This issue we have another guest columnist, Bill Barker. Bill is a Commercial Segment Marketing Specialist with Gordon Food Service. He has excellent insight into the industry with tons of operations experience as well as 10+ years working for Gordon Food Service. Bill specializes in partnering with operators looking at their business model, engineering their menus and helping them establish best practices to optimize their efficiency and profitability.
If we could only count on Chef Ramsey to enter our facilities and save us from our own nightmares we would all be able to sleep a little better at night. As nice as that would be it probably won’t happen any time soon.
I promised myself I would not join the ranks of many gloom and doom stories about how bad the economy is and the devastation most of our Independent Food Service Operators are facing. I chose to offer some insight on issues and solutions that are real and of concern of the customers I consult with.
In this issue we will highlight the following topics:
Building sales in a slow economy
Quality versus price
“HOW DO WE BUILD SALES IN A SLOW ECONOMY?”
By far this has to be the number one question presented to me on almost a daily basis. The answer is not easy and requires a lot of thought and creativity. The easiest way I found to answer this is by watching what the national chains are doing and then adapting it to your style and brand. Remember these chains teams of people that research how to take market share (from you!)
I am sure some of those listed here will be all too familiar with you however; there is commonality here in what they are doing to gain that market share.
Mimi’s Café like several others have gone down the avenue of smaller portions with lower prices. They have spent very little of their marketing budget getting the word out through table tents, direct mailings and their web site.
Applebee’s has been blanketing the airwaves with their 2 meals for $20.00. The consumer gets to choose one sharable appetizer and choice of two entrees from a list of nine options.
Logan’s Roadhouse offers two meals for $12.99, on a recent visit to a Logan’s on a Tuesday night at 7:00 p.m. they were on a 1.5 hour.
T.G.I. Friday’s has hired Guy Fierri to promote their version of the “Right Price, Right Portion” concept. Here again they are offering some of their popular entrees in smaller portions at a discounted price and at the same time not sacrificing food cost. According to Erik Blauberg, Chief Executive EKB Restaurant Consulting “The most popular menus right now are those $20.00 three course menus. They’re important because you can make money on them and they raise customer counts. These margins may not be where you would like them however; I would rather make 7 or 8 dollars on a menu item than nothing at all.”
Don’t think these casual restaurants are the only operators offering these specials as I ran across an advertisement for McCormick & Schmick’s offering a $29.99 steak and shrimp special. Can you imagine McCormick & Schmicks offering such a deal!
Remember you don’t have to be like the national chains; you can tweak their ideas and make them your own!
QUALITY VS. PRICE
One thing I hope you have noticed is that I never suggest cutting quality to make up for food cost and margins. An example of this would be if you are known for a quality steak house you may consider lower the grade of your steak. As Technomic’s Darren Tristano notes puts it “Consumers want to feel that their dinner experience is a good value regardless of the price point.” Changing your product quality is probably not the best avenue to go down.
There are several ways to control your food costs without changing your quality.
WASTE TALLIES: these sheets need to be posted in the kitchen area and need to be completed for any reason there is food being thrown away. By having this information documented you can react quicker to reducing the amounts being prepped or reevaluate storage procedures. These sheets also need to be tallied each month to determine what level of food cost percent was affected.
LIMITED TIME OFFERS: This is by far the easiest way to drive food cost down and drive profits up. Take advantage of seasonal pricing opportunities or hot pricing specials from your distributors. The cost of producing limited time offerings is far cheaper than redesigning your everyday menus.
STANDARIZED RECIPES: Be sure to have all your recipes documented and make sure the kitchen staff is following them as they are written to ensure no over prepping. This is also important in consistency from day to day. This is especially important in making scratch soups and sauces as this is always one of the areas that, inspires random creativity.
PRODUCT EVALUATIONS: Check in regularly with your GFS Customer Development Specialist to determine what like products are available without cutting quality. GFS has many private label products that meet or exceed the National brands and Government specifications.
EVALUATE PORTION SIZES: Most consumers are willing to sacrifice the larger portions (which they usually take home) for a lower price offering. If you see that your guests are taking almost as much home with them as they eat this may be the time for considering “Right portion, Right price”.
DESSERT MENU OFFERINGS: In economic times such as these many consumers are passing on dessert as a way to keep their dining budgets in line (not to mention all the diets that will be started after the new year). Smaller dessert offerings are a way to offer lower price desserts without giving up your profits. It also provides the perception that if it is small it can’t be that bad for my diet. GFS has the tools and resources to help you build your new dessert menus.
Tuesday, December 23, 2008
Monday, December 15, 2008
Return Engagements
“The past is a guidepost, not a hitching post.” L. Thomas Holdcroft American Author.
Has anyone noticed a very popular concept that retailers are using this holiday season to help draw people into their establishments in January and February? I have three examples in my wallet right now, and I can’t believe that I haven’t passed this along sooner! Sometimes the answers lie right in front of us and it takes a while for us to recognize that it has been there all the time.
We all know that the key to success in our industry is repeat customers. In today’s economy it is even more important for us to seize the opportunities that lie before us and find a way to draw these same customers back again. How are you doing that? Are you improving your food quality? Your service profile? Or are you lowering your prices? Are you running loss leaders? All of these can be effective measures to draw customers back to your restaurant, but I think I came across a couple that are even better.
The first one I want to talk about is the one that I discovered while shopping for my daughters at American Eagle this weekend. It is kinda sneaky but it got me building my ticket size so that I could take advantage of it. I also want to talk about another variation of this same concept that I think adds some elements that will really speak to your customers.
Right now American Eagle is running the “for every $50 you spend you can get a $10 gift card for after January 1” promotion. This is effective because it gets customers (and me) finding that one more item that will propel them over that $50 increment so that they can take advantage of the next $10 gift card. It builds their check size and all but insures that I (or my kids) will be back in January to cash in my gift cards. Not a bad way to lock out the competition. American Eagle even imposed a minimum purchase in January for that gift card to be valid. I have to spend $50 more in order for that gift card(s) to be effective.
Buona Beef is running a similar promotion right now. They are offering a $5 gift certificate valid between January and March for every $25 gift card you purchase today. They are hoping to leverage that $5 gift certificate into a visit by you and a friend or two or three. Besides, who buys just $5 anywhere they go? Not a bad concept – they get cash now and give you a piece of paper that 25% or so of us will lose anyways. What a great way to convert today’s customers into customers in January and February, something we would all like to do.
My favorite variation of this concept is the “Secret Envelope” version. I think this one is a home run because it really does create good will and a talking point for word of mouth advertising when your customers leave. To implement the Secret Envelop tactic, all you need to do is create a wide range of prizes ranging from something as trivial as a cup of coffee all the way up to something as outrageous as a $500 gift card and stuff them into different envelopes. Here is the kicker, your customers can’t open the envelopes themselves (if they do, they forfeit the prize). They have to bring the envelopes back into the restaurant (during the designated time period [January – March]) to have a staff member open it to discover what their prize will be. What a great way to create a buzz and bring back that energy and enthusiasm to your customers.
Has anyone noticed a very popular concept that retailers are using this holiday season to help draw people into their establishments in January and February? I have three examples in my wallet right now, and I can’t believe that I haven’t passed this along sooner! Sometimes the answers lie right in front of us and it takes a while for us to recognize that it has been there all the time.
We all know that the key to success in our industry is repeat customers. In today’s economy it is even more important for us to seize the opportunities that lie before us and find a way to draw these same customers back again. How are you doing that? Are you improving your food quality? Your service profile? Or are you lowering your prices? Are you running loss leaders? All of these can be effective measures to draw customers back to your restaurant, but I think I came across a couple that are even better.
The first one I want to talk about is the one that I discovered while shopping for my daughters at American Eagle this weekend. It is kinda sneaky but it got me building my ticket size so that I could take advantage of it. I also want to talk about another variation of this same concept that I think adds some elements that will really speak to your customers.
Right now American Eagle is running the “for every $50 you spend you can get a $10 gift card for after January 1” promotion. This is effective because it gets customers (and me) finding that one more item that will propel them over that $50 increment so that they can take advantage of the next $10 gift card. It builds their check size and all but insures that I (or my kids) will be back in January to cash in my gift cards. Not a bad way to lock out the competition. American Eagle even imposed a minimum purchase in January for that gift card to be valid. I have to spend $50 more in order for that gift card(s) to be effective.
Buona Beef is running a similar promotion right now. They are offering a $5 gift certificate valid between January and March for every $25 gift card you purchase today. They are hoping to leverage that $5 gift certificate into a visit by you and a friend or two or three. Besides, who buys just $5 anywhere they go? Not a bad concept – they get cash now and give you a piece of paper that 25% or so of us will lose anyways. What a great way to convert today’s customers into customers in January and February, something we would all like to do.
My favorite variation of this concept is the “Secret Envelope” version. I think this one is a home run because it really does create good will and a talking point for word of mouth advertising when your customers leave. To implement the Secret Envelop tactic, all you need to do is create a wide range of prizes ranging from something as trivial as a cup of coffee all the way up to something as outrageous as a $500 gift card and stuff them into different envelopes. Here is the kicker, your customers can’t open the envelopes themselves (if they do, they forfeit the prize). They have to bring the envelopes back into the restaurant (during the designated time period [January – March]) to have a staff member open it to discover what their prize will be. What a great way to create a buzz and bring back that energy and enthusiasm to your customers.
Wednesday, December 3, 2008
Know Means No
This week I am excited to announce that I have a guest writer, Ken Wasco. Ken is a member of the National Speakers Association and the GFS marketing team who's gained a wide reputation in the food service industry for presenting timely seminars and workshops on obtaining higher levels of personal effectiveness through an emphasis on communication skills. As a highly regarded and entertaining presenter Ken has conducted thousands of sessions and written many articles on accomplishing results through people.
When it comes to change, hearing “no” is a great positive start!!
Got anyone on your staff who gives you a hard time whenever you ask them to do something new? Welcome to the club - we all know people resist change. Or better said – fear change – when fear is removed positive change happens – how? Read on!
“Positive Change” is not a contradiction in terms! It’s doable. All it takes to achieve it are some basic skills on your part. How basic? Hey if you can listen, write and talk - you can do it!
Let’s start with the writing part. Take out a note pad and write down the names of the people you work with that you’d most like to improve the “change attitude” of – one name per line with three columns. Now let’s go to “people school” on why they act the way they do!
Understanding the people side of management involves harnessing the dynamics of “human nature” – those sides of our personality that we all hold in common. Smart leaders improve their business not through forcing change but by focusing on their people first - through using the power of human nature in positive ways to help their people be the best that they can be. What results is a better operation too. Here’s three parts of that human nature that I bet you’ve seen in action.
Human nature says - “people want to be in the know”
“people want to be better off tomorrow then they are today”
“to one degree or another all of us resist change”
The “in the know” stuff, that’s why we watch the news, gossip, and buy tabloids. The “better off” stuff – watch out here because there are all types of ways that people define “better off” – more friends, more respect, more money are just a few – to motivate anyone you need to know what they want more of and don’t assume anything it’s different for everyone. If you know an important goal of each individual – write it along side their name – if you don’t – find out.
Now think about each person on the list and what kind of comments they say when you ask them to do something new – write each person’s favorite “excuse” after their name.
Here are a few of my favorites… “That’s not the way we do things around here.” If ain’t broke why are you fixin’ it?” “That’s not my job.” “We tried that before and it didn’t work.” ‘That will never work.” “Why is it always me and not somebody else who has to do this stuff?”
All these excuses are really hiding a very little word that they won’t say directly because they know you hate hearing it – that word only has 2 letters. Ready for a “people shock”? I think those who complain the loudest when you ask them to do something new are actually the best assets you have toward accomplishing the change you want. Why? Because their not going behind your back and bellyaching, they are telling you what they don’t like to your face – they’re communicating with you even if you don’t like what they’re saying. With people we can always deal with what we know and as long as they are talking then you know how they feel.
As manager’s we hate hearing “no” because we all think in simple positives and negatives, debits and credits, good and bad – but people who resist change really aren’t disguising the word “NO” –they are disguising the word that sounds just like “NO” yet it’s spelled differently “KNOW”. People put their feet in concrete when they fear what “might” happen. They don’t know why they should do this - how it will make their lives better – in short, what’s in it for them? Your job – as a leader of people – is to take the time, however much time it takes, to make sure each of your people understand the positives that will result from new activity.
Now let’s really give you an option for success with your team. However before I do that I just have to ask you one question, how often do you hold team meetings? Let me tell you a little secret – that question is one I ask foodservice professionals all the time. Guess what I hear? “Meetings, I hold them as little as possible” “Only when I have to” “I never have anything new to talk about” “We used to hold them but were too busy now” and on and on and on…. Yet what amazes me is that the people who are telling me that are the very ones who asked me to come in and give them a few suggestions. Well here is one for you right now.
THERE IS AN EXACT CORELATION BETWEEN HOW SUCCESSFUL YOUR BUSISNESS IS AND HOW WELL TRAINED YOUR TEAM IS.
Trust me on this one – the organizations that leap into your brain when “great guest service” comes to mind are the very ones who hold employee meetings EVERYDAY. Yup, you heard me – E V E R Y D A Y ! And oh by the way, those meetings never last longer then 5 minutes and never mention anything negative. What they talk about is the one person who they noticed doing the “best” at something today. People love attention – they love to be singled out in front of their peers – and those who aren’t will move heaven and earth to get you to mention them next time. How will they do that? They learn what gets your positive attention every time you mention how someone got your attention by doing their job “extra special” today. Once they KNOW what works – they’ll do it for themselves – not because you ordered them to, but because they want to.
When it comes to change, replace hearing “no” when your team speaks with thinking “know”, it can be the best comment you’ll ever hear!
Got anyone on your staff who gives you a hard time whenever you ask them to do something new? Welcome to the club - we all know people resist change. Or better said – fear change – when fear is removed positive change happens – how? Read on!
“Positive Change” is not a contradiction in terms! It’s doable. All it takes to achieve it are some basic skills on your part. How basic? Hey if you can listen, write and talk - you can do it!
Let’s start with the writing part. Take out a note pad and write down the names of the people you work with that you’d most like to improve the “change attitude” of – one name per line with three columns. Now let’s go to “people school” on why they act the way they do!
Understanding the people side of management involves harnessing the dynamics of “human nature” – those sides of our personality that we all hold in common. Smart leaders improve their business not through forcing change but by focusing on their people first - through using the power of human nature in positive ways to help their people be the best that they can be. What results is a better operation too. Here’s three parts of that human nature that I bet you’ve seen in action.
Human nature says - “people want to be in the know”
“people want to be better off tomorrow then they are today”
“to one degree or another all of us resist change”
The “in the know” stuff, that’s why we watch the news, gossip, and buy tabloids. The “better off” stuff – watch out here because there are all types of ways that people define “better off” – more friends, more respect, more money are just a few – to motivate anyone you need to know what they want more of and don’t assume anything it’s different for everyone. If you know an important goal of each individual – write it along side their name – if you don’t – find out.
Now think about each person on the list and what kind of comments they say when you ask them to do something new – write each person’s favorite “excuse” after their name.
Here are a few of my favorites… “That’s not the way we do things around here.” If ain’t broke why are you fixin’ it?” “That’s not my job.” “We tried that before and it didn’t work.” ‘That will never work.” “Why is it always me and not somebody else who has to do this stuff?”
All these excuses are really hiding a very little word that they won’t say directly because they know you hate hearing it – that word only has 2 letters. Ready for a “people shock”? I think those who complain the loudest when you ask them to do something new are actually the best assets you have toward accomplishing the change you want. Why? Because their not going behind your back and bellyaching, they are telling you what they don’t like to your face – they’re communicating with you even if you don’t like what they’re saying. With people we can always deal with what we know and as long as they are talking then you know how they feel.
As manager’s we hate hearing “no” because we all think in simple positives and negatives, debits and credits, good and bad – but people who resist change really aren’t disguising the word “NO” –they are disguising the word that sounds just like “NO” yet it’s spelled differently “KNOW”. People put their feet in concrete when they fear what “might” happen. They don’t know why they should do this - how it will make their lives better – in short, what’s in it for them? Your job – as a leader of people – is to take the time, however much time it takes, to make sure each of your people understand the positives that will result from new activity.
Now let’s really give you an option for success with your team. However before I do that I just have to ask you one question, how often do you hold team meetings? Let me tell you a little secret – that question is one I ask foodservice professionals all the time. Guess what I hear? “Meetings, I hold them as little as possible” “Only when I have to” “I never have anything new to talk about” “We used to hold them but were too busy now” and on and on and on…. Yet what amazes me is that the people who are telling me that are the very ones who asked me to come in and give them a few suggestions. Well here is one for you right now.
THERE IS AN EXACT CORELATION BETWEEN HOW SUCCESSFUL YOUR BUSISNESS IS AND HOW WELL TRAINED YOUR TEAM IS.
Trust me on this one – the organizations that leap into your brain when “great guest service” comes to mind are the very ones who hold employee meetings EVERYDAY. Yup, you heard me – E V E R Y D A Y ! And oh by the way, those meetings never last longer then 5 minutes and never mention anything negative. What they talk about is the one person who they noticed doing the “best” at something today. People love attention – they love to be singled out in front of their peers – and those who aren’t will move heaven and earth to get you to mention them next time. How will they do that? They learn what gets your positive attention every time you mention how someone got your attention by doing their job “extra special” today. Once they KNOW what works – they’ll do it for themselves – not because you ordered them to, but because they want to.
When it comes to change, replace hearing “no” when your team speaks with thinking “know”, it can be the best comment you’ll ever hear!
Subscribe to:
Posts (Atom)
