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Wednesday, 30 October 2013

Marketing your Restaurant to Students

Updated October 30th, 2013

Close to 20 million students are enrolled in European universities. A significant market with new opportunities every semester!

College Students are part of the sought after demographic of 18-30 year olds. Marketing to college students is no easy task and creates many challenges in order to influence this market. The reasons behind this are simple. They are in the mist of their development years where they can often be skeptical and wary, but on the other hand can be very easily influenced. They tend to be transient, strapped for cash, and critical thinkers. However, on the plus side, college students can not only be a marketer’s nightmare, but also a marketer’s dream. Remember, the student community are exceptional at communication and word-of-mouth. This is due to the fact that they see each other often and always require a topic to talk about.

If your food establishment is located within a close proximity to a university, consider implementing the following ideas to attract students:
  1. Use social media for promoting your venue. This might sound easy but you hardly find restaurants that are really using the full potential of social media. What used to be word-of-mouth marketing is now possible through social networks. Create positive viral content that motivates your fans to forward to others. If you are well prepared, you can create a very cheap and reliable communication channel that no offline or online media can beat!
  2. Work with pictures and videos to let your target market consume content easier. In today’s society, visual content can be created by anyone and today’s students were raised with monitors where the volume of pictures or videos has never been greater.
  3. To be effective in driving traffic to your restaurant, be sure to use discounts for students or give them a free incentive as to why they should come and visit your restaurant. Create a viral sharing opportunity and post photos of happy customers at your restaurant. Students love to tag themselves in online pictures, allowing it to be spread further to their Facebook friends.
  4. Make sure you are high-tech updated. A solid and good wifi installation for free is almost a must in order to conquer the student market. I even advised one student restaurant to add a professional printer as there is always something to print and students simply do not have the time to have to make another move and get it done somewhere else. There is no aim to become a student business center, just a friendly service that students will talk about ;-)
  5. Consider sponsoring student events, their favorite school sports team or their graduation party (If it all makes financial sense to you of course). Students are not welcomed in all establishments because of their age, maybe lack of disposable income, loud, etc....but there are always establishments that behave differently and really make their living from exactly these clients. But as with families, do not expect to be attracting too many other target markets EXCEPT if these students consist of popular people!
  6. Be logic in your restaurant concept and the services going with it. Students always try to beat the system, any system! All you can eat concepts are not the wisest strategy nor over-complicated menus. Students like to get a good deal, love loyalty programs and if you listen to their opinion, just to show that you are interested in it, you win fans. Students tend to lack respect as they are studying and then have to work for it.
While all the points above seem pretty easy to be fulfilled, remember that as easy as it seems to become a popular destination for students, it is even easier to mess it up! Students love to talk, gossip, pretend to know better and all of that can go the wrong direction. So be sure to plan your moves well, as you have maybe thousands of knowledge hungry creatures, competing for a position in society and will do anything to make themselves look better first and then you.

Written by Daniel Grossmann

Monday, 28 October 2013

How to bring Families to your Restaurant

Updated October 28th, 2013

Obviously families are a complex target market as various tastes and preferences need to be satisfied. Therefore restaurants aim at satisfying parents and children at the same time while such family friendly concepts are very difficult to sell to other target markets.

One of the most interesting group projects during my education at the Ecole hoteliere de Lausanne was to evaluate how to promote restaurants to accept families in the Lausanne area. We developed a lot of excitement for this project until the tough facts brought us back to reality. As harsh as it may sound here are some facts:
  1. Family restaurants are ONLY interesting for families...nobody else wants to be there because of the resulting chaotic noise or mess. It is a good hearted idea and for sure, as an owner, makes you feel good to do something for families, but just do not expect that others will share this view by visiting your family friendly restaurant.
  2. It is not an easy undertaking as the entire concept needs to be safe for children and you can go very far in order to ensure that your restaurant is safe in all aspects for families.
  3. Family restaurants require much more space. From parking lots, entrance doors, tables, around table space, playground and for sure other details I am not thinking about now, all requires more space and needs to be maintained as such.
  4. The simplicity of what kids actually want for food does not require amazing chefs but trends indicate that parents will ask for more and more health conscious dishes for their kids and at the same time themselves. Obviously, you will never get kids to go for nouvelle cuisine but kids have adapted to Sushi and will always like Italian. How the tasty and healthy Italian food is prepared, is up to the Chef.
But now to the good side of family friendly restaurants:
  1. Families love to eat out, and they typically account for about 56% of food service sales. So the market is HUGE with little competition. Today it is a market worth more than 100 billion Euros yearly.
  2. During our analysis, we came up with the final ratio that a well located family restaurant is needed for every 30’000 citizens.
  3. While at first, pleasing the parents may seem more important, in fact kids’ opinions have a strong influence on their parents’ decision-making. According to a recent study, more than 75% of parents consider their children’s preference as an important factor when selecting a restaurant. This is why McDonalds has such a success among families. At a very young age, kids are able to remember their experience of McDonalds and therefore seek to visit it more often.
Creating an Atmosphere for Families is really dependent on details. Nothing is too childish, too colourful and looks for creativity, fantasy, fun and out of the box that you could never afford doing in a normal restaurant (most likely). There are two ways to do this:
  1. Create a kid-focused atmosphere. You can provide entertainment and designs that are geared towards attracting kids. This could include providing an arcade, games and prizes, as well as decorating with bright colours and pictures. Other forms of entertainment you can provide include: aquariums, outdoor recreation and play rooms.
  2. Make the adults comfortable. If you do not want to go to the extreme and create a kid-focused concept, you can still do everything in your power to make parents feel comfortable with bringing their kids to your restaurant. You can try the following:

    1. Train your servers to be polite and patient with children.
    2. Make sure changing stations, high chairs, sippy cups and bibs are readily available.
    3. Provide children with toys, crayons and paper at the table, but only after asking permission from the parents.
    4. Give families an oversized table to allow them enough room to spread out. For example, if a family of four comes in, seat them at the table for six.
Kids’ Cuisine

Culinary wise, family restaurants are still not difficult to create. Red remains the favorite nutritional colour and tomato sauce is still the hit among kids. They also like to eat with their hands so French fries, burgers, nuggets, or many other things handy are great to satisfy kids.

Major issues with kids menus is not necessarily what is being cooked but the portions served. Obesity is becoming a problem everywhere but we also tend to over serve all day long. It is cheaper for you as a business to offer more adequate quantities and provides a great tool to adapt accordingly the pricing for your clients.

Many kids like to have their own menu and order food on their own. Almost 90% of full service restaurants and 75% of limited-service restaurants choose to develop a separate menu for young children. Any restaurant that hopes to attract families should create a kids’ menu.

Extras and Promotions

The classic example of a kids’ restaurant promotion would be Pizza Hut’s “Book It” reading incentive program. Kids like it because they get a free Personal Pan Pizza®. Parents like it because it encourages kids to read. And Pizza Hut likes it because it attracts business; when kids redeem their free personal pizza, the parents often buy a pizza, too.

Good examples of extras and promotions for kids include the following:
  1. Learn from the biggest (like McDonalds) and include simple toys with the food. It is best to include toys that are available in series so that the kid wants to come back to finish the series.
  2. On a slow day create a “kids eat free” day. Either they have separate dishes or you create a real atmosphere like a spaghetti party where you offer all you can eat pasta with 4 different sauces.
  3. Buffet-style dining for kids where they will feel like they can pick and choose whatever they want, but are unlikely to eat as much as adults.
Find the right balance between your business, parents and children’s expectations and make sure your restaurant is located on a good and accessible spot. These are the basics to be successful with a family restaurant. If this is too much and you would like to have only weekends or a special day for families, this may be a way to see if the market is looking for it.

Written by Daniel Grossmann

Friday, 25 October 2013

How to Market your Restaurant to Senior Citizens

Updated October 25th, 2013

Marketing to senior citizens makes good business sense. Learn a few tips for effectively marketing to senior citizens in your restaurant.

Many restaurants focus their marketing efforts on young people. College-aged adults love happy hour, and young families can bring in decent margins. However it is important to not pass up on the chance to effectively market to an often neglected category of diners that can bring in large revenue gains...senior citizens!

In the next 20 years, the population is expected to grow by 60 million people. Economists suggest that half of that growth will include people over the age of 65. With the baby boomer population aging each year, it's time to consider how to market to a growing number of people who are older, wiser and retired.

Retirees have money. Younger generations will most likely not have the luck of such solid pension funds as this generation. They are financially very stable and on top of it do not have so many options of spending it. Some of their main activities count as eating out, traveling and socializing. They are smarter, more reasonable and do not have to prove anything to anyone. But F&B is a human natural must and they cherish this too.

For seniors, restaurants are not only catering but also socializing opportunities. So cater to their needs by offering them respect, good food, and a comfortable place to gather.

Marketing to this demographic is not as easy as they are used to traditional marketing channels like TV, newspapers, magazines and other offline media tools. But recent statistics show that Facebook growth is led my females between 50 and 55. This trend will go on but considering realistic tools, try out local newspapers and keep an eye on online portals and servers that will take over a significant part of the online traffic. A secret project is for example xy50plus.com and many others like this will come up in the years to come!

Here are some tools that your seniors will like:
  1. Offer a Senior Discount - Many establishments offer discounts to senior citizens because it’s proven to work. According to a recent study by the National Restaurant Association in the USA, about two thirds of adults aged 55 and older said that they would take advantage of a senior citizen discount if it were offered.
  2. Promote Early Bird Specials - Offer a discount to diners during the early evening. Some restaurateurs discount up to 50% off before 6pm. Not only will this appeal to thrifty retirees, but also to frugal families and young couples.
  3. Watch out for your portion sizes - portion size is not the determining factor for this market when it comes to getting a good deal. In fact, the same National Restaurant Association suggests that only one third of people over the age of 65 thought larger portions meant a better deal.
Senior citizens are often neglected by other generations, businesses and even politics. They are the wisest in our society, have the longest experience in so many ways, will soon represent the biggest community on the planet and on top of it have saved up money they have to spend. We will soon wake up and see how significant this market actually is!

Written by Daniel Grossmann

Wednesday, 23 October 2013

How to market your Restaurant to the Millennial Generation

Updated October 23rd, 2013

The Millennial generation is the largest generation seen since the baby boomers, and they represent a great spending power. What makes them different?

Millennials, also known as Generation Y, are loosely defined as anyone born between 1977 and 1992 (Source). It is an extremely diverse group and is made up of between 50 and 90 million individuals. No matter how you slice it, it is a group with enormous buying power that restaurants would be wise not to ignore.

Although Millennials have been hit hardest by the economic recession, with a higher unemployment rate than the rest of the population, they are also the generation that eats out the most and spends the most in restaurants in terms of volume of sales. Singles, DINKS (Double Income No Kids), career driven, lack of time, travel enthusiasts, showing off success, etc., are all reasons for them to prefer to go out often for meals.

So, how do you get these regular spenders to visit your restaurant more often? Here are some ideas:
  1. The Millennial generation is increasingly globally minded. They are interested in trying new, exciting and ethnic foods and view dining out as an opportunity to try something different.
  2. For Millennials, eating out isn’t just about eating. It is a time to socialize, eat good food, be seen eating and talk about eating. Restaurants should take the social aspect of dining into consideration, and make it easy for large groups to be accommodated. Smart restaurant managers should also strive to create an atmosphere and environment in which guests feel comfortable staying for longer periods of time.
  3. They adopt new technologies quickly. More than a third of Millennials report looking at restaurant menus via a smartphone “often” or “very often”. It is very important to maintain your restaurant’s online presence and ensure that your website is mobile friendly. Millennials report that they check-in to a restaurant via an app. If you want to reach the Millennial generation, use social media marketing and incorporate new technological inventions into your concept.
  4. They like snacks. Well, everyone likes snacks. Millennials, however, report patronizing restaurants during off-peak hours much more frequently than other generations. Restaurants that offer special deals during off-peak hours or happy hour snack specials are likely to appeal to the Millennial generation.
Take these Millennial traits seriously as they have a major impact on your long-term success and sustainability! They are the latest trend setters and will be on the market for a while to come ;-)

Written by Daniel Grossmann

Monday, 21 October 2013

Target Marketing in Restaurants

Updated October 21st, 2013

Different consumers have different tastes, and marketing to everyone is impossible unless you market water or you have an unlimited budget which also does not makes sense. Learn how to best develop your marketing strategies to target a specific segment of the population.

Target Marketing is a marketing strategy that should attract the customers that you want in your restaurant, whatever your reasons are. As opposed to mass marketing, which aims its advertising and promotions to a general majority of consumers, target marketing focuses on attracting a specific type of customer.

Market Segmentation

You probably already know what kinds of customers you want in your restaurant, but it is important to tailor your promotions to these specific consumer groups. Different market segments – or groups of customers with similar characteristics and needs – will respond to different types of marketing strategies, so you should make sure to gear your promotional techniques toward the segments you want.

It is very common to target customers based on their age or income. This allows businesses to adjust the pricing of menu items according to their customers’ disposable income levels. However, you may also choose to develop promotional strategies that target one or more of the following segments:

Teens, students, young adults, generation X, generation Y, families, seniors citizens, DINKS (Double Income No Kids), Tourists, Vegetarians, Eco-conscious people, Business people, Sports fans, Gay community, after-work crowd, happy hour crowd, etc.

Targeting your marketing allows you to select the appropriate communication channels to distribute your marketing content, which again should result in a controllable or measurable ROI. This will allow you to determine whether your marketing is successful or needs to be improved.

Here are some common issues that restaurants come to realize. Ignoring them does not help at all. Accept and correct if possible and if needed, even consider radical changes instead of continuing an obvious mistake. But before I list some general mistakes here is an important note:

Targeted Marketing includes Marketing and not just waiting for sales to happen. During my consulting career, I saw too often small restaurants and even magnificent hotel restaurant concepts do no marketing or wrongly targeted marketing activities, leading to bad results and finally spend a fortune on changing the restaurant concept instead of fixing their marketing issues. There is fierce competition out there and with social media, online or offline advertising, you simply cannot expect to be competitive with letting bricks and mortar speak. (I think this is worth another article ;-))

But here, as mentioned, are some general findings when marketing is targeted and ROI is measurable:
  1. Wrong Location - Perhaps you are not in the right location to attract the kind of customers you want. Always remain up-to-date with the demographics. Attitudes and trends in your area can change, and your restaurant needs to change with them or move to another place.
  2. Wrong Concept - While customers like variety, it is important to consider from a business perspective the nearby competition. It is possible that your concept is failing to attract the customers you want or they are looking for another concept.
  3. Attracting the wrong customers - While most restaurants are happy to see any customers, we are talking here about the quality of your marketing activities. If you target a specific audience and this audience is not coming, you are spending money for nothing. However, if the marketing campaigns are attracting another type of customer, then it is up to you if it is accidentally a positive outcome of a bad campaign or a strategic mistake having targeted the wrong customers with a specific concept.
  4. Wrong promotion- make sure that you are using the right promotions for your target market and never hesitate to consult with professionals regarding this matter, as mistakes get very expensive with possible long term effects.
  5. Ignore additional segments - Targeted Marketing is not about deciding for one target market and blindly just chasing that one. You may have a venue that is popular for business people at lunch time, families come in the afternoon, popular singles hang out and dining place in the evening and after 22:00 it changes into a dance club. I know this example may be a little exaggerated but I hope you got the point.
  6. Avoid customers that clash - simply said you will never put business people and families into the same venue at the same time.
If you have the right location and concept, and you choose a good target market and the best promotional techniques for that segment, your restaurant will be far more likely to succeed. When accompanied with proper restaurant management and operation, a good target marketing strategy will make a considerable difference in your profits.

Written by Daniel Grossmann

Friday, 18 October 2013

Restaurant Marketing – Demographics & Psychographics

Updated October 18th 2013
The people who live and work around your restaurant are likely to share certain characteristics. By analyzing their age, income level, size of household and other factors that may influence purchasing decisions, you can decide the best way to market yourself to them. These factors are all demographic or psychographic elements.

Demographics and psychographics provide measurable characteristics to your target marketing strategies. What used to be “people”, “citizens” or “tourists” is today being analyzed into more details so you can adapt your product, marketing and pricing to the market(s) you are targeting.

You can find demographic information online, at your local library, chamber of commerce or city offices. Sometimes, it is easiest to call the local government and ask if demographics for your city are available on the internet. Make sure you find the most up-to-date information available.

When you analyze your area’s demographics, pay special attention to the following factors.

  • Age
  • Income levels
  • Education and job types
  • Marital status
  • Size of household
  • Housing and rental prices
  • Local businesses

Analyzing these factors will tell you a lot about the spending and eating habits of people who live in your trade area. For example, single young adults with middle to high income levels will typically dine out more often than those who are married with children.

Psychographics

One of the main purposes of demographics is to develop an idea of an area’s psychographics – the behaviour, values, opinions, cultures, interests and lifestyles of a demographic group. To learn about psycho-graphics, it may be worthwhile to go to a market research company to find out about the purchasing habits of people who live in your trading area. But as usual, always try to search yourself through the web. Be sure to google all related keywords you come across and you will also have a better understanding on how to approach or what to ask a research company. A marketing company collects data from credit cards, polls and censuses to analyze different segments of the population. You could also purchase this information from a credit card company. But it will be much more efficient and cheaper to know exactly what you are looking for.

If the above options are too expensive, consider doing field research. Go to all the nearby markets, shops, bars, restaurants, cafés and clubs and try to mingle in order to learn about the people in your targeted segments. You can learn a lot about consumers’ product needs simply by being around them, watching and interacting. The smaller your business area, the easier to do. It will of course be nearly impossible to field research New York but again this issue indicates that you need to be more specific about your quest.

Here are some general psychographic statistics on dining out that I found on the web: my comments are in blue.
  1. 18 to 24-year-olds eat out and drink alcohol outside the home more often than other age groups.  So promote alcohol consumption related special events by considering other topics that are interesting to this age group such as music style, celebrities or other aspects that are trendy to 18-24 year olds.
  2. Generation Y – those born since 1978 – tend to eat more often at quick-service and pizza restaurants.  These are usually those families that have many mouths to feed and therefore aim at such restaurants as everyone in the family needs to be happy. And kids eating foie gras, mussels or showing excitement about Ossobuco is not necessarily common ;-)
  3. Generation X – those born between 1965 and 1977 – tend to prefer quick-service or casual establishments with comfort and a good perceived value.  I am in this category and agree completely. I love insider tips where I do not have to pretend or adapt my voice levels so that I don’t feel like I am interrupting others, and enjoy an overall entertaining experience with a good meal. Too much presentation turns me off as I am not visiting a gallery and do not believe that quick-service or casual restaurants cannot cook extraordinary without Michelin ambitions.
  4. Smaller households eat out more often than bigger households.  Might sound logic to you and actually seems logic but assuming both households had the same disposable income per person, would this comment still be true? Or is it true and the restaurant facilities are usually just not equipped or provide the right services for bigger households? Questions arise very easily when you want to understand your market and dig deeper into it. Just do not dig too far ;-)
  5. Singles and DINKS (Double Income No Kids) eat out more and spend more when they eat out. They typically spend 65% more on dining out than couples living with children.  If this is your market then it may be good to only buy tables for 2 that may be put together and be located in the city center.
  6. Singles and DINKS are generally more concerned about the quality of food and the elegance of the atmosphere than the price.  Please understand this right. This category may still prefer quick-service or pizzeria venues but in case they opt for quality of food and elegance, price is not important.
  7. People with more income tend to eat out more frequently.  Again a pretty logic statement. Even the success of private chefs or private caterings is not changing it.
  8. People who work long hours eat out more than people who have enough free time to cook their own meals.  Maybe special late night offers could be a good thing to promote?
  9. Working wives tend to prefer eating out more than housewives.  Here I wonder what their families or partners do and is this statement maybe including lunch? If yes then this is logic as well, but makes me think that I should maybe have a more female offer for lunch which includes more healthy foods, salads, soups, etc.
  10. Traditionally, the older people get, the less frequently they eat out.  However, this may change soon, since many baby boomers grew up eating out more often.
  11. Seniors tend to eat early and slowly, and they look for good values with small portions.  Remember not everything is so easy to do when you get older, eating is part of it. Not spicy, not chewy, etc.
  12. Wealthy, well-traveled consumers, particularly the wealthier baby boomers and the next generation, are more likely to look for ethnic or exotic food when they eat out.  This explains why trend concepts attract a special type of clientele that maybe cannot be explained by traditional demographics or psychographics.
Targeted Marketing is generally much more successful after your homework on demographics and psychographics has been done. In any case and any minutes spent on this research will allow you to apply the right strategy on where to search, how to reach and what to tell your target market in order to consider your business next.

Written by Daniel Grossmann

Wednesday, 16 October 2013

Top 10 Tips for Marketing a Restaurant to Generation Y

Updated October 16th 2013
Discover tips on how to market to the generation that eats and drinks outside of the home more often than any other age group.

People who are born between 1978 and 2000 are popularly called “Generation Y.” These young people eat out and drink alcohol outside the home more often than any other age groups. In particular, young adults tend to enjoy quick-service or casual full-service restaurants.  So if you are running a quick-service restaurant or have a trendy, fun concept, you should make sure you take this demographic into account.

  1. Consult a young person. The best way to determine if your marketing, design and operational strategies appeal to young people is simply to ask teenagers or young adults what they think. Ask for specific suggestions on what is going well and what could be improved. Apply this to offline and especially online ideas.
  2. Try email and text message marketing. Young people are communicating with each other digitally and increasingly via mobile. Implement a direct email and text message marketing campaign. Just be careful not to annoy your young customers.
  3. Maintain a website. Any restaurant that hopes to attract young people should have a website. Generation Y is also known as the “Net Generation” because young people grew up with the web and are more internet savvy than previous generations.
  4. Focus on value. You do not want to be perceived as cheap, but your menu items need to be a good value. Teenagers and young adults are not necessarily penny-pinchers, but because they generally have limited disposable income, they want to feel that what they buy is really worth the price. Their ability to access any kind of information or data online, makes them expert researchers and communicators. Whatever displeases them has the potential to reach millions online.
  5. Avoid exaggerated sales talk or slogans. Young people today are very independent, know how to access or find information and they do not want to feel pressured. Present your marketing messages in an educational or entertaining form, rather than as a traditional sales blah-blah. Be as honest as possible. If young people suspect that you are exaggerating or over-promising, your advertising will have the opposite of the desired effect.
  6. Implement viral marketing. Enlist a few students or young adults with lots of friends and social networking potential to be part of your marketing team and spread the word about your restaurant. Think about what message would be forwarded to a colleague, friend or family member. You can also consider Email campaigns but for this use professional tools like Mailchimp, CREDEMA or Infusionsoft.
  7. Hold events at your restaurant. By hosting concerts, sports events, karaoke or other events, you can attract students and teens and give them a good reason to keep coming back. The more events you host, the more likely your restaurant will become a “hotspot” for dining out or a social hub to meet up, even on nights without events.
  8. Do not overdo your cool messages. Generation Y want to be taken seriously and also treated as such. Whatever you find on MTV is not necessarily the same content they want to come across when they have to decide where they should spend their money. You are not YMCA nor some youth club. Remain real and low-key and you will be doing good. Even this generation likes to have their own insider hotspots but did not support chain concepts like HardRock Cafe or other Franchise concepts that used to be cool in the past. Let your restaurant speak for itself.
  9. Get onto social networking sites. If your restaurant has its own Facebook, Pinterest or Twitter account, use it to inform customers of new promotions, special events and any changes in your menu selection or services. If you decide to opt for any of those, make sure you maintain it well and update it regularly with information. Find out what the posting times are, use a lot of pictures and videos and use related social networking sites that are specialized in applied content formats.
  10. Choose your music carefully. That means Generation Y is more easily annoyed or offended by music they dislike. If you hope to attract a broad range of visitors it is best to choose music that is neither too radical nor too conservative. Avoid music that tends to polarize people. It is generally safe to stick with alternative, classic rock, pop or background lounge music. On the other hand, if you have a specific target group in mind, choose music that matches their demographic.

Generation Y are the future high rollers with Internet proficiency. Make sure you are well represented online, be visible, be recommended, don’t be aggressive but speak through your offering and venue.

Written by Daniel Grossmann

Monday, 14 October 2013

Top 10 Tourist Attraction Tools for Restaurants

Updated October 14th 2013
Travel and food come and go together.  Decades ago, what was only offered by hotel restaurants has now evolved  to a key revenue opportunity.  However, you cannot market it in the same way as attracting locals. If you are near a tourism hub or hope to attract out-of-townees to your restaurant, discover the best ways to market yourself to tourists. Be sure to keep in mind that culinary tourism is gaining popularity. When people take vacations and travel, they usually want more than just simple relaxation or a business trip. They are seeking cultural education, in part by experiencing local or outstanding cuisine.

  1. Maintain a useful and informative website. Before their trip, tourists spend a considerable amount of time searching for information about their destination, and this includes culinary opportunities. Wherever they find information about your restaurant, they will always check out your website. Keep your website updated, appealing, with easy contact information, menus and definitely a lot of pictures of your venue(s), foods and drinks.
  2. Apply the latest technologies to be sure your site is well readable on different devices. For the first time in history, the sale of mobile devices has surpassed the sale of pc and macs. Make sure you have a RESPONSIVE Web design so you know people can look at your business from every device. Lower roaming costs will allow travelers to access information anywhere from their mobile device without being dependent on WIFI networks. Make sure everything is readable and functional including web forms. Use tools like ResDiary.cz to make sure you have a solid reservation system. Try to avoid creating a second mobile website. It splits your online marketing efforts in 2 and even Google does not like to see the same content on 2 different websites. Also if not needed for a particular reason, stay away from a mobile application. First of all it is costly, second you need one for android and iOS and thirdly people are tired of having so many applications on their devices.
  3. Make sure you are listed on Google Places. An excellent online yellow page functionality and crucial to be well listed on a platform that has more than 3 billion searches every day worldwide. It will also efficiently help you (like all other Google products) to get a better ranking (=listing) on Google
  4. Use Tripadvisor, Foursquare, Yelp or other social networks. Customers believe their contacts (friends, colleagues or family) more than any marketing tool. In addition independent ratings and reviews provide a reasonably popular and objective insight into a business.  It is better to choose less social networks but ensure you take good care of your presence on the ones you have chosen. Tripadvisor is used regularly by more than 250 million travelers. Make sure your information is up to date and pictures are the best you can upload. Also it is important to react to reviews that people write. Active establishments on Tripadvisor are more likely to be checked out as they are acting as part of the community. It is also a unique opportunity to clarify certain business practices. For example the very large steakhouse La Casa Argentina in Prague is often considered as pricey on Tripadvisor. But since the reactions to such content contain an explanation for higher prices due to daily shows, illusionist performances, live music and dances besides imported best quality meat, customers respect the pricing and La Casa Argentina is considered as an entertainment facility and not only a restaurant. Get listed in restaurant guides. If you are located in a tourism hub or a popular travel destination, it is essential that you get listed in local restaurant guides and directories for tourists or in international ones like Le Guide Michelin, Le Gault & Millau, etc.
  5. In terms of advertising the rules remain the same just that the names change. A good marketing mix, or painless prospecting, is all related to the theory that the more often someone comes across your information and is happy with it, the more plausible it is to convert this prospect into a client. The only issue is the available marketing budget. So the less you need to spend, to be in a maximum amount of media carriers targeting your desired market, the better your options are to be recognized and considered. Whether you publish recipes, print flyers, post cooking videos or participate in charitable events, it all helps with brand awareness and popularity, and people get in touch with your brand more often.
  6. Distribute paper menus. If you hope to sell to travelers, you need a paper menu even if you don’t offer takeout  and delivery. Place the menu in strategic locations, like hotel lobbies, visitor centers, car rental agencies, airports and local bulletin boards. Your paper menu will serve as a mini-advertisement for your restaurant.
  7. Use outdoor signs. A large and readable sign and a sidewalk menu will help you attract passersby. Prominent outdoor signage is especially important if you operate within walking distance of a major tourist attraction, like a beach, museum or downtown.
  8. Form partnerships. Partner with charter bus companies, travel agencies, local hotels and event centers. For example, you could agree to give discounts to mutual customers, and ask them to distribute coupons or menus for your restaurant. Some hotels and convention centers will even give visitors a coupon book for local  businesses. You should also consider forming a friendship with the employees at hotels and visitor centers, and consider giving them a permanent discount. Many travelers will ask these locals for restaurant recommendations.
  9. Become a rewards provider. As a rewards provider, joining a rewards network – like ThankYou, SkyMiles Dining or Rewards Network Restaurant Cashback – can help you to attract business from people who eat out frequently when traveling.
  10. Becoming a Tourist Attraction. Whether you are near a tourism hub or not, you may be able to attract travelers to your restaurant. By establishing yourself as unique, you can turn yourself into a destination for culinary tourists.

    Written by Daniel Grossmann

    Friday, 11 October 2013

    Top 10 Successful Restaurant Upselling Tips

    Updated October 11th 2013
    Upselling is not only about increasing profits. It is a general professional attitude to take advantage of everything you have to offer. It aims at not only increasing your own benefits but should always focus on having a satisfied customer in mind. Increasing the average customer check size through upselling can always help profits.

    Upselling is based on increasing the average customer check size and this is not only feasible through appropriate training of your staff, but you also need to consider an appropriate menu selection, pricing and timing.

    Let us go through all points step by step:


    1. Select items and times for upselling.
    Either you have a mass consumable approach which allows you to sell many items as they are popular and almost a no brainer that people do not think about, but are ready to order without hesitation. For such easy to decide items you should also have an easy pricing strategy with a reasonable profit margin. Another option is to go for specials that also include a special pricing. Seasonal specialities like truffles, asparagus or today’s trendy super foods, allow any Chef to offer something not to be missed and also priced as something unique.

    2. Do not push customers.
    The safest way to upsell without annoying customers and looking pushy is to have an indisputable offer. The better the offer, the more the customer will appreciate the information and the sales opportunity is therefore increased. I heard once “Everything starts with the menu!” and this is also the case here. If you cannot take advantage of a customer asking for recommendations or your opinion, it is never bad to offer tips to increase his culinary experience. Obviously the right service etiquette and charming sales talk enhances success.

    3. Provide useful suggestions.
    Simple practices as food and drink pairing suggestions are always appreciated but may be enhanced by a service staff that also is educated beyond the menu items. Product and its source information, nutritional or health values, international trends or popularity may all enhance the customer experience and WOW your clients.

    4. Make the upsell logic and smart.
    Nobody wants to look like a fool when being upsold. Think for the customer as you know your portion sizes. Offering big starters and main dishes will not really help to sell a desert or additional side dish. The same counts with the consumption of beverages. Most of us only have a 0.7 liter stomach capacity and therefore whatever it is filled with will block further ingredients not to fit in ;-) People who are not drinking because of driving are usually good candidates as their beverage consumption is limited and they are more enticed to enjoy more food. Most of us remember our mothers feeding us like there was no tomorrow…not sure you want to do that to your customers too. A general good approach is to observe oneself how you feel and behave when ordering or being a customer.

    5. Mention your takeout.
    Encourage customers to bring something home with them “to-go.” If customers are too full for dessert, you can recommend they take dessert home with them. For example La Casa Argentina in Prague offers a selection of chocolate truffles and aims at bringing their brand to their customers’ home. You can provide this service with all dishes and maybe certain dishes are even better for the next day (stews, goulash, soups, etc.)

    6. Upsell to uncertain customers.
    Customers who look at the menu a long time or seem indecisive about what to order, or hesitant in any way are most open to suggestion. Servers should be trained to read body language and attitude, so they can identify the customers who might respond well to suggestions.

    7. Read your customers.
    In the bar and club world, professional service staff looks for customers that flash around with their cash or credit cards. Perfect victims to see what they got. Training is offered in reading customers’ behaviour so let us know if you are interested in it ;-) In the restaurant industry customers are either food or beverage lovers or just want to show off. In both cases you recognize them in the way they are dressed, the way they order and especially if they ask for special ingredients to be used or added. They are inclined to go for special treatments and special dishes.

    8. Train servers regularly on all points mentioned above.
    There is much to be asked from your service staff but this is how the profession goes if you want to be successful. Waiters need to understand products, preparations, trends, benefits, and everything related to the business in order to look professional and give confidence to the customers that they are in the right restaurant and served by the right person. Ask us for training opportunities or other online resources to educate your staff.

    9. Downselling is not against the business.
    Because someone refuses a recommendation does not mean the customer isn’t interested in being advised. But maybe you face a price sensitive customer and downselling is the right alternative to improve your customer’s experience. For example, servers could offer an 8 Euro glass of wine, and when the customer refuses, explain to them why the 6 Euro glass of wine is the perfect alternative to complement their meal, and almost as good as the more expensive wine. This will make customers perceive the more economical item as a higher value.

    10. Upsell wines
    Our wine selling approach is changing. Wines are recommended with dishes but previous strict rules are disappearing and people drink what they like. This is an excellent opportunity to maybe move away from selling bottles and have an interesting selection of wine by the glass so that everyone can find his or her preferred glass. It brings up discussion, allows people to maybe try out other wines more easily or increase the turnover by glass. A simple bottle approach can lead to a simple yes or no approach as well. Imagine 6 people, 6 different orders and 6 different wine tastes. What bottle would you recommend? If you do not have another solution, apply the one suggested above. Cheers!.
    Written by Daniel Grossmann

    Wednesday, 9 October 2013

    Choosing, Pricing and Upselling Wine in your Restaurant

    Updated October 9th 2013
    Let me first get something straight. I do not pretend to be a wine connoisseur but the wine business is key to the restaurant industry. I therefore want to share my thoughts with you on this. Whatever I write here is designated to standard restaurants so I do not need to hear a moral from a wine cellar or a restaurant that has millions in stock.

    Here are some estimates: More than half of the people pretending they are wine experts, have actually no idea so just keep on smiling at them. It is very, very difficult for someone to tell the difference between white and red wine when the temperature is the same. In other words, it is also a little old fashioned to force rules like white wine for fish and red wine for meat. Today it is really up to taste and pleasure of drinking it and not the fact that it needs to suit to the meal. The perpetual issue of what wine should be chosen when 4 people all eat something different is then avoided. So for the guest, drink what you want and for the restaurant, make sure your offer of wines served by the glass is good!

    First of all make sure you have a very good wine list.  It doesn't need to be big. Even 4 whites, 4 reds, 2 roses and some special (like ice-wine or so) can be enough.  However, it is important that each style of grape is well represented.  I always recommend to go for a very memorable wine, a wine even a beginner could recognize. I personally see too many wines that are sold because of their brand or because they are part of a package.  Never let go of the fact that it is much easier to sell something that you see the amazement in, then if someone else is fascinated by it. 

    Regarding the pricing, some people might have already realized that due to fierce competition, wines tend to get cheaper and the multiplication factor is moving away from x3 or x4 as it used to be. In some aspects logic. If I buy a bottle for 20 Euro or 80 Euro, the sales price could be 60 Euro or respectively 240 Eur. Now what makes the 80 Euro bottle at the end so much more expensive? Most wines do not need a special treatment. It takes the same storage space, same time to serve, same time to drink, so where does this difference come from? Customers have realized that too and the market will lead the industry in applying a fix profit margin instead of a price multiplier. This approach is often used in hotels or event locations when the customer wants to bring his own bottles and receives a corkage fee.

    But still upselling wine is more than just a quick way to improve profits. It is an essential aspect of quality customer service in an up-scale restaurant. Learn how to successfully sell wine to customers.

    Restaurant wine sales have more than doubled since 1980.  In full-service, upscale restaurants, upselling wine is more than just a way to increase profits; it is also an essential element of quality customer service. In an elegant establishment, servers should be well-versed in wine upselling techniques as well as wine and food pairing. It is a good idea to consider hiring servers with knowledge of wines, or to encourage your existing servers to receive sommelier training and certification. You can also hire one person to be the designated sommelier for customers who ask for wine recommendations.

    The key to upselling wine is to find the right wine to fulfill or exceed the customers’ expectations. If the customers already know which wine they want to order, do not try to upsell them on something else unless they seem hesitant or unsure. Remember, the best opportunity for upselling wine is when the customer asks for a suggestion.

    If the customers do not have a wine preference, then you can use these general guidelines for pairing wine with their meal:

    Match red meat with red wine and white meat with white wine.

    This is probably the most classic guideline for pairing wine with food. Pair red meats and game meats with red wines, and white meats and fish with white wines. However, this rule can sometimes be broken. Even more important than the meat types are the preparation, spices and sauces. Depending on the flavours in the dish, a white wine might work best with red meat. For example: as with spicy asian dishes. Furthermore, grilled white meats can often pair well with a red wine. For example, grilled chicken might go better with a tempranillo or merlot than with a white wine.

    Pair fish with low-tannin wines.

    In general, the best pairings for fish and shellfish are white wines. The high acidity and lack of tannins in most white wines will complement the oiliness and richness of the fish. However, the meatiest fish, like salmon, sturgeon, tuna or shark, can go well with red wines. If a customer is looking for a red wine to go with fish, offer low-tannin reds, like pinot noir, Chianti, Beaujolais, merlot or rosé. By no means should you suggest a cabernet sauvignon, Shiraz or any other high-tannin wine to go with a fish dish.

    For desserts, offer sweet wines.

    Dry wines usually have tannins that do not pair well with sweet desserts. Furthermore, the sweetness of the dessert will ruin the flavour of most dry wines. Play it safe, and recommend a half-bottle of port, sparkling white, Madeira or a late-harvest Sauvignon Blanc or Riesling. With chocolate, which is one of the most troublesome foods to pair with wine, always stick to recommending a red dessert wine, like port, or simply suggest a coffee drink, which tends to go well with chocolate.

    Pair spicy and fried foods with white wines.

    In general, very spicy foods and salty, oily fried foods go best with a dry or semi-dry, white, acidic wine, like a Pinot Blanc, Sauvignon Blanc, brut or sec champagne or Chenin Blanc. The crispness of high-acid, low-sugar wines like these will cut through the saltiness or oiliness of a dish. Often, a hint of sweetness or fruitiness in a wine can counteract the fiery capsaicin in a spicy dish. To cool down the spiciest dishes, recommend a blush, Pinot Gris, Riesling or Sauvignon Blanc.


    Play it safe.

    If you do not know much about pairing wines, do not take a risk. Stick to the above rules and memorize some of the most traditional wine pairings, or use suggestions from our wine pairing tips.

    When upselling wine, the most important thing is to satisfy the customer. It is important to seem knowledgeable and to be prepared to make good wine suggestions, but make sure servers do not condescend customers. In the end, only two things matter: making the sale and making the customer happy.
    Written by Daniel Grossmann

    Monday, 7 October 2013

    Restaurant Consumer Psychology

    Updated October 7th 2013
    Use consumer psychology, visual displays and creative packaging to reinforce your customer’s positive association with your restaurant’s brand.

    Master grabbing a customer’s positive attention before customer service or food quality is considered. Accomplish the positive branding in your food service business by working with consumer psychology and using creative visual displays and packaging. When done correctly, these three components work together to create a rewarding experience for new and regular customers.

    What is Consumer Psychology?

    Consumer psychology is the study of how people are influenced through feelings, beliefs and perspective when making a purchase decision. It is valuable to restaurant owners as it creates an outline of how to capture the attention of target audiences by catering to their behaviours and habits.

    Here are some suggestions to appeal to your customer’s emotional reasoning:
    • Appease hunger immediately and offer samples in line or complimentary snacks to nibble while waiting for food to be prepared. Customers will realize that you have put yourself in their position and while maybe the preparation takes some time, the result should not be influenced by a bad first impression.
    • Welcome each guest with a smile and a hello from the moment they walk in the door. Sympathy is developed among people within a few seconds. Make sure you use them right as it is a multiplier for all following reactions.
    Incorporate these strategies in your restaurant’s décor with the following suggestions:
    • Display awards, community involvement or rave reviews as decoration. Keep it clean and uncluttered for a streamlined presentation.
    • Communicate the benefits of incorporating your menu into your customer’s lifestyle. Encourage your customers to make good decisions by visiting your online store often.
    • Whatever is difficult to get for private people, think about offering it to them because you have access to it. Special drinks, spices, teas, cups, etc.
    Creative Packaging Example:
    1. Each guest grabs a bag and fills in the circles next to the ingredients they would like included in their sandwich.
    2. The customer hands the bag over to an employee and then the sandwich is prepared.
    3. When the product is ready, it is placed in the bag and handed back to the customer.
    This process is creative, interactive, communicates order accuracy to each customer and has marketing value as every customer will run around with that bag and even maybe promote the food he has in it.

    Consider adding the following to your dine-in or take-out packaging:
    • Customize your packaging to include your restaurant’s brand on each bag or take-out box. Think about what your target audience is receptive to.
    • Create interaction with your brand. Print a variety of riddles, fun facts or some local trivia on your napkins or paper cups.

    Each of these creative marketing concepts work by capturing your customer’s attention once they are already dining with you. Remember to give each customer a reason to choose your restaurant as a preferred dining option. Engage customers with positive language about your restaurant’s brand or concept and captivate your audience of raving fans
    .
    Written by Daniel Grossmann

    Friday, 4 October 2013

    Upselling in Restaurants

    Updated October 4th 2013
    Upselling is the most cost efficient way to improve profits.

    Upselling tries to convince customers to buy extra menu items or upgrade their current purchase. “Would you like a side salad with that?” is the classic example. Sometimes, upselling is also known as suggestive selling. If your servers and cashiers are not practicing upselling, it is time to instruct them to and show them how. Upselling is one of the quickest ways to improve profits without spending any extra money. 

    Good upselling has the following results:
    • More customer satisfaction as you recommend something the customer did not think off but is very suitable or simply a “MUST TRY IT”.
    • Increased check (bill) average. By selling more items and upgrades, you will increase the size of the average check in your restaurant.
    • More profitable sales. In addition to selling more items, your waiters are selling more per customer. Upselling menu items with highest profit margins or higher prizes is not recommended. Aim at providing a good service by recommending items and you will be doing great on a long term basis.
    • Better tips and job satisfaction for servers. Higher check averages means higher tip rates, which will make your servers happy.
    • What to Suggest. The better trained your servers are, the more competent they will be to recommend what is really suitable and appreciated. Special wines, appetizers, side dishes that fit the menu or beverage add-ons, all help to increase the positive restaurant experience for your customer.
    • Desserts. If you are not training your servers to upsell, chances are you are not selling nearly as many desserts as you could. All servers should offer customers dessert after clearing the plates, describing the sweets in mouthwatering detail.
    • Upgrades. At McDonald’s, you used to hear, “Would you like to super-size that?” This is a classic example of upselling through upgrades.
    • A full-service or quick-casual restaurant can also offer upgrades. For example, if a customer orders a steak, the server might upsell a truffle sauce or herb butter.
    Use the above guidelines to train servers and cashiers in good suggestive selling techniques. Once they learn which items to upsell, they can start to tailor their upselling to the specific customer. Some customers want suggestions, and others want to be left alone. If servers become capable enough to know the difference, upselling will increase both profits and customer satisfaction at your restaurant.
    Written by Daniel Grossmann

    Wednesday, 2 October 2013

    Restaurant Word of Mouth Marketing

    Updated October 2nd, 2013
    Word of Mouth Marketing is a marketing technique dependent upon loyalty, but has the ability to reach countless potential customers. Find out how you can improve your Word of Mouth Marketing efforts here.
    The strongest marketing technique within consumerism is word of mouth marketing. An elated customer could talk all day about the new thing they’ve just tried and that’s a plus because when it comes to product recommendations, 65% of consumers trust friends over experts.  This is likely due to the sneaky nature of the undercover “experts” who are somehow intermixed with the business, in turn profiting from the advertisement and product, even if it is subpar. Nonetheless, you can tap into this marketing approach to legitimately increase your business.
    There are three correlating strategies to help you do so:

    1) Increase customer volume

    As obvious as it may seem, the first necessity of an increased word of mouth marketing team is a greater customer volume. Simply put, you need to increase the number of people that can spread the word. To initially drive in potential “marketers”, you can offer new customers a deal through Groupon, Living Social or another local discount site. Your deal will be advertised to hundreds of prospective customers with an incentive such as “Buy One, Get One Half Off or Free” or “Pay $15 for $30.” When you steadily expand the number of customers you serve while providing your upmost service, you are increasing the possibility of guests sharing with others. Interested in starting a viral coupon experience? Read more in our article entitled, “5 Ways Restaurant Owners Can Use Online Coupons Effectively”.

    2) Give them something to talk about

    When a meal or service is memorable, customers are bound to share their experience with co-workers, friends and family.  Granted, not every chicken sandwich can make a person’s list of “Best Meals”, but the service can pick up where the food may be humdrum in nature. Greetings, smiles, jokes, generosity, among other things are greatly appreciated by patrons. Due to the fact that such chivalry and niceties are uncommon, customers will make certain that they recall this specifically about your restaurant. Go out of your way and have your employees go out of their way to make the customers feel appreciated. Think outside of the box for other ways to impress your customers. Make them want to brag about you.

    3) Provide social media incentives

    Social media is today’s pool of resources, packed full of swimmers and runners who update their friends on a regular basis through a post, comment, tweet or ‘like’. These actions may be forwarded to millions of other people with a single click. Never has the world experienced such a simple way to transmit a message. Failing to utilize social media sets your restaurant back a couple of decades. You may as well be doing business in the Dinosaur Age. It doesn’t matter whether you use Facebook, Twitter, Foursquare, Yelp or other social media sites; chances are that they are your best opportunity for earning the testimonial of everyday people.  Promote social media activity that promotes your restaurant by offering various incentives such as:
    • Free drinks for checking in to Foursquare while at the restaurant
    • Receive 10% off your next bill with a Yelp Review
    • Dessert thrown in with any entrée order when you add a location update in Facebook
    Promote social media activity that correlates with your restaurant for highly effective and immediate word of mouth marketing.
    Written by Daniel Grossmann