Profits, Naturally

“We get paid for bringing value to the marketplace.” Jim Rohn, author and speaker.

Last issue I explored a couple of different methods for raising your menu prices to adapt to the changing economic conditions (higher fuel costs and increased food costs) by offsetting the price with a value proposition for your customers. From the response I got, I think it is a topic that I should continue to expand upon. I have stumbled upon another value proposition that can add dollars to your bottom line while further developing your restaurants’ reputations as a destination location. It also will provide you with a cutting edge image and create a substantial point of differentiation from your competitors.

Consumers (just like you and me) are bombarded by messages and images that we need to be more health conscious. You can’t watch TV or read a magazine or newspaper without encountering some news story aimed at increasing our awareness of the importance of leading a healthy lifestyle. In my eyes, that means a heck of a lot of people are doing the marketing for you, if you are willing to step out and do something different from your competition.

We have heard all about the value of switching to zero trans fat oils for our frying (if you haven’t – it is time to move out of the cave). I don’t think this is a fad, I believe that it is here to stay. You can capitalize on that trend by switching to all zero trans fat oils AND noting it on your menu. Don’t be afraid to move the price up a little for the added benefit of knowing that your deep fried cheese sticks are a little bit healthier because they were fried in a healthier oil! It is not a crime to provide an added service and charge for it.

Along that same vein is getting out in front of the industry trend toward organics and natural products. Consumers are more educated today than they ever have been. Whole Foods continues to expand their presence in the market (and serving meals to go) and consumers are willing to spend more on items they perceive to be healthier alternatives (see the aforementioned Whole Foods). In the 2007 Consumer Attitudes about Nutrition survey they found that 60% of consumers are willing to pay extra for healthier foods. Why not take advantage of all of the publicity that this trend is receiving in the media and rework your menu to include some healthier – more natural / organic – options?

In a recent issue of Food Navigator (an online industry newsletter) they cite a study conducted by the USB that “respondents insinuated they would like the products they already enjoy to be made healthier.” This rings true in my life – I have been one of those people paying exorbitant prices for organic meats at Whole Foods. I, like many other consumers, am willing to pay more for something that I perceive is bringing added value to my life or dining experience. I have seen a number of successful restaurants jump on this trend and switch their meats to All Natural selections and raise their prices because of the added value they are providing their customers. Not only did they provide a healthier alternative to their patrons, but they created a significant point of difference from their competition. That is the kind of point of difference that will lead to word of mouth advertising, which invariably leads to sales and profit growth for the operator (YOU).

A tighter economic climate does not have to lead to leaner times for restaurant operators. In fact, it could mean newer, increased profits for operators IF they are willing to think outside the box and creatively add value and difference to their customer’s dining experiences. REMEMBER, YOUR COMPETITION ISN’T JUST INCREASING, IT IS IMPROVING TOO.