are three categories to incorporate into your restaurant’s mobile marketing efforts:

Social Media

With millions of active accounts on Facebook, Twitter and Foursquare, restaurant owners now have the ability to directly access their customer base on a daily basis. Social media outlets provide an ideal way to share tantalizing information that will get mouths watering. Reach your customers on your choice of social media outlet by sharing any of the following information:

• Announce daily specials
• Offer 20% off coupons to the first 5 Facebook followers who comment on your profile
• Reward the first Twitter profiles who tweet about your restaurant with a free meal
• Offer free drink rewards to those who “check-in” to your restaurant using FourSquare
• Spread the word on any special events occurring at your restaurant
• Define a strategy for online tools like Yelp or Tripadvisor. For Tripadvisor, you can reach 250 million travellers with your offerings so pay attention to your profiles and engage into communicating with people that have made time to review your business.

 

Online-Ordering

The power of mobile technology being used for online ordering will continue to increase. Restaurants that offer online ordering are averaging $2,000 to $10,000 of online orders each month, therefore proving that online ordering is effective and advantageous to have.  Creating an online ordering tool is a relatively simple operation that can be set up through third party companies, such as Merosys or Compel Cart. Restaurants with online ordering systems offer customers the ability to jump online and place an order for pick up via their mobile device or computer.

Apps

In the USA, the National Restaurant Association has recently discovered that 26% of chefs have ranked smartphone applications as the hottest tech trend of 2012. Among some of the most popular apps on mobile devices are Urban Spoon and Foodspotting. Urban Spoon is a restaurant review destination complete with links to restaurant websites, menus and reservation systems. Foodspotting is an app that gives customers the ability to share uploaded photos of their food, giving other viewers a look at what awaits them at any given restaurant.

While these apps are largely customer driven, you are not left completely helpless in creating a positive presence. Here are some suggestions to use these apps to your restaurant’s advantage:

• Offer guests a discount if they uploaded a review on Urban Spoon
• Reward uploaded Foodspotting photos with a free drink or small dessert
• Encourage spreading your name through any other food-related app with rewards for positive customer activity
• Embrace app-happy customers and develop a strong reputation with tech-assisted word of mouth marketing. Keep a positive presence in the app world and translate shared information into a larger customer base.

 

Reach your customers effectively and stay actively engaged with mobile media opportunities. Marketing techniques in an era of digital information includes utilizing social media accounts, developing online ordering capabilities and creating a presence on popular food apps.

Written by Daniel Grossmann

WAYB Promotions in Restaurants

Updated September 25th 2013

There are moments where you just want to say thank you and WAYB (We Appreciate Your Business) promotions are an ideal combination of expressing a thank you while getting the best deal out of it.

It may be related to a special date or reason, but you have the right to amaze your customers with a special offering at any time. While most of these activities are also connected with collecting your customers data or motivating new ones to join, WAYB promotions aim at simply saying “thank you for your business” without registrations, coupons or other forms of conditions to take advantage of your offer.

Make sure of the following:

• Keep your costs low, so focus on popular but also cheap menu items, where you can really go low with the prize while not losing money on it. I would recommend to offer a popular at cost prize plus 20%-50% mark-up to just make sure you do not lose on it.
• Make it a LTO (Limited Time Offering) so that people feel the urgency to take advantage of the offer and don’t delay or postpone it.
• Do not do it too often or you take the highlight effect away from it and your regulars become WAYB addicts and do not show up anymore on other days.
• Use online social networking tools like Facebook, Twitter or other free advertising channels but focus on options that can make the message go viral. Viral means that the information is shared among friends and fans without you actually asking for it.
• Ensure your business is appropriately staffed, prepare yourself well for it and set conditions so you keep your operations running in a reliable and presentable manner.

 

With the right plan in place, a customer service or customer appreciation promotional offer can generate a lot of positive buzz about your business. Keep your goals and your promotion organized for the best and most profitable outcome.

Written by Daniel Grossmann

Restaurant Contest Giveaways

Updated September 24th, 2013

Contests and Giveaways are efficient ways to increase engagement with your customers

Setting up a contest or a giveaway for your customers represents more than just some fun activities related to your concept.  It can help your business in the following ways:

• Stay in touch with your customers and attract the attention from potential new ones.
• Build a database of customer information and market to them in the future more cost efficiently and effectively through direct, email or social media marketing tools.
• Reward regulars for their repeat business and encourage customers to return.
• Provide customers of all ages with entertainment and diversion while they wait.
• Provide content for the press to mention you.

 

Types of Contests

• Giveaways: You can give away a free trip, gift certificates, a plasma screen, a free stay at a fancy resort, a free menu item or anything else you can think of. This is a great way to reward your customers for their patronage.
• Raffles: The difference between a raffle and a giveaway is that customers can enter multiple raffle tickets and increase their chances of winning. Usually, customers pay or purchase something to be enrolled in the raffle. The more a customer purchases, the more times they will be entered in the raffle. Try giving customers a raffle “ticket” for every ten euros they spend at your restaurant. This is a great way to give your best customers an advantage. Or, you could offer only your most loyal customers a chance at the prize by requiring customers to accrue a certain number of points in your restaurant loyalty program before they are entered into the drawing. Moet-Chandon has created a Champagne Raffle board where the cork of your purchased bottle was stored on the board and there was a prize for the first one reaching 20 corks, a prize for the most purchased bottles and everyone reaching 20 participated in an auction of a unique bottle worth 5000 Euros.
• Competitions: Getting customers to compete with each other for prizes will provide them with entertainment and encourage them to bring their friends to your restaurant.
• Games: Bingo, trivia, monopoly and other games have been used by club like restaurants and also fast food chains. It is a little far reached for us and we will dedicate a separate chapter to this option.

 

Guidelines for Customer Contests & Giveaways

• Gather customer information by collecting their details for your marketing database. You will need their information anyway, in order to notify them of winners. You can collect contest entries and customer information through business card drop-boxes, online web forms, entry cards to leave at tables or simple applications on mobile devices.
• I recommend to choose prizes that help support your concept. Offer special products, event participation’s, destinations or other concept related highlights so that there is a connection to your business while it is promoted and puts you in a positive spotlight. Another option is obviously to keep a competition very secret which will clearly have a viral effect and cause the opposite.
• Here some in-house prize ideas. With prizes like these, the customers perceive a higher prize value than you actually pay for. These prizes will encourage them to bring new guests to your business or talk about your business:
  • Gift certificate to your restaurant
  • Free party room reservation
  • Free drinks or menu items
  • Free tasting dinner with the Chef in the kitchen
  • Free one day cooking lesson with the Chef
  • Free dinner party for six
  • Eat free once a month for six months

• Make the prizes accessible and preferably have several smaller prizes compared to one big one.
• Give repeat customers the advantage. It can be part of a loyalty program feature. But make them feel they are special and you value their loyalty.

 

Remember, giveaways and contests aim at building up your marketing database or solidify your relationship with your existing and loyal customers, create content for the press, basically anything that may encourage more immediate or future sales.

Written by Daniel Grossmann

Marketing your Restaurant with Coupons

Updated September 23rd 2013

Couponing has become a worldwide success and online companies like Groupon count among the biggest companies present today. Here are some points on how to take advantage of Couponing and what to watch out for.  Coupons offer an opportunity to purchase a product or service at a lower price. It may be a considerable practice to:

1. Promote your business or a new product or service
2. Improve your immediate cash flow if the coupon program allows
3. Attract a different customer segment

 

Make sure to watch out for the following:

1. Depending on your restaurant concept make sure you consider the consequences of a coupon based promotion. Fast food or low cost establishments have a safer position as they tend to attract a clientele that is focused on spending less money. But coupon marketing can also be applied by formal or upscale restaurants, it might look cheap and be hurt by following PR and media reports. Coupons allow other market segments to enjoy an offering that maybe regulars are not fond off. Even though nobody will mention it, their reaction might be to distance themselves from the establishment and decide not to frequent it.
2. If you get involved into a coupon marketing promotion make sure that the coupon is worth having. Discounts of 10% to 20% are not a real hit and do not really look like a promotion but more like a friendly gesture. Make it a no brainer and offer it for a popular product or service, something you are known for. Ideally you should create such coupon marketing activities 3 to 4 times to enable you to see the effect.
3. It is worthwhile planning ahead with a good calculation to have a pricing policy that allows you to offer coupons without actually losing money.  Highly profitable and popular items are the best to offer as you mainly achieve an exponential interest in the product. Just make sure that you do not lose clients because they are consistently taking advantage of your coupon offer and therefore do not have a reason to visit your venue on regular days.
4. Use efficient distribution channels and within today’s society, the most highly recommended is obviously the internet. Online coupon companies are well organized and simplify the entire setup and distribution. In addition with the right social media tools you can influence by going viral with a good offer. No tool in the past allowed you to forward interesting information so easily to others.
5. Make sure you track your results. Not only what is your monetary ROI but with the right social media monitoring tools you can find out how popular the subject became and was discussed among friends and fans. This new era where even word-to-mouth marketing can be measured is in its beginning.

 

Written by Daniel Grossmann