Starting a Restaurant – Part Two
In Part One of Starting a Restaurant, the key elements of making your dream come true were explored only briefly. There are a couple of points to be made about one of those three key points. Your plan.
A good business plan for starting your restaurant will include sections that outline cash flow, concept, staffing, training, location needs, equipment and operations. Probably the most important part of the business plan is your marketing plan. Great food, exceptional location and plenty of cash will do you no good if your seats are empty.
When creating a marketing plan, remember there are three parts to the definition of marketing;
- Communicating your message to the prospect (customer).
- Selling the product (your menu items).
- Delivering the product and meeting the customer’s expectations.
Unfortunately, most new restaurateurs believe marketing is synonymous with advertising. Restaurant advertising is only one piece of the marketing puzzle. Independent restaurants cannot expect to compete with multi unit chains to drive traffic to their restaurant by using traditional media advertising. You will lose the battle. Marketing will account for 4 to 6 percent of your sales. If you have annual sales of $1,000,000, your $40,000 budget is no match for an Olive Garden who may spend that for one ad placement.
Advertising in newspapers, television and traditional media is expensive and may serve as an option for an opening blast, but on a long term basis, you have to find other ways to spend your money that will get your message to your prospect. There are more economical and effective ways to reach your guests.
If you have a marketing background and experience in the industry, you already know some of the options that can propel your operation into the limelight of a customer’s mind. If not, you may want to invest in The Restaurant Ebook that spends a great deal of time showing you how to market your restaurant. Chapter Seven of the book has 100 Ways to Market Your Restaurant and Increase Sales.
Opening a restaurant means selling your guests your food. Most restaurants rely on two methods – the server and your menu. Neither are perfect, but combined they should be your primary sales tools.
Delivering your product to the guest and meeting the guests’ expectations is the final element of marketing. Many non-marketing students of restaurant operations are surprised to find out that service and presentation are part of marketing. However, if you look at any other business model, aren’t those elements key to preserving customers and getting new one’s in the door? Do you think Fedex could survive if they couldn’t (literally) deliver what they sell and package it for attractive and convenient use by the consumer?
Your restaurant marketing plan needs to address all facets of the guest’s communication and contact with any part of your operation. Staff needs to be involved to complete the experience.
As discussed in the first part of Starting a Restaurant, few food service operations survive. Increase your chances by using the marketing elements and techniques described here to give your restaurant a better chance to beat the odds.
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