Five Elements of Restaurant Selection

According to a 2012 Restaurant Industry Forecast, there are five key elements involved with consumers’ decision to choosing which quick service or takeout restaurant to frequent. Those five elements are food quality, value received for price paid, length of time it takes, convenient service/delivery, and convenient ordering options.

80% of people surveyed responded that food quality was their prime motivator in frequenting a restaurant. With more than one million restaurants across the country, the competition for business is growing in intensity. With so many options available, consumers don’t’ feel compelled to return to a restaurant that does not live up to their expectations.

Is it time to change your menu? Some establishments choose to change the menu seasonally, others monthly, and others irregularly. In many instances, change consists of incorporating new limited-time offers. Here are some important menu factors to keep your restaurant competitive and increase your profit margin:

Does your menu lack variety when compared to your competitors? Consider adding any specific items that competitors successfully offer that are not part of your menu. If you can develop dishes that compare to competitors signatures, you may be able to draw in some of their customers.

Is there a menu item that we should have but don’t that is key to our concept? Explore the menus of other establishments that serve your cuisine. Are they offering ethnic dishes that would fit well with the theme of your menu? With the new emphasis on health in dining, maybe it’s time to expand your offerings of lighter fare.

Once you’ve decided what menu changes are necessary, it’s important to take into account operational considerations that can make the change easier and more profitable.

-Will your kitchen equipment be appropriate for the new items?

-Does the new menu item follow a similar prep process to items you already prepare?

-Does execution require special steps that will slow down your kitchen?

-Will the new item require any special ingredients not currently purchased?

When it comes time to put the changes in print, Serv-U offers menu jackets and high quality menu paper in a variety of designs. If you are testing out special, limited-time offers, menu clips are a great option to debut the selection to your customers. Menu development is an important process—positive changes will impress your customers and generate growth to your bottom line. 

Sunshine and warmer weather mean that, for much of the country, outdoor dining season is about to begin! If you provide outdoor dining to your patrons, now is the time to get the deck, sidewalk, or patio in condition. Buying appropriate supplies to utilize your space can vastly increase your restaurant’s seating space and, if the weather plays along, your income for the summer. Serv-U offers the equipment and furnishings you need to transform your outdoor space into a seasonal money-maker.

To get your deck a summertime atmosphere, you will need furniture that is durable while giving a seasonal vibe. Our inventory includes a wide selection of outdoor seating in a variety of textures and weather resistant materials such as teak wood, melamine, polypropylene, aluminum and resin. These pieces are specifically designed and constructed to withstand the damaging effects of sunlight and moisture. Another popular choice is our wrought iron collection which can easily transition from outdoor to indoor use thanks to its versatile design aesthetic.

To shield your customers from the hot summer rays, a market umbrella may be a wise investment. Portable patio fencing is another option to consider for customer comfort. Bordering your patio can create a more private and secure dining experience in the open air environment.

Flow pattern and space considerations that were important to the design of your indoor dining area are still important to outdoor areas, however you may have more flexibility to experiment. Use the spring season to figure out what works. Opening up your outdoor space early pays off when customers are seeking destinations to dine in the early spring sunshine!

Name your product--pizza, pretzels, pastries, bagels and more. When you can deliver these items to your customers at the perfect temperature and texture, you earn big sales for your deli, café, or concession stand. Heated display merchandisers are designed to deliver the profits. Serv-U offers a range of merchandisers to suit each product’s unique holding needs.

Pizza is a favorite product at sporting events, fairs and concerts for its alluring visual presentation and familiar taste. Appeal to all the customer’s senses by keeping your pies hot and delicious in a 1 or 2-door pizza merchandiser. For superior taste and texture, it’s important to invest in a humidified merchandiser. Slices stay soft and fresh for a longer shelf life because of the consistent heat. You can give your customers a piece of quality pizza, beyond the confines of the parlor.

Pretzels, pastries and other bread products are also best served by humidified display cabinets. Humidified warmers are designed for a more rapid rate of turnover, guaranteeing a fresh, soft pretzel always available for your customers to purchase. They allow you to control the temperature and humidity and are often illuminated for optimum display. The maximum capacity 3-tiered warmer can hold up to 72 pretzels, but if space in an issue compact models can save you money by not requiring too much additional room. Hanging racks can be replaced with flat ones to hold bagels, donuts, scones or sandwiches, depending upon your needs.

A state-of-the-art display case can set you apart from your competition. Tempered glass, digital thermostats, and bright lights are all available within Serv-U’s selection of merchandisers. Such features will assure your customers of professionalism and dedication to high standards.

Today, a quick roundup of some extreme restaurant marketing in the news lately:

1)    An upscale NY eatery is giving away meals to promote its new menu choices.  (As we noted in a blog post last week, reworking your restaurant’s menu can be a margin-boosting decision.)

2)    T.G.I. Friday’s is offering a “buy one, get one free” deal.

3)    For the savvy eater, some UK restaurants offer coupons online.

4)    Even Starbucks is adding “value meals” to their menu.  (Ok, maybe that’s been done before and doesn’t really qualify as “extreme,” but Starbucks?  Really?)

5)    So-called “occasional” restaurants are popping up.  Many make regular changes to their décor or implement other near-theatrical gestures that they claim draw diners for the “adventure.”

Add your own ideas for "extreme" restaurant marketing in the comments section below!

To wrap up our series of blog posts about improving your bottom line, I’d like to cover a few extra ways to save your business money—and increase your profits.  One is through creative menu-making.  With food costs in flux, many restaurateurs are finding this to be a good time to rework their menus, featuring high-profit and value-oriented items in the most eye-catching locations.  Changes in menu offerings and prices often lead to renewed customer interest and higher profits.  Rather than outsource your menu-making, though, make your own menus with quality menu paper and protective menu jackets.  Making your own menus also allows you complete control over the finished product.  If you’re looking for a way to offer seasonal items or daily specials, consider inexpensive table tents; use them to keep your food inventory in check and reduce spoilage.  Write-on signs are another good choice for featuring a particular dish for a limited time.

Besides revamping your menu, it’s always a good time to reenergize your employees.  The foodservice industry isn’t suffering the labor shortages more common in years past, but it is still important to invest in keeping your managers, cooks, and wait staff at the top of their game.  An essential tool in brushing up on skills or retraining staff is a collection of specialized foodservice training books and manuals.  In fact, with “poor service” often named the #1 consumer complaint about dining out, training your staff to offer the best service possible is a way to differentiate yourself from your competition.

You can give new life to your seating, too, with replacement furniture parts.  In these economic times, it is often more cost-effective to replace the necessary parts rather than purchase new.  For example, a barstool with a worn seat can get a fresh look with a slip-on seat cover—at a fraction of the cost of new furniture.  Even if you’d just like to test out a new décor, barstool covers and replacement seats allow you to make the transformation at a minimal cost.  At Serv-U, we carry replacement seats for wood furniture, upholstered seats for metal barstools, barstool swivels, slip-on barstool covers, metal barstool frames, chair glides, table base plates and columns, and even upholstery by the yard.

Of course, there are times when you need new furniture.  After all, your dining area needs to be comfortable, inviting, and up-to-date for your guests.  For new restaurant furniture, you can count on Serv-U to supply you with top-quality chairs, barstools, booths, and tables at factory-direct prices.  For the best quality furniture for the price, look for Serv-U Furniture in our catalog and online.  Many styles are in-stock for immediate shipment, and our sales staff is very well versed on the details of our furniture; just call 800-797-3788 to have any questions answered.  We also have complete turnkey services if you are considering a remodeled kitchen or dining area; for details, call 800-797-3788.

In these economic times, security is critical.  Be sure that you protect your hard earned profits by using a heavy duty safe.  Depository safes allow employees to make quick and easy deposits without access to the inside of the safe.  If you have any more money-saving tips or if you have tried any of the above ideas successfully, email your stories to us at servusales@servu-online.com and we will add them to this blog.  Thank you for your patronage.

Restaurant advertising could get messy this year.  Take, for example, Domino’s TV ad featuring their chief executive burning a cease and desist letter from rival Subway.  In fact, destroying cease and desist letters may be the real trend.  Captain D’s just launched a new website (irefusetoceaseanddesist.com) in response to Red Lobster’s cease and desist letter.  Their new site shows a video of a man tearing up said letter.

Why all the hostility?  It’s a cramped market, and according to some, it’s shrinking: “Goldman Sachs analyst Steven Kron recently estimated that 12,000, or up to 8% of all casual-dining locations, are needed to close to balance supply and demand.”  Thus, niceties are out; food fights are in.

Sounds like bad news, but it could actually be good for independents and chains with creativity on their side.  If, as one of my favorite bloggers Peter Romeo suggests, casual restaurant chains are suffering from a bad case of Sameness, then restaurants with unique offerings could become a bright spot in 2009.  So differentiate yourself from the competition…and take off the kid gloves in your advertising!

If you’d like to read more about these recent “food fights” (looking for inspiration?), check out Romeo’s post on this topic over at his personal blog.

Many experts say that the economic doldrums are not the right time to cut back on marketing your restaurant.  Burger King has certainly taken that to heart and unleashed a series of unconventional advertising campaigns, from a burger-scented cologne to “Angry Grams” (picture a burger hollering and bouncing around your computer screen).  They’ve just pulled the plug on their latest project, however.  It was known as the “Whopper Sacrifice” Facebook deal.  “De-friend” ten Facebook friends and you could’ve earned a free Whopper—but not anymore.  The Chicago Tribune cites the number of “de-friended” Facebook users as 233,906 and that was enough to get the attention of the higher-ups at Facebook.  Because the “Whopper Sacrifice” program included notification to those people who’d been “de-friended,” Burger King had to choose to comply with limitations on notification or drop the promo.  They chose the latter.  And although the campaign lasted less than a month, it’s been talked about on nearly every foodie blog online and, obviously, in many print publications.  That’s a lot of publicity for a very small investment.

Free publicity notwithstanding, I think there are better ways to get peoples’ attention; what kind of marketing have you found effective for your restaurant?

“The reality today is you have to find a way to put golden handcuffs on a chef in some fashion…Typically that involves giving them some sweat equity.”

So says Michael Bonadies, formerly of Myriad Restaurant Group.  He and a few other industry pros were recently interviewed for a Pittsburgh Business Times article about chef turnover.

Turnover rates are notoriously high in the foodservice industry and employee retention is consistently ranked as a leading concern among restaurant operators, as well it should be.  Employee turnover is an expensive ordeal; just try out the employee turnover cost calculator mentioned in an AllBusiness.com article.  And while the costs may be evident, the solution to the problem is less obvious.  How can restaurateurs overcome the perception of bad pay and worse hours to appeal to highly qualified and dedicated applicants?  Perhaps more importantly, how does a restaurateur go about keeping those well qualified workers?

The Pittsburgh Business Times article suggests offering chefs a “stake” in the restaurant, some “ownership.”  At first blush, this seems like a pretty good idea—a chef may be less likely to leave if she or he feels integral to the continued success of the restaurant—and if she or he is fairly compensated for ensuring that success.  But does it work?  What are the complications of this approach?

An NRN article today highlights other ways to motivate and retain restaurant employees.  One restaurant mentioned in the article feeds their employees for free.  Another holds recipe creation competitions.  One of the larger chains holds conference calls between their store managers and company execs.  Recognition of good work seems to be a common theme, and one that I think anyone can appreciate—even if we sometimes forget its importance.

So what are your tips to retain your best employees?  How do you motivate them to give their best every day?

How do you compete with Wal-Mart’s deli?  With the local supermarket’s tempting cases full of prepared foods?  If you haven’t yet come up with a strategy, now is a good time to start.  The truth is that many consumers are now turning to supermarkets to spend their limited “dining out” dollars.  Supermarket prices are one part of the equation, but a search for healthier alternatives is another part.
 

Add to that the fact that supermarkets are trending towards a more manageable building size, and the American public has been given some very convincing reasons to make the switch from restaurant dining to grocery take-out.  As one New York Times article says, “After years of building bigger stores — many larger than a football field and carrying 60,000 items — retailers are experimenting with radically smaller grocery stores that emphasize prepared meals, fresh produce and grab-and-go drinks.”

What strategies do you suggest to cope with the increase in grocery shoppers?  If your eatery has been unaffected, to what do you attribute your continued success?