Food Trucks – What to Consider

Attendees at the NRA show had an opportunity to learn a little bit more about the intricacies of owning and operating a successful food truck. Ross Resnick, founder of the food-truck-locating website www.roaminghunger.com, offered a variety of tips to succeed in this growing foodservice segment.

Since 2009, the number of trucks listed on the Roaming Hunger website has grown 710 percent, to more than 2,300, Resnick said. Food truck growth is anticipated to grow another 260 percent by 2014.

According to Resnick, food truck success depends on many factors, but mostly dependent upon brand differentiation, reasonably sized menu, sales locations, strong media presence and patience when it comes to growth.

He also warns that owning a food truck is not a get-rich-quick type of business. Food trucks are no longer a novelty and must be built as sustainable businesses where customers want to eat frequently.

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.

Customer Loyalty Programs Really Do Increase Business

Does your restaurant have a loyalty program? If it does not, you may want to consider implementing a program soon. According to recent data from the National Restaurant Association, approximately 30% of restaurant operators are offering frequent-diner programs to their customers in order to increase patronage and loyalty. The research found that 57% of all adults said they would be more likely to patronize a restaurant that offered a customer-loyalty and/or rewards program.

By offering a customer loyalty program, or a rewards program of some kind, you can give consumers the feeling of increased value. This is especially important in the mind of today’s consumer who wants to dine out, but may need a little more incentive to do so. A customer loyalty program is a terrific way for operators to thank their guests, as well as continue to build on their customer base going forward.

Spread the Word

According to the National Restaurant Association, word of mouth is the most effective way to spread the message of a restaurant’s popularity.

According to a recent survey, 93% of all adults questioned said they likely would choose a restaurant based on recommendations from family and friends. Word of mouth has also moved beyond face-to-face and telephone conversations. Restaurants must also consider how their establishment is being talked about online, based on the increasing number of people that post to Facebook and Twitter.

Restaurant Strategies for a Tough Economy

It’s no secret that we are in a less-than-ideal economy at the moment. However, that’s why it is more important than ever for restaurants to promote their services in the most cost-effective way possible. Eating out is a luxury that not all people can manage, therefore it is important for restaurants to make sure they stand out above their competition.

Marketing your restaurant or brand can be difficult to do on a small or nil budget; however with so many free resources available online, it’s certainly not an excuse as to why you are not marketing your business. Restaurants should be actively using free online tools such as Facebook, Twitter, YouTube and blogging websites, if they are not already. There are plenty of topics that can easily be promoted on such sites to gain publicity for your restaurant or bar.

For example:

• New menu selections and product launches
• Promotions for loyal Facebook fans and Twitter followers
• A restaurant remodel
• Community service events
• Charitable donations made
• Celebrating a restaurant’s anniversary
• Holiday and special events marketing
• Personnel promotions

There are also many restaurant-related websites that will help you to market your business with press releases. For more information visit www.restaurantnews.com.

Takeout Proves to be Strong Source of Revenue

Providing your consumers with the option for takeout could bring increased sales to your restaurant. A recent Technomic survey indicates that 57% of consumers recently surveyed say they purchase takeout once a week or more. Of those consumers who purchased takeout, 60% said that if they had not done so on that occasion they would most likely have made food at home and not purchased from a foodservice operator.

Takeout provides an effortless dining option for consumers focused primarily on convenience.

What's Your Opinion on Displaying Calorie Content

Two researchers from the City University of New York School of Public Health at Hunter College are surveying the perceptions of restaurant owners and managers. The scientists are studying the consequences of the new menu labeling law that requires establishments owning 20 or more locations to list calorie content for standard menu items on their restaurant menus, menu boards and drive-thru menu displays.

With growing emphasis on health and obesity in America, researchers are investigating how increased food legislation is affecting the restaurant industry. The online survey takes about 10 minutes to complete. Take the survey now at: http://www.formstack.com/forms/?1093287-rjK3bxNSem

Happy Holiday Sales Predicted for Restaurants

The holiday season is upon us, and it would appear that restaurant sales for the new few months are looking up. Sales in November were up and according to a recent survey, consumers’ restaurant spending plans over then next 90 days jumped by about 7%. This is the largest increase in expectation to spend in over a year, according to an article published by Nation’s Restaurant News.

Restaurants are expected to see the highest increase among consumer sectors, with a projected growth of around 4 percent. Analysts are optimistic that the growth trends will carry over into the first quarter of 2012.

The Cost of Starting Up a Restaurant

Did you know that it can coast anywhere from $450,000 to $525,000 to start-up a restaurant?

John Kunkel has worked in the restaurant industry since he was a teenager. He learned the ropes of the service industry from the front-of-the-house. By the time he was 29, he was ready to go out on his own. His first venture was to open a bakery in South Beach Miami, FL. The bakery was slow to take off, but eventually found a successful footing.

However, a year after opening the bakery, John decided it was time to move on. He saw a need for a value-driven place that South Beach residents could return to on a daily basis. That’s when he opened Lime, a healthy Mexican eatery that had lines out the door from its first day in business – and has remained popular ever since.

Check out John’s article featured on www.inc.com. John gives an overview of what he has learned about start-up costs for a restaurant, in the years he scraped together funds for his first place to working with a franchise heavyweight.

More than Minimum Wage

Recent findings indicate that it takes more than money to retain restaurant employees. QSR magazine writer, Jordan Melnick, recently published an article on employee retention in the restaurant industry. While the restaurant industry may be of the largest employers in the country, it also has a reputation for high employee turnover.

Melnick cites successful restaurant owners as saying that the key to employee retention goes beyond money and benefits. Employees want to know that advancement is an option, and they want to be able to see a clearly defined path on how to get to the top. Restaurants that invest money in employee retention and advancement will end up with an increasingly loyal workforce.

Sometimes it is easy to forget that the employee who applied for the dishwashing job, does not necessarily want to wash dishes for the rest of their life. As an employer, anything you can do to encourage employees to move up within your business will benefit both of you in the long run.