Disney World and Restaurant Business Has Much in Common in This Economy
Among the roller coasters, thrill rides and attractions at Disney World is one called Mission Space. It is probably the most controversial ride Disney has ever offered. There have been at least two fatalities and regular calls for paramedics to treat people who suffer from the effects of a supposed spaceship trip to outer space created in a centrifuge.
Without a doubt it is the most intense experience I have ever had at a theme park. I was glad I chose to go, but vowed never to step foot on it again.
That is exactly what I feel about the ride we are on in the restaurant business. I never want to be on it again! The intense struggle to maintain customers, enhance menu’s for consumer trends, monitor skyrocketing food costs, reduce fixed costs and keep guest counts up is a daily battle.
If you listen to the QSR chains, consultants and self proclaimed marketing gurus, their answer for everything is some form of discounting – coupons, two-for-ones, free giveaways and big incentives. If you think about it, this is the answer they have to ALL marketing problems, even in the best of times! Will they work? Sure, as long as you have the deep pockets to take less money for the same product in the short term. Think about it. You are struggling to keep the doors open, so you cut prices and reduce margins. Someone needs to remind the industry that our profit margins are extremely thin in great years. How does this philosophy make sense for the long term? Can you survive by cutting your profit out of each check? Makes no sense to me!
One other alternative is to do nothing. If you can afford to wait the economy out, this may be your lifeline. Your bank account will suffer, but you can count on being one of the survivors of this shipwreck. If your bank account isn’t that strong, read on.
There are other options. Here are a few:
- Adjust Your Menu – Even people with substantial resources (money) are eating differently. Their portfolios are shrinking and fear reigns throughout Wall Street. It is much easier to choose that alternative $30 entrée as opposed to that $60 aged steak. The middle class are eating more comfort foods and venturing through the golden arches for $1 menu’s, no matter how bad the food is or how bad it is for you. Be creative by finding lower cost proteins and center fo the plate items that will keep your margins and offer real value to guests.
- Step Up Customer Loyalty Programs – E-mail marketing is a favorite tool of mine. Let people see your brand more often. Let them know you have more things on the menu to fit their budget. If you want to offer incentives, get your guests bring in new customers for that free appetizer or dessert. Spend your advertising budget getting existing customers to help you through this economic downturn.
- Cut Costs at Every Opportunity – I have yet to see a restaurant that can’t find some expenses that could be reduced, re-negotiated, eliminated or deferred. Good times for the restaurant industry for years prior to 2008 may have lead to a lot of fat and comfortable procedures that can’t be tolerated now.
- Eliminate Waste – Are you using the trimmings from meats, vegetables and fruits? Is every hour of employee time necessary? Are there too many lights on at night (or any other time)? Are your employees grazing too much? Can the Chef cut back on experimentation? Is the dishwasher full each time it is run? Have you bid out your inventory list?
- Use All the Free Advertising Tools Available – Are you sending out news releases that are published for free? Have you sent food to any radio shows lately? When have you dropped off your take out menus to barber and beauty shops? These and one hundred more restaurant marketing ideas are in the book The Restaurant Ebook, A Guide to Keeping Your Restaurant Off the Chopping Block.
Disney World is only a couple of hours from my home and restaurants. When this crisis is over, I’ll be satisfied to take my grand children to see Mickey Mouse and watch Tinkerbell at The Magic Kingdom. No more wild rides.
Larry Edger
Author, Restaurant Owner
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