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Business Section General Business Overcoming the challenge of tough economic times
Overcoming the challenge of tough economic times PDF Print E-mail
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Written by Tom Kelley and Denis Sparagis   
Friday, 22 August 2008 13:12

tom-kelley.jpgAlliances. It is the one simple word that successful operators have realized truly matters in both good and challenging times. As your business navigates the leaner times ahead, consider the following recommendations:


Community alliances: reach out and sustain win-win partnerships with professional and recreational groups that cater to your primary customer segments – baseball leagues for the casual segment; business associations/Chambers for higher-end dining.


Charitable giving: talk to your guests and staff to designate one local or national organization (with a local affiliate) to support for at least one year. While no one likes to say no to the multiple “asks” received almost daily by operators, few will argue with a the good cause you are supporting. Be sure that the organization you support supports your local community by getting on a local affiliate Board.


Lead: Lend your business expertise to a local non profit or Chamber. Become not just a business leader, but a civic leader. Lead on local, regional, state and national levels. Don’t just join organizations, help shape them.


Showcase: Participate in food shows and festivals. Concentrate on your one or two signature dishes – ones you do better than anyone. Use your website to keep guests familiar with your signature dishes and activities


Promote: List your alliances on the back of your menu. Tell a little about your charity support and why the team thought it was worthy. Let the charity promote you as well. Better they tell your story than you do.


Be seen: Get out of your kitchen or dining room and dine at other restaurants, create friendships with other operators and chefs. Support local businesses. Show up for community events.


Motivate the troops: Incentivize your team to promote your signature creations. Get them out into the community as well. Reward them and keep them.


Having proposed these recommendations, allow us to remind you of two “don’ts:


Don’t coupon: It highly diminishes your brand and the value of your establishment. If you feel the need to promote, create tasteful cards to insert in check jackets or distribute around town that suggest folks come back and enjoy your signature dishes during different meal time segments. Promote a new dish or appetizer combos. Never talk about price or percentage off.


Don’t advertise: It’s one of the biggest drains on your bottom line. Create news releases and, if possible, hire an expert to help you generate some tactical and strategic news and buzz about your establishment.

One last thing, don’t be afraid to ask for help. We know there’s a lot of pride and perhaps just a bit of an ego in all of us, but you can’t be an expert at everything. Reach out to other operators, other chefs, web resources or specialty consultants for a quick review of operations or with specific questions. None of us can do it alone.


Again, it’s about alliances.


Concept-Group-logo_.jpg


Tom Kelley and Denis Sparagis are Principals in Concept Group USA – Strategic Brand Consulting, with offices in Washington, DC, Kennebunkport, ME and Canada. The firm specializes in building and refining brands, building end-to-end operational solutions for hospitality operators and in helping operators and suppliers build meaningful and enduring alliances.


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Peter Blanchard  - Don't advertise   |08-22-2008
Didn't someone say "only advertise if you want customers?" Of course advertising is expensive, but if it works then that's a reasonable expense. We use both local and specialized magazine advertising and enjoy significant business as a result - so don't advertise - huh?
Tom Kelley  - Advertise?   |08-22-2008
Peter,

Glad you found some advertising that was targeted enough to earn some results. What we are cautioning is a blind reliance only solely on ads vs a mix of public relations, community relations outreach and in-house promotions (not discounts.)

Tom
James Ringrose  - A balanced view   |08-22-2008
I am also a great believer in the notion of the "marketing mix".

As someone who published magazines and websites funded by advertising, I suspect that you can guess that I think advertising (especially web advertising) is actually a good idea.

Much of what Tom and Denis say is correct. Perhaps it's the balance that a classic marketing mix offers that is missing. Do everything in moderation and you will be fine - is a good sentiment.
kelly789  - Not a restaurant owner   |08-22-2008
It's obvious that the author does not own a restaurant and had little understanding of the current operating pressures we are under. This is a list of what not to do! How about concentrating on core values and focusing on your guests?
Tom Kelley  - Oh come on!   |08-22-2008
The "authors" have over 40 years of direct, hands-on operational experience, backed up by about 15 years of assisting start ups and small restaurants build out brands that are unique, innovative and relevant. No time for cheap shots in our world.

If you go to our site (www.conceptgroupusa.com) and read some of our other writings, you'll see we encourage more than anything a steadfast reliance on a solid brand, a core brand promise and making your guests a key part of your marketing program...they are your biggest fans.

If you don't believe building alliances and relationships can benefit your operation perhaps that's why your challenges might be greater than need be. I hope not.

That's what's great about our industry, an optimistic and collaborative community willing to try to assist one another
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Last Updated ( Friday, 22 August 2008 14:06 )
 
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