Learn some of the tools to improve your restaurant's profitability from restaurant marketing strategies to expense management.

1. Achieving Financial Goals
For Your Restaurant

2. Today’s Environment
For Restaurants
Competition for restaurants has increased significantly over the past few
years. Changing consumer lifestyles has led to rapid growth of new
concepts while traditional restaurant concepts have seen declines.
Combined with competitive issues, economic concerns have also been on
the radar screen of many restaurant owners. Outlined below are the top
concerns that keep restaurant owners awake at night:
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How do I increase sales and reduce cost?
What will be the impact of food cost on my business this year?
How will government policies impact my business?
Rising minimum wage cost and the impact it brings.
How will rising gasoline prices impact the discretionary spending of my
customers?
• Where do I find the time to do everything?
The purpose of this document is review different options for restaurants
owners to help improve the profitability of their restaurant during these
challenging times.
Top Line Bottom Line Solutions for Restaurants
A recent article in by Nations Restaurant News is quoted as saying “85
percent of consumers survey said they eat at fast casual restaurants at
least once a month”. These are startling results for a category that barely
existed ten years ago.
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3. When examining opportunities to improve restaurant profitability there are
two basic strategies to meet this objective
In realty a strategy needs to be developed that achieves both goals. For
many restaurant owners, they may not be aware of all of the different
techniques to accomplish this. In our interviews with restaurant owners
across the country, the majorities of owners are working hard in their
business, but are not effectively on their business.
Driving Revenue
Programs to drive revenue are the cornerstone to many restaurants both
chains and independents. In some ways, the revenue streams for
restaurants can be looked at like the sales funnel for a B2B enterprise.
Outlined below is one way to look at it
Traffic
Generation
Programs
Customer
Satisfaction
Execution
Customer
Retention
Strategies
Top Line Bottom Line Solutions for Restaurants
Increase Top Line Sales Revenue
or
Reduce Expenses
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Let’s explore the various programs.

4. Driving Revenue
Increasing Traffic
• Local Search Visibility Programs
• Web Site
• SEO Strategies
• Online Ordering Programs
• Social Media Networks
• Brand Reputation Programs
• Traditional Advertising
• Local Magazines
• Direct Mail Programs
• Cable TV
• Local Marketing Programs
• Community Involvement Programs
• Cause Related Marketing
• Restaurant Week Events
• Community Fairs / Events
Top Line Bottom Line Solutions for Restaurants
There are many types of programs to drive traffic for your restaurant. Each
of them serve their own place in the equation and often there are
programs out there that achieve multiple goals. Below are some of the
traffic driving techniques for restaurants:
Each of these programs are designed to get people in the door of your
restaurant to try your food. Once they are in, it is important for restaurant
owners to capitalize on this opportunity and build a loyal customer.
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5. Driving Revenue
Customer Satisfaction
Most restaurants do not have a specific plan to measure customer
satisfaction and rely only on what people tell them. To be honest, how
many people will tell you they did or did not have a good experience in
your restaurant? Review sites such as Yelp or Trip advisor are an outlet for
consumers to give your business a review and are an example of how the
Word of Mouth strategy has changed. A recent Harvard study concluded
that a single star increase in your rating can impact your sales by s much as
five percent. Clearly, it is important that your restaurant have a customer
satisfaction strategy. Below are some of the ways in which restaurants can
have an impact on customer satisfaction:
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Menu item selection.
Signature menu items – What are you know for.
Server training.
Food quality.
Instant reviews from customers
Four walls marketing techniques.
Happy customers are an important benchmark of any business and lead to
customer retention and referrals for your business.
Top Line Bottom Line Solutions for Restaurants
Are your customers satisfied? How do you know? Do you have a strategy
to improve customer satisfaction?
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6. Driving Revenue
Customer Retention
What are effective tools for retaining customers? Technology has created
many new opportunities for retaining customers that often utilize many of
the techniques described in both driving traffic and customer satisfaction.
Outlined below are just some of the tools that have not been previously
mentioned.
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Email marketing.
Loyalty Programs
Text Messaging
Frequency Programs
Fundraising Programs
When implemented correctly, these programs create a communication
strategy with your customers for you to let them know of any special
programs, new menu items and special offers for their birthdays or
anniversaries.
Top Line Bottom Line Solutions for Restaurants
You have driven traffic in, created satisfied customers, what is your
strategy for bringing them back. For an average casual dining restaurant,
the lifetime value of a customer is approximately $40,000 dollars. That is
important to know if in developing a plan to bring customers back and
have them give referrals for your restaurant.
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7. Reducing Expenses
Reducing Expenses
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Menu Engineering
Inventory Management
Portion Control
Liquor Control
Labor Scheduling
Marketing Cost
Utilities Management
Controllable Expense Management
• Supplies
• Credit Card Processing
• Phone Expense
• Comps
Top Line Bottom Line Solutions for Restaurants
Improving top line revenue is important, but reducing expenses is an essential
tool for the restaurant owner to utilize. Outlined below are some of the areas
that should be looked at for reducing cost.
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8. Measuring Success
Measuring Success
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Food Cost clearly not identified or measured.
Little or no budget set aside for marketing.
Deep discounts given that drive down revenue.
Over staffed or understaffed due to labor scheduling issues.
Not enough sales volume due to lack of traffic.
At CORE Restaurant Marketing we believe in a very strategic plan to
managing and measuring success. We also recognize that our clients
have limited time availability due to the nature of the business and
we work with them in a variety of Pay for Performance and Coaching
Programs.
Top Line Bottom Line Solutions for Restaurants
How does a restaurant measure success of various programs? The NRA has
suggested guidelines for expense management. My experience has shown me
that most restaurant owners do not have a solid grip on these measures to
manage success. The largest issues I have found in working with restaurants
are the following
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9. To learn how your restaurant can improve their
profitability, contact CORE Restaurant Marketing. Just one
phone call can help identify revenue opportunities for your
business. A Free Revenue Potential analysis will be
prepared for your restaurant with no obligation.
We can be reached on the following ways:
Phone – 1-888-890-9492 x 101
Email – info@corerestaurantmarketing.com
Web – corerestaurantmarketing.com
Top Line Bottom Line Solutions for Restaurants
Measuring Success
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